Wellington Region Local Government Review Panel - Issues Paper · 4 Tell the Panel what you think...
Transcript of Wellington Region Local Government Review Panel - Issues Paper · 4 Tell the Panel what you think...
Future Wellington - An Issues Paper on local government reform in the Wellington region
Rt Hon. Sir Geoffrey Palmer (Chair), Sue Driver, Sir Wira Gardiner, Bryan Jackson.
1
Preface 2
Tell us what you think 4
Summary of issues for consultation 5
Chapter 1: How the Panel came about 10 • Purpose• BackgroundtotheestablishmentofthePanel• TermsofReferenceforthePanel
Chapter 2: Who are we? 14• TheWellingtonregion• Currentlocalgovernmentarrangements
Chapter 3: Constitutional, legal and policy context 20• LocalgovernmentandtheConstitution• Thedemocraticimperative• Thelegalcontext• Thepolicycontext• TheMäorirepresentation
Chapter 4: Governance issues for Wellington 33• Achangingmandatefromcentralgovernment• Localdemocracy• Effectiveness–strategy,planninganddecisionmaking• Efficiency–useofresourcesandcapabilities• Keyissuesandopportunities
Chapter 5: Rates, finance and efficiency 60• Introduction• Settingthecontext–fundingandfinancialmanagement• OverviewofthefinancesoftheWellingtonregion’slocalauthorities• Realisingefficiencysavingsfromlocalgovernmentreform
Chapter 6: Options 77
Appendix 82
Contents
2
Preface
Themechanismsoflocalgovernmentarenottopofmindformostofthepeoplewhoselivesareaffectedbyit.Manythinkthatthejoboflocalgovernmentistoprovidethedrainsandsewagedisposalfacilities,fixthelocalroadsandbridges,takeawaytherubbish,anddeliverareliablewatersupply.Inordertodelivertheirserviceslocalgovernmentleviesratesonpropertyowners.
Ifonlylifeweresosimple.TheactualandreallifedetailsoflocalgovernmentintheWellingtonRegionexhibitmanifoldcomplexitiesthatneedtobeunderstoodbeforeanyattemptcanbemadetochangethem.HowmanypeoplereallyknowwhattheGreaterWellingtonRegionalCouncildoescomparedwithaCityorDistrictCouncil?Howdecisionsaremade,whomakesthemandwhopaysforthemareofcriticalimportancenotonlytothequalityofthosedecisionsbutalsothedemocraticlegitimacyoftheexerciseofpublicpower.Localgovernmentinvolves:
• Publictransport
• Publicfacilities,suchaslibraries
• Regulationofsomecommercialactivitiesinthepublicinterest,suchasrestaurantsandbars
• Thedrawingupofenvironmentalplans
• Theissuingofresourceconsents
• Planning,devisingstrategyandadvocacy
ThisIssues PaperistheworkofanIndependentPanelappointedbytheGreaterWellingtonRegionalCouncilandthePoriruaCityCouncilaspartofaprocessofinvestigatinglocalgovernmentreformintheWellingtonregion.ThePanelhasbeengivenclearbutwiderangingTermsofReferencethataresetoutinthispaper.
TheissuesunderreviewbythePanelhavebeenthesubjectofseriousconsiderationwithintheregionsince2009.TheIssues Papersetsoutandreliesuponsomeofthedetailedanalyticalworkthathasalreadybeendoneonthetopic.TheissueshavebeendiscussedbytheWellingtonRegionalMayoralForum,butnoagreementwasreached.TheGreaterWellingtonRegionalCouncilproposedthatanindependentPanelbeestablishedtoconsidertheissues,althoughonlythePoriruaCityCouncilagreed.TheotherCouncilsintheregiondecidedtogoinotherdirectionsastheywereentitledtodo.Manyofthemareconductingtheirownconsultationsandhaveproducedtheirownmaterialaboutthewayforward.
ThesituationfacedbythePanelisthereforeoneofclutterandconfusionthatwillmakepublicconsultationdifficultandcoherencehardtoachieve.ButthePanelisdeterminedtopushaheadbecauseitisconvincedtheissuesareofprimeimportancetothefutureofthepeoplewholivewithintheregion.
3
TherearethreefeaturesdrivingtheinvestigationthePanelisconducting.ThefirstisthecreationoftheAucklandsupercity.ThathaschangedthefaceoflocalgovernmentinNewZealandandremovedthepreviouspatternofuniformity,necessarilyopeninguplocalgovernmentgovernanceissuesfortherestofthecountry.Second,therehasbeenapronouncedeconomicdeclineintheWellingtonregionthathasserioussocialandeconomicimplications.IntheviewofthePaneltheseneedurgentlytobeaddressed.Third,therehasbeentheNewZealandGovernment’sreviewoflocalgovernmentBetter Local GovernmentandtheintroductiontoParliamentoftheLocalGovernmentAct2002AmendmentBill2012thatintendstochangetherulesaboutamalgamationsandfacilitatethem.Allthesedriversareanalysedinthispaper.
Inthepublicdebatethathasalreadytakenplacetherehasbeenmuchfocusonstructures.ThePaneldoesnotseetheprimeissueinthatway.Theexerciseisabouttheneedsofratepayersandresidentsandhowtomeetthoseneeds.ThePanelistshaveawiderangeofexperience.Thatdiversityshouldbeastrength.ThePanelhasfounditeasytoworktogether.MostimportantlythePanelhasnovestedinterestinanyoutcomeotherthanonethatadvancestheinterestsofthepeoplewholivehere.SofarthePanelhasnoviewsonwhatthebestoptionisinchartingthewayforward.ButinthispaperthePanelisaskingsharpandhardquestions.ThePanelwantsasmuchpublicfeedbackaspossible.Theissuesareimportanttoeveryonewholiveshereeveniftheyarenottopofmind.
GeoffreyPalmerChair, Wellington Region Local Government Review Panel
4
TellthePanelwhatyouthink
ThroughouttheIssues PaperthePanelhasraisedsomesignificantquestionsaboutgovernanceoftheWellingtonregion.ThesearesummarisedintheSummary of issues for consultationsectionbeginningonpage5ofthisIssues Paper.
ThePanelisveryinterestedinyourresponsestotheissuesandquestionsinthispaper,aswellasanyothermattersyouwouldliketoraiseinrespectoftheWellingtonRegionLocalGovernmentReview.
ThereareanumberofchannelsthroughwhichyoucanprovideuswithyourviewsandfeedbackontheissuesthePanelhasraised:
• DownloadacopyoftheIssues Paperandasubmissionformatwww.wellingtonreviewpanel.org.nz
• Leaveyourfeedbackonlineathttp://feedback.wellingtonreviewpanel.org.nz
• Byemailingyoursubmissionorfeedbacktoinfo@wellingtonreviewpanel.org.nzormailingitto:
IssuesPaperWellingtonRegionLocalGovernmentReviewPOBox11-646MannersStreet
• Publicmeetingsarealsobeingorganisedforanumberofcentresthroughouttheregion.Pleasevisitthewebsitewww.wellingtonreviewpanel.org.nzformoredetails
TheinvitationtorespondtothesequestionsisopenuntilFriday 7 September 2012.
What the Panel is interested in hearing about
InthinkingabouthowyourespondtothequestionsitisimportanttorememberthePanel’staskistoconsideranumberofissuesinrelationtolocalgovernmentgovernanceintheWellingtonregion.
Theseissuesrangefromcitizenengagementinlocalgovernmentdecisionmaking,andtheimpactofdemographicchangesonplanningdecisions,throughtoachievingmoreintegratedinfrastructureplanning,andimprovingalignmentoflocalgovernmentwithcentralgovernment,theprivatesectorandthecommunitysector.ThefullTermsofReferenceforthereviewcanbefoundonthewebsite:www.wellingtonreviewpanel.org.nz.
5
Summaryofissuesforconsultation
1. TheindependentWellingtonLocalGovernmentReviewPanelhasbeenestablishedtoassessgovernancemodelsfortheWellingtonRegionandidentifyanoptimalone.ThepurposeofthisIssues PaperistoprovideacontextforthePanel’sconsultationsuponitsTermsofReferenceanddefineissuesuponwhichitwishestohearviews.
2. TheWellingtonregionishometonearlyhalfamillionpeople.TheunitsofLocalGovernmentinvolvedintheareaunderreviewaretheWellingtonCityCouncil,thePoriruaCityCouncil,theKapitiCoastDistrictCouncil,theHuttCityCouncil,theUpperHuttCityCouncil,theMastertonDistrictCouncil,theCartertonDistrictCouncil,theSouthWairarapaDistrictCouncilandtheGreaterWellingtonRegionalCouncil.
3. Therearethreefactorsthathavestimulatedthereview.TheNewZealandGovernmenthasintroducedaBillofParliamenttoreformaspectsoflocalgovernmentandtofacilitateamalgamationoflocalgovernmentunits.IthastakenstepstoensurelocalgovernmentcontributestotheGovernment’sbroaderagendaofbuildingamorecompetitiveandproductiveeconomyandimprovetheefficiencyandcosteffectivenessofthedeliveryofpublicservices.
4. SincelocalgovernmentinNewZealand“dependsuponthepoliciesandexpectationsofcentralgovernment”peopleexpressingviewstothePanelneedtobeawareoftheNewZealandgovernment’slocalgovernmentpolicythatissummarisedinthepaper.Centralgovernmentischanginglocalgovernment’srole.ThecreationoftheAucklandsupercityhaschangedthefaceoflocalgovernmentinNewZealandandremovedthepreviousuniformframework.Economicadversityhashittheregionrequiringbettermeasurestocombatitandstrongeradvocacy.
Doyouthinklocalgovernmentshouldbedoingmoretosupporteconomicgrowthanddevelopmentintheregion?Doyouthinkmoreneedstobedoneintheregiontoimprovetheresilienceofourinfrastructuretobetterprepareforhazardevents?
ThePanelwantstoknowwhatWellingtonpeoplethinkofwhathashappenedinAuckland.Whatimplications,ifany,doyouthinkthecreationoftheAucklandsupercityhasfortheWellingtonregion?
Thepoliticalcultureandthedemocraticimperativerequirethatlocalgovernmentleadingdecisionmakersareelected.Yettheparticipationratesinlocalbodyelectionsaresolowastobeacauseforconcern.Inthe2010localelectionswithintheWellingtonregionthevoterturnoutrangedfrom39percentto57percent.Whydoyouthinktheturnoutatlocalgovernmentelectionsissolow?Doesitmatter,andifitdoes,whatcanbedoneaboutit?Wouldlargerunitsoflocalgovernmentwithwiderresponsibilityattractbettercandidatestorunforofficeandmakethevotersmorelikelytovote?Shouldothermeasuresbeadoptedtomakeiteasierforpeopletovote?
Therehavebeenbigdebatesforabout30yearsinNewZealandaboutMäorirepresentationinlocalgovernmentandtheobligationsoflocalgovernmenttorecognisetheTreatyofWaitangi.Itisanissuethatevincesstrong,evenpolarised,views.InanyreorganisationoflocalgovernmentwithintheWellingtonregionhowshouldtheissueofMäorirepresentationbedealtwith?
TheAucklandRoyalCommissiondevelopedfourprinciplesforshapingAucklandGovernance:common identity and purpose; effectiveness; transparency and accountability; and responsiveness.ThePanelthinksthosecharacteristicsofgoodlocalgovernancefitwellwiththePanel’sTermsofReferenceandwillbeusefultoguidethisreview.Doyouagree?IstheresomethingimportantthatthePanelhasmissed?
Thepanel’spreferredframeworkforexaminingthegovernanceissuesisbasedonthethreethemesoflocaldemocracy,effectivenessandefficiency.Doyouagreewiththesecriteria?
6
Doyouthinkcouncilsintheregiondoagoodjobatengagement,bothatthelocallevelandattheregionallevel?
ItappearstothePanelthatthechallengeforlocalgovernmentistobeorganisedinsuchawaythatlocalorneighbourhoodengagementanddecision-makingisauthenticwhileatthesametimetheregionalcommunityisabletomakedecisionsonissuesthatspanalargerareaandimpactonmorepeople.Doyouthinkthecurrentarrangementsallowthistooccur?Isthebalanceright?
ItalsoseemstothePanelthatleadershipisimportantatboththelocalandregionallevels.Doyouthinkthechallengesfacingtheregionwarrantastrongerregionalleadershipapproachwithstrongvoicesspeakingfortheregion?Ifamovetostrengthenregionalgovernancewereproposed,howcouldlocalleadershipbemaintainedorenhanced?
SomeCouncilsengagelocalcommunitiesthroughaCommunityBoard,othersdonot.DoyouthinktheuseofCommunityBoardsshouldbemorewidespread?
Effectivenessinstrategy,planninganddecisionmakingisanimportantdriverofsuccessfulgovernance.Itisalsoaboutunderstandingwhatfunctionsrequirearegionalviewandwhatfunctionsaremoreappropriatelyperformedatthelocallevel.Whatviewsdoyouhaveonthisissue?
IntheeventthatlargerunitsoflocalgovernmentareintroducedintheWellingtonregiondoyouseeanyadvantagesordisadvantagesintheAucklandLocalBoardmodel?
Doyouthinktheregionneedstodevelopaunifiedvisionandstrategicdirection,andifso,shoulditbeamandatoryrequirement?
Spatialplanningisagoodwaytoconsidercomplexandlargeinfrastructureissuesandguidedecision-makingonstrategicissues.WhatarethekeyissuesfortheWellingtonregionthatwouldbenefitfromsuchanapproach?TheAucklandlegislationrequiresaspatialplantobedrawnup.ButthereisnothingcomparableinWellington.WouldsuchaplanbenefittheWellingtonregion?
Whatdoyouthinkarethekeygrowthmanagementissuesforyourcommunityortheregion?Doyouthinkcouncilsneedtotakeacloserlookattheseissues?
Localplanningprocessesdiffersignificantlyaroundtheregion.Doyouthinkthereisvalueinamoreconsistentapproachbasedonmodelsthathavedemonstratedsuccess?
Therehavebeensomeefficiencygainsintheregionthroughsharedservicesapproachesbuttheycantakeconsiderableresourcestoputinplace.Shouldmoreeffortbeputtowardsasharedservicesmodel,ordoyouthinkefficiencygainswouldbegreaterfromreorganisation?
Doyouthinkthereisbenefitinconsideringamoreintegratedregionalapproachtothemanagementofwaterinfrastructureservicesintheregion?
Individualcouncilsintheregionspendsignificantresourcesonthemanagementandmaintenanceofkeyinfrastructuresuchasroads,stormwater,wastewater,watersupply,recreationalfacilitiesandcommunityfacilities.Doyouthinkthereisbenefitinmanagingthesethroughamoreregionalapproach?
WhatroleshouldCouncilControlledOrganisationshaveinfuturegovernancearrangements,howshouldtheybeorganisedandwhatareasshouldtheycover?
WouldasystemofintegratedconsentshaveadvantagesfortheWellingtonregion?Wouldtherebeadvantagesinaregionalapproachtotheadministrationofregulatoryactivities?
7
Whatchanges,ifany,needtobemadeinregardtothehandlingoftransportissuesbylocalgovernmentintheWellingtonregion?
5. Animportantfacetoflocalgovernmentisaboutrates,finance,debtandcosts.TheseissuesarecomplexbutthePaneltakestheviewthatitmustanalysethem.
6. ThefinancialimpactoflocalgovernmentontheWellingtonregionissignificant.Thecurrentfundingrequirementoflocalauthoritiesisbeingsubstantiallymetthroughratesandusercharges.The“amalgamated”financialstrengthofWellington’slocalauthoritiescouldbebetterleveragedforthebenefitofratepayersacrosstheregion.
7. EachLocalAuthorityhasacommonresponsibilityundertheLocalGovernmentAct2002tomanageitsfinancesinamannerthatpromotesthecurrentandfutureinterestsofthecommunity.Theactualapproachandstrategyadoptedbyeachlocalauthoritydiffers.TheimpactofthesedifferencespresentsasignificantchallengeinanyfutureshapeorformoflocalgovernmentforWellington.Forinstance,theadoptionofasingleratingsystemwouldaffectthedistributionandallocationofratesonabroaderbase.Ratepayersinoneareaarelikelytobeinterestedhowthecostofcurrentandfutureissuesinotherareaswouldaffectthem.Forexample,HuttratepayersmayaskwhytheyshouldpayforWellington’sdebtorleakyhomesliabilities;WellingtonratepayersmaybeconcernedatfundinganyinfrastructuredeficitintheHutt;WellingtonCBDmaybeconcernedwithanadditionalratingimpostunderasingleratingsystemthatincludesasignificantbusinessratingdifferential.
8. Financialstrategiesadoptedbyeachlocalauthorityidentifyanumberofsignificantfinancialchallengesandissuesinthecurrenteconomicenvironment.Affordability,willingnesstopay,fairnessandallocationoffundingneedsaresignificantissuesforlocalauthorities.
9. Theactualfinancialimpactforindividualratepayersorcommunitieswillnotbeknownuntilthefinalshapeofanyreformisdeterminedanduntilcurrentdifferencesinpolicyandfundingapproachesarereconciled.ThistooksometimeinAuckland.Intheend,Auckland’spreferencewastofundmostactivitiesonaregionalbasis,provideforfundingofspecificlocalneedsandtomanageorequalisetheimpactoffundingextremesonacasebycasebasisasrequired.
10. Efficienciesandsavingsfromamalgamationandsharedservicesmodelscanreasonablybeexpectedtoamountto2.5-3percentbasedontheAucklandexperience.Therearemanyexamplesofsimilarorunifiedservicesthatcouldbeprovidedonamoreefficientregionalbasis.Itneedstobeappreciatedthattoimplementsharedservicesmodelstakessignificanttime,negotiationandeffort.
11. Efficiencysavingsmayassistinaddressingthefinancialchallengesandpressuresfacedbylocalauthorities.Aucklandandoverseas’experienceshowsefficiencysavingsfromlarge-scaleamalgamationsarelikelytoberealisedoverthemediumtolongterm.Short-termsavingsandefficienciesmaybeoffsetbyadditionaltransitionandintegrationcosts.
12. RatingandfundingtoolsavailabletolocalauthoritiesundertheLocalGovernmentAct2002couldprovideflexibilitytofundlocalservicelevelneedswhilealsoprovidingfortheallocationofcoststospecificcommunitiesifitwerefairandequitabletodoso.
WouldtherebeanadvantageinasingleratingsystemfortheWellingtonregion?
Howcoulddifferencesincurrentservicelevels,levelsofinvestmentandinratingandfundingpoliciesbemanagedacrosstheWellingtonregion?
Whatisthebestwaytoaddressandfundlocalandregionalservicelevelandinvestmentneedsandrequirements?
Howshould“legacyissues”andlocalfundingneedsbeaddressedacrosstheWellingtonregion?
8
Legacyissuesareissuesofpastorganisationsfollowingachangeofsomesort,suchasdifferentdebtlevelsanddifferentapproachestorating.
DoyouconsiderthatefficiencysavingscouldbeachievedbyfashioninglargerunitsoflocalgovernmentintheWellingtonregion?
HowimportantareefficiencysavingsfromchangestotheshapeoflocalgovernmentacrosstheWellingtonregionrelativetoothertangibleandintangiblebenefitsthatmaybederivedbychangingtheshapeoflocalgovernmentacrosstheregion?
WhatlevelofefficiencysavingswouldberequiredinorderforyoutosupportachangeinthestructureoflocalgovernmentintheWellingtonregion?
WheredoyouconsiderthereisthegreatestopportunitytodayforoperationalandfinanceefficiencysavingswithinyourlocalauthorityoracrosstheWellingtonregion?
13. ThePanelisexpectedtoassesspossiblelocalgovernmentoptionsfortheWellingtonregion“andidentifyanoptimalone,whichmayincludeeitherstructuraland/orfunctionschanges”.
14. InordertofocustheconsultationthePanelnowsetsoutwhatitconsidersthoseoptionstobe.IfpeoplethinkthereareothersthePanelwouldbepleasedtoconsiderthem.
15. Thereareanumberoffunctionaloptionsavailable,coveringservicedeliveryandplanning.Thefunctionsarethosecurrentlyentrustedtolocalgovernmentbylaw.Theycanbecarriedoutinavarietyofways:Councilscandoeverythingthemselveswiththeirownstaffortheycancontractservicesout.
16. Theoverallaimmustbetoreducecostsasmuchaspossibleandthereareanumberofwaysinwhichtheefficienciesmaybeimproved.
• Option1:SharedServices.Councilscooperatetosharethecostsofdeliveringtheirservicesonanadhocbasisasthesynergiesappearandagreementscanbereached.Thisisthestatusquo
• Option2:Prioritisedsharedserviceswithstrongcollaboration.Thiscouldinvolveregionaljointventures,extendingtheuseofCouncilControlledOrganisationstomanagekeyservicesandinfrastructure.Thiswouldinvolveadeliberateandproactivedriveforsharedservices
• Option3:ServicesprovidedbyoneCouncilonbehalfoftheothers.Forexample,intheprovisionofpayrollservices.Thiswouldfacilitatethedevelopmentofcentresofexcellence
• Option4:Regionalplanningforparticularservices,assetsandinfrastructure.ThiscouldincludebindingregionalspatialplanningasinAuckland,aswellasregionalplanningfortransport,landuseamenitiesandnaturalhazards
• Option5:Harmonisedregulatoryprocesses-adeliberateregionalprogrammetoachieveconsistentregionalisedprocessesinresourcemanagement,buildingandresourceconsents
• Option6:GreateruseofCouncilControlledOrganisationstocarryoutfunctions
17. ThePanelisoftheviewthatform(structuresandsystems),shouldfollowfunction(roles,responsibilities,activitiesandmandateslaiddowninlegislation).ThePanelalsotakestheviewthatthereisnolongeraone-size-fits-allmodelforlocalgovernmentinNewZealand.Citizensneedtofashionarrangementstailoredtotheparticularcircumstancesoftheregion.
9
• Option1:Themostobviousoptionisnochange.Thestatusquooptionisalwayspopularwhenthereisnoagreementuponwhatshouldreplaceit
• Option2:RetaintheRegionalCouncilwithanexpandedregionalcouncilroleforspatialplanning.Amalgamationsofterritorialauthoritiescouldbeconsideredandtherearevariouscombinationsforthat.Communityboardsareanothervariableinthismix
• Option3:Two-tierlocalgovernmentwherethereisregionalrating,anddeliveryofregionalservicesbyasingleregionalcouncil.Localcouncilsasnowsetupwouldoperatelocalservicesandcommunityfunctionsinaccordancewithdefinedstatutoryprovisions.Allserviceswouldbefundedthroughasingleregionalratingsystem
• Option4:Twosub-regionalunitaryauthorities.ThefirstwouldbenamedWairarapaandcompriseSouthWairarapa,CartertonandtheMastertonDistrictCouncils.Thesecond,namedWesternLowerNorthIslandwouldcompriseWellingtonCity,Porirua,Hutt,UpperHuttandKapitiCoastcouncils.TheRegionalCouncilwouldbeabolished.Localboardscouldbeincludedtoenablelocalrepresentationonbehalfoflocalcommunities
• Option5:AsingleunitaryauthoritysimilartoAucklandbutwithfeaturestailoredtolocalcircumstancesandconditions.Thereareanumberofconsiderationswithinthisoptionincludingwhetherlocalboardsareadoptedorthepresentcouncilboundariesarekept,orcommunityboardsareused
WhatcombinationofchangeswouldbestallowtheWellingtonregiontoaddressthestrategicissuesitfaceswhileavoidingunnecessarycostsorchangeforchange’ssake?
10
1PricewaterhouseCoopers,Wellington Regional Councils Governance Review October 2010(PricewaterhouseCoopers,2010)at52.
Purpose of the Wellington Local Government Review Panel
18. TheWellingtonLocalGovernmentReviewPanel(thePanel)isanindependentgroupsetupbyGreaterWellingtonRegionalCouncilandPoriruaCityCounciltoexamineexistinglocalgovernmentarrangementsintheWellingtonregion.
19. ThePanelhasbeensetupinresponsetothedecisionbyGovernmenttomakesignificantchangestothelegislativeframework,theLocalGovernmentAct2002,guidinghowlocalgovernmentoperatesandmanagesitsbusiness.
20. ThePanelcomprises:
• RtHon.SirGeoffreyPalmer(Chair)
• SueDriver
• SirWiraGardiner
• BryanJackson
Background to the establishment of the Panel
21. Localgovernmentreform,andWellingtonregion’sconsiderationofreform,hasbeendiscussedregularlysincetheOctober2009CentralGovernmentpackageofreformstoimprovethetransparency,accountabilityandfinancialmanagementoflocalgovernment.AtthesametimeamalgamationoflocalgovernmentintheAucklandregionoccurredtocreatetheAucklandCouncil.AkeydriveroftheAucklandreformwasimprovedintegrationinregionalplanningandservicedeliverysothatthenewcitycouldsupporteconomicgrowth.
22. TheformationofthenewAucklandCouncilhasnaturallysparkedspeculationwithinotherregions,andparticularlythosecentredonmajorcities,aboutwhetheramalgamationcouldberightforthem.TheneedfortheWellingtonregiontospeakwithonevoiceaboutourinvestmentandgrowthpotentialwasidentified.
23. Sincethen,discussionwithintheWellingtonregionhasfocusedontherisksof“imposedreform”versus“changefromwithin”.TherehasbeenagreementthattheWellingtonregionneedstobewell-positionedtoengagepositivelywithcentralgovernmentinresponsetoanycentralproposalforreform.Evenbetter,itmaybepossibletopre-emptimposedreformbyhavingaclearregionalviewandapositiveself-initiatedproposalforchange.
24. In2010,theWellingtonRegionMayoralForumcommissionedPricewaterhouseCooperstoconductaRegionalGovernanceReview.TheOctoberreport1recommendedcontinuingthediscussiononreformandsuggestedsixpossiblescenarios:
• Statusquo–donothing
Chapter1:HowthePanelcameabout
11
• Strengthenedregionalcouncil–centralisingmoreregionalfunctions
• Clustersofterritorialauthorities–Wairarapa,HuttValley,Wellington/PoriruaorWellington,Porirua/Kapiti
• Two-tierlocalgovernment–regionalcouncilandfewerlocalcouncils
• Twosub-regionalunitaryauthorities–WairarapaandWellington
• Asingleregionalunitaryauthority
25. InJune2011,theregion’sCouncilsmadethePricewaterhouseCoopersreportpublic.Somethensoughtsubmissionsfromthepublic.Only165regionalsubmissionswerereceived,thelargestproportionfromGreaterWellingtonandPoriruaCitywhoactivelysoughtfeedback.Generalthemesthatemergedwerethatsubmitters:
• Preferredchangeoverstatusquo
•Wantedchangefromwithin,notimposed
•Wantedlocaldemocracytobemaintained.Thiswasaviewofbothsupportersandopponentstochange
•Wereconcernedthatchangesmightleadtohigherratesand/orreducedservices
26. Expectationsandunderstandingofpotentialefficiencybenefitsofamalgamationsarecontentious.However,someofthebenefitsthatsubmittersexpectedfromgovernancechangeincluded:
• Strongerregionalleadership
• Abetterrelationshipwithcentralgovernment
• Betterregionaldecisionmakingconcerningtransport,wateranddisasterresponse
• Asingleregulatoryauthorityandconsistentapproachtoregulation–reducedcompliancecosts;easierforbusinessanddevelopers
• Reducedcompliancecosts;easierforbusinessanddevelopers
• Improvedefficiency–economiesofscale,reducedduplication,increasedfocusonservices,improvedfinancialmanagement
• Services,improvedfinancialmanagement
• Improvedcapability-moretechnicalexpertise,enhancedstrategicmanagement
12
27. TheresultsofsubmissionsanalysisbyMartinJenkinsLtdwerereportedbacktotheMayoralForuminSeptember2011.Inaddition,MartinJenkinsdraftedfurtherconsultationmaterialtoassistcouncilswiththenextstageofcommunitydiscussions.However,atthetimeanddespitethiswork,nofurthercommitmentwasmadeattheMayoralForumtoadvancethereviewofgovernanceinajointandconsistentmanner.
28. InOctober2011,severalGreaterWellingtonRegionalCouncillorspreparedapaper“Some ideas on local government reform in Wellington – neighbourhood decision with pan-regional strategy”.Thiswasalsoincludedonawebsitewww.shapethefuture.co.nzwhichwaslaunchedbyagroupofcross-regionalsupporterstostimulatediscussion.
29. Keentokeepprogressingthecommunitydiscussionongovernancechangeintheregion,theGreaterWellingtonRegionalCouncilandPoriruaCityCouncilinitiatedtheestablishmentoftheindependentWellingtonLocalGovernmentReviewPaneltoassessgovernanceissuesintheregion.
The Panel’s Terms of Reference
30. ThePanelhasbeenaskedtoprepareareportthatwill:
a. AssesspossiblelocalgovernmentoptionsfortheWellingtonregionandidentifyanoptimalone,whichmayincludeeitherstructuraland/orfunctionalchanges
b. Containadescriptionofthepreferredmodelandhowitwouldoperate,includinglevelsofdecision-making,functions,governancearrangementsandaproposedapproachtofinancialarrangementsconcerningrates/otherrevenue,debtandliabilitymanagement
c. Ifthepreferredoptionincludesanychanges,outlinetransitionarrangements,includingapproximatecostsandatimeframeforimplementation
31. ThereportmaybeusedbytheGreaterWellingtonRegionalCouncilandPoriruaCityCounciltoformthebasisofasubmissionforreorganisationtotheLocalGovernmentCommission.
32. Incomingtoitsconclusions,thePanelwillneedtobesatisfiedthatitsrecommendationsmeetthedifferentneedsofWellington’sregional,ruralandurbancommunitiesandwillstrengthentheabilityoftheregiontomeetfuturechallenges.Inparticular,thePanelhasbeenaskedtoconsider:
a. Appropriatelocations/levelsfordecisionsonanddeliveryoflocalgovernmentfunctions
b. Institutionalarrangementsthatwillembedenhancedopportunitiesforcommunity/neighbourhooddecision-makingonlocalissuesandmeaningfulcitizenengagementinthedevelopmentofregionalpolicyanddeliveryoptions
13
c. Theroleoflocalgovernmentinfosteringculturalidentityandcommunitycharacter
d. Theroleandrepresentationofiwi/Mäoriintheproposedmodel
e. Challengesfacedbylocalgovernmentindeliveringcostlyandcomplexinfrastructure
f. Theprovisionoflocalandregionalfacilitiesandamenities
g. Waysofenhancingtheeffectivenessandefficiencyofplanningandregulatoryprocessesacrosstheregion
h. Howbesttoachieveintegratedplanning,includingfortransportandlanduse,todeliveroptimaleconomicandenvironmentaloutcomes
i. Howchangesindemographicswillimpactontheregionanditsconstituentparts
j. Theroleoflocalgovernmentinassistingtheregiontobegloballycompetitive
k. Waysinwhichtheregion’slocalgovernmentcouldbetteralignwithcentralgovernmentanditsagencies,forexamplehealth,education,andpolice
l. Waysinwhichtheregion’slocalgovernmentcouldbetteraligndeliverywiththeprivatesectorandthecommunity/NGOsector
m. Theimpactofanyproposedchangesonlocalgovernmentfinancesandrevenuemodels,includingratesandthemanagementofassets,debtandotherliabilities
n. RationaleandcriteriaforanyControlledOrganisationsandothermodelsofarms-lengthservicedelivery
o. Thecostsandbenefitsofthestatusquoandofanypreferredoptionforchange
p. Howandbetweenwhichpartiesthefinancialcostsofanytransitionshouldbeapportioned
q. AnyotherissuesthePanelconsiderrelevant
14
2StatisticsNewZealand,“Subnationalpopulationestimatestablesat30June2011:estimatedregionalcouncilareas”(2011)<www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/subnational-pop-estimates-tables.aspx>
3“LonelyPlanetAcclaimforthe‘CoolestLittleCapitalintheWorld”Wellington NZ(onlineed,November12010)<www.wellingtonnz.com/media/lonely_planet_acclaim_coolest_little_capital_world>
4StatisticsNewZealand,Journey to work data for the Wellington Region: Census 2006(2006)<http://www.stats.govt.nz/browse_for_stats/people_and_communities/Geographic-areas/commuting-patterns-in-nz-1996-2006/car-bus-bike-or-train.aspx>
The Wellington region
33. TheWellingtonregionhaslongbeencharacterisedbythediversityofitscommunitiesandthestrengthofitsculture,economyandpeople.Thereare,however,challengesaheadthatneedtobeaddressed.
34. TheofficialWellingtonregioncoverstheareaaroundWellingtonCity,thecitiesofLowerHutt,PoriruaandUpperHutt,andtheirruralhinterlands.TheregionextendsuptheKapitiCoastasfarnorthasOtakionthesouthernfringeofHorowhenua.EastoftheRimutakaRange,Wairarapahasamuchmoreruralfeel.Farmingandotherproductiveusestakeplaceoverextensiveriverplainsandhillcountry.TheruralhinterlandisservicedbythetownsofMasterton,Carterton,Greytown,FeatherstonandMartinborough.
35. Theregion’speoplehaveastrongsenseofcommunity,fosteredbytheirsenseofplacewithintheruralareas,towns,suburbsandcitiesinwhichtheyliveandwork,aswellastheirinterestsandpassions.Theseareallkeytobuildingastrong,sociallysustainableandconnectedregion.
36. Thedesiretoextendthissenseofconnectednessbeyondneighbourhoodsisalsoreflectedinpeople’smobilityastheymovearoundtheregiontolive,workandplay.
37. Inordertounderstandwhatchangespeoplemaywantfortheregionitisfirstnecessarytoappreciatetheregion’scharacteristics.
People
38. TheWellingtonregionishometonearlyhalfamillionpeople2andisNewZealand’sthirdmostpopulatedarea.AtitsheartisWellingtoncity,praisedbyLonelyPlanetasthe“coolestlittlecapitalintheworld”.3
39. Eachdayover30,0004peopletraveltoWellingtoncityfromthroughouttheregiontowork.Thesecommutersshareastrongcommondesire-alifestylewheretheycantakeadvantageofbig-cityopportunitiesduringweekdayswhilelivingthe“goodlife”atweekends.Thisisalsoreflectedbythelargenumberofresidentswhohaveasecondhomeorbachinanotherterritorialauthorityarea.WhileWellingtoncityattractsthemostcommuters,asignificantnumberoftheregion’scommuterstraveltootherpartsoftheregiontoworkeachday.
40. Wellingtoncity’scompactandaccessiblecentralbusinessdistricthasencouragedanincreasingnumberofresidentstooptforinner-cityapartmentlifestyles,offeringbothworkandrecreationopportunitiesrightontheirdoorsteps.
Chapter2:Whoarewe?
15
5MinistryofEducation,Schools Directory(2012).<http://www.educationcounts.govt.nz/directories/list-of-nz-schools>
41. Theregion’speopletendtobemoreeducatedthanthoseofotherregions-thereisahigherthannationalaverage46.3percentofpeopleaged15yearsandoverwhohaveapost-schoolqualification.
42. Theregion’s86,000studentsareservicedby196primary/intermediateschools,38secondaryschoolsand16compositeschools.Andtheregion’syoungpeoplehaveaccesstoawiderangeofpost-secondaryschooleducationoptions.5
43. ThemaintertiaryeducatorsareVictoriaUniversityofWellingtonandMasseyUniversity,andthesearecomplementedbytheWellingtonInstituteofTechnologyandWhitireiaNewZealand.
44. Manynationalspecialisteducationprovidersarealsobasedintheregion,includingtheNewZealandInstituteofSport,NewZealandSchoolofMusic,ToiWhakaariNewZealandDramaSchool,NewZealandSchoolofDanceandtheFilmandTelevisionSchool.Therearemorethan39,600studentscompletinghighereducationintheregion,including3,800internationalstudents.
45. WellingtonregionissecondonlytoAucklandinmanystatisticsrelatedtobreadthofethnicity.Inthe2006censusWellingtonhadthesecond-highestAsianpopulation(8.4percent,Auckland18.9percent)andthesecond-highestPacificIslanderpopulation(8.0percent,Auckland14.4percent).Some26.1percentofWellingtonianswerebornoutsideNewZealand,secondtoAuckland(40.4percent).
46. TherearesixrecognisedtangatawhenuaiwiintheWellingtonregion.Theseare:NgätiRaukawaandÄtiAwakiWhakarongotaiontheWestCoast,RangitäneandNgätiKahungunuintheWairarapaandNgätiToaRangatiraandTaranakiWhänuiwhohaveinterestsacrossthefourcitiesofWellington.
47. ThestrongpresenceoftangatawhenuatogetherwithresidentsfrommanyethnicbackgroundsincludingEuropean,PacificIsland,ChineseandIndian,whohavelivedintheWellingtonareaforwellover100years,providearichdiversityoflifestyles,annualeventsanddiningexperiences.
48. Themorerecentarrivalofpeoplesfromaroundtheworldisreflectedintherichculturallifeofcommunitiesregionwide.
Economy
49. TheeconomicclimatefacingtheWellingtonregionisfundamentallydifferenttowhatiswasbeforethecurrentglobaleconomiccrisis.Economicgrowthhasslowed,jobsarehardertofind,andthelackofdisposableincomeisaffectingmostaspectsofourlocaleconomy,particularlytheregion’sretailandtourismsectors.
16
6Infometrics,2011 Annual Economic Profile for the Wellington region(2011)at37Infometrics(2011)abovenote6at38BERL,UpdatedatasetforGenuineProgressIndexreport,(June2012).9Infometrics(2011)abovenote6at710Infometrics(2011)abovenote6at46.
50. RecenteconomicreportingshowsthattheWellingtonregionaccountedfor12percentofallgoodsandservicesproducedinNewZealand(GDPorGrossDomesticProduct)in2011.Thisamountedto$20,717millionofactivityinourregionaleconomy,up0.8%fromayearearlier.NewZealand’sGrossDomesticProductincreasedby1.6%overthesameperiod.6
Figure 1, Annual average GDP growth (2000-2011)7
51. AnequallyimportantmeasureisthelevelofGrossDomesticProductproducedperheadofpopulation(GrossDomesticProductpercapita).Thistellsussomethingaboutthelevelofrealwealthbeingcreated.Theregionhascontinuedtoperformwellinthisareacomparedtothenationalaverage,buthasbeenlosinggroundinrecentyears.
52. In2011ourregionalGrossDomesticProductpercapitadroppedfrom$53,479in2010to$52,3538,stillhigherthanthenationalaveragebutdecreasingnevertheless.AsignificantamountofthisdecreasecanbeattributedtothedeclineofthegovernmentsectorandthedecreaseinfinancialservicesduetoheadofficesmovingtoAuckland.Whilemanyotherindustriesintheregionaredoingwell,theyarenotdoingwellenoughtomakeupfortheshortfall.
53. Asimilarsituationappliestoemploymentgrowthintheregion,whichhasbeenlosinggroundoverthelongterm,andrecentlywhencomparedtothenationalaverage9.
Figure 2, Annual average employment growth (2000-2011)10
17
11Infometrics(2011)abovenote6at65
54. Fortunately,theregionhassomeadvantagesfromwhichtodrawfrom.First,peopleintheregionaresmart.Around47percentoftheregion’sworkforceisemployedinknowledgeintensiveoccupations(comparedtoanationalaverageofjustover32percent).11
Table 1. Employment in knowledge intensive industries (2011)
55. TheWellingtonregionalsohassignificanttertiaryeducationandresearchresources,whichareallimportantcontributorstoWellington’seducation,skillsandresearchinfrastructure.
56. DiverseandvibrantenterpriseexistsintheWellingtonregionincludinggovernmentandprofessionalservices;screen,digitalandICT;designandinnovation-ledmanufacturing;tidalenergy;andhigh-endfoodandwine.
Culture, heritage, sport and environment
57. Withapopulationrichinheritage,culturesandlanguages,theregion’ssocial,culturalandeconomicopportunitiesarenumerous.AddingtothiswealthofchoiceanddiversityaresomeofNewZealand’stopattractionsspanningurbanandrurallandscapes.
Arts
58. Asthecapital,Wellingtonsustainsmanyvibrantartisticandculturalenvironments.
59. TheregionhousesmanynationaltreasuresintheMuseumofNewZealandTePapaTongarewa,andthesoontoreopenNationalLibrary.It’salsohometosomeofNewZealand’soldestMäorihistory–datingbackatleast650yearswitharchaeologicallysignificantsitesinSouthWairarapa.WellingtonisalsohometotheNewZealandSymphonyOrchestraandRoyalNewZealandBallet.
60. ThebiennialInternationalFestivaloftheArtsattractsthousandsofregionalvisitorstoitsperformances,concertsandexhibitions.TheFringeFestival,ashowcaseforlocaltalent,runsconcurrently.LivetheatresincludeDownstage,CircaandBats.
18
12AbsolutelyPositivelyWellingtonTourism<http://live.wellingtonnz.com/page/facts-and-stats.aspx>13JazialCrossley“TouristsSpend$1.4binWellingtonin2011”The Dominion Post(NewZealand,3July2012)at<www.stuff.co.nz/dominion-post/business/7212111/Tourists-spend-1-4b-in-Wellington-in-2011>
61. MuseumsandgalleriessuchasAratoiMuseuminMasterton,ExpressionsUpperHutt,Wellington’sCityGallery,theMuseumofWellingtonCityandSea,VictoriaUniversityofWellington’sAdamArtGallery,theDowseArtMuseuminLowerHutt,PetoneSettlers’Museum,andPatakaMuseumandGalleryinPorirua,andMaharaGalleryinWaikanaeallattractvisitorsfromthroughouttheregion.
62. Andthereismuchtobeproudofinourcreativity.Wellingtonhasbeenthehomeofalivelyandsuccessfulcreativecommunityresponsiblefornationallyandinternationallysuccessfulperformers,suchastheFourmyula,JonStevens,Shihad,UpperHuttPosse,FatFreddy’sDrop,thePhoenixFoundationandtheBlackSeeds.SincefilmdirectorPeterJackson’sfilmstudioswerebuiltinMiramarinthe1990s,Wellingtonhasbecomeanimportantfilm-makingcentre.WetaStudiosandWetaWorkshop,alsobasedinMiramar,areworldleadersindigitalanimationandspecialeffects.Film-makerandperformerTaikaWaititiandcomedianstheFlightoftheConchordsarerecentWellingtonsensationsintheperformingarts.
Natural environment
63. EasyaccesstoopenspacesmeansWellingtonoffersalmostunlimitedrecreationalandsportingactivitiesincludingmountainbiking,surfing,fishingandtramping.Themajorityofresidentslivewithinthreekilometresofthecoast.
64. Theregionhasalmost900parks,forests,reservesandfacilities12.Fiveregionalparksarewithintheregion’sboundaries,aswellasKapitiIslandNatureReserve,PukahaMtBruceReserve,MatiuSomesIsland,TaputerangaMarineReserveandKapitiMarineReserve.
65. Theregionboastsmorethan250leisureandinformalrecreationareas,350environmentalandheritagesitesand70sportsgrounds.Thewiderangeofcampingandtouristattractionsbringmorethan4.5milliontouriststotheregioneachyear13.
Current local government arrangements
66. ThestructureoflocalgovernmentintheWellingtonRegioncomprisestheGreaterWellingtonRegionalCouncilandeightTerritorialAuthorities:
• CartertonDistrictCouncil
• HuttCityCouncil
• KapitiCoastDistrictCouncil
• MastertonDistrictCouncil
• PoriruaCityCouncil
• SouthWairarapaDistrictCouncil
19
• UpperHuttCityCouncil
•WellingtonCityCouncil
67. Withineachlocalauthoritytherearetypicallyanumberofsub-councilstructures,forexamplecommunityboards;councilcommitteesandothersub-ordinatedecision-makingbodies;jointcommitteeswithotherlocalauthoritiesorpublicbodiessuchastheWellingtonRegionalStrategyCommittee;andCouncilControlledOrganisationssuchasCapacityInfrastructureLtd.
68. ThefunctionsofGreaterWellingtonRegionalCouncilgenerallycomprise:
• Resourcemanagement,includingtheRegionalPolicyStatementthatguidesregionalanddistrictplans,andregionalplansthatregulatethequalityofwater,soil,airandthecoast
• Biosecurity,concerningthecontrolofregionalplantandanimalpests
• Rivermanagement,floodcontrolandmitigationoferosion
• Regionallandtransport,includingplanning,railownershipandcontractingofpassengerservices
•Wholesaledrinkingwatersuppliedtotheregion’scities
• Parksandrecreation
• RegionaleconomicdevelopmentthroughtheWellingtonRegionalStrategy,sharedwithterritorialauthorities
• Civildefenceemergencymanagement,sharedwithterritorialauthorities
69. ThefunctionsofDistrictandCityCouncilsgenerallycomprise:
• Communitywell-beinganddevelopment
• Environmentalhealthandsafety,includingbuildingcontrol,civildefence,andenvironmentalhealth
• Localinfrastructure-developmentandmaintenanceoflocalroadingandtransport,sewerage,water/stormwater
• Recreationandculturalfacilities,suchasparksandlibraries
• Resourcemanagementincludinglanduseplanninganddevelopmentcontrol
20
14WPMorrell,The Provincial System of Government(WhitcombeandTombsLimited,Christchurch,1964),preface.
15KAPalmer,Local government in New Zealand(2ed,LawBookCo,Sydney,1993)at23.
Local government and the constitution
70. TheconstitutionalpositionoflocalgovernmentinNewZealandrequiressomeanalysisinordertoappreciatethecontextintowhichthisprojectfits.ThepurposeandfunctionoflocalgovernmenthasalwaysbeenthesubjectofvigorousdebateinNewZealandandsoitshouldbe,becausetheissueinvolvesthedistributionofpublicpowerandthedemocraticaccountabilitiesfortheuseofthatpower.
71. NewZealandhaslongbeenknownasaunitarystatewithacompleteabsenceofthefederalismthatcharacterisescountriessuchasAustralia.ThatmeansNewZealandhasfewerlayersofgovernmentthantheAustraliansandarenotovergovernedinthatsense.NewZealand’straditionofstrongcentralgovernmenthaslongbeenestablished-butithasnotalwaysbeenso.
72. Whenself-governmentwasestablishedinNewZealandin1852,thecountryenjoyedelectedprovincialassembliespresidedoverbyelectedsuperintendents.Theprovincialcouncilsmadelawsandadministeredmanymatters.Thepoliticssurroundingthemwasvigoroustosaytheleast.IntheviewofleadinghistorianWPMorrell,thiswas“aninterestingconstitutionalexperiment.Itpossessedaconstitutionwhichattemptedtocombinetheadvantagesofthefederalandunitarysystemsofgovernment.”14Significantaggregationofpowersofdecisioninlargeunitsoflocalgovernment,asisnowhappeninginAuckland,marksareturntoapositionforthatregionthatisreminiscentoftheearlierprovincialsystem.Provincialgovernmentwasabolishedin1876.
73. Whenprovincialgovernmentwasabolishedlittleconceptualthinkingwasdoneaboutwhattypeoflocalgovernmentshouldreplaceit.Solocalgovernmentevolvedfromapracticalcontrivancelackinganydevelopedconstitutionalconceptionofthepowerswithwhichitshouldbeentrusted.Andinmanywaysthelevelofrigorousthinkinghasnotprogressedmuchsincethen.ThepublicdiscussionandconsultationsurroundingthePanel’sactivitiesmayallowsomeofthatgaptobeaddressed.
74. PartlybecauseofthishistoryNewZealandhasnoplacereservedinitsconstitutionalarrangementsforlocalgovernment.Obviouslylocalgovernmentofsomesortisanecessitybutinwhatformandwithwhatfunctionsisnotclear.InNewZealandlocalgovernmentisthecreatureofthecentralgovernment.EveryelementofitsactivitiesissubjecttocontrolbyactsofParliament.AsProfessorKennethAPalmerhaswritten,“Thetheoryandplaceoflocalgovernmentinthepoliticalsystemdoesnotderivefromanyformalconstitutionalentitlement.”15Perhapsthisperceivedlackcanbeaddressedbythecurrentreview“ConsiderationofConstitutionalIssues”thatisunderway.ButitisincontestableasmattersnowstandthatinconstitutionaltermslocalgovernmentinNewZealanddependsuponthepoliciesandexpectationsofcentralgovernment.
Chapter3:Theconstitutional,legalandpolicycontext
21
75. TheprimestatutecurrentlygoverningtheconductoflocalgovernmentistheLocalGovernmentAct2002.WhilethisActislikelytobeamendedbyabillcurrentlybeforeParliament,atpresentitprovidesthefollowingstatementofpurpose:
ThepurposeofthisActistoprovidefordemocraticandeffectivelocalgovernmentthatrecognisesthediversityofNewZealandcommunities;and,tothatend,thisAct—
(a)statesthepurposeoflocalgovernment;and
(b)providesaframeworkandpowersforlocalauthoritiestodecidewhichactivitiestheyundertakeandthemannerinwhichtheywillundertakethem;and
(c)promotestheaccountabilityoflocalauthoritiestotheircommunities;and
(d)providesforlocalauthoritiestoplayabroadroleinpromotingthesocial,economic,environmental,andculturalwell-beingoftheircommunities,takingasustainabledevelopmentapproach.
76. TheLocalGovernmentAct2002AmendmentBill2012asintroducedtoParliamentproposestorepealparagraph(d)assetoutaboveandreplaceitwiththefollowingwords:
“providesforlocalauthoritiestoplayabroadroleinmeetingthecurrentandfutureneedsoftheircommunitiesforgood-qualitylocalinfrastructure,localpublicservices,andperformanceofregulatoryfunctions.”
77. Thepreciseeffectoftheproposedchangeisnoteasytoassess,butclearlytheintentionistoreducetherangeoflocalgovernmentspheresofconcernandbringgreaterconcentrationandfocustotheiractivities.
78. TheuniformpatternoflocalgovernmentinNewZealandhasbeenchangedbytheadventofwhathasbecomeknownastheAuckland“supercity”–AucklandCouncil.Thatdevelopmentwasprecededbyacomprehensiveandhighquality2008reportofaRoyalCommissionchairedbyretiredHighCourtJudge,theHon.PeterSalmon.16TheothertwomemberswereDameMargaretBazleyandDavidShand.ThecentralrecommendationoftheRoyalCommissionwasthedissolutionoftheAucklandRegionalCouncilandallseventerritorialauthoritiestobereplacedbyanewsingleunitaryauthoritynamedtheAucklandCouncil.AfteralongandsometimesfraughtprocessthecentralrecommendationwasimplementedbutwithsomesignificantchangescomparedtotheblueprintoftheRoyalCommission.ThenewstructuresaresetoutintheAucklandCouncilLocalGovernmentAct2009.17
79. TheAucklanddevelopmentsplayedasignificantroleinthe
discussionsthatledtotheappointmentofthePanel.ThecreationoftheAucklandCouncilhasimplicationsforotherCouncilsinNewZealandandforthewholepatternoflocalgovernment.
16AucklandGovernance,ReportoftheRoyalCommissionon,includinganExecutiveSummary,SummaryofSubmissionsandResearchPapers,Volumes1-4(AJHRH2,March2009)at35.
17ThecompletelegislationpackageinrelationtoAucklandCityiscontainedinthreestatutes:LocalGovernment(AucklandCouncil)Act2009,LocalGovernment(AucklandTransitionalProvisions)Act2010,LocalGovernment(TamakiMakaurauReorganisation)Act2009.
22
ThechangewasclearlynecessaryintheviewofthePanelbutitinvolvesalargeaggregationofpublicpowertothenorthoftheWellingtonregion.ThishasimplicationsfortheWellingtonregionthatthisIssues Paperwillattempttoanalyse.
80. AftertheAucklandchangesscholarlycommentsuggestedthattheprofoundreformsofAucklandgovernancehaveimplicationsforallcommunitiesinNewZealand.18ThethenMinisterforLocalGovernment,theHon.RodneyHide,announcedareviewoftheconstitutionalstatusoflocalgovernment.19Issuesofstructurewereraisedincludingtheusefulnessofunitaryauthoritiesinmetropolitanareas,andthefunctionsandfundingoflocalgovernment.OneofthemostcontroversialissuesfacedinAucklandwasthequestionofMäorirepresentationinlocalgovernment,anissuethePanelcanvasesinthisIssues PaperintheWellingtoncontext.
81. AfterAucklandvariousdiscussionshavebeenheldandavarietyofproposalsmadeforthestructuralreformoflocalgovernmentinotherareasofNewZealand.TheweaknessesthatdrovetheAucklandreformsincludedduplicatedandfragmentedservices,competingleadership,thelackofasharedvisionfortheAucklandregion,fragmenteddecision-makingprocesses,factionalismandweakaccountability,areallissuesthatneedinvestigationinWellington.TheGovernment’ssolutionforAuckland,however,differedinimportantwaysfromtheRoyalCommission’sblueprint.ThisPanelwillexaminethosedifferencesandhowtheymayimpingeontheoptionsavailablefortheWellingtonregion.
82. Theacademicanalysiscitedinthischapterhassuggestedthataone-size-fits-allapproachtothelocalgovernmentissuesnowfacingNewZealandisunlikelytowork.20GiventhetapestryuponwhichthePanelhasbeeninvitedtoweavethePanelwillbearthatinmindandtrytofashionexistthatapplytothecircumstancesthatexistwithintheregionofWellington.
83. AfurtherdevelopmentthathasimportantconstitutionalsignificanceandonethathasbeenfrequentlybeenoverlookedistheexistenceofRegionalCouncilsaroundmostpartsofNewZealand.ThesewerebroughttolifepartlybecauseoftheprospectoftheResourceManagementAct1991.Theboundariesarebasedinlargemeasureonwatercatchments.Theenvironmentallogicofthatapproachwasbothnecessaryandobvious.Butwhenitcomestoboundariesandamalgamationsthesenaturalboundariesneedtobeconsidered.Itmakeslittlesensetoerectnewboundariesforterritorialauthoritiesbymergerandignoretheimplicationsthathasfortheresourcemanagementfunctions.ThepassingoftheResourceManagementActwasasignificantdevolutionofpowertoarevisedlocalgovernmentstructure,revisedinthesenseofadivisionofpowersbetweenterritoriallocalauthoritiesandRegionalCouncils.IfaRegionalCouncilisabolishedontheAucklandmodelwithaunitaryauthorityreplacingitandanumberofterritorialauthorities,thentheultimateboundariesmatteragreatdealinenvironmentalterms.ThePanelnotes
18ChristineCheyne,”TheAucklandEffect:WhatnextforotherCouncils?”inJeanDrage,JeffMcNeill&ChristineCheyne(eds)Along the Fault Line-New Zealand’s Changing Local Government Landscape(DunmorePublishing,Wellington,2011at41.
19HonRodneyHideSmarter government-Stronger Communities: towards better local governance and public services(OfficeoftheMinisterofLocalGovernment,April2011).
20ChristineCheyne,abovenote18at57
23
thattheapplicationoftheResourceManagementActisunderfurtherreviewasitwritesthisIssues Paper.21RegionalCouncilsalsohaveimportantresponsibilitiesintheareaoflandtransportandinparticularintherequirementtopreparearegionallandtransportstrategyeverysixyears.
84. OnefurtherissuewithconstitutionalimplicationsinvolvestheproposalintheLocalGovernmentAct2002AmendmentBillabouthowamalgamationsoflocalauthoritiescantakeplacewithoutareferendum.TheLocalGovernmentCommissionhasstatutoryresponsibilitiesinrelationtoproposedamalgamations.Butultimately,asthelawstands,amalgamationproposalshavetobecarriedbyreferendumintheterritoriallocalauthorities.IfthechangeproposedisagreedbyParliamentthatwillnolongerbethecase.TheBillasintroducedprovidesinSchedule1:
Ifafinalproposalhasbeenissuedunderclause 18(1)(a) or (b),affectedelectorsmaydemandapolltodeterminewhetherornotthefinalproposalistoproceedandbecomeareorganisationscheme.
(2)Apollmaybedemandedundersubclause(1)byapetitionof10%ormoreofelectorsenrolledaseligibletovoteintheaffectedarea.
85. Theclearintentionofthatprovisionistofacilitateamalgamationsandreorganisations.Itmakesthemeasiertoachieveandquitehighhurdlesmustbejumpedinordertosecureareferendum.
86. Inconclusion,itseemsthattheuniformpatternoflocalgovernmentinNewZealandhasbeenchangedbytheadventoftheAucklandCouncil.Thispresagesamorepowerfulformoflocalgovernmentinoneareanowandpossiblyotherslater.Otherwisewhychangethereferendumprovisions?Theimplicationsofthesedevelopmentshavetobecarefullyweighedgiventheabsenceofanyconstitutionalprotectionoflocalgovernment.
The democratic imperative
87. ItiswidelyacceptedinNewZealandthatlocalgovernmentmustbeconductedalongdemocraticlinesbutthereisnotagreatdealofanalysisastowhatthismeansinpracticalterms.NewZealandersacceptlocalgovernmentdecisionmakersmustbeelectedandinrecentyearstherehasbeensomeinnovationintheelectoralsystemavailableinlocalgovernmentelections.
88. ThechoiceofvotingsystemsundertheLocalElectoralAct2001arebetweenFirstPastThePostmethodofvotingusedinparliamentaryelectionsbeforetheintroductionofMMPin1996)ortheSingleTransferableVotesystem.SingleTransferableVoteproceedsonthebasisofvotingbyorderofpreferenceforthecandidatesandaquotaforelectioniscalculatedfromthenumberofvotesandnumberofpositionstobefilled.Afirstcountoffirstpreferencesisconductedandanycandidatewhoequalsorexceedsthequotaiselected.Thenthereisa
21ResourceManagementActPrinciplesTechnicalAdvisoryGroup,TagReport of the Minister for the Environment’s Resource Management Act 1991(February2012).
Whatimplications,ifany,doyouthinkthecreationoftheAucklandsupercityhasfortheWellingtonregion?
24
distributionofsurplusvotesabovethequotaforanycandidateinaccordancewiththevoters’furtherpreferences,bringingtheelectionofanycandidatewhoreachesthequota.
89. TheSingleTransferableVotesystemisusedinsomeplaces,notablytheWellingtonregion.Ofthelocalgovernmentunitsintheregion,theSingleTransferableVotesystemisusedbyWellingtonCity,PoriruaCityandtheKapitiDistrictCouncil.GreaterWellingtonalsoresolvedtointroducethesystematthenextelections.Councilscanresolvetochangetheelectoralsystembutthepublicalsohastherighttodemandapolltodecidewhatelectoralsystemtouse.
90. AhealthydemocracyrequiresanengagedpublicandintheviewofthePanelitisamatterofconcernthatparticipationratesinlocalgovernmentelectionsaresolow,despitetheintroductionofpostalvoting.Ifvotingpercentagesareasoundmeasureofpublicapathytowardlocalgovernmentthentheremustberealconcernaboutwhatthevotesrepresent.Theyhavenotreached60percentlevelofeligiblevotersvotinginlocalgovernmentelectionsanywhereintheGreaterWellingtonareaoverthepast10years.
91. Voterturnoutinthe2010localgovernmentelectionsintheWellingtonregionwere:
• RegionalCouncil 43percent
•WellingtonCity 40percent
• HuttCity 40percent
• PoriruaCity 39percent
• UpperHuttCity 44percent
• KapitiDistrict 49percent
• MastertonDistrict 54percent
• SouthWairarapaDistrict 52percent
• CartertonDistrict 57percent
Source:LocalAuthorityElectionStatistics2010,DepartmentofInternalAffairs.22
92. Effectivedemocracyanddemocraticaccountabilitybothdependonthelegitimacyoftheelectedrepresentatives,andverylowturnoutfiguresrobslocalgovernmentofbothitslegitimacyandimportance.ThePanelisinterestedinexploringduringtheconsultationsthereasonsforvoterindifferenceandwhatmaybedonetoremedyitandrevitaliselocalgovernmentwithingreaterWellingtonregion.
22DepartmentofInternalAffairs,Local Authority Election Statistics 2010(Wellington,2011)at48,66,77,86
25
93. InPresidentAbrahamLincoln’sfamousGettysburgaddresshesuggestedtheAmericanCivilWarprovidedanewbirthoffreedom“thatthisgovernmentofthepeople,bythepeople,forthepeopleshallnotperishfromthisEarth.”23Thisaphorismisoftenthoughttocontaintheessenceofdemocraticgovernment.Butifpeopledonotparticipateintheelectionoftheirrepresentativesthenotionisrobbedofitsrelevance.Ittookcenturiestodeveloptheuniversalfranchiseandifitisnotexercisedonceattainedthereisnocorelefttothesystem.Democracyinvolvesmajorityruleandifthemajoritydoesnotvotetheelectedrepresentativesdonotrepresentproperlythosewhomtheygovernandthosewhomtheytax.
94. Theacademicanalysisintheareaoflocalgovernmentelectionssuggestvoterturnouthasdeclinedsincelocalgovernmentwasmassivelyrestructuredin1989.24Therewasanincreasein1989attributablelargelytoone-offlocalevents.In2007thenationalturnoutlevelswere44percent,levelsnotseensincethe1960s.GavinBeattiesuggeststhereareatleastfourimportantfactorsatwork:theinstitutionalarrangementsaroundlocalelections,thecharacteristicsoftheelectorate,electorbehaviourandlocalissues.Age,occupationandethnicityofelectorsareimportant.Anotherimportantfactoristhemanydifferentvotingcategories.Therearevotingpapersformayor,localcouncils,districthealthboard,communityboardsinsomeareas,theregionalcouncil,andinsomeareaslicensingtrusts.Allthisputselectorstoalotoftroubletosortoutwhattheythinkaboutalltheissues.AsBeattieputsit,ifcentralgovernmentisseriousaboutencouraginghighervoterturnout“itshouldaddresstheimpactonvoterturnoutforuptosixorsevendifferentelectionissues,requiringtheuseoftwodifferentelectoralsystemsandconsiderationoflistsofperhaps40ormorecandidates.”25
95. Aftertheuseofpostalvotingwasmademandatoryin1989turnoutwentupto57percentandlaterdroppedback.Newoptionsandenhancementsneedtobefoundtoincreasetheturnout.E-votingcouldbeavailableinthefuturebutotherenhancementsmaybemorequicklyavailable.Possiblyalongertermthanthepresentthreeyearsmayincreasetheinterestandtheturnout.Otherfactorsthatinfluenceturnoutarethenatureoftheterritorialauthority,thepopulationsize,whetheritisacityoradistrict,andwhetheritisinNorthIslandorSouthIsland.Smallerandmoreruralcouncilshavehigherturnoutsthanmoreurbanandcitycouncils.TheSouthIslandterritorialauthoritiesdobetteronturnoutthanthoseintheNorthIsland.Onefactorthisraisesiswhethertheturnoutisafactortobeconsideredasmitigatingagainstthedesirabilityoflargerauthorities.Butthefactorknownas“comparativesalience”isalsoimportant-howelectorsseetheimportanceoflocalgovernmentcomparedtoParliamentandcentralgovernment.Anotherfactoristhatitishardtosecuremuchinformationorknowledgeaboutmanyofthecandidatesinlocalgovernmentelections.Andthereisoftenlittlepublicityabouttheactivitiesoflocalgovernmentthatbringtheissuestopublicattention.ThePanelhasalreadyreachedthetentativeviewthatthatnotmanypeopleknowmuchaboutlocalgovernment.Somebasiceducationincivicsmaybegreatlybeneficial.
23DanielJBoorstin(ed)AnAmericanPrimer(TheNewAmericanLibrary,NewYork,1968)at437.24GavinBeattie“AGlassHalfEmptyorHalfFull?”inAlong the Fault Line,abovenote18(Wellington,2011),at91.
25GavinBeattie,abovenote24,at104.
26
96. Voterturnoutmaygoupiflocalbodyelectionswereheldonlyeveryfouryears.Thatissueisunderconsiderationinrelationtoparliamentaryelections.Further,theintroductionoftermlimits,saythreefour-yeartermsforcouncillors,mayincreaseinterestinlocalgovernmentandprovideitwithnewfaces.
97. ThereareanumberofotherelementsbesideselectionsthatareaimedatensuringlocalgovernmentinNewZealandisdemocraticandaccountabletothepeople.Insummarytheyare:
• TheLocalGovernmentOfficialInformationandMeetingsAct1987thatensuresopennessandprovidesamechanismforpeopletogetinformationaboutwhatlocalgovernmentisdoing
• TheinvestigationandreportingbytheofficeoftheOmbudsmenoncomplaintsbymembersofthepublic
• Publicattendanceatcouncilmeetingsalsoprovidedforinthe1987Act
• BylawsmadebylocalgovernmentthatarecontrarytotheBillofRightsAct1990areinvalid
• InvestigationsoflocalgovernmentbytheAuditor-General.TheAuditor-Generalisthewatchdogoverlocalgovernmentfinancialmatters.Extensivelegalrequirementsareimposedbystatuteonlocalgovernmentconcerningmanagementstructures,annualpolicyandactivityreports,financialperformancereportsandaccountingmatters
The legal context
98. WhatlocalgovernmentcanandcannotdoisthesubjectofextremelylengthyActsofParliamentofconsiderablecomplexity.Manyofthesestatutesaremorecomplexthantheyneedtobe.Parliamentkeepsaratherwaryeyeonlocalgovernment.Butthebottomlineisclear.ParliamentmakestherulesunderwhichlocalgovernmentinNewZealandoperates–anditcanalterthematanytime.
99. Manyofthemostimportantlawsarementionedinprevioussectionsofthischapter.Iftheirinterpretationbecomesanissue,thatisdeterminedbythecourts.ThusasenseoffreedomtomakedecisionscanbeovertakenbydecisionsoftheJudgesintheHighCourtandbeyond.Legalanalysisandlitigationcan–andoftendo-impedetheeffortsoflocaldemocracy.
100. ThepurposeoftheLocalGovernmentAct2002hasbeendescribedbylegalcommentatorDeanKnightasintendingtoenablelocalauthoritiestoworkwithcommunitiestomeettheirchangingneedsandaspirations.Hesays:26
“Theschemeismulti-layered,incorporatinganoverarchingpurposeandhigh-levelprinciples,strategicplanningprocesses,andindividualdecision-makingprinciples.”
101. Judicialreviewandthemechanismsofadministrativelaw
Whydoyouthinktheturnoutatlocalgovernmentiselectionsissolow?Doesitmatter,andifitdoeswhatcanbedoneaboutit?Wouldlargerunitsoflocalgovernmentwithwiderresponsibilityattractbettercandidatestorunforofficeandmakevotersmorelikelytovote?Shouldothermeasuresbeadoptedtomakeiteasierforpeopletovote?
27
provideanextensivesystemofchecksandbalancesagainstlocalauthoritieswhodonotfollowthelawintheirprocesses.ThecheckoftheOmbudsmenandtheAuditor-Generalarealsosignificant.
102. ThelawimposesheavyrequirementsontheprocessesbywhichCouncilsmakedecisions.Ofparticularimportancearethegeneralprinciplesofconsultationsetoutinsection82oftheLocalGovernmentAct2002:
“(1) Consultationthatalocalauthorityundertakesinrelationtoanydecisionorothermattermustbeundertaken,subjecttosubsections(3)to(5),inaccordancewiththefollowingprinciples:
(a)thatpersonswhowillormaybeaffectedby,orhaveaninterestin,thedecisionormattershouldbeprovidedbythelocalauthoritywithreasonableaccesstorelevantinformationinamannerandformatthatisappropriatetothepreferencesandneedsofthosepersons;
(b)thatpersonswhowillormaybeaffectedby,orhaveaninterestin,thedecisionormattershouldbeencouragedbythelocalauthoritytopresenttheirviewstothelocalauthority;
(c)thatpersonswhoareinvitedorencouragedtopresenttheirviewstothelocalauthorityshouldbegivenclearinformationbythelocalauthorityconcerningthepurposeoftheconsultationandthescopeofthedecisionstobetakenfollowingtheconsiderationofviewspresented;
(d)thatpersonswhowishtohavetheirviewsonthedecisionormatterconsideredbythelocalauthorityshouldbeprovidedbythelocalauthoritywithareasonableopportunitytopresentthoseviewstothelocalauthorityinamannerandformatthatisappropriatetothepreferencesandneedsofthosepersons;
(e)thattheviewspresentedtothelocalauthorityshouldbereceivedbythelocalauthoritywithanopenmindandshouldbegivenbythelocalauthority,inmakingadecision,dueconsideration;
(f)thatpersonswhopresentviewstothelocalauthorityshouldbeprovidedbythelocalauthoritywithinformationconcerningboththerelevantdecisionsandthereasonsforthosedecisions.
(2) AlocalauthoritymustensurethatithasinplaceprocessesforconsultingwithMäoriinaccordancewithsubsection(1).
26DeanKnight“JudicialSupervisionofLocalDecision-Making”inAlong the Fault Line,abovenote18at179,180.
28
(3) Theprinciplessetoutinsubsection(1)are,subjecttosubsections(4)and(5),tobeobservedbyalocalauthorityinsuchmannerasthelocalauthorityconsiders,initsdiscretion,tobeappropriateinanyparticularinstance.
(4) Alocalauthoritymust,inexercisingitsdiscretionundersubsection(3),haveregardto—
(a)therequirementsofsection78;and
(b)theextenttowhichthecurrentviewsandpreferencesofpersonswhowillormaybeaffectedby,orhaveaninterestin,thedecisionormatterareknowntothelocalauthority;and
(c)thenatureandsignificanceofthedecisionormatter,includingitslikelyimpactfromtheperspectiveofthepersonswhowillormaybeaffectedby,orhaveaninterestin,thedecisionormatter;and
(d)theprovisionsofPart1oftheLocalGovernmentOfficialInformationandMeetingsAct1987(whichPart,amongotherthings,setsoutthecircumstancesinwhichthereisgoodreasonforwithholdinglocalauthorityinformation);and
(e)thecostsandbenefitsofanyconsultationprocessorprocedure.
(5)WherealocalauthorityisauthorisedorrequiredbythisActoranyotherenactmenttoundertakeconsultationinrelationtoanydecisionormatterandtheprocedureinrespectofthatconsultationisprescribedbythisActoranyotherenactment,suchoftheprovisionsoftheprinciplessetoutinsubsection(1)asareinconsistentwithspecificrequirementsoftheproceduresoprescribedarenottobeobservedbythelocalauthorityinrespectofthatconsultation.”
103. Themanylevelsoflegalconstraintuponlocalauthoritiessuggesttheyneedtobevigilanttoensuretheiractivitiesarewithinthefourcornersoftheirstatutes,otherwisethecourtswillintervene.
The policy context
104. NewZealandlocalgovernmentischanging.Thispanel’sreportandreviewtakesplaceinthemidstofsignificantchangesthatareinthecourseofparliamentaryconsideration.ThesingleuniformpatternhasbrokendownasaresultofdevelopmentsinAucklandandthedemandsproducedbytheChristchurchearthquakes.
105. Therearemanyquestionsaroundthecapacityofsmalllocalauthoritiesatdeliveringplanningservicesandinfrastructure.
106. RegionalCouncilshavebeenquestioned.TheydonotexistforNelson,Tasman,MarlboroughorGisborne.Therehavebeencallsfortheirabolitioninsomequarters.Theirexistencesometimes
29
makesitdifficulttoidentifyanauthoritativevoice.Therearefrequentlydisagreementsbetweenterritorialauthoritiesandregionalcouncils.
107. TherearealsoconcernsabouttheperformanceofthecoreenvironmentalandtransportfunctionsofsomeRegionalCouncils.TheCanterburyRegionalCouncil’sperformancewassuchthatcentralgovernmentintervenedbylegislationandcommissionerswereappointedtocarryoutthefunctions.Somesaythetwolevelsoflocalgovernmentshouldbecomeone.
108. ThecreationoftheEnvironmentalProtectionAuthoritymayhavesomeimpactonregionalgovernance.ThesepossibilitieshavebeendiscussedbyDrJeffMcNeillinarecentpaper.27Heremarks“…onesensesalackofanycoherentvisionforregionalcouncils,orregionalgovernance.Ratheronesensesamuddlingthroughratherthananycoherentorcomprehensivestrategy.”
109. ItisnotonlyAucklandCouncilandtheeconomicslowdownfuellingpolicychangeinlocalgovernment-theNewZealandGovernmentisalsoresponsible.Hon.MrHide’svisionwasarticulatedinspeechesandinthedocument“Smarter Government-Stronger Communities: towards better local governance and public services.”28Thisdocumentconcentratedonthestructure,functionsandfundingoflocalgovernment.IthasnowbeensupersededbytheMarch2012governmentpolicydocument.
110. Afterthe2011generalelectionanewMinisterofLocalGovernment,theHon.DrNickSmith,wasappointed.FollowinghisresignationtheHon.DavidCarterwasappointedMinisterofLocalGovernment.InMarch2012,DrSmithpublishedanewblueprint“BetterLocalGovernment.”29Thatdocumentsetsoutaneight-pointreformprogramme.ItincludedsomefeaturesofAucklandgovernanceinnovationsextendedtothewholecountry.Thespecificelementsoftheprogrammeinclude:
• Refocusthepurposeoflocalgovernment
• Introducefiscalresponsibilityrequirements
• Strengthencouncilgovernanceprovisions
• Streamlinecouncilreorganisationprocedures
• Establishalocalgovernmentefficiencytaskforce
• Developaframeworkforcentral/localgovernmentregulatoryroles
• Investigatetheefficiencyoflocalgovernmentinfrastructureprovision
• Reviewtheuseofdevelopmentcontributions
27JeffMcNeill“DecidingattheRightLevel:Regions,CouncilsandLegitimacy”inAlong the Fault Line,abovenote18at121.28HonRodneyHide,abovenote19.29NewZealandGovernment,Better Local Government(March2012).
30
111. ThisisahighlyspecificagendaandhasalreadyledtotheintroductionoftheLocalGovernmentAct2002AmendmentBill2012.OfparticularimportancetothisPanel’sreviewisthestatementthatthelegislation“willenabletheLocalGovernmentCommissiontoconsidercouncilreorganisationproposalsintimefortheOctober2013localgovernmentelections.”Thepaperstressesconcernwiththenationalaverageincreaseofratesthathasbeenmorethandoubletherateofinflation.ThelocalgovernmentproportionofGrossDomesticProducthasgrowntoreachfourpercent.Directsalarycostshaveincreased.Localgovernmentdebthasquadrupledoverthepastdecade.ItisclearwhatthepolicyofcentralgovernmentisandthePanelwillpaycloseattentiontoit.SubmitterstothePanelneedtobeawareofthemaswell.
Mäori representation
112. Onesignificantconstitutional,legalandpolicyissuethatarisesinanyreorganisationoflocalgovernmentintheWellingtonregionconcernsMäorirepresentation.ThishasbeenacontroversialissuewithinlocalgovernmentinNewZealandfor20years,culminatinginaspiriteddebateoverthewayinwhichMäoriissuesshouldbetakenintoaccountinthearrangementsforthenewAucklandCouncil.IntheeventthatthePanelrecommendschangeitwillhavetodealwiththisissue.ThePanelisfortunatehavingwithinitsmembershiprespectedkaumätuaSirWiraGardinerandhewillassistthePanelinunderstandingtheviewsofMäorionrepresentationintheregion.
113. TheissuegoesbacktotheTreatyofWaitangi.ItisclearthattheTreatyofWaitangiisanintegralpartofNewZealand’sconstitutionalarrangements.Whatisnotclearisthenatureandextentofthatintegralpart.TheTreatyisnotanordinarylaw.Itisnotgivengeneraleffectbystatute30.ButanumberofstatutesrequiretheexecutivegovernmenttoactconsistentlywiththeTreaty.TheCabinetManualrequiresthatMinistersindicateforbillstheyareresponsibleforthatthebillcomplieswith“theprinciplesoftheTreatyofWaitangi”.31ButintheendtheextentoftheTreaty’sapplicationdependsonspecificActsofParliament.
114. ThereareprovisionsintheLocalGovernmentAct2002thatrefertothemannerinwhichMäoriissuesaretobetreatedbydecisionmakers.Section4isimportantinthisregard:
InordertorecogniseandrespecttheCrown’sresponsibilitytotakeappropriateaccountoftheprinciplesoftheTreatyofWaitangiandtomaintainandimproveopportunitiesforMäoritocontributetolocalgovernmentdecision-makingprocesses,Parts2and6provideprinciplesandrequirementsforlocalauthoritiesthatareintendedtofacilitateparticipationbyMäoriinlocalauthoritydecision-makingprocesses.
115. The“facilitationrequiredunders4hasbeeninfusedthroughsubsequentsections”oftheAct.32TheserecognisetheneedtofocusonMäoriparticipationandtoprovideforcontributionindecision-making.Section14laysdowntheprinciplethat“alocal
30MatthewSRPalmer,The Treaty of Waitangi in New Zealand’s Law and Constitution(VictoriaUniversityPress,Wellington,2008)
31WellingtonCabinetOffice,Cabinet Manual 2008at[7.60].
PeopleexpressingviewstothePanelneedtobeawareoftheNewZealandGovernment’sLocalGovernmentpolicy.
31
authorityshouldprovideopportunitiesforMäoritocontributetoitsdecision-makingprocesses.”Section81isevenmorespecific:
(1)Alocalauthoritymust— (a)establishandmaintainprocessestoprovideopportunities
forMäoritocapacitytocontributetothedecision-makingprocessesofthelocalauthority;
(b)considerwaysinwhichitmayfosterthedevelopmentofMäoriand
(c)providerelevantinformationtoMäoriforthepurposesofparagraphs(a)and(b).
(2)Alocalauthority,inexercisingitsresponsibilitytomakejudgmentsaboutthemannerinwhichsubsection(1)istobecompliedwith,musthaveregardto—
(a)theroleofthelocalauthority,assetoutinsection11;and(b)suchothermattersasthelocalauthorityconsidersonreasonablegroundstoberelevanttothosejudgments.
116. TheResourceManagementAct1991,astatutethatlocalgovernmenthasakeyroleinadministering,requiresinsection6(e)“therelationshipofMäoriandtheircultureandtraditionswiththeirancestrallands,water,sites,waahitapuandothertaonga”tobetreatedasamatterofnationalimportance.Section8requiresdecisionsmakers“shalltakeintoaccounttheprinciplesoftheTreatyofWaitangi”.IntheBayofPlentyalocalactprovidingforMäoriconstituenciesfortheBayofPlentyRegionalCouncilwasenactedin2001.
117. TheRoyalCommissiononAucklandgovernancerecommendedtherebethreeMäorirepresentativesonthemainAucklandCouncil.TwocouncilorsweretobeelectedatlargebyvotersontheMäorielectoralroll.OnecouncilorwastobeappointedbytheManaWhenuaForum,anewbodytobeappointedbymanawhenuafromthedistrictoftheAucklandCouncil.33
118. However,theGovernmentrejectedthatrecommendationandestablishedaMäoriStatutoryBoardinstead.TheBoardisindependentoftheAucklandCouncil.ItassiststheAucklandCounciltomakedecisions,performfunctionsandexercisepowersbypromotingcultural,economic,environmentalandsocialissuesofsignificanceformanawhenuagroupsandmataawakaofTamakiMakarau.ThelegislationprovidestheBoardwiththreeimportantroles.ItmustappointamaximumoftwopeopletositasmembersoneachoftheAucklandCouncil’scommitteesthatdealwiththemanagementandstewardshipofnaturalandphysicalresources.TheBoardcanalsoasktheAucklandCounciltoappointapersonorpersonstositasmembersonanyotherCouncilcommittees.TheAucklandCouncilmustprovidetheBoardwithinformationthatitneedstoperformitsfunctionandmakedecisions.TheBoardmustalsoensurethecouncilactsinaccordancewiththeTreatyofWaitangi.AndtheAucklandCouncilmustmeetwiththeBoardatleastfourtimeseachfinancialyeartodiscusstheBoard’sperformanceandfunctions.
32KennethPalmerLocalAuthoritiesLawinNewZealand(BrookersLtd.,Wellington,2012)at1021.
33AucklandGovernance,Volume1abovenote16at33-34.
32
119. TheMäoriStatutoryBoardhassignificantpowersandanannualbudgetofmorethanthreemilliondollars.
120. Well-establishedMäorirepresentationarrangementsarealreadyinplacewithinlocalgovernmentintheWellingtonregion.ThisincludesAraTahi,anon-statutoryregionalcommitteethatconsidersmattersofstrategicimportancetomanawhenuaiwi.TheterritorialauthoritiesintheWellingtonregionalsohavevariousarrangementsandcommitteesinplacetoengagewithMäori.
121. Amoreformalarrangementexistsattheregionallevelforresourcemanagementmattersthroughthejointcommitteefornaturalresourcemanagement–TeUpokoTaiao.TeUpokoTaiaoisaCouncilCommitteepartnershipbetweenGreaterWellingtonandthesixmanawhenuaiwioftheregion.Itspurposeistoleadtheregionalplandevelopmentandoverseemajorresourceconsentdecisions.
122. ClearlythereareanumberofapproachesavailabletodealwiththeissueofMäorirepresentationwithinanyreorganisationoflocalgovernmentwithintheGreaterWellingtonarea.ThisisanimportantissueuponwhichthePanelwishestoconsult.
InanyreorganisationofLocalGovernmentwithintheWellingtonregionhowshouldtheissueofMäorirepresentationbedealtwith?
33
34LocalGovernmentAct2002AmendmentBill2012,Schedule3,clause21.
A changing mandate from central government
123. ThepreviouschapterontheconstitutionalandlegalcontexthighlightsthedominantnatureofcentralgovernmentinfluenceonlocalgovernmentmandateinNewZealand.Thisisacontextthatisundergoingsignificantchange,mostnotablythroughcentralgovernment’sBetter Local GovernmentreformsandchangestotheResourceManagementAct1991.Understandingthechangingnatureoflocalgovernment’smandateisanimportantstartingpointforunderstandingcurrentandfuturegovernanceissuesintheWellingtonregion.
124. ThemostrelevantchangesarethosebeingconsideredintheLocalGovernmentAct2002AmendmentBill2012(theBill).ThesechangesareakeypartoftheBetter Local GovernmentreformpackagecontributingtotheGovernment’sbroaderagendatobuildamorecompetitiveandproductiveeconomy,andimprovetheefficiencyandcosteffectivenessofdeliveryofpublicservices.Aimingformoreeffectiveandefficientlocalgovernment,theGovernment’sproposedchangestotheLocalGovernmentAct2002sendastrongsignaltolocalgovernmentthatitneedstodothingsdifferentlyinordertocreateanenvironmentconducivetosustainedeconomicgrowth,including:
• Reducingredtape
• Limitingdebtandminimisingtheratesburdenonhouseholdsandbusinesses
• Ensuringcost-effectiveprovisionofgoodqualityinfrastructure
125. Councilstructuresobviouslyplayanimportantroleinallofthesematters.Recognisingthis,theBillproposeschangestoenableamorestreamlinedprocessforconsideringlocalgovernmentreorganisation.Forexample,undertheproposedchanges,acitizens-initiatedpollonareorganisationproposalwouldonlybeconsideredbytheLocalGovernmentCommissionifsignatureswerereceivedfrommorethan10%oftheaffectedarea34.Importantly,whilethechangesdostreamlinetheprocess,theBillascurrentlywrittendoesnotprovidethescopeorflexibilitytoconsidernewgovernancestructuresakintothosecurrentlyinplaceinAuckland.ThisisanimportantissuetoconsiderforthePanel.
126. OtherworkstreamsundertheBetter Local Governmentreformsstronglyreflectthethemesofefficiencyandcosteffectiveness:
• AnEfficiencyTaskforcehasbeensetuptolookatoptionsforstreamliningLongTermPlanprocessesandfinancialreportingpractice
Chapter4:GovernanceissuesforWellington
34
35ResourceManagementActPrinciplesTechnicalAdvisoryGroup,abovenote21.36BERL,BERL Regional Rankings 2011(March2012)at7.23.
• TheProductivityCommissionisconductinganinquiryonregulation,includingthebalanceoffunctionsallocatedtolocalgovernmentbycentralgovernmentandwaystoimproveregulatoryperformanceinthesector
• AnInfrastructuretaskforce,yettobeannounced,istoconsiderhowgoodqualityinfrastructurecanbedeliveredatleastcost
• AreviewbytheOfficeoftheAuditor-Generaloneffectivenessandfairnessofdevelopmentcontributions
127. Resourcemanagementisanotherareaofimportantlocalgovernmentresponsibilitywherecentralgovernmentisfocussingitsattention.ThisisoffundamentalimportancetolocalgovernmentstructuresbecausethedivisionofresponsibilitiessetoutintheResourceManagementAct1991)iscloselyalignedtoscaleofissues,catchmentsandecologicalsystems.ArecentlyreleasedMinistersTechnicalAdvisoryGroupreportonResourceManagementActprinciples35suggestsaneedforchangestosections6and7oftheAct,regardingmattersofnationalimportance.Someoftherecommendationsinthereport,shouldtheybecarriedthrough,areofinterestfromagovernanceperspective,including:
• Theneedforgreaterattentiontomanagingissuesofnaturalhazards.ThereportrecommendsRegionalCouncilsshouldhavetheleadfunctionofmanagingalltheeffectsofnaturalhazards.Italsorecommendsthereshouldbeonecombinedregionalanddistrictnaturalhazardsplan
• NewprocessestobeadheredtobyResourceManagementActdecisionmakers,forexampletoachievetimely,efficientandcost-effectiveresourcemanagementprocesses;andtopromotecollaborationbetweenlocalauthoritiesoncommonresourcemanagementissues
Economic slowdown
128. TheWellingtonregion,liketherestofNewZealand,iscontinuingtofeeltheeffectsoftheglobalfinancialcrisis.Economicgrowthhasslowedsignificantly,thejobmarkethaswithdrawnandtheresultantlackofdisposableincomehasnegativelyaffectedretailandtourismactivitiesthroughouttheregion.
129. WhilehavingtheseatofGovernmentlocatedinWellingtonhashelpedtocushiontheeffectsofeconomicdownturnsinthepast,theongoingnatureofthecurrentcrisiscombinedwithcutstothepublicserviceisstartingtohaveasignificantimpactontheoverallregionaleconomy.Reflectingthis,recenteconomicreportingconfirmstheWellingtonregionislosinggroundwhencomparedtotheperformanceofsomeregionsandNewZealandasawhole.TheperformanceofAucklandinparticular,hasimprovedsignificantlyoverrecentyears.36
35
TheWellingtonregionneedstostrivetoimproveitsrelativeregionalpositionifitistoprosperinthefuture.
130. Sowhatdoesthismeanforlocalgovernment?Itiscleartheregionwillstruggletomakeanyprogresswithoutworkingtogether.TheconnectedandinterdependentnatureoftheWellingtoneconomy,particularlyaroundemploymentlocation,requirescollaborationandajoined-upapproach.TherecentlyrevisedWellingtonRegionalStrategy2012goespartoftheway,butthereismorethatlocalgovernmentintheregioncandofromaninfrastructureandservicedeliveryperspectivetofostermorerobust,resilientgrowthoverthelongterm.Therearealsoissuesaboutduplicationandoverlapwiththeactivitiesoflocalauthorities.
Resilience
131. Aresilientregionisonewherelocalgovernmentcanrespondquicklyandeffectivelytochangesorparticulareventsthatoccurintheregion.Someexamplesofsignificantchangecanincludelongperiodsofloworuneveneconomicgrowth,anagingpopulationandclimatechange.Examplesoflargeeventsmightincludestormsandearthquakehazards.
132. TheWellingtonregionaleconomyisrelianttoalargeextentonthegovernmentbeinghousedintheWellingtoncitycentralbusinessdistrict,andthoughthesizeofthepublicsectorfluctuates,itstillrepresentsasignificantproportionoftheregion’seconomy.However,aresilientregionwillperformwellinallareasoftheregionandisresponsivetoavarietyofeconomicopportunities.Theimpactoftheon-goingworldwideeconomiccrisisandtheprospectofamajorhazardeventoccurringincreasestheneedforamorerobustanddiverseeconomyinthefuture.Buildingontheregion’shighworldrankingintermsofliveabilitywillbeonewaytoattractandretaintalentedpeopleandbusinesses.
133. Theneedfortheregiontobepreparedforalargehazardeventisparticularlyimportantbecauseitislocatedinanareaofhighearthquakerisk.Intheeventofalargeearthquake,forinstanceofmagnitude7.5ontheWellingtonFault,therangeofhazardsthatcouldoccurincludefaultrupture,liquefaction,landslides,landsubduction,floodingandtsunami.Thesewillaffectallpartsoftheregion,notjustWellingtoncity.Thehazardrisktotheregionismagnifiedduetotheregion’srelianceonalimitednumberofarterialtransportlinksallofwhicharesituatedclosetotheregion’sfaultlines.Further,theregion’sportsandairportareatriskfromliquefactionanditslifelineutilities,forexamplewater/wastewater,gas,electricityandtelecommunications,arealsohighlysusceptibletofaultrupture.
134. TheCanterburyearthquakesprovideatimelyreminderofthedevastationthatcanbecausedfromahazardevent.Thisdevastationisfeltinmultiplestages,whicharetheinitialemergency/liferecoverystage,longertermdeconstructionofbrokenbuildingsandinfrastructureandthelongerterm
Whiletheperformanceoftheeconomyisdependentonawiderangeoffactors,localgovernmentprovidesfoundationinfrastructureandplaysanimportantroleinsupportingeconomicdevelopment.Areyouconcernedwiththeeconomicperformanceoftheregion?DoyouthinklocalgovernmentshouldbedoingmoretosupporteconomicgrowthanddevelopmentintheWellingtonregion?
36
rebuildingofthecity.Localgovernmentmustbepoisedreadytorespondeffectivelyatallstagesofthehazardrecoveryprocess.
135. TheWellingtonregionhasaheightenedawarenessofearthquakerisk.However,itisstilldifficulttoplanforandunderstandtherepercussionsofahazardeventincluding,forexample,thelossofjobsresultingintheneedforpeopletomoveoutoftheregion.AlargeproportionofworkersintheWellingtoncentralbusinessdistricttravelindailyfromallotherpartsoftheregion.Amajorhazardeventcouldaffectaccesstotheworkplaceandresultinlossofjobs.
Funding and investing in core infrastructure
136. Fundingandinvestingincoreinfrastructureisaconstantchallengeforlocalgovernment.Acrossthecountry,localandregionalcouncilshavesignificantcommitmentstomaintainandimprovebasiccommunityinfrastructure–thefoundationofournationalandregionaleconomies.Manyoftheseprojectsarelargeandcomplexandrequiresignificantfundingoverthelongterm.ThesituationisnodifferentintheWellingtonregion.
Demographic change
137. TheRegion’spopulationdemographicsareundergoingsignificantchange;mirroringthechangeoccurringinNewZealandandmuchofthedevelopedworld.InNewZealand,theAucklandregionwillhavethelion’sshareofnewpopulationgrowthoverthecoming20years,between55percentand70percent37ofallnewgrowth,followedbyCanterburywitharound10percentofnewgrowth.TheWellington,WaikatoandBayofPlentyregionswillhavesimilarratesofgrowthofbetween5percentand9percent.
138. WhiletheWellingtonregion’spopulationisnotexpectedtodeclineduringthenext30yearscomparedwithsomeotherregions,populationcharacteristicswillchangemarkedlytooneofanagingpopulation.
139. Withintheregion,thedemographicchangewillbemoremarkedinsomeareasthanothers.IntheprovincesofWairarapaandtheKapitiCoast,anagingpopulationwillbecomeasignificantissueultimatelyleadingtopopulationdeclines.ThePoriruaCitypopulationcanbedescribedasyouthful,WellingtonCitycontinuestobecharacterisedbyalargeworking-agepopulationandpopulationintheHuttValleyremainssimilaracrossallagegroups.
140. Theshiftingpopulationdemographicswillbringbothchallengesandopportunitiesfortheregion.Whiletherewillbereducedunemploymentoverall,someareaswillstruggletoattractworkerstosupporttheirlocaleconomies.Localgovernmentwillneedtoincreasetheirfocusontheneedsandservicesofanagingpopulation.Forexample,greaterattentiontoplanninganddesignforalessmobilepopulationwillneedto
37NJackson“DemographicTrendsandLocalGovernmentreform–NZandWellington”NationalInstituteofDemographicandEconomicAnalysis,UniversityofWaikato(presentedtotheAdministrationofPublicAdministrationConference:RethinkingLocalGovernment,Wellington,April2012)
Naturalhazardsandmajorhazardeventshavelittlerelevancetopoliticalboundaries.Whatshouldtheregionbedoingtoimprovetheresilienceofourinfrastructureandtoenabletheregiontobetterprepareforsuchhazardevents?
Thetrendstowardsamoreageingpopulationarelikelytochangethedemandforservicesandaffectdifferentcommunitiesindifferentways.WhatissuesdoyouthinkthePanelneedstobethinkingaboutinthisreview?
37
occurifpeopleareto“ageinplace”.Lastly,theabilityfortheagingratepayerpopulationtofundlocalgovernmentrateswillbeasignificantissueforcouncils;promptingtheneedforlocalgovernmenttoreviewwhatservicesareprovidedandwhereandtowhatlevel.
Technological change
141. Theworldisexperiencingatechnologicalrevolutionwithincreasingreliancebeingplacedontechnology,inparticularpersonaldigitaldevices,toprovidereal-timeresponsestoconsumerqueries.Theopportunitytoembracetechnologyiscurrentlyonlylimitedbypeople’saccesstoitandtheirwillingnesstoengagewithit.Therolloutofultra-fastbroadbandwillreduceaccessissuesformuchofthecountryovertimeandpeople’swillingnesstoengagewilllikelyincreasewithinthenextgeneration.Therearethreeaspectsoftechnologicalchangethatareparticularlyimportantforlocalgovernment.
142. First,localgovernmentwillneedtoadoptnewformsofengagementandcommunicationtoengageallsectorsofthepopulationinitsdecision-makingprocesses.Youngpeoplewillexpecttobeabletoengagewithlocalgovernmentusingonlinetoolsmobiledevisesandsocialmedia.Theimmediatechallengeforlocalgovernmentistoprovidescopefortraditionalmethodsofengagementwhileembracingdigitalengagement.Afurtherchallengewillbetoconsiderhowtoplacethesamevalueoninformationgatheredfromavarietyofengagementtools.
143. Technologyadvancesarealsochangingthewaypeopleworkandlive.Thereareincreasingopportunitiesforpeopletoworkfromhomeeitherpart-timeorfull-time;affectingtraditionaltravelpatterns.Onlineshoppingisincreasinglybecomingasignificantplayerintheretailmarketwhichmay,intime,affecttheviabilityofsomeretailcentres.Localgovernmentservicesarealsoincreasinglybeingmadeavailableonline,reducingtheneedforphysicalofficespaces.Theprovisionofe-booksbylibrariesisoneexampleofthis;aservicethatwillsignificantlychangethewaylibrariesprovidetheirservicestolocalcommunities.
144. Afurtherchallengeforlocalgovernmentishowtoembracethesetechnologicaladvancesand,atthesametime,supportvibrantspacesforpeopletogatherandremainintouchwiththeircommunity.Localgovernmentcanprepareitselfforthesechangesbyadoptingflexiblewaysofworkingwiththecommunitynowandrequiringpeopletoplan,designanddevelopadaptablebuildings,spacesandinfrastructure.
Case studies on local government reform
145. UnderstandingwhathasbeendoneelsewhereisanimportantpieceofcontextforthisReview.
38
146. AsignificantamountofanalysishasbeencarriedoutrecentlyinNewZealandandAustralia,whichprovidessomeimportantinsightsintothedrivers,processesandoutcomesoflocalgovernmentreform.
147. OfparticularrelevanceistheAucklandRoyalCommissionreportwhichprovidesawealthofknowledgeoneveryaspectoflocalgovernmentinthethenAucklandregion.Whileitisnotpossibletosummarisethefindingsofsuchacomprehensivereportinthispaper,ithasbeenusefulforthePaneltoconsideritsfindings.
148. ThefollowingGuidingPrinciplesforShapingAucklandGovernance38areparticularlyhelpfulbecausetheyhavewiderapplicationonoutcomesforlocalgovernmentreform:
• Common identity and purpose
The new structure should encompass the interests of the entire Auckland city-region and foster a common regional identity and purpose. Auckland needs an inspirational leader, inclusive in approach, decisive in taking action, a person able to articulate and deliver on a shared vision, and who can speak for the region. The new structure should support better coordination of key services and infrastructure, and foster integrated planning and decision making. The urban core should be recognised as critical to the economic vitality of the region, and rural values and areas protected.
• Effectiveness
The structure should deliver maximum value within available resources, in terms of cost, quality of service delivery, local democracy, and community engagement. It should allow services to be delivered locally, where appropriate. It should also be more efficient than the current system, and provide improved value for money.
• Transparency and accountability
Roles must be clear, including where decision making should be regional and where local. Appropriate accountability must be achieved for delivering outcomes, use of public funds, and stewardship of public assets. Institutions should work in an open manner and should communicate clearly about their activities, how much they spend, and the results.
• Responsiveness
The structure should respect and accommodate diversity and be responsive to the needs and preferences of different groups and local communities. It should be inclusive and promote meaningful public participation. It must be nimble in responding to change.
38AucklandGovernance,volume2abovenote16at309
TheAucklandRoyalCommissiondevelopedfourprinciplesforshapingAucklandGovernance:common identity and purpose; effectiveness; transparency and accountability; and responsiveness.HowrelevantdoyouthinkthesearefortheWellingtonregion?
39
149. AnotherusefulreferencepointforconsideringlocalgovernmentreformintheWellingtonregionisthereportConsolidationinLocalGovernment–AFreshLook39,preparedjointlybytheAustralianCentreofExcellenceforLocalGovernment,LocalGovernmentAssociationofSouthAustraliaandLocalGovernmentNewZealand.ByexamininglocalgovernmentreformprocessesandcasestudiesinAustraliaandNewZealand,thereportfoundthereweregenerallyfourbroadstrandsinthedebateaboutlocalgovernmentreform.AswiththeAucklandprinciples,theseprovidesomeveryusefulinsightsintothedriversbehindlocalgovernmentreform:
• Efficiency: Many local government inquiries have asserted that consolidation, for instance amalgamations, shared services and so on, will inevitably result in greater efficiencies and cost savings for local governments, creating the potential for them to do more with less. This was the prevailing theme in the 1990s amalgamations in Tasmania, Victoria and South Australia, in particular, but also influential in other jurisdictions. These apparent certainties have been both endorsed and challenged by academics in Australia and overseas. In this project we have re-examined the available evidence both from Australia and overseas from the perspective that we do not have a preferred outcome, and in recognition that the different jurisdictions have significantly differing operating environments.
• Strategic capacity: In recent years the need or desire to strengthen local government’s strategic capacity to play an expanded and more prominent role has emerged as a key variable in programs of local government reform. This developing view of the role of councils requires that they are not just financially robust but also have the skills and resources ‘to be high capacity organisations with the requisite knowledge, creativity and innovation to enable them to manage complex change.40 This rationale for consolidation may be particularly relevant in metropolitan areas and rapidly developing regions, especially in view of recent federal initiatives for metropolitan planning and regional development. It is also linked to new concepts of local government’s role such as ‘place-shaping’ and in the UK - ‘Total Place’. This dimension of change requires an assessment of changes to local governments’ strategic capacities, which have been developed as a result of consolidation activities.
• Service delivery: Many assertions have been made that consolidation would generate improvements in service delivery, although there are few studies which actually examine the post-consolidation experience of those who receive local government services. This dimension of consolidation was examined in order to evaluate the contribution of local government restructuring in enhancing, or diminishing, service delivery. We can hypothesise that responses might vary according to particular services, given that the threshold population size for particular services is different: for example, the optimum threshold size for
39AustralianCentreofExcellenceforLocalGovernment,ConsolidationinLocalGovernment:AFreshLook(May2011)Volume1.
40CommentfromQueenslandLGReformCommission,2007citedinAustralianCentreofExcellenceforLocalGovernment,abovenote39at4.
40
refuse collection may well be smaller than for water supply. The research, then, sought evidence relating to the question of whether or not there have been service enhancements or deterioration as a result of consolidation.
• Local democracy: A number of researchers have focused attention on impacts on the broader roles of local government, beyond service provision, as a consequence of consolidation. They have drawn attention to the quality of local representation and the increasing difficulties of undertaking this effectively in larger councils. In contemporary Australia and New Zealand, a range of approaches has been adopted to enhance local democracy through mechanisms such as community councils or boards, precinct or ward committees, improved community engagement and the like, and many local governments also have available to them technologies aimed at enhancing the representative role of councils and of individual elected members.
Characteristics of good local governance
150. ThePanelwasalsoreferredtoaseriesofcharacteristicsforgoodlocalgovernment41.ThePanelagreedthesewereausefulstartingpointfordefiningwhatgoodlocalgovernmentisandhasincludedthembelowforthisreason.
• Strategic: capable of generating a shared vision for the region, and developing and delivering on regional and local strategies and plans to make it happen in a reasonable timeframe
• Ensuring engagement and decision making occurs at the right level: Providing for authentic neighbourhood engagement and decision making on local issues while allowing the regional community to make decisions on issues that span a larger area and impact on more people
• Integrated and co-ordinated: enable an integrated approach to key regional networks, infrastructure, assets, amenities, and services; making the most of the scarce resources and capabilities available across the region
• Resilient and adaptive: able to accommodate changing circumstances, including unexpected and high impact events, and are resilient into the future
• Representative and responsive: represents and can be used by diverse communities to serve their own needs and aspirations; provides individual citizens with opportunities to access decision makers and to influence decisions on the issues that matter to them
• Transparent and accountable: are transparent and provide clear accountabilities for delivering outcomes, using public funds, and stewardship of public assets
41MartinJenkins&Associates,WellingtonRegionGovernance:draftmaterialforconsultation(2011).
ThePanelthinksthesecharacteristicsofgoodlocalgovernancefitwellwiththePanel’sTermsofReferenceandwillbeusefultoguidethisreview.Doyouagree?IstheresomethingimportantthatthePanelhasmissed?
41
• Financially sustainable: cost-efficient, financially viable and have adequate and appropriate funding tools to support activities
• Effective and efficient: deliver the core local government services to citizens effectively and efficiently
Is there a case for change?
151. DeterminingwhetherthereisacaseforchangeisakeyfocusofthisIssues PaperandliesattheheartofthislocalgovernmentreviewintheWellingtonregion.
152. Reflectingtheimportanceofthisquestion,thePanelhasdevelopedaframeworktohelpdefineandorganisetheissuesandevaluatethesuitabilityofthecurrentgovernancearrangements.Theframework,basedonthethreethemesof local democracy, effectiveness and efficiency,hasbeendevelopedspecificallyforthisreview.ItdrawsfromresearchandearlierworkonlocalgovernmentreformcommissionedbytheWellingtonMayoralForum42,buttakesgreatercognisanceofthecurrentcontext-includingGovernment’sBetter Local Government reformpackageandtheTermsofReferenceforthePanel.
Local democracy
153. Democracyisthebasisofourpoliticalcultureandsomethingthatneedstobeensuredunderanygoodgovernancearrangements.
154. Inalocalgovernmentcontextitinvolvesactivecitizenengagementandrepresentationthatresultsindecisionsthatarelong-lastingandacceptedbythelocaland/orregionalcommunity.Indoingsoit:
• Allowslocalviews,knowledge,needsandperceptionstoinfluenceregionaldirection
• Providesamechanismforadvocacy/representingcommunityviewstootherbodies,suchascentralgovernment
• Actstobuildandpromotelocalidentityandbringcommunitiestogether
• Balancesbothshorttermandlongertermstrategicoutcomesforcommunities
155. Gooddemocraticlocalgovernmentwillenableandenhancecitizenparticipation,includingbygroupswhomightnottraditionallyhavetheirvoicesheard.Itshouldutiliseknowledgefromabroadspectrumofthecommunity.
42MartinJenkins&Associates,Review of the Wellington Regional Strategy(May2011).
Thepanel’spreferredframeworkforexaminingthegovernanceissuesisbasedonthethreethemesoflocaldemocracy,effectivenessandefficiency.Doyouagreewiththesecriteria?
42
How well are people engaged?
156. Determininghowwellpeopleareengagedthroughlocalgovernmentprocessesdependsontwokeyfactors:thelevelofengagementandthequalityofengagement.
157. Thelowlevelofvoterturnoutintherecentlocalgovernmentelectionsseemstoindicatethelowlevelofcitizenandcommunityinterestintheirlocalgovernmentrepresentation.Likewise,theretendstobelessengagementonstrategic,districtandregionalissues,suchaseconomicdevelopment,urbanformandinfrastructurenetworks.However,therecentengagementonproposalsbyGreaterWellingtonregardinglocalbusservicesinWellingtonCityattractedmorethan6000responses43anddemonstratesthehighlevelofengagementwhencommunitiesandneighbourhoodsfeeldirectlyaffected.
158. Thenatureofengagementonstrategicandregionalissuesdoesn’tmeantheyarelessimportantthanlocalissues.Itdoes,however,indicatetheyareharderissuestoresolveandachievetractiononwiththepublic.Thisneedstoberecognisedinfuturegovernancearrangements.
159. Levelsofengagementshouldalsobemeasuredintermsofthequalityofengagement.Thisisrelevantatalllevels,anddependsontheauthenticityoftheprocessandtowhatextentthoseengagedareabletoinfluenceoutcomes.Clearlythisiseasiertoachieveatalocallevelbutitisstillimportantforwiderstrategicandregionalissues.Therearesomeexamplesintheregionwhereplace-basedneighbourhoodandvillageplanningisdoneverywell.Lookingahead,thereisarealopportunitytobuildonandexpandthesesuccessestothewholeregion.
Our communities of interest are changing
160. Localgovernmentboundariesdefinecommunitiesbylocationbuttherehavealwaysbeencommunitiesofinterestthatgobeyondboundaries.Physicalboundariesareirrelevanttoweb-basedtechnology,andwiththechangingnatureofsocialmedia,communitiesofinterestarestartingtoencompasslargerproportionsofthepopulation.However,connectiontoaplaceremainsstrongandcommunitycharacterisseenasimportant,aswitnessedbythefrequentuseoftheterm“village”todescribeasuburborneighbourhood.
161. Individualswillgenerallybeinvolvedinarangeofrelationshipsandnetworksandwillaffiliatetobothgeographiccommunitiesandcommunitiesofinterest.
Preserving and enhancing neighbourhood identity
162. ResidentsintheWellingtonregionhaveasenseofplaceatbothlocalandregionallevel.Localgovernmenthasastrongroleinenhancingthecharacterandidentityoflocalplacesbutresidentsdonotalwaysagreewithcouncilsonthewayforward.
43GreaterWellingtonRegionalCouncil,Wellington City Bus Review (2012)<www.gw.govt.nz/wellington-city-bus-review/>
Engagementwiththecommunityisacriticalroleforlocalgovernment.Doyouthinkcouncilsintheregiondoagoodjobatthis–atlocalandregionallevels?
Akeychallengeisforlocalgovernmenttofosterauthenticlocalorneighbourhoodengagementanddecisionmakingwhileensuringthewiderregionalcommunityissimilarlyengagedataregionallevel.Doyouthinkthecurrentarrangementsenablethistooccur?Isthebalanceright?
43
163. Theconceptofsubsidiarity,whichsuggeststhatdecisionsshouldbemadeascloseaspossibletothecommunityaffected,wouldrequiredecisionmakingatneighbourhoodlevel,providedthosedecisionsdidnotimpactadverselyonothersfurtherafield.
164. TherearealreadyexamplesofthisinlocalgovernmentintheWellingtonregionbutthereispotentiallyopportunitytoenhanceneighbourhooddecisionmaking.Localpeoplearenotonlysensitivetotheircommunityneeds,butoftenhaveahighdegreeofdetailedknowledgeaboutthefunctioningoftheircommunities.Wherepossiblethisshouldbeutilisedtomakedecisionsthatsuittheneighbourhood.
165. Currently,onlysomecouncilshavecommunityboards.Theboardsthatdoexisthavevaryingdegreesofdelegationonlocalissues.Theexistenceoftheseboardsinmanycasesisassociatedwithpreviouschangestolocalgovernmentstructure.CommunityBoardsareastructuralresponsetothedemandforneighbourhooddecisionmaking.Otherresponsesmightincludebetteruseofonlinetoolsthatareincreasinglyexpectedbyyoungercitizens,whotendtobeabsentfromthemoreformaldecision-makingprocessesoflocalgovernment.
Leadership is important at local and regional levels
166. Leadershipisanaspectoflocaldemocracythatisimportantforbothneighbourhoodsandthewiderregionalcommunities.
167. Atthelocallevel,leadershiphasinthepastbeenmorerecognisedamongdistrictsorcitiesthanattheregionallevel.HavingMayorswhoareelectedatlargeisakeyreasonforthis–andprovidesasenseoflegitimacyfortheparticularplatforminwhichmayoralcandidatesseekthecommunityvote.TheapproachtolocalleadershipisalsointhemindsofthecurrentGovernment.TheLocalGovernmentAct2002AmendmentBill2012currentlybeforeParliamentislookingtoextendmayoralpowerstoenableMayorstotakemoreofapolicyleadandhavegreatercontroloncommitteeappointmentsandthelike44.ItisinterestingtonotethattheBill,ascurrentlywritten,doesnotproposechangestofurtherrecognisetheleadershiproleofchairsofregionalcouncils.Chairsofregionalcouncilsareelectedbytheirpeersandthusthelevelofcommunityrecognitionreliesonthepublicprofileofthepersonconcerned.Recognitionoftheregionalleadershiprolehasalwaysbeendifficult,andwithoutfurtherchangesislikelytobeanongoingissueforregionalcouncils.
168. Theneedforeffectiveleadershipattheregionallevelisnecessary,particularlywhendealingwithstrategicissuesorwherecollaborationacrosscityordistrictboundariesisrequired.TheestablishmentofthenewAucklandCouncilandcurrentleadershipstructuresinCanterburyasaresultoftheissuesbeingfacedareevidenceoftheimportanceofregionalleadership.ThestrategicchallengesbeingfacedintheWellingtonregionsuggestthatregionalleadershipwillcontinuetobeanimportantcomponentoflocaldemocracy.
44LocalGovernmentAct2002AmendmentBill2012,clause16.
SomecouncilsengagelocalcommunitiesthroughCommunityBoards,othersdonot.DoyouthinktheuseofCommunityBoardsshouldbemorewidespread?
Doyouthinkthestrategicchallengesfacingtheregionwarrantstrongerregionalleadership?Ifamovetostrengthenregionalgovernanceisproposed,howcouldlocalleadershipberetainedorenhanced?
44
Possible pointers from Auckland
169. Aucklandhas21electedlocalboardsthatwereestablishedbylegislationwhenthenewAucklandCouncilwascreated.DecisionmakingissharedbetweentheAucklandCouncilandthelocalboards.Theboards’rolesaresetoutintwoimportantprovisionsoftheAucklandCouncilLocalGovernmentAct2009.Sections13and16outlinethefunctions,dutiesandpowersofthelocalboardsandtheirdecision-makingresponsibilities:
“13(1)Alocalboardhasthefunctions,duties,andpowersconferredonalocalboardbyorunderthisActoranyotherenactment.
(2)Withoutlimitingsubsection(1),alocalboard—
(a)mustexercisetheresponsibilitiesconferredonitbysection16(1);and
(b)mustmonitorandreportontheimplementationofthelocalboardagreementforitslocalboardarea(inaccordancewithsection23);and
(c)mustcommunicatewithcommunityorganisationsandspecialinterestgroupswithinitslocalboardarea;and
(d)mustundertakeanyresponsibilitiesordutiesthataredelegatedtoitbythegoverningbodyundersection31orAucklandTransportundersection54;and
(e)mayconsiderandreportonanymatterofinterestorconcerntothelocalboard,whetherornotthematterisreferredtoitbythegoverningbody;and
(f) mayexerciseanypowersthataredelegatedtoitbythegoverningbodyundersection31orAucklandTransportundersection54.
16(1)Eachlocalboardisresponsibleanddemocraticallyaccountablefor—
(a)thedecisionmakingoftheAucklandCouncilinrelationtothenon-regulatoryactivitiesoftheAucklandCouncilthatareallocatedtothelocalboardinaccordancewithsection17;and
(b)identifyingandcommunicatingtheinterestsandpreferencesofthepeopleinitslocalboardareainrelationtothecontentofthestrategies,policies,plans,andbylawsoftheAucklandCouncil;and
(c)identifyinganddevelopingbylawsspecificallyforitslocalboardarea,andproposingthemtothegoverningbodyundersection24;and
IntheeventthatconsolidatedlocalgovernmentunitsareintroducedintheWellingtonregiondoyouseeanyadvantagesordisadvantagesintheAucklandlocalboardmodel?
45
(d)theagreementreachedwiththegoverningbody(assetoutinthelocalboardagreement)inrespectoflocalactivitiesforitslocalboardarea.
(2)Incarryingouttheresponsibilitiesdescribedinthissection,alocalboardmustcomplywiththerequirementsofsections76to82oftheLocalGovernmentAct2002asifeveryreferenceinthosesectionstoalocalauthoritywereareferencetoalocalboard.
(3)Incarryingouttheresponsibilitiesdescribedinthissection,alocalboardshouldcollaborateandco-operatewith1ormoreotherlocalboardsinthesituationswheretheinterestsandpreferencesofcommunitieswithineachlocalboardareawillbebetterservedbydoingso.”
Effectiveness - strategy, planning and decision making
170. Effectivenessinstrategy,planninganddecisionmakingisanimportantdriverofsuccessfulgovernance.
171. EffectivenesswasakeyplatformfortheAucklandRoyalCommissionandisattheheartoftheLocalGovernmentAmendmentAct2002AmendmentBillandassociatedBetter Local Government reforms.Thetheoryisrelativelystraightforward–bydoingourstrategy,planninganddecisionmakingbetterandmoreeffectively,localgovernmentwillbebetterplacedtorespondtotheeconomic,social,culturalandenvironmentalchallengesfacingNewZealandandtheregion.
172. Inpracticethismeansamoredifficultpropositiontoconsider,althoughitiswellknownthateffectivenessofstrategy,planninganddecisionmakinggoeshandinhandwiththe‘strategiccapacity’ofanorganisation.TheQueenslandLocalGovernmentReformCommissiondirectlyreferredtostrategiccapacityasbeing“…wherecouncilsarenotjustfinanciallyrobustbutalsohavetheskillsandresourcestobehighcapacityorganisationswiththerequisiteknowledge,creativityandinnovationtoenablethemtomanagecomplexchange”.45Strategiccapacityisbeingincreasinglyrecognisedasabasicrequirementtoallowcouncilstofunctioninaneffectivewayinthe21stcentury.46
173. Effectivenessisalsoaboutunderstandingwhatfunctionsrequirearegionalviewandwhatfunctionsaremoreappropriatelyperformedatthelocallevel.ThisquestiongoestotheheartofthecurrentdebateonlocalgovernmentreformintheWellingtonregion,andhasbeenthefocusofearlierreportscommissionedbytheWellingtonMayoralForum,includingthePricewaterhouseCoopersreportanddraftmaterialforconsultationpreparedbyMartinJenkinsLtd47whichhasbeenusedtoinformthefollowingsections.AlistoflocalauthorityfunctionscollatedbytheAucklandRoyalCommissionhasbeenappendedtothisreport.
45CommentfromQueenslandLGReformCommission,2007citedinAustralianCentreofExcellenceforLocalGovernment,abovenote39,Volume1at4.
46AustralianCentreofExcellenceforLocalGovernment,abovenote39,Volume1at4.47MartinJenkins&Associates,abovenote41.
46
174. Economic,socialandinfrastructuresystemsdonotrecogniseelectoralboundarylines.Forthisreason,itmakessenseforsomefunctionstobeplannedand/orco-ordinatedregionally.Theseincludeactivitiesorassetsthatareinterconnected,accessedbytheregionasawhole,orspanlocationsandcommunities.Examplesofdecisionsthatrequirearegionalviewinclude:
• Overallaccessandtransportnetworkdesignandfunding
• Economicdevelopment,businessdevelopmentfacilitation,educationandworkforcedevelopment,tourismpromotionandvisitorattraction
• Solidwastemanagement
• Provisionofmajorregionalamenitiesandopenspaces
• Landusemanagementframeworks
• Emergencypreparednessandresponse
175. Otherfunctionsaremoreappropriatelyperformedatthelocallevel.Theseincludeactivitiesorassetsthataresituatedoraccessedbylocalcommunities,orculturallyoreconomicallytiedtoalocation.Examplesincludelocalroadmaintenanceandstreetscaping,beautificationprogrammes,localamenityinvestment,communitydevelopment,localparkdesign,noisecontrol,parking,touristinformation.
176. Gettingthebalancerightbetweenregionaleffectivenessandlocaldecisionmakingwillbeakeychallengeinthisreview.Inherenttensionsoftenexistbetweenlocalandregionalpriorities,andinsomecasesitwillbeimportantthatbothaspectsareprovidedforinthestructuresanddecisionmakingprocesses.Economicdevelopmentisanexamplewherebothregionalandlocaldirectionandinputcanbebeneficial–localcommercialareasmayhaveparticularneedsarisingfromtheirlocationwhereasothermacro-economicissuessuchastransportplanning,regionalamenitiesandsupportforbusinessarebetterundertakenattheregionallevel.
Developing a unified vision and direction for the region
177. DevelopingaunifiedvisionanddirectionisdifficultunderthecurrentgovernancearrangementsintheWellingtonregion.AgreementhasbeenreachedontheWellingtonRegionalStrategyforeconomicdevelopment,butthechallengehasbeentheimplementationoftheStrategywithterritorialauthoritieshavingtomakefinancialandothercommitments.
178. Whilesomeavenuesexistfordevelopingaregionaldirectiononkeyissues,suchaseconomyviatheWellingtonRegionalStrategy,transportviatheRegionalLandTransportStrategy,andresourcemanagementviatheRegionalPolicyStatement,thesearedealtwithseparatelythroughdifferentcommittee
47
structuresandthereisnosinglemandatedleaderorinstitutionprovidingaunifiedvisionanddirectionfortheWellingtonregion.
179. TheMayoralForumhasprovidedanavenuefordiscussiononregionalstrategicissues,butitdoesnothaveaformalmandatetoconsidertheseissuesandnodecisionisbindingonCouncils.MayoralForummeetingsarealsoclosedtothegeneralpublicandothercouncillors.
Is a regional spatial plan needed?
180. Spatialplanningisapossibleapproachtodevelopingaunifiedvisionanddirectionfortheregion.Aspatialplanisanintegratedplanningframeworkthatbringstogetherawiderangeofissues,suchaseconomy,environment,transport,andsetsouthowandwhenaregionwillgrowanddeveloptowardtheunifiedandcompellingregionalvision.Whilespatialplanningisnotnewtolocalgovernment,therecontinuestobeahealthydebateastowhatdevelopingaregionalspatialplaninvolves,particularlyinthecontextoftherecentlyreleasedAucklandPlan.
181. Spatialplanning,whendonewell,canhavemultiplebenefitsforaregion,particularlyinrelationto:
• Effectiveinvestmentdecisions:regionalspatialplansprovideopportunityformoreefficientuseofexistingandnewinfrastructureinvestmentandmoreeffectivestrategicinvestmentdecisions.Effectiveinfrastructureinvestmentanddeliveryisvitaltoahealthyeconomy
• Improvedintegrationandrelationships:thecomplexandmulti-layerednatureofregionalissuesmeansthereisaneedforafargreaterlevelofintegrationofdecisionsandservicesbetweenallpartieswhoinfluencegrowthanddevelopment–acrossallfourwell-beings.Regionalspatialplanningprovidesameanstosignificantlyimproveintegrationacrossalltiersofgovernment
• Scopeandinfluence:themajorityofspatialplanningissueswillextendwellpastcityanddistrictboundariesandthereforeregionalboundariesaremoresuitedtodefinespatialplanning“areas”.Aregionalspatialplanwillhaveagreaterabilitytodeliveralevelofconsequence
• Improvedabilitytodealwithcomplexlanduseissues:spatialplanningprovidesanimprovedabilitytoaddresscomplexlanduseissuesassociatedtomatterssuchastransportinfrastructureinvestment,floodprotection,waterqualityandresidentialgrowthmanagement
• Efficiency:combiningorusingresourcesonaregionalbasisislikelytobemoreefficientthanifitisdoneonanindividualbasisbyeachlocalauthority
Doyouthinktheregionneedsatransparentandformalmandatetodevelopaunifiedvisionanddirectionfortheregion?
48
182. Infrastructureinvestmentislikelytobecomeatopicofmajordebatebetweendifferentgeographiccommunitiesinlightofeconomicconstraintsandthephysicalimpactofpopulationandclimatechange.Atpresentthereislittleopportunityforintegratedplanninganddeliveryandthismaybealostopportunitytoenhancedecisionmakingandthereforetheresilienceoftheregion.
183. WhilesomeelementsofanintegratedAucklandstylespatialplanwereincludedintheinitialWellingtonRegionalStrategy2007throughthechapteronurbanform,thisstruggledtoachievetheambitionssetoutintheStrategy.Tothiseffect,thereviewoftheWellingtonRegionalStrategy2007notedthat48:
“Whileprogresshasbeenmade,manyofthe‘GoodRegionalForm’activitiesprogresseddidnotmatchthelevelofambitionintheStrategy.Themostsignificantregionalformissueslikelytoinfluencetheregionanditseconomyoverthecomingdecades,suchasurbanintensification,aregionalapproachtotheCBDandregionalcentredevelopment,havenotbeentackled.Thecooperationbetweencouncilshasfallenshortofstrategicengagement.”
184. ItisthePanel’sviewthatiftheWellingtonregionisaimingformoreeffectivelocalgovernanceitneedstodemonstratesuccessintacklingthesesignificantregionalissues.
Opportunities to improve regulatory planning
185. Regulatoryplanningisakeyfunctionoflocalgovernment,andiscarriedoutinmanydifferentareas.ThissectionfocusesonregulatoryplanningundertheResourceManagementAct.
186. LocalandregionalgovernmentbothhaveplanningresponsibilitiesundertheResourceManagementAct.Regionalcouncilsmustpreparearegionalpolicystatementwhichsetsoutthekeyresourcemanagementissuesfortheregionandprovidespolicyguidanceonhowtomanagethoseissues.Regionalcouncilsmayalsoprepareregionalplansthatincludeobjectives,policiesandmethodsincludingrulestoaddressspecificenvironmentalissues.Territoriallocalauthoritiesmustprepareadistrictplantomanagetheeffectsoflanduseactivitiesontheenvironment.Districtandregionalplansneedtogiveeffecttotheregionalpolicystatement.
187. ThefirstsuiteofResourceManagementActplanspreparedintheregionresultedinawidevarietyofapproachesandprovisionstomanagesimilarissues.Somecouncilsweremoreeagertoembracethe“effects-based”philosophyoftheResourceManagementActintheirplans.Otherschosetolargely“rollover”manyprovisionsfromtheirpreviousTownandCountryPlanningActplans.SincetheadoptionoftheirfirstResourceManagementActplans,mostcouncilshavebeeninastateofconstantreviewwithnumerousplanchangesbeingpreparedintheregion.Acomplexplanningenvironment
48MartinJenkins&Associates,asaboveat42at6.
Spatialplanningisagoodwaytoconsidercomplexandlargeinfrastructureissuesandguidedecisionmakingonregionalstrategicissues.WhatarethekeyissuesfortheWellingtonregionthatwouldbenefitfromsuchanapproach?
49
hasemergedasaresult,anissuethathasbeenhighlightedformuchofthecountryandwhichtheGovernmentisseekingtoaddressinitsreformsoftheResourceManagementAct.TheProductivityCommissionreviewofregulationwillconsiderthesetypeofissues.
188. TheReportoftheRoyalCommissiononAucklandGovernancealsoconsideredtheissueofcomplexityinplans,andinparticularoutlinedsomeoptionstoconsider.Theseincluded:
• Reducingthenumberoflocalauthoritiesandthusthenumberofplans
• Requiringtheproductionoffewerdistrictplanswhetherornottherearefewerlocalauthorities
• Requiringcommonstandardstobeadoptedindistrictplansthroughouttheregion
• Removingunnecessaryoverlapsinjurisdictionbetweenterritorialauthoritiesandtheregionalcouncil
• Requiringtheproductionoffewerregionalplans/policystatements
• Providingcall-inpowersforproposalsofregionalsignificance
• Providingforasingleplanningagencyforgrowthareasofregionalsignificance
189. TheAucklandCouncilhasproducedaspatialplancoveringa20-30yearstrategyforAuckland’sgrowthanddevelopment.TheCouncilisworkingtowardsthenotificationofaunitarycombinedplanundertheResourceManagementAct.Thisplanwillreplacesevendistrictplans,fourregionalplansandoneregionalpolicystatement,andwillincludeprovisionstoaddressthefunctionsofbothregionalanddistrictcouncils.CombinedplansarenotnewundertheResourceManagementAct.OneofthemostprominentandsuccessfulexamplesofacombineddistrictplanistheplanpreparedbythethreeWairarapadistrictcouncils.However,whatmakestheAucklandplanprocessparticularlyuniqueisthesheerscaleoftheworkinvolved,thelargegeographicalareacoveredandtherangeofissuesthatmustbeaddressed.
190. InconsideringthecomplexplanningenvironmentintheWellingtonregion,thereisscopetoconsidermorecollaborativewaystoprepareplanningdocuments.ThreeissuesinparticularhavebeenhighlightedbelowasexamplesofwhyamorecollaborativeapproachisneededattheResourceManagementActplanninglevel.
50
Freshwater management
191. Inaworldwhereaccesstofreshwaterisbeingincreasinglyconstrained,freshwaterisoneNewZealand’smostsignificantnaturalassets.Thepotentialeconomicadvantagesitprovidesrequireeveryonetoaimforitsbestmanagementanduse.
192. Inthepastdecade,sincethefirstResourceManagementActplanswereprepared,landuseintensificationhasmovedawayfromareasofplentifulwatertoareaswheretherearesignificantseasonallimitsonwateravailability.Irrigationschemescanaddresswateravailabilityissues.HoweverthefirstsuiteofResourceManagementActplanshavebeenfoundtoberelativelyineffectiveinrespondingtowaterqualityissuesandanever-increasingdemandforfreshwater.
193. Recentwork,includingthatoftheLandandWaterForum,49hasresultedinamuchgreatercollaborativeunderstandingoftheissuesandpotentialsolutions,includingtheneedforabetterwaytoallocatewater,ratherthanthecurrent‘first-in,first-served’approachundertheResourceManagementAct.
Growth management
194. Toachievearesilient,vibrantandgrowingeconomy,theregionneedstoplancommercialandindustrialareasmoreeffectively.Ratherthanhavingcouncilseffectivelycompetewitheachotherforagreatershareoftheretailmarket,ortoprovideagreaterproportionoftheindustriallandandusingdistrictplanstoachievethis,amoreeffectiveapproachwouldbetoworktogethertoenhancetheregion’scompetitiveness,enablingittobemoreattractivetoNewZealandandinternalinvestors.
195. WhilesomepolicygainshavebeenmadethroughtheinitialWellingtonRegionalStrategy2007andincorporatedintotheProposedRegionalPolicyStatement,therewillstillbesomekeyissuesforlocalauthoritiestoaddressinpreparingtheirsecondgenerationdistrictplans,whichwouldideallybenefitfromamorecollaborativeandintegratedapproach.Theseissuesinclude:
• Theslowanduneven,orevendeclining,rateofgrowthacrosstheregion
• Themarkedlydifferentvalueofresidentialandcommercial/industriallandacrosstheregion,affectingtheeconomicsofdevelopingparticularlandusesindifferentpartsoftheregion
• Increasingcommunityawarenessofthetimeandcostsincurredwhencommuting
196. Evenwithagrowthmanagementstrategyinplace,theseissuesdemonstratethatnosinglesolutionwillwork.Anon-goingcollaborativeapproachcould,however,improveconsistencyandintegrationintheplanningprocess.
49LandandWaterForum(April2012),SecondReportSetting Limits for Water Quality and Quantity Freshwater Policy and Plan making through collaboration.
Whatdoyouthinkarethekeygrowthmanagementissuesforyourcommunityortheregion?Doyouthinkcouncilsneedtotakeacloserlookattheseissues?
51
Managing natural hazards
197. TheResourceManagementActcurrentlysetsoutmanagingnaturalhazardsasafunctionforbothregionalanddistrictcouncils.Theexactrelationshipbetweenthesefunctionshaslongbeenagreyarea.Notsurprisingly,therecentlyreleasedTechnicalAdvisoryGroupreportreviewingSection6andSection7oftheResourceManagementActhasidentifiedtheneedforstrongerregulatoryplanningformanagingnaturalhazards.TheTechnicalAdvisoryGroupreportrecommendsthat“regionalcouncilsshouldhavetheleadfunctionofmanagingalltheeffectsofnaturalhazards.Territorialauthoritiesaretoretaintheircurrentfunctioninregardtonaturalhazards”.50
198. Managinghazardsmoreeffectivelyandefficientlyisanissuethatistopofmindforlocalandcentralgovernmentpoliticians;suggestingthatthetimingisrighttopursuearegionalapproachtoasetofdistrictlevelplanningtoolstomanagetheeffectsofhazardsintheregion.
Neighbourhood planning and place shaping
199. Improvingtheeffectivenessoflocalgovernmentisnotjustaboutbettermanagingregionalissues.Italsorequiresdevelopingmoreeffectiveandconsistenttoolsfordecision-makingatthelocalcommunitylevel-theregion’ssuburbsandvillages.
200. Theplaceswherepeoplelive,workandplayaretheplacestheywillfeelmostconnectedwith.Aperson’ssenseofbelongingisenhancedbytheirexperiencesoflivingin,andinteractingwith,theirlocalcommunity.Further,havingastrongconnectionwiththeircommunitytendstoengenderadesiretonurtureitandbeinvolvedindecision-makingprocessesthataffectit.
201. Place–shapingasaconceptwasreferredtointheAucklandGovernancereportbytheRoyalCommission.TheRoyalCommissionconsideredtherewasaroleforlocallevelgovernancewhichwould,amongotherthings,includehelpingtobuildandshapelocalidentityandrepresentthelocalcommunity,inadditiontothecreationofasingleunitarycouncil.
202. Twenty–onelocalboardswereestablishedaspartofthere-organisationoflocalgovernmentinAuckland.Theirroleistomakedecisionsonlocalmatters,providelocalleadershipandsupportstronglocalcommunities.Localboardsarerequiredtopreparealocalplanthatsetsoutthevalues,prioritiesandvisionidentifiedbythecommunitiesinthelocalarea.Inparticular,theplansidentifykeyprojectsandprogrammesthatthelocalboardisproposing,outlineadvocacythatthelocalboardwillundertakeonbehalfofthecommunity,outlinehowthelocalboardproposestosetlocalservicelevelstomeetcommunityaspirationsandhowtheseservicelevelswillbefunded,andwhothelocalboardwillworkwithtoimplementthelocalboardplan.
50ResourceManagementActPrinciplesTechnicalAdvisoryGroupabovenote21at15,s1.8.
52
203. Place-shapingisessentiallyaboutvillageandtowncentreplanning.Itisaboutlocalpeopledecidingwhattheywantfortheircommunitiesandthenimplementingthevision.TherearesomeverysuccessfulexamplesofvillageandtowncentresplanningintheWellingtonregion,buttherearealsoexamplesofcouncilsthathavestruggledtoimplementcommunity-basedplans.PoriruaCityCouncil’svillageplanningprogrammeisoneofthemoresuccessfulprogrammes,whichhasreceivedinternationalrecognitionattheInternationalLiveableCommunitiesAwardsforitsapproachinempoweringlocalcommunities.
204. ThereviewoflocalgovernancestructuresintheregionwouldcreateanopportunityforlocalgovernmenttobuildonthesuccessfulvillagecentreplanningachievedinPorirua’slocalcommunitiesbyadoptingthosemodelselsewhereacrosstheregion.Thiscouldensurethatlocalcommunitiesaregiventheopportunitytoexperiencethesamefeelingofempowermentinnurturingthedevelopmentoftheirowncommunity.
Possible pointers from Auckland
205. Asoutlinedabove,theAucklandCouncilhasalsocompletedimportantstrategicplanningdocuments.Inparticularthe30-yearstrategic,spatialplanknownastheAucklandPlanhasbeencompleted.ThePanelhasexamineditandfindsitimpressive.Itisworthsettingoutwhatthelawrequiresinthisregard:
“(1)TheAucklandCouncilmustprepareandadoptaspatialplanforAuckland.
(2)ThepurposeofthespatialplanistocontributetoAuckland’ssocial,economic,environmental,andculturalwell-beingthroughacomprehensiveandeffectivelong-term(20-to30-year)strategyforAuckland’sgrowthanddevelopment.
(3)Forthepurposesofsubsection(2),thespatialplanwill—
(a)setastrategicdirectionforAucklandanditscommunitiesthatintegratessocial,economic,environmental,andculturalobjectives;and
(b)outlineahigh-leveldevelopmentstrategythatwillachievethatdirectionandthoseobjectives;and
(c)enablecoherentandco-ordinateddecisionmakingbytheAucklandCouncil(asthespatialplanningagency)andotherpartiestodeterminethefuturelocationandtimingofcriticalinfrastructure,services,andinvestmentwithinAucklandinaccordancewiththestrategy;and
(d)provideabasisforaligningtheimplementationplans,regulatoryplans,andfundingprogrammesoftheAucklandCouncil.
Localplace-shapingprocessesdiffersignificantlyaroundtheregion.Doyouthinkthereisvalueinamoreconsistentapproachbasedonmodelsthathavedemonstratedsuccess?
53
TheAucklandlegislationrequiresaspatialplantobedrawnup.ThereisnothingcomparableinWellington...wouldsuchaplanbenefitthisregion?
(4)Thespatialplanmust—
(a)recogniseanddescribeAuckland’sroleinNewZealand;and
(b)visuallyillustratehowAucklandmaydevelopinthefuture,includinghowgrowthmaybesequencedandhowinfrastructuremaybeprovided;and
(c)provideanevidentialbasetosupportdecisionmakingforAuckland,includingevidenceoftrends,opportunities,andconstraintswithinAuckland;and
(d)identifytheexistingandfuturelocationandmixof—
(i)residential,business,ruralproduction,andindustrialactivitieswithinspecificgeographicareaswithinAuckland;and
(ii)criticalinfrastructure,services,andinvestmentwithinAuckland(including,forexample,servicesrelatingtoculturalandsocialinfrastructure,transport,openspace,watersupply,wastewater,andstormwater,andservicesmanagedbynetworkutilityoperators);and
(e)identifynationallyandregionallysignificant—
(i)recreationalareasandopen-spaceareaswithinAuckland;and
(ii)ecologicalareaswithinAucklandthatshouldbeprotectedfromdevelopment;and
(iii)environmentalconstraintsondevelopmentwithinAuckland(forexample,flood-proneorunstableland);and
(iv)landscapes,areasofhistoricheritagevalue,andnaturalfeatureswithinAuckland;and
(f)identifypolicies,priorities,landallocations,andprogrammesandinvestmentstoimplementthestrategicdirectionandspecifyhowresourceswillbeprovidedtoimplementthestrategicdirection.”
206. TheActgoesontosetouthowtheplanwillbedeveloped,adoptedandimplemented.Centralgovernment,infrastructureproviders,communities,theprivatesectorandtheruralsectorareallinvolved.
54
Therehavebeensomeefficiencygainsintheregionthroughsharedservicesapproachesbuttheycantakeconsiderableresourcestoputinplace.Shouldmoreeffortbeputintoasharedservicesmodel,ordoyouthinkefficiencygainswouldbegreaterfromreorganisation?
Efficiency – use of resources and capabilities
207. Deliveringgovernmentfunctionsandservicesinthemostefficientwayisakeydriverforcentralandlocalgovernmentreform.
208. Centralgovernmenthasembarkedonanambitiousprogrammeofmergingsimilargovernmentdepartmentsinanefforttoreducecostsfrom“backroom”functionssuchashumanresources,informationtechnologyservicesandfinance.
209. Localgovernmentisalsofacedwiththeneedtodeliveritsservicesmoreefficiently.Someofthecurrentreasonsforthisincludesignificantcostsincreasesassociatedwithinfrastructurerenewal,earthquakestrengtheningofpublicassetsandemergingissuessuchastheleakybuildingscrisis.Theimpactofthesecostsonratepayersissignificantandcouncilsacrossthecountryarestrugglingtokeepraterisesaffordablefortheirlocalcommunitiesgiventhecurrentstagnanteconomy.
210. Creatingamoreefficientlocalgovernmenthasalready
beenmentionedinthispaperasakeydriverbehindtheGovernment’sBetter Local Governmentreformprocess,whichaimsforbetterclarityaboutcouncils’roles,strongergovernance,improvedefficiencyandmoreresponsiblefiscalmanagement.
211. IntheWellingtonregion,localgovernmenthasbeenactive
intakingamore“sharedservices”approachinsomeareas.ExampleswherecouncilsintheregionworktogetherincludeCivilDefenceEmergencyManagement,deliveryofwaterservicesforWellingtoncity,HuttcityandUpperHuttcity,librariesandfacilitationofregionaleconomicdevelopment.ThecouncilsintheWairarapahavebeenparticularlyactiveinpursuingefficienciesthroughtheircombineddistrictplanandexistingsharedservicearrangementsonmatterssuchaswasteandruralfire.51
212. ThelaunchoftheWellingtonRegionEmergencyManagementOfficeisthemostrecentexampleofasharedapproach.DrivenbytheneedforamoreeffectiveandefficientapproachtoCivilDefenceEmergencyManagement,theWellingtonRegionEmergencyManagementOfficeisanamalgamationofalloftheregion’scivildefenceemergencymanagementpeople,resourcesandfunctionspreviouslyprovidedbytheWellingtonregion’sninecity,districtandregionalcouncils.
213. ThePanelisaware,however,thatbiggerdoesnotalwaysmeanbetterormoreefficient.ResearchintootherlocalgovernmentreformsacrossNewZealandandAustralia52suggeststhatwhileconsolidationreformsareoftenmotivatedbytheneedtocreatecostsavingsbycreatingeconomicsofscale,savingswerenotoftenapparentintheyearsthat
51MorrisonLow,Assessment of options for joint management and service delivery Final Report(May2012).
52AustralianCentreofExcellenceforLocalGovernment,abovenote39,at40.
55
followedthereforms.Instead,whatwasoftencreatedwereso-called“economiesofscope”.Thatis,localgovernmentbecamefarmoreeffectiveinachievingdesiredoutcomesduetoanincreasedstrategiccapacity.Thatstrategiccapacitywasinpartafunctionofincreasedsizeandresourcelevel,butalsocombinedtheknowledgeandexpertiseofstaff.
Key issues and opportunities
Towards more integrated management of water services
214. Theprovisionandmanagementofwaterservicestobusinessesandhouseholdsacrosstheregionisacorefunctionoflocalgovernment.Italsorepresentsamajorareaofspendformostlocalauthoritiesintheregion;withmajorlong-terminvestmentdecisionsbeingneededinthenearfutureregardingnewbulkwatersuppliesandenhancementstoexistinglocalnetworks.
215. Atpresenttheseissues,whichrequirelong-terminvestmentdecisions,arebeingaddressedindifferentways.Forexample,anewbulkwatersupplyforthefourcitiesoftheregioniscurrentlybeinginvestigatedbyGreaterWellingtonRegionalCouncil,whichisalsoinvestigatingsmallerstoragereservoirsaroundWellingtoncityforemergencyresponsereasons.KapitiCoastDistrictCounciliscurrentlyinvestigatingnewwatersupplyoptions.Inadditiontoneedingadditionalwater,15ofthe20watertreatmentplantsacrosstheregionareeitherungradedorgradedDorE,whichindicatesahighlevelofrisk.ManyoftheCouncilsarealsocurrentlyupgradingtheirwastewatertreatmentsystemssotheirdischargescanmeetcurrentwaterstandards.Thesesystemsareexpensiveandsmallercouncilsrelyheavilyonoutsourcingtoundertakeplanning,deliveryandoperation.Giventhis,itmakessensetolookattheefficienciesthatmightbegainedfrommanagingwateracrosstheregioninadifferentway.
216. PricewaterhouseCooperscarriedoutareviewoftheregion’swater,wastewaterandstormwateractivitiesandnetworksin2010.Itsreviewrevealedthatavarietyofmechanismsareusedtomanagethethreewaterassetsacrosstheregion,including:
• GreaterWellingtondeliversbulkwatertoUpperHutt,LowerHutt,WellingtonandPorirua,whereasMasterton,Carterton,SouthWairarapaandKapitiallmanagetheirownwatersupplies
•WellingtonandLowerHuttestablishedaCouncilControlledOrganisationin2004(CapacityInfrastructureServices)todelivertheirreticulatedsupplyofthethreewaterassetstohouseholdsandbusinesses.In2008,CapacitywascontractedbyUpperHuttCitytoalsoprovidethesameservices
53PricewaterhouseCoopers,abovenote1at35.
56
217. Perhapsunsurprisingly,thePricewaterhouseCoopersreviewrecommendedanewapproachwasnecessary.Theirreportnotedthat“theintegrationoftheregion’swaterservicesisagoalthatthecouncilsshouldseektoachieve”.
218. Anumberofbenefitsareexpectedtooccurasaresultofhavinganintegratedregionalapproachtowatermanagement.Perhapsthemostsignificantistheimprovedstrategiccapacitythatwillbeachievedbypoolingtechnicalstaffintoonecoreteam.Thiscouldenablemoreeffectiveoutcomesforwaterservicesattheregionalandlocallevels,andshouldimprovelong-termplanning.Improvedcosteffectivenessandreductioninrisktopublichealthcouldresultfromimprovedmanagementofthewaterassetandinfrastructure.
Harmonising regulation and regulatory processes
219. Theadministrationofregulatoryprocesses,particularlyintheareasofenvironmentalhealth,buildingandresourceconsents,isasignificantfunctionforlocalgovernment.Thereisscopeinsomeoftheseareas,morethanothers,toremoveunnecessaryduplicationoftasksrequiredbylegislation.Thegoalshouldbetoidentifyastreamlinedwayofcarryingouttheseregulatoryfunctionstoachievegreaterregionalefficiencies.
220. CouncilfunctionsundertheBuildingActrepresentanobviousareaforgreaterefficiency.Peoplecarryingoutworksunderthebuildingcodehavetocomplywiththesamerequirementsirrespectiveofwhichdistricttheyarein.Thismeanstheknowledgeandskillsheldbybuildingconsentstaffinthevariousdistrictsaretransferabletootherdistricts.
221. Theopportunityfortheregion’scouncilstointegratetheirbuildingconsentsteamcouldleadtogreaterefficienciesandimprovetheabilityofunder-resourcedcouncilstodelivertheirfunctionseffectively.Itislikelythatcertainaspectsofthesefunctions,suchassiteinspections,couldstillneedtobebasedfromlocalcentres.
222. Achievingefficienciesinregionalresourceconsentprocessingwillbemorerestrictedbecauseofthenumberofregionalplansthatexist,andofthedifferentapproachestakentomanagingparticularissues.Butthereareopportunitiestoachieveamoreconsistentapproachtotheseregionalprocessesbysharingknowledgeoninternalprocessesthathavebeendevelopedbyeachofthecouncils.Otherideasthathavebeensuggestedpreviouslyincludecreatingtemplatesfortherangeofresourceconsentformsrequiredandsharinginformationtechnologysoftwaresolutions.
Other infrastructure
223. Roads:Territorialauthoritiesareresponsibleformaintainingthemajorityoftheroadingnetworkintheregion,outsidethestatehighwayswhicharemanagedbytheNewZealandTransportAgency.Puttingasidethestrategicplanningfor
Doyouthinkthereisbenefitinconsideringamoreintegratedregionalapproachtothemanagementofwaterinfrastructureservices?
57
roads,whichiscarriedoutviawell-establishedprocessesattheregionallevel,thecostsofmaintainingandupgradingroadscomprisesasignificantcomponentoftheoverallbudgetforcouncilsintheregion.Thiscanbeproblematic,particularlywithsmallercouncilswithexpansiveroadnetworksandsmallpopulations,suchasthoseinWairarapa.Forexample,roadingisthelargestsingleareaofexpenditureofeachoftheWairarapaCouncils;in2011/12theircombinedbudgetwasapproximately$18.4million54.
224. Asharedapproachorintegrationintoalargerentityoffersopportunitiesforefficiencygains,primarilythrougheconomiesofscale.Asharedorlargerassetmanagementfunctionmayalsoenablelocalgovernmenttodeliverahigherstandardofassetmanagement.
225. Solid Waste:Themanagementofwasteintheregionisanareawherethecouncilshavebeencollaboratinginrecentyears,particularlyatthepolicylevel.UndertheWasteMinimisationAct2008,councilsarerequiredtodevelopWasteManagementandMinimisationPlansby2012.ThecouncilsintheWellingtonRegionagreedtoprepareajointplan,whichwasdevelopedin2011andiseffectiveuntil2017.Thoughallcouncilswereinvolvedincontributingtothedevelopmentoftheplan,includingcarryingouttherequiredwastemanagementassessment,efficiencieswereachievedbyavoidingthepreparationofindividualplansbyeachauthority.
226. TheWellingtonRegionWasteManagementMinimisationPlan55outlineshowtheCouncilsintendtooversee,facilitateandmanagearangeofprogrammesandinterventionstoachieveeffectiveandefficientwastemanagementandminimisation.However,theCouncilswillimplementtheseprogrammesandinterventionsthroughtheirrespectiveinternalstructuresresponsibleforwastemanagement.Thissuggeststheremaystillbescopeforafurtherintegrationofwastemanagementservicesattheoperationallevel.
227. Corporate services:Considerationofgovernancearrangementswillpresentsomeopportunitiestoachieveefficiencygainsfromcorporateservicesandback-officefunctionssuchasinformationtechnologyservices,humanresources,financeandprocurement.
Council Controlled Organisations
228. CouncilControlledOrganisationsarebusinessunitsrunatarm’slengthfromcouncilswiththeirownboardofdirectors-inwhichoneormorelocalauthoritiescontrol50percentormoreofthevotes,orhavetherighttoappoint50percentormoreofthedirectors.ThereareseveralCouncilControlledOrganisationsamongCouncilsintheregion,including:
• CapacityInfrastructureServices-thepublic-facingdeliveryarmofwaterservicesforWellingtoncityandHuttcity
• CentrePortLtd
54MorrisonLow,abovenote51at67.55CouncilsoftheWellingtonRegion,Wellington Region Waste Management and Minimisation
Plan 2011-2017(2011)at8.
Individualcouncilsintheregionspendsignificantresourcesonthemanagementandmaintenanceofkeyinfrastructuresuchasroads,stormwater,wastewater,watersupply,recreationalfacilitiesandcommunityfacilities.Doyouthinkthereisbenefitinmanagingthesethroughamoreregionalapproach?
58
• GrowWellington–theregion’seconomicdevelopmentagency
•WellingtonWaterfrontLtd
• PositivelyWellingtonTourism
229. ComparedtoAuckland,whichhassevensubstantiveandpowerfulCouncilControlledOrganisations,includingAucklandTransportandWatercareServicesLtd,thecurrentapproachinWellingtonisconsideredfairlyminimal.IntheWellingtonregion,onlyGrowWellingtonandCentrePortareformallyconstructedtooperateataregionalscale.Therearealsonumerouscouncil-ownedentitiesthatarenottechnicallyCouncilControlledOrganisations,includingtheWellingtonRegionalStadiumTrustandtheWellingtonZooTrust.ItisalsoworthnotingthatAucklandTransport,oneoftheAucklandCouncilControlledOrganisations,hasthesamerolethattheGreaterWellingtonRegionalCouncilhasforregionaltransportplanningandtheownershipoftransportinfrastructure.
230. OpinionisdividedabouttheunderlyingphilosophyofCouncilControlledOrganisations.SomearguethatCouncilControlledOrganisationsareusefulvehiclesforintroducingcommercialdisciplineandfocusintodecisionmakingthatwouldotherwisebecloudedbypoliticalconsiderations.OthersarguethatalthoughCouncilControlledOrganisationsareusefulforareaswherethereiscommercialcompetition,theyareinappropriateforareasofmonopolyservicedorwheretheserviceisfundedbyratepayers.
Learnings from Auckland
231. TheAucklandexperienceisarichsourcefromwhichtomineimportantissuesofgovernanceandefficiency.
232. Thefirstofthoseissuesiswhetherscalemakesadifference.Alargerentitywithmoreresources,betterfundingandbetterstaffwithmoreskills,maybeabletodoabetterjobthansmallerunitsthatlacktheseadvantages.Further,wheretherearetwotierstheremaybeinefficienciescomparedwithonetier.ItseemscleartheAucklandCouncilhasalreadyachievedefficiencysavingsofupto$80millioninthefirstyear.Over10yearsitisplannedtodeliver$1.7billionefficiencysavingswhileprovidingmoreorthesamelevelofservice.56
233. InAucklandthereisnowasystemofintegratedconsents.Theformerdistrictandregionalconsentinghasbeencombinedintoonesystem.Therearelikelytobeanumberofadvantagesforconsumersofcouncilservicesandinhowefficientlythoseservicesaredelivered.AucklandnowhasaregionalaccountmanagementapproachtosupporttheCouncil’stop25clients.Therearestandardisedapplicationformsthathelptoprovideconsistentcustomerservice.Acentralisedteamhasbeenestablishedforcommercialconsents.Aconsentsteamhasalsobeenestablishedforspecialisedmajorinfrastructureconsents,
56“AucklandCounciladoptsitsfirstlong-termplan”(28June2012)Auckland Council<www.aucklandcouncil.govt.nz/EN/newseventsculture/OurAuckland/News/Pages/longtermplan20122022adopted.aspx>
WhatroleshouldCouncilControlledOrganisationshaveinfuturegovernancearrangements,howshouldtheybeorganisedandwhatareasshouldtheycover?
DoyouthinkefficiencysavingscouldbeachievedbyfashioninglargerunitsoflocalgovernmentintheWellingtonregion?
WouldasystemofintegratedconsentshaveadvantagesfortheWellingtonregion?
59
Wouldtherebeadvantagesinaregionalapproachtotheadministrationofregulatoryactivities?
WhatchangesneedtobemadeinregardtotransportintheWellingtonregionandwhatapplicationcouldtheAucklandmodelhave?
includingpre-applicationmeetingsinordertoimprovecustomersatisfaction.
234. InAuckland,newintegratedsystemsarebeingsetuptoadministerregionalregulatoryactivities,suchasbuildinginspections,buildingconsents,resourceconsents,foodlicenceapplications,liquorlicences,householdrefusecollection,recyclingfromhouseholds,andlibraries.Therewouldappeartobeadministrativeandcostadvantagesinsuchanapproach.
235. TransportisabigitemintheactivitiesoftheAucklandCouncil.ACouncilControlledOrganisation,AucklandTransport,establishedbythelegislationisresponsibleformanagingthetransportnetwork,includingpublictransportinfrastructureownedbytheCouncil.ThepurposeofAucklandTransportistocontributetoaneffectiveandefficientlandtransportsystemtosupportAuckland’ssocial,economic,environmentalandculturalwellbeing.
60
Introduction
236. ThePanel’stermsofreferencedirectittoconsider,amongarangeofmatters:
“m.Theimpactofanyproposedchangesonlocalgovernmentfinancesandrevenuemodels,includingratesandthemanagementofassets,debtandotherliabilities
and
o.Thecostsandbenefitsofthestatusquoandofanypreferredoptionforchange”
237. ThefinancialimplicationsofanylocalgovernmentreformacrosstheWellingtonregionwillbeofsignificantinteresttoratepayersineachlocalauthorityarea.AstheAucklandexperiencehasshown,akeychallengewithanyfuturestructuralreformwouldbehowtoaddresscurrentdifferencesinstrategy,servicelevelsandfundingandfinancialpoliciesandhowtoeffectivelymanagetheimpactthatapotentialsolutioncouldhaveonratepayers.
238. EachLocalAuthorityhasacommonresponsibilityundertheLocalGovernmentAct2002tomanageitsfinancesinamannerthatpromotesthecurrentandfutureinterestsofthecommunity.However,actualdecisionsregardingservicelevelsandthefundingandfinancialstrategiesandpoliciesadopteddiffer.Insomecasesthedifferencesaresignificant.Thatis,perhaps,notunexpected.
239. Eachlocalauthorityhasauniquesetoffundingandfinancialpolicies,includingratingpolicies,whichhavebeendevelopedtomeettheneedsofthecommunitythatthelocalauthorityserves.TheeffectthatanylocalgovernmentreformacrosstheWellingtonregionmayhaveonthesepoliciesandthedistributionoffundingrequirementsacrossratepayersislikelytobecarefullyscrutinised.TherecentexperienceofAucklandCouncilmovingtoasingleratingsystemhighlightsthefinancialchallengeandimpactatanindividualratepayerlevelofmovingfromthestatusquotoasingleregionalpolicy.
240. Eachlocalauthorityhasrecentlyadoptedanew10-yearlong-termplan.ForthefirsttimesincetheintroductionoftheGovernment’stransparency,financialmanagementandaccountabilityreformseachlong-termplanincludesafinancialstrategy.Inbroadterms,thissetsouteachlocalauthority’sapproachtomanagingthecostofitsactivitiesanditsfinances.
241. Mostfinancialstrategiesidentifiedthesignificantfinancialpressureandconstraintsthatthelocalauthoritywasfacing.TheglobalfinancialcrisisanditsimpactontheNewZealandeconomyisclearlyaffectinglocalauthoritiesandtheircommunities.Financialstrategiesclearlyindicatethechallengeofbalancingthefinancialissuesfacedbylocalauthoritieswiththeimpactthishasonaffordabilityforratepayers.
Chapter5:Ratesandfinance
61
242. Itisclearfromthelong-termplansadoptedthatlocalauthoritiesacrosstheWellingtonregionareresponsibleforthecollection,managementandstewardshipoflargeamountsofpublicmoney.Eachlocalauthoritycollectsthemajorityoffundingforitsactivitieseitherthroughitsgeneralpowertorateorthroughdirectusercharges.Infinancialterms,thecontributionoflocalgovernmenttothelocaleconomyissignificant.
243. Differencesinservicelevels,costofservicedelivery,ratingandfundingpoliciesandthefinancialstrategiesadoptedbyeachlocalauthorityinvariablypresentachallengeforthePanelinbeingabletoclearlyarticulatetheactualextentorfinancialimpactofanylocalgovernmentreformatanindividualratepayerlevel.Atamacrolevel,theAucklandexperiencehighlightsthatsignificantefficiencysavingsandoperationalefficiencycanreasonablybeexpected,andthesesavingswouldaccruetoallratepayers.
244. Inbroadterms,thePanelappreciatesthatratepayerswillbeparticularlyinterestedin:
• Howanylocalgovernmentreformwouldaffecttheratespaidbyindividualratepayersorgroupsofratepayers(commercialandresidential)
• Howtheintegrationoffundingandfinancialpoliciesorthedevelopmentofaregionalratingsystemwouldaffectthedistributionorallocationofratesandthedirectchargesfortheuseoflocalauthorityservices
• Howuniqueormoreisolatedfinancialissuesorchallengesfacedbyonelocalauthority(forexample,settlingleakyhomesclaims,ormanagementoftheregion’srivers)wouldbemanagedonaregionalbasis
•Whatlevelofefficiencysavingscouldbeexpectedfromanyreformofthecurrentgovernancemodel,howtheseefficiencysavingswouldbedistributedandthetimeframesoverwhichefficiencysavingswouldberealised
• Thecostofmaintaininglocaldemocracyandrepresentation
245. Toassistitinitsconsultation,thePanelhaslookedateachlocalauthority’scurrentandforecastfinances.Itnotedthesignificantfinancialissuesandchallengesfacedbyeachlocalauthorityandthedivergenceinhoweachlocalauthorityhassetaboutmakingitsfundingdecisions.Whereappropriate,thePanelhasdrawnfromtheexperiencefromAuckland,particularlyinrelationtohowAucklanddealtwiththeintegrationofdifferentpoliciesthroughtransitionandsetup,theidentificationofpotentialefficiencysavingsandhowtheseimpactedindividualratepayers.
246. ItisclearfromtheAucklandexperiencethatsignificantefficiencysavingswereexpectedandthatAucklandCouncilappearstobemakingprogressindeliveringthese.Itisalso
62
clearthebenefitswillflowdifferentlytodifferentratepayersdependingonanyfinalimplementationanddesignissues.ThePanelisinterestedinunderstandingwhethertherewouldbeanexpectationofsignificantefficiencysavingsinWellingtonandwhatexpectationratepayerswouldhaveinmanaginganydifferencesincurrentpoliciesandstrategies.
247 IntheremainderofthissectionthePanelbrieflyoutlinesthe:
• Obligationonlocalauthoritiestomanagetheirfinances
• Policiesandstrategiesadoptedbylocalauthoritiesinmanagingtheirfinances,andkeydifferencesbetweenlocalauthorities
• CurrentstateoffinancesofeachofthelocalauthoritiesintheWellingtonregionandforecastchangesoverthenext10years
• Generalfinancialissuesandchallengesthatlocalauthoritiesfaceandhowthesearereflectedintheirfinancialstrategiesandlong-termplans
• EfficiencysavingsthatmaybeexpectedfromanyreformorrestructuringofWellington’slocalauthorities
• SignificantfinancialandfundingissuesthatthePanelisseekingcommentandfeedbackon
Setting the context – funding and financial management
248. Undersection101(1)oftheLocalGovernmentAct2002eachlocalauthorityintheWellingtonregionmust:
…“manageitsrevenues,expenses,assets,liabilities,investmentsandgeneralfinancialdealingsprudentlyandinamannerthatpromotesthecurrentandfutureinterestsofthecommunity”.
249. UndertheLocalGovernmentAct2002eachlocalauthorityisrequiredtopreparealong-termplan,coveringaperiodof10years,andanannualplanasappropriate.Adequateandeffectiveprovisionmustbemadeineitherthelong-termplanorannualplanfortheexpenditureneedsofthelocalauthority.Thefundingneedsforeachlocalauthoritymustbemetfromthosesourcesthateachlocalauthoritydeterminestobeappropriate.
250. Inadditiontothesebroadobligations,section100oftheActrequiresthateachlocalauthoritymaintainabalancedbudgetunlessitdecidesthatitisfinanciallyprudentnottodoso.Section102oftheActrequireseachlocalauthoritytodevelopandadoptspecificfundingandfinancialpoliciesinordertoprovidepredictabilityandcertaintyaboutthesourcesandlevelsoffundingitreceives.
63
251. Withinthelegislativeframeworkforfinancialmanagementeachlocalauthorityhastheflexibilitytodeterminethefinancialandfundingpoliciesthatareappropriatetomeetitsexpenditureneedsandbestpromotesthecurrentandfutureinterestsofthecommunity.
252. Recentchangestothetransparency,accountabilityandfinancialmanagementwithwhichlocalauthoritiesmanagetheirfinanceswereintroducedaspartofthe2010LocalGovernmentActAmendmentAct.However,localauthoritieshaveretainedtheflexibilitytomanagetheirfinancesinaccordancewiththeprinciplesandframeworksetoutintheLocalGovernmentAct2002.
253. Inlookingatthelong-termplansofeachlocalauthoritythePanelnoted:
• Localauthoritiesareresponsibleforthecollection,managementandstewardshipoflargeamountsofpublicmoney
• Thefinancialstrategies,andfundingandfinancialpolicies,differintermsofthefinaldecisionsmadebyeachlocalauthority
• Comparabilityoffinancesbetweenlocalauthoritiesisinfluencedbydifferencesinthestrategiesandpoliciesadopted
• Thereareanumberofactivitiesandservicesthatare“similar”acrosslocalauthoritiesbutwherepricingandfundingdecisionsdiffer
254. Asanexample,thePanelnotedthedifferencesinlocalauthorities’decisionsregardingthefundingofswimmingpools.Thefollowingtablehighlightsthedifferentfundingdecisions:
Table 2: Local Authority Funding Policy for Swimming Pools – 2012/13
Local Authority Local Authority Funding Policy Swimming Pool Entry Prices
% funded from Rates
% funded from User Charges and Other Revenue
Adult Child Pre-school
Wellington 60% 40% $5.70 $3.50 $1.20
Hutt City 60-79% 20-39% $4.50 $3.00 N/A
Upper Hutt 40-65% 35-60% $5.10 $4.10 $3.10
Porirua 35-50% 50-65% $5.00 $3.00 N/A
Kapiti 75% 25% $4.50 $2.20 $1.20
South Wairarapa 60-70% 30-40% $3.00 $2.00 N/A
Carterton 100% 0% N/A N/A N/A
Masterton 70% 30% $5.10 $3.60 N/A
Greater Wellington Regional Council
N/A N/A N/A N/A N/A
Source: 2012/22 Final LTPs, local authority funding policies or websites for entry prices Notes: 1 Exception is Khandallah pool (Adult $2; Child $1), 2 College students and children 5-14 years, 3 Under 1 year old = $2, 4 Fees in table are for Arena Aquatic Centre. Cannons Creek pool fees are $3.40 adult, $1.00 child, 5 College students and children under 12, 6 Based on UAGC, 7 Under 15 years or student, 8 No charge with adult. Additional under 5 = $1.00
64
255. ThePanelunderstandsthatthefinalimpactofanyreformataratepayerorcommunitylevelwillultimatelydependon:
• Thefinalshapeofanyreformtothestatusquo
• Howcurrentdifferencesinfundingandfinancialpoliciesaremanagedoraddressed(forexample,whetherasingleratingsystemisdevelopedandhowthismanagesorequalisesdifferencesinstrategyandpolicythatexisttoday)
Auckland experience
256. OneofthechallengesfacedbyAucklandCouncil,postamalgamation,wastherequirementtoproduceasinglesetoffundingandfinancialpolicies,includingasingleratingsystem,andtothenmanagetheimpactonindividualratepayersandusersofservices.Forexample,thedevelopmentofaregionalfundingandfinancialpolicyforswimmingpoolsimpactedManukauCityratepayerswhohadpreviouslyenjoyedfreeaccesstothelocalauthority’sswimmingpoolspriortoamalgamation.Similarly,thedevelopmentofasingleratingpolicyforAucklandaffectedthefinaldistributionandallocationofrates.
257. InthecaseofAuckland,thedevelopmentofasinglesetoffundingandfinancialpoliciesweremanagedaspartofthetransitionandset-upoftheAucklandCouncil,oraspartofthedevelopmentofAucklandCouncil’s2012-22long-termplan.Thefinalimpactonindividualratepayersoftheshifttoasinglesetoffundingandfinancialpolicieswasnotknownpriortoamalgamation,althoughtherewasanexpectationthattheCouncilwouldneedtocarefullymanageorequaliseanyextremefundingandratingchangesormovements.
Financial pressures and challenges
258. Eachlocalauthoritywasrequiredtoadopta10yearlong-termplanby30June2012.Thelong-termplanscoverthefinancialperiodsfrom2012/13–2021/22.Section101AoftheLocalGovernmentAct2002,anewrequirement,requireseachlocalauthoritytoprepareandadoptafinancialstrategythatcoverseachyearofthelong-termplan.Inbroadterms,thepurposeofthefinancialstrategyistofacilitatemoreprudentfinancialmanagementbyoutliningthelocalauthority’sstrategyandapproachtomanagingitsfundingandexpenditureneedsovertheperiodofthelong-termplan.
259. EachWellingtonlocalauthorityhasidentifiedthosefactorsthatareexpectedtohaveasignificantimpactonthelocalauthorityduringtheperiodofthelong-termplan.Itisclearfromthesestrategiesthateachlocalauthorityisforecastingthatitwillcontinuetooperateinanincreasinglychallengingoperatingandfiscalenvironment.Thecurrentfinancialandeconomicenvironmentisplacingsignificantpressureonlocalauthoritiestomanagetheirfinancesbothprudentlyandinamannerthatcarefullymanagestheaffordabilityoftheirplansonratepayers.
65
TheactualimpactonratepayersorusersofCouncilservicesmaynotbeknownuntilafteradecisionhasbeenmadeaboutanyfutureshapeorformoflocalgovernment.WhatdecisionsregardingthefinancialimplicationsofanychangetothestatusquowouldyoulikethePaneltoaddresspriortoanyfinalrecommendation?
Individuallong-termplanshaveidentifiedspecificfinancialissuesandchallengesthatmaybeuniqueormaybemoresignificanttoonelocalauthoritythananother(forexample,makingprovisionforthesettlementofleakyhomesclaims,fundingrivermanagementorrespondingtoearthquakestrengtheningrequirements).Whatapproachwouldyourecommendindetermininghowbesttoallocatethefundingrequirementsforactivitiesthatweremoreuniquetooneparticularlocalauthority?
260. Examplesoftheissuesidentifiedinthefinancialstrategiesinclude:
• Theimpactofthecurrentstateoftheeconomy,particularlyinthewakeoftheglobalfinancialcrisis,onlocalauthoritiesandindividualratepayers
• Forecasteconomicandpopulationgrowth
• Changingdemandsonservicelevelsandlocalauthorityactivities
• Pressuresoncurrentorplannedlocalorregionalinfrastructure
• Pressuretomaintaintheaffordabilityofcurrentplansandactivitiesandtherelatedissueofratepayer’swillingnesstopay
• Balancingtheallocationofratesrequirementacrossdifferentratepayergroups
• Dealingwithsignificantfinancialoroperationalissues(such,asleakyhomes,earthquakestrengthening)
Overview of the finances of the Wellington region’s local authorities
ThePanelhassetoutbelowahigh-levelsummaryofthefinancesofeachlocalauthorityintheWellingtonregion.Thefinancialsummaryillustratestheindividualandaggregatedimpactofeachlocalauthority’s:
• Sourcesofrevenueandfunding
• Ratingsystemsadoptedandthenatureandextentofratesfunding
• Forecastoperatingandcapitalexpenditureforeachlocalauthority
• Balancesheet,itsassets,liabilitiesandequity
• Currentandforecastlevelsofborrowing
66
261. TheinformationoutlinedinthissectionillustratesthatthefinancialimpactoflocalgovernmentontheWellingtonregionissignificant.Asthemajorityoffundingforlocalauthorityactivitiesandinvestmentisfundedfromrates,userchargesorborrowing,itsupportsthepropositionthatthereissignificantpublicinterestinthewayinwhichthefinancialaffairsoflocalgovernmentaremanaged.
262. Itisalsoclearfromthesummarisedfinancialinformationthatthe“aggregated”financialsizeandstrengthofWellington’slocalauthoritiesprovidesanopportunityfromwhichtoconsideralternativegovernanceandservicedeliveryoptionsfortheregion.
Sources of revenue and council funding
263. AllofWellington’slocalauthoritiesrelyonthecollectionofrates(generalrates,targetedratesandwatercharges)forthemajorityoftheirfundingrequiredforoperatingpurposes.
264. Atanaggregatedregionallevel,63%oflocalauthorityoperatingfundingisprovidedfromratesandlevies.Afurther18%oftheregion’sfundingisderivedfromfeesandusercharges,11%fromoperatinggrantsandsubsidiesand7%providedfromfueltax,finesandinfringementfees.
265. Despitethesizeoflocalauthoritybalancesheetsonly1%ofthefundingrequiredforoperatingpurposesisderivedfrominterestanddividendsoninvestments.
Table 3: Forecast Sources of Operating Funding – 2012/13
Local Authority Total Operating Funding $000
Revenue from Rates (General, Targeted, Water Usage) $000
Revenue from Fees and Charges $000
Other Sources of Revenue $000
% of Revenue from Rates
Average Rates Revenue per resident
Wellington $365,289 $239,567 $97,421 $28,301 66% $1,335
Hutt City $131,079 $91,306 $29,570 $10,203 70% $935
Upper Hutt $38,057 $30,228 $5,505 $2,324 79% $787
Porirua $58,751 $46,490 $9,883 $2,378 79% $958
Kapiti $58,639 $47,180 $9,654 $1,805 80% $1,021
South Wairarapa $18,551 $11,057 $604 $6,890 60% $1,244
Carterton $11,211 $8,514 $1,431 $1,267 76% $1,199
Masterton $32,836 $24.040 $5,800 $2,996 73% $1,063
Greater Wellington Regional Council
$218,523 $90,258 $4,448 $123,817 41% $201
TOTAL WELLINGTON REGION
$932,936 $588,640 $164,316 $179,981 63%
Source: 2012/22 Final LTPs, Funding Impact Statement adjusted for calculation Targeted Rates for Water Supply, Residents as per LTP
Long-termplanshighlightdifferencesinthewaythatlocalauthoritiesplanforandfundindividualservices.Howcoulddifferencesincurrentservicelevels,levelofinvestmentandinratingandfundingpoliciesbemanagedacrossthegreaterWellingtonregion?Shouldfeesforsimilarservicesbestandardisedacrosslocalauthoritiesoracrosstheregion?Whatisthebestwaytoaddressandfundlocalandregionalservicelevelandinvestmentneedsandrequirements?
Howshould“legacyissues”andlocalfundingneedsbeaddressedacrosstheWellingtonregion?
67
Figure 3: Summary of Forecast Sources of Operating Funding Wellington Region Local Authorities – 2012/13
Source: 2012/22 Final LTPs, Funding Impact Statement adjusted for calculation Targeted Rates for Water Supply
Summary of local authority rating systems and policies
266. Theratingsystemandpoliciesadoptedacrosstheregionvariesbetweenlocalauthorities,owingtotheflexiblepowersprovidedbytheLocalGovernment(Rating)Act.Individuallocalauthoritieshaveadoptedaratingsystemthatmostappropriatelyandequitablyfinancestheneedsoftheircommunities.
267. Ratingsystemsmayvaryonthevaluationbaseused,thelevelofuniformannualgeneralcharges,theuseoftargetedratesandratingdifferentialsforcertainclassesofratingunits,policiesonthepostponementandremissionofrates,andthewayinwhichwaterchargesarestructuredandlevied.Thepercentageofratesfundingraisedfromgeneralratesalsovariesconsiderablyacrosstheregion.
68
268. Ahigh-leveloverviewoftheratingsystems,policiesandsourcesofratesfundingadoptedbyeachlocalauthorityforthe2012/13financialperiodissummarisedinthefollowingtable.
Table 4: Summary of Local Authority Rating Systems, Policies, Rates Funding Sources – 2012/13
Local Authority Rating Valuation Basis (General Rate)
Maximum Differential on Commercial General Rate*
% of Rates from General Rates
% of Rates from Targeted Rates
% of Rates from Water Usage
Total Rates Collected ($000)
% of Total Income from Rates
Wellington CapitalValue 2.80 53% 42% 5% $239,567 66%
Hutt City CapitalValue 3.56 68% 19% 13% $91,306 70%
Upper Hutt CapitalValue 2.65 57% 42% 1% $30,228 79%
Porirua CapitalValue 3.50 79% 11% 10% $46,490 79%
Kapiti LandValue - 19% 66% 14% $47,180 80%
South Wairarapa
LandValue 2.00 67% 13% 20% $11,057 60%
Carterton CapitalValue 2.00 70% 30% 0% $8,513 76%
Masterton CapitalValue 2.00 57% 42% 1% $24,040 73%
Greater Wellington Regional Council
CapitalValue - 30% 70% 0% 90,258 41%
Source: 2012/22 Final LTPs, Funding Impact Statement adjusted for calculation Targeted Rates for Water Supply * Excludes Greater Wellington’s targeted transport rate
Auckland experience
269. OneofthechallengesfacedbytheamalgamationoftheAucklandlocalauthoritieswasthedevelopmentofasingleregionalratingsystem.From1July2012Auckland’ssingleratingsystemsawthemajorityofratescalculatedonanAuckland-widebasis,althoughtheCouncilwillcontinuetouselocaltargetedrateswhereappropriate.Significantly,Auckland’srateswillbecalculatedonacapitalvaluebasis,achangefromthemixoflandandannualvaluemethodsusedbypreviouscouncils.Theratingpolicywillintroduceauniformannualgeneralchargeof$350.Therewillbethesameproportionofratecollectedfromresidentialandnon-residentialsectorsaspreviously.Thebusinessdifferentialrateistobereducedfrom2.63timesresidentialto1.73bytheendofthe10-yearlong-termplan.
Importance and significance of commercial/business rating base
270. Mostlocalauthoritiesacrosstheregionhaveacommercialorbusinessdifferentialontheirgeneralrates.Insimpleterms,theeffectofthedifferentialistoredistributeorreallocatetheimpactofgeneralratesfromtheresidentialsectortothecommercialorbusinesssector.Inaddition,localauthoritiesmayhaveseparatecommercialorbusinesstargetedrates.
WouldtherebeadvantageinoneratingsystemforthegreaterWellingtonRegion?
69
271. Thesignificanceandimportanceofastrongcommercialandbusinesssectorisnotonlyisitvitalfortheregion’seconomy,itisalsointegraltothewaylocalauthoritiesmanagetheirratingandfundingdecisions.
272. Eachlocalauthorityareagenerallyhasacentralbusinessdistrictorcommercialarea.Withintheregionthesize,scaleandregionalimportanceofWellington’sCentralBusinessDistrictissignificant.Fromaratingandfundingperspective,approximately$84-$86mofratesandwaterchargesareforecasttobecollectedfromthecommercialCentralBusinessDistrictinthe2012/13financialperiod.Thisincludesatargeteddowntownlevyof$13.6m.Thedifferentialonthecommercialgeneralrateissetat2.80for2012/13.
273. OfthetotalratescollectedbyWellingtonCityCouncil
approximately36%isderivedfromcommercialratepayersintheWellingtonCentralBusinessDistrict.Ofthetotalratesfundedfromthecommercial,industrialandbusinessusesector,approximately78%isderivedfromcommercialratepayersintheWellingtonCentralBusinessDistrict.
Forecast operating expenditure: 2012/13 – 2021/2
274. Operationalexpenditureprovidesforday-to-dayoperationsandservicesdeliveredbyeachlocalauthority.Itincludesexpenditureonservicessuchaswastedisposal,watersupplyandmaintainingroads,issuingbuildingconsents,operatingrecreationalfacilities,andmaintainingparksandgardens.Italsoincludesthecostofbackofficefunctions(suchasfinance,informationtechnologyandhumanresources),governance,policyandplanning.
70
275. Ahighlevelsummaryoftheforecastoperatingexpenditureforeachlocalauthorityfor2012/13,andinaggregateoverthe10-yearperiodofthelong-termplan,issummarisedinthefollowingtable:
Table 5: Forecast Operating Expenditure 2012/13 – 2021/22
Local Authority Forecast Operating Expenditure 2012/13 – 2021/22
Finance Expense $000
Depreciation and Amortisation $000
Other Operating Expenditure (incl. Personnel) $000
Total Operating Expenditure 2012/13
Total Operating Expenditure 2012/13 – 2021/22
Wellington $22,647 $91,703 $264,830 $379,180 $4,346,840
Hutt City $4,000 $31,688 $95,587 $131,275 $1,463,865
Upper Hutt $1,459 $11,734 $31,742 $44,935 $529,132
Porirua $3,547 $18,146 $48,447 $70,140 $814,504
Kapiti $8,474 $13,383 $41,091 $62,948 $790,846
South Wairarapa $608 $4,204 $11,300 $16,112 $181,082
Carterton $520 $3,272 $8,375 $12,167 $142,730
Masterton $3,032 $9,739 $22,845 $35,616 $406,480
Greater Wellington Regional Council
$8,173 $31,720 $215,255 $255,148 $3,119,209
TOTAL WELLINGTON REGION $52,460 $215,589 $739,472 $1,007,521 $11,794,688
Source: 2012/22 Final Long-term plans, Financial information sourced from Prospective Statement of Comprehensive Income.
276. Wellington’slocalauthoritieswillincurapproximately$1billionofexpenditureintheprovisionanddeliveryoftheiroperatingservicesandactivitiesinthe2012/13financialyear.Overtheperiodofthelong-termplan,operatingexpenditureisforecasttototalapproximately$11.9billionduringthenext10years.
277. InaccordancewiththebalancedbudgetprovisionsoftheLocalGovernmentAct2002,eachlocalauthoritymustfundtheoperatingexpensesthatitwillincurinthedeliveryofitsservices,unlessitdeterminesthatitisfinanciallyprudentnottodoso.
Forecast capital expenditure programme: 2012/13 – 2021/22
278. Inadditiontoexpenditureforoperatingpurposes,eachlocalauthorityisplanningtoinvestinthecurrentandfutureassetsandinfrastructurewithineachoftheirareas.Fundingforcapitalinvestmentisgenerallyderivedfromborrowings,capitalgrantsandsubsidies,developmentandfinancialcontributionsorcashsurplusesfromoperatingactivities(principallyfromfundedlevelsofdepreciation).
Arethereexamplesofservicesandactivitiesprovidedatalocalauthoritylevelthatcouldbemoreefficientlyprovidedonaregionwidebasis?
Consideringtheactivitiesandservicelevelsprovidedbyyourlocalauthorityhowdothesecomparetoactivitiesandservicelevelsprovidedbyotherlocalauthorities?
71
279. Ahigh-levelsummaryoftheforecastcapitalexpenditureprogrammesforeachlocalauthorityoverthe10-yearperiodofthelong-termplanissummarisedinthefollowingtable.
Table 6: Forecast Planned Capital Expenditure 2012/13 – 2021/22
Local Authority Total Forecast Planned Capital Expenditure 2012/13 – 2021/22
CAPEX-Tomeetadditionaldemand$000
CAEPX-Improvelevelsofservice$000
CAPEX-ReplacementofExistingAssets$000
TotalforecastCAPEX2012/13–2021/22
Wellington $42,784 $421,088 $974,952 $1,438,824
Hutt City $0 $211,524 $231,681 $443,205
Upper Hutt $0 $47,874 $73,867 $121,741
Porirua $77,551 $34,072 $100,987 $212,610
Kapiti $13,694 $149,967 $127,456 $291,117
South Wairarapa $417 $10,917 $40,195 $51,529
Carterton $2,286 $2,967 $37,101 $42,354
Masterton $1,278 $31,113 $88,642 $121,033
Greater Wellington Regional Council
$23,083 $454,417 $76,991 $554,491
TOTAL WELLINGTON REGION
$161,093 $1,363,950 $1,751,872 $3,276,903
Source: 2012/22 Final Long-term plans, financial information sourced from Funding Impact Statement.
280. Overtheperiodofthelong-termplanlocalauthoritiesareplanningtoinvestapproximately$3.3billioninnewandexistingassetsandinfrastructurewithintheirlocalauthorityareas.Ofthisinvestment53%willbeinvestedintherenewalorreplacementofexistingassets,and42%willbeinvestedinassetsandinfrastructureinordertoimprovetheirservicelevels.Only5%ofthetotalplannedinvestmentisplannedtomeetadditionaldemand,withtwolocalauthoritiesplanningnonewinvestmentinthisarea.
Figure 4: Forecast Capital Investment over the period 2012/13 – 2021/22Source: 2012/22 Final Long-term plans, financial information sourced from
Funding Impact Statement
72
Size and scale of local authority assets, liabilities and equity
281. Wellington’slocalauthoritiesareresponsibleforthemanagementofsignificantportfoliosofassetsandliabilities.
282. Atanaggregatedlevel,assetsmanagedandunderthe
stewardshipoftheregion’slocalauthoritiesamountto$13.1billion.Themajorityoftheseassetsrepresenttheinfrastructure(water,sewerage,roadinginfrastructurenetworks)andcommunity/operational(libraries,swimmingpools,recreationcentres)assetswithineachlocalauthorityarea.Assetsalsoincludeinvestmentsbylocalauthoritiesinsubsidiaryandassociateentities.Oftheregion’sassets,approximately51percentareunderthemanagementandstewardshipofWellingtonCityCouncil.
283. Totalliabilitiesacrosstheregionare$1.296billion,themajority
ofwhichisrepresentedbyCouncildebtandborrowings(referseparatesectionbelow).
284. Ahigh-levelsummaryoftheequity,liabilitiesandassetsofeachlocalauthorityissummarisedinthefollowingtable:
Table 7: Summary of Local Authority Equity, Liabilities and Assets – As at 30 June 2011
Local Authority Total Equity $000 Total Liabilities $000
Total Assets $000
Assets as a % of Region’s Assets
Wellington $6,196,356 $487,401 $6,683,757 51%
Hutt City $1,149,105 $109,279 $1,258,384 10%
Upper Hutt $576,071 $27,986 $604,057 5%
Porirua $1,083,992 $63,209 $1,147,201 9%
Kapiti $737,766 $91,841 $829,607 6%
South Wairarapa $362,639 $11,708 $374,347 3%
Carterton $145,676 $4,419 $150,095 1%
Masterton $669,498 $37,241 $706,739 5%
Greater Wellington Regional Council*
$939,446 $462,489 $1,401,935 10%
TOTAL WELLINGTON REGION $11,860,550 $1,295,573 $13,156,122
Source: 2010/11 Annual Reports (Wellington Regional figures include Greater Wellington Rail) * These are group accounts as substantial assets are held outside the council entity
Current and forecast levels of local authority borrowings
285. Borrowingsaregenerallyusedbylocalauthoritiestofundtheupgradeandrenewalofexistingassets,andtoconstructorpurchasenewassets.Whenlocalauthoritiesinvestinneworupgradingofassetssuchasswimmingpools,libraries,sportsstadiums,roadingassets,landfillsandsewagetreatmentplants,thebenefitsoftheseassetsflowtothecommunityacrossmanyyears.Borrowingisgenerallyconsideredthemostcost-effectiveandprudentwaytofundsuchcapital
73
expenditurebecauseitspreadsthecostoftheassetoverthefuturegenerationsofratepayerswhowillbenefitfromtheuseoftheasset.Theuseofborrowingsasasourceoffundingforcapitalinvestmentgenerallysupportstheprincipleofinter-generationalequity.
286. Borrowinglevelsaremanagedbyindividuallocalauthoritiesinaccordancewiththeirfinancialstrategiesandspecificborrowinglimitsandtarget,developedduringthelongtermplanningprocess.Thereissignificantvarianceinborrowingstrategies,parametersandpracticeacrosstheregion.
287. Ahigh-levelsummaryoftheactualandforecastlevelofborrowingsandindebtednessacrosstheregionissummarisedinthefollowingtable:
Table 8: Summary of Local Authority Borrowings (Actual and Forecast)
Local Authority Actual Borrowings 30 June 2011 $000
Forecast Borrowings 30 June 2013 $000
Borrowings per resident 2012/13
Forecast Borrowings 30 June 2022 $000
Forecast Movement in Borrowings 2012-2022
Wellington $341,525 $373,668 $2,082 $532,355 42%
Hutt City $77,993 $68,725 $703 $56,255 (18%)
Upper Hutt $20,745 $24,972 $650 $50,154 101%
Porirua $41,766 $53,058 $1,093 $52,499 (1%)
Kapiti $71,266 $135,190 $2,926 $188,079 39%
South Wairarapa $8,420 $10,138 $1,141 $16,711 65%
Carterton $1,636 $9,414 $1,326 $10,988 17%
Masterton $28,491 $52,005 $2,299 $54,174 4%
Greater Wellington Regional Council
$112,616 $182,248 $2,696 $375,436 106%
TOTAL WELLINGTON REGION
$704,458 $909,418 $1,336,651 47%
Source: 2010/11 Annual Report (actual borrowings as at 30 June 2011), 2012/22 Long-term plans (forecast borrowings 30 June 2013, 30 June 2022), Residents as per 2012/22 long-term plans
288. TotalborrowingsfortheWellingtonregionareforecasttobe$909.418millionattheendofthe2012/13financialperiod,increasingto$1,336.651millionby30June2022.
289. Borrowinglevelsforindividuallocalauthoritiesvary
significantly,andarelikelytobeinfluencedbythesizeandscaleofbothhistoricalandplannedcapitalinvestmentprogrammes.Ingeneral,localauthoritiesareplanningsignificantlevelsofcapitalinvestmentovertheperiodoftheirlong-termplans,eithertoreplaceorupgradeageinginfrastructure,tomeetchangingdemandsonassetservicelevelsortoeffectivelyplanandmanageforecastgrowth.
290. Inaddition,borrowinglevelswillbeinfluencedbythefinancial
strategiesandpoliciesadoptedbylocalauthoritiestomanagethelevelofborrowings(prudentialborrowingratiosandtargets),developingstrategiestospecificallyrepayborrowingsorinfundingcertainfinancialliabilitieswhereitisconsideredfinanciallyprudenttodoso(fundingsignificantliabilitiesetc).
74
57PricewaterhouseCoopersabovenote1.
Eachlocalauthorityhasadifferentfinancialstrategyandapproachtotheuseandmanagementofdebtandborrowing.Borrowingisgenerallyusedtofundcapitalinvestment,principallytomeetadditionaldemandorimprovelevelsofservice.Thenatureandextentofcapitalinvestmentplanningacrosstheregiondiffersasdoesthemanagementofdebtandborrowing.Acrosscertainactivities,localauthoritiesarehavingtoinvestmoreheavilytoaddressinfrastructurequalityandservicelevelissues.Whatisthebestwaytoaddressandfundlocalinvestmentneedsandrequirements?Howwouldyouaddressthefundingimplicationsofcurrentlevelsofdebtandborrowingwithineachlocalauthorityarea?
WhatissuesorconcernswouldyouforeseefrommanagingtheaggregatedborrowingsfromWellington’slocalauthoritiesonaregionalbasis?
291. Reductionsinborrowinglevelsoftheperiodofthelong-termmayresultfromalowerlevelofinvestmentinnewassets,deferralofcapitalexpenditure,changestothetimingofassetrenewals,theavailabilityofsurpluscapitalfunding,decisionstofundborrowingreductionsorthesaleofassetsandtheapplicationofsaleproceedstorepayborrowings.
Auckland experience
292. OnamalgamationtheborrowingsofeachlocalauthorityintheAucklandregionwerecombinedintotheoverallAucklandCouncilgroup.Asperthedraftlong-termplanAucklandCouncilborrowings(WholeofGroup)wereforecasttoincreasefrom$5.4billionattheendofthe2012/13financialperiodto$12.5billionbytheendofthelongtermplan.Borrowingsaremanagedandfundedonaregionwidebasis,exceptforasmallportionofborrowingsfundedbyacitycentreupgradetargetedrate.Thismeansthatlegacyborrowingsfrompreviouslocalauthoritiesarenowmanagedonaregionalbasisandhavenotbeenattributedtoratepayersinthosepreviouslocalauthorityareas.GiventhesizeofCouncil’sborrowingportfolioandthelimitedsizeandcapacityofliquidityintheNewZealandmarket,AucklandCouncilhasthepowertoborrowmoneyoffshore.ItistheonlylocalauthorityinNewZealandpermittedtoraisefinancingoffshore.
Realising efficiency savings from local government reform
293. InthepreviouspagesweprofiledthefinancialsizeandscaleofeachWellingtonlocalauthorityaswellasthecombinedimpactthattheninelocalauthoritieshaveonthegreaterWellingtonregioneconomy.ThefinancialscaleoflocalgovernmentoperationsintheWellingtonregionissignificant.Fundingoflocalgovernmentactivities,operationandinvestmentinvolvessignificantamountsofpublicmoney.
294. TheRoyalCommissionintoAucklandGovernancenotedthatmanyofthesubmissionsmadetotheCommissioninsupportofchangewereoftheviewthattheamalgamationofindividuallocalauthoritiesshouldresultinsignificantcostsavings.TheCommissionacceptedtheimportanceoffinancialsavingsandefficiencies,althoughitnotedtherewereotherequallyimportantissuesinconsideringtheimpactandbenefitoflocalgovernmentreformacrosstheAucklandregion.
295. InthecaseofAuckland,theCommissionidentifiedthatproposalsforstructuralchangecouldbeexpectedtoresultinestimatedefficiencysavingsofbetween2.5percentand3.5percentofthetotalexpenditureplannedbythethenlocalauthoritiesthatmadeupthegreaterAucklandRegion.TotalestimatedsavingsandefficienciesforAucklandwereestimatedatbetween$76millionand$113mperyear.
296. The2010PricewaterhouseCoopersstudy57,commissionedbytheWellingtonMayoralForum,drewonUKresearchthat
75
58RhysAndrewsandGeorgeBoyne,CardiffUniversity,Size, Structure and Administrative Overheads: An Empirical Analysis of English Local Authorities(2006).
59MorrisonLow,abovenote51.
wasundertakenintothesizeoflocalgovernmentanditsrelationshiptoefficiency58.Inthatresearch,itnotedthattheUnitedKingdomGovernment(DepartmentforCommunitiesandLocalGovernment2006)statedtheprimaryreasonforencouragingthedevelopmentofunitarystructuresandanewtwo-tiermodelwastomakesubstantialefficiencygains.
297. Theresearchconcludedthatadministrativecostsdofallasthesizeoftheorganisationincreases.Inadditiontoloweradministrativecoststheresearchfoundthatlargerauthoritiesalsodevotedahigherproportionofresourcestothefrontline.Theresearchwasquantitativeandsowasnotconclusiveastowhethertheloweradministrationcostswereasaresultofgreaterefficiencyorgreaterpurchasingpower.Theresearchnoted:
“…localauthoritieswithasmallclientpopulationarelikelytoreapefficiencygainsonadministrativecostsbyreorganisingintoalargerunitorbysharingbackofficefunctions.”
298. Inadditiontoconsideringstructuralopportunities,boththe2010PricewaterhouseCoopersstudyandthemorerecentMorrisonLowstudy59commissionedbytheWairarapalocalauthoritiesconsideredoptionsforgreatersharingofservices,orsharedservicearrangements.Thepremiseofenhancedsharedservicearrangementsbeingthatefficiencysavingscouldreasonablybeexpectedifcurrentlocalserviceprovisionanddelivery(includingbackofficefunctions)wereefficientlyandeffectivelyreorganisedandprovidedonaregionwidebasis.
299. ThePanelalsonotesthattheexperienceandexpectationfromrestructuringorreorganisationofoperatingunitsandservicedeliveryfromwithinthecentralgovernmentandhealthsectorsfurthersupportsthecasethatefficiencysavingscanbeachievedthroughamalgamation,integrationandsharingofservices.Thisisparticularlythecaseintheareaofbackofficefunctions.
300. ThePanelhasnotundertakenanydetailedanalysisormodellingofefficiencysavingsthatcouldbegeneratedbyreorganisingcurrentgovernanceandoperationalstructuresintolargerstructure.NorhasthePanelassessedthepotentialefficiencysavingsthatcouldbegeneratedfromthegreateruseofsharedservices.
301. ThePanelacceptstheimportanceofefficiencysavingsneedingtobecarefullyconsideredinthecontextofthewaythatexistingstructuresandservicedeliveryisstructuredacrosstheWellingtonregiontoday.ThePanelnotesthatthereareanumberofexamplesoflocalauthoritiesworkingtogether,combiningresourcesorperformingactivitiesinaconsistentcoordinatedmannertoday(forexample,watermanagementservices,emergencymanagement,jointventurearrangementsforlandfillsetc).
76
DoyouconsiderthatefficiencysavingscouldbeachievedbyfashioninglargerunitsoflocalgovernmentintheWellingtonregion?
HowimportantareefficiencysavingsfromchangestotheshapeoflocalgovernmentacrosstheWellingtonregionrelativetoothertangibleandintangiblebenefitsthatmaybederivedbychangingtheshapeoflocalgovernmentacrosstheregion?
WhatlevelofefficiencysavingswouldberequiredinorderforyoutosupportachangeinthestructureoflocalgovernmentintheWellingtonregion?
WheredoyouconsiderthereisthegreatestopportunitytodayforoperationalandfinanceefficiencysavingswithinyourlocalauthorityoracrosstheWellingtonregion?
302. However,thePanelconsidersthatsufficientweightcanbegiventotheevidenceofefficiencysavingsfromtheAucklandexperience,andthatidentifiedinthePricewaterhouseCoopersstudy,tosuggestthatthereshouldbeareasonableexpectationofefficiencysavingsfromareorganisationofthecurrentgovernanceandservicedeliverystructuresofWellingtonlocalauthorities.
303. Efficiencysavingscouldbereasonablyexpectedinthefollowingareas:
• Unifiedor“common”areasofactivityofservice(forexample,procurement,backofficesystemsandfunctions,informationtechnology,financeandhumanresources)
• Commonregulatoryfunctions,activitiesandprocesses(forexample,consentsandlicensing)
304. ThePanelnotesthatiftheWellingtonregionweretodeliveralevelofefficiencysavingscomparabletotheexpectationidentifiedintheAucklandCommissionreport(2.5percent-3.0percent)thenthiswouldtranslateintooperationalefficiencysavingsofbetween$300m-$360macrosstheWellingtonregionovera10-yearperiod.Asimilarlevelofefficiencysavingsontheregion’scapitalinvestmentprogrammeswouldreducethecapitalinvestmentrequiredbybetween$81m-$99m,andpotentiallyreducethelevelofborrowingsrequiredtofundsomeofthisplannedinvestment.
Auckland experience
305. ThePanelnotesthatAucklandCouncilhasrecentlyreporteditisontracktoachieveitsforecastlevelsofsavingsandefficiencies.InitsfirstyearofoperationtheAucklandCouncilhasreportedefficienciesof$81million.Overtheperiodofthe2012-2022long-termplantheCouncilisforecastingafurther$1.7billioninefficiencysavings(moreorsameservicelevelsforlesscost).
306. TheAucklandexperiencehighlightsthatefficiencysavingsaremorerealisticallyexpectedinthemediumtolongterm.Theprocessandtimeframesofreorganisationandintegrationtaketime.Short-termefficiencysavingswouldbepartiallyoffsetbythecostsassociatedwithrestructuring,reorganisationandintegration.
77
60AustralianCentreofExcellenceforLocalGovernment,abovenote39.
Chapter6:Optionsforgovernance
307. ThePanel’sTermsofReferencerequiresitto“…assesspossiblelocalgovernmentoptionsfortheWellingtonregionandidentifyanoptimalone,whichmayincludeeitherstructuraland/orfunctionalchanges”.Thissectionexaminesanumberofoptionsandtheirstrengthsandchallenges.
308. ItisimportanttonotethatthePaneliscurrentlyseekingawiderangeofinputandthereisnopreferredoptionindicatedatthisstage.Asaresultofconsultationandconsiderationofotherresearchandanalysis,thePanel’sfinalreportwill:
• Containadescriptionofthepreferredmodelandhowitwouldoperate,includinglevelsofdecision-making,functions,governancearrangementsandaproposedapproachtofinancialarrangements(rates/otherrevenue,debtandliabilitymanagement)
• Ifthepreferredoptionincludesanychanges,outlinetransitionarrangements,includingapproximatecostsandatimeframeforimplementation
What are the options for local government in the Wellington region?
309. Assetoutintheprecedingchapters,thereisacaseforabetterapproachtolocalgovernmentintheWellingtonregion.Whatisnotyetapparentiswhattheoptionsare,andwhattheymeanforeveryone.Doesitmeanmajorchangeorsimplydoingthingsbetter?
310. Whenfacedwithasetoforganisationalandfunctionalissues,thereisatendencytoimmediatelyfocusonstructuralformandphysicaloptionsforchange.Whilethisisanunderstandableresponseforsomepeople,itisalsoproblematicbecauseitdefaultstoconsideringsolutionsbeforehavingworkedthroughtheissues.AstherecentresearchintolocalgovernmentconsolidationinAustraliaandNewZealandstates:
a. Toomuchattentionisfocusedontheinstitutionalarrangementsofthelocalgovernmentsystemineachjurisdictionratherthanonthefundamentalissueofthesocietalfunctionsperformedbylocalgovernmentanditschangingrole.60
311. Itfollowsthen,thatform(structuresandsystems)shouldfollowfunction(roles,responsibilities,activities,mandates).Asdescribed,localgovernmentinNewZealandandtheWellingtonregionincludesaverywiderangeoffunctions,services,facilities,activitiesandrelationships.
78
61AustralianCentreofExcellenceforLocalGovernment,abovenote39.
Change
312. Change,byitsnature,canbechallengingandpotentiallycomplex.ThePanelrecognisesthatmanyoptionscouldbeconsideredforlocalgovernmentintheWellingtonregion–rangingfromthe“nochange”orstatusquo,totheotherendofthespectrumwithfar-reachingorganisationalandboundarychange,possiblyresultinginlittleresemblancetocurrentstructuresandsystems.
313. TherecentAustralianresearchintoconsolidation61identifiesthefollowingcontinuumofconsolidation,althoughaspectsofeachcanbecombined:
Regional collaboration > Shared services > Boundary change > Amalgamation
314. Ofcourse,therearemanycombinationsofoptionsthatcouldbeconsidered.Carefulthoughtisneededon:
• Thetypeofchange
• Thewayinwhichchangeshouldbemanaged(scale,sequence,timing)
Possible structural and functional local government options for the Wellington region
315. Thereisnotaone-size-fits-allmodelthatcanbeusedthroughoutNewZealand,letaloneintheWellingtonregion.Localgovernmentisacomplexanddiverseinstitutionandsectorwithinvolvementinaverywiderangeofactivities,services,functions,facilitiesandrelationships.Itisbothaservicedeliveryagencyandthelayerofgovernmentclosesttothecommunity.Itisacreatureofstatutewithwellover100Actsandregulationstoabidebyoradminister.TheseaspectsneedtobeborneinmindwhenoptionsforlocalgovernmentinWellingtonarebeingconsidered,alongwithotherdynamicssuchasphysicalgeography,population,service,activity,facility,history,andexistingstructuresandframeworks.
Wellington regional governance options
316. BeforethePanelcanformanopiniononapreferredoption,itisimportantthatcitizensandratepayershavetheopportunitytoexpresstheirviews.Thiswillhelptogaugetheoverallinterestforchangeandanyparticularareasforimprovement,enhancementordevelopment.Thissectionsetsoutseveraloptionsforcollaborativeorsharedservicesandstructuralform.
79
62LocalGovernment(AucklandCouncil)Act2009,Part6.
Whatareyourviewsonthecollaborativeandsharedserviceoptionsdescribedinthetable?Arethereanyothercollaborativeandsharedserviceoptionsthatshouldbeconsidered?
Collaborative and shared service options
317. Earlierreferencehasbeenmadetosomeofthecollaborativeandsharedservicesoptionsforlocalgovernmentasawhole.ThistableprovidesadescriptionofsomeofthecollaborativeandsharedserviceoptionsfortheWellingtonregion.TheremaybeotheroptionstoconsiderandthePanelwelcomesyourviews.
COLLABORATIVE AND SHARED SERVICE OPTIONS
Description
Ad hoc shared services - status quo
Thisisthecurrentsituation.Opportunitiesareidentifiedandtakenupastheyarise.ExamplesincludetherecentregionalisedCivilDefence/EmergencyManagementserviceforallCouncils;deliveryofwaterservices(Wellington,HuttandUpperHuttCityCouncils);andWellingtonandPoriruaCityCouncils’managementofSpicerLandfillinPorirua.
Prioritised shared services and collaboration
Thiswouldbeamoredeliberateandproactiveregionaldrivetowardsharedservicesandcollaborationwithregionaljointventures,jointcommitteesbetweencouncils,andextendingtheuseofCouncilControlledOrganisationsataregionalleveltomanagekeyservicesandinfrastructure.Itwouldrequireasenseofurgencyandcommitmenttoadefinedprogrammeofworkbetweentherespectivepartiestopursuechange.Ifthisisunlikely,thenlegislativechangewouldberequired.
Services provided by one council on behalf of others
Thisisgenerallyinrelationtoserviceplatformsfororganisationalfunctionandbusinessmanagement.Itimpliesdevelopingspecialisedcentresforspecificserviceswithinoneorpossiblytwocouncils.Examplescouldincludeprovisionofpayrollservices,informationtechnology,andprocurement.Thereisanassumptionofsomesavings,althoughasdiscussedearlier,thesemaynotberealisedimmediately.
Regional planning for particular services/assets/infrastructure
Agreaterprioritisationandmoredeliberateregionaldrivetowardregionalplanninginspecificareas.Forexampleaccessandtransportnetworkdesign;fundingeconomicdevelopment(includingtourismpromotionandvisitorattraction);solidwastemanagement;provisionofmajorregionalamenitiesandopenspaces;landusemanagementframeworks;andemergencypreparednessandresponse(recentlyinitiated).
Harmonised regulatory processes
Adeliberateregionalprogrammetoachieveconsistent,harmonised,regulatoryprocessesinresourcemanagement,buildingandresourceconsents.
Regional spatial planning
AshastakenplaceinAuckland,aspatialplanwouldsetoutanintegratedregionaleconomic,environmental,infrastructureandsocialplanningframework.Itwouldenabledifferencestobereconciledwithinasingleplan,ratherthanbetweenindependentplansproducedbyseparatecouncils.Itwouldalsoenableamoredeliberateandcoordinatedinterfacewithgovernment-fundedservices,programmesandpolicies.Itisimportanttonotehowever,thatAucklandCouncilhastheonlystatutorymandateforspatialplanning.62
80
Structural options
318. ThistableprovidesageneraldescriptionofsomeofthestructuraloptionsforlocalgovernmentintheWellingtonregion.TheremaybeotheroptionstoconsiderandthePanelwelcomesyourviews.
STRUCTURAL OPTIONS
Description
No change – status quo
Eight Territorial Authorities:•CartertonDistrictCouncil•HuttCityCouncil•KapitiCoastDistrictCouncil•MastertonDistrictCouncil•PoriruaCityCouncil•SouthWairarapaDistrictCouncil•UpperHuttCityCouncil•WellingtonCityCouncil
Functionsincludelocalinfrastructure(water,wastewater,stormwater,roads);communitywellbeinganddevelopment;localeconomicdevelopment;environmentalhealthandsafety;recreationandculturalfacilities;resourcemanagement;landuseplanninganddevelopmentcontrol;andcommunityadvocacy.Somecouncilsalsohavecommunityboards.
One regional council:•GreaterWellingtonRegionalCouncil
Functionsinclude:resourcemanagement;biosecurity;rivercontrol;floodmanagement;regionallandtransport;regionaleconomicdevelopment;andbulkwatersupply.
RegionalcouncilplusexpandedregionalcouncilroleAmalgamatedlocalcouncils
TheregionalcouncilwouldhaveanexpandedmandateforspatialplanningArangeofoptionsforlocalcouncilamalgamationcouldbeconsideredacrosstheregion(variouscombinationsofthecurrenteightTerritorialAuthorities)Communityboardscouldstillbeanoption
Two-tierlocalgovernment
ThecurrentorganisationswouldchangethroughfunctionandformAllrateswouldbecollectedbytheregionalcouncilAregionalcouncilwouldhavearegional focusanddeliverregionalservices,spatialplanningetcLocalcouncilswouldhavealocal focusandberesponsiblefordeliveryoflocalservicesandcommunityfunctionsinaccordancewithdefinedstatutoryprovisionsTherewouldbearangeofoptionsforlocalcouncilamalgamationacrosstheregion,thatisvariouscombinationsofthecurrenteightTerritorialAuthorities
Unitaryauthorities(2+)withlocalboards
Oneormoreunitaryauthoritiescouldbeformedacrosstheregion(combinedregionalandlocalfunctionsplusaspatialplanningmandate)Localboardstoenablelocalrepresentationanddecisionmakingonbehalfoflocalcommunities(Aucklandmodel–seedescriptionbelow)
Regionalunitaryauthoritywithlocalboards
Allexistingcouncils,areasandfunctionscombinedintooneorganisationfortheregion(combinedregionalandlocalfunctionsplusaspatialplanningmandate)Localboardstoenablelocalrepresentationanddecisionmakingonbehalfoflocalcommunities(Aucklandmodel–seedescriptionbelow)
Boundaries BoundarychangeswilloccurwithanyamalgamationoptionsatlocalcouncillevelBoundariescouldalsochangeifitwasdeemednecessarytorealignanarea,forexampletobetterrecognisenaturalcatchmentsBoundariescouldalsochangeattheregionallevelatthecurrentboundarywithManawatu-Wanganui(forexampletoaddressthecurrentanomalyattheborderofMastertonandTararuaDistrictCouncils)
81
Whatareyourviewsonthestructuraloptionsdescribedintheprevioustable?
Arethereanyotherstructuraloptionsthatshouldbeconsidered?
Whatcombinationofoptions(structural,collaborativeandsharedservices)wouldbestenabletheregiontoaddressthestrategicissuesitfaces,whileavoidingunnecessarycostsor“changeforchange’ssake”?
Auckland Council’s Local Boards: one model of a local democratic structure
319. LocalboardshavebeenestablishedinAuckland(s10LocalGovernment(AucklandCouncil)2009)toenablelocalrepresentationanddecisionmakingonbehalfoflocalcommunities.Theirfunctionsassetoutins16oftheActinclude:
• Decisionsonnon-regulatorylocalmatters
• Negotiatingstandardsoflocalservices
• Identifyingandcommunicatinglocalviewsonregionalstrategies,policies,plansandbylawstotheAucklandCouncil
• Developingthree-yearlocalplansandnegotiatinglocalagreementswiththeAucklandCouncil
• ProvidinglocalleadershipanddevelopingrelationshipswiththeAucklandCouncil,thecommunity,communityorganisationsandspecialinterestgroupsinthelocalarea
• ProvidinginputtoCCOplansandinitiatives
• IdentifyinganddevelopingbylawsforthelocalboardareaandproposingthemtotheAucklandCouncil
• Monitoringandreportingontheimplementationoflocalboardagreements
• AnyadditionalresponsibilitiesdelegatedbytheAucklandCouncil
82
Appendix1–AucklandRoyalCommissionlistofactivitiesundertakenbyregional,cityanddistrictcouncils
AsdescribedintheIssues Paper,thebreadthoflocalgovernmentactivityisverywideanddifficulttodescribeingeneralterms.The2009reportoftheRoyalCommissiononAucklandGovernancefeaturedaveryusefullistofactivitiesthatwascollatedbytheCommissionbasedonasurveyofAucklandterritorialauthoritiesinJuly2008.TherewillbesomevariationbetweencouncilsacrossNewZealandinthewaythatworkisdescribedoraligned.Ratherthanprepareaseparatelist,ortrytorenamesomeoftheactivitiesastheymightbemorecommonlyknownintheWellingtonregion,theactivitiesbelowarelistedintheorderthattheyappearinAppendix3.2AucklandGovernance,Volume1:Reportpages108-110.
Activities
Affordablehousingadvocacy Airqualitycontrol(environmentalandhealth)
Animalcontrol,impounding,welfare Artgalleries
Artsandculture Assetandliabilitymanagement
AucklandRegionalHoldings Beachcontrol
Beautification Biosecurity
Broadband Brothels–controloflocationandsignage
Buildingconsents,processing,advice,andcompliance
By-laws(widevariety)andenforcement
Businesssupport Citizenandcustomercontact
Cemeteries Citizenshipservices
CitizensAdviceBureaux Climatechange
Civildefenceemergencymanagement Coastalenvironmentdevelopmentcontrol
Closedlandfillsmanagement Communitycentres,halls,andfacilities
Coastalplanningandmanagement Communitydevelopment,partnerships,servicesandsupport
Communitydevelopment Communitygrantsandlevies
Communitynoticeboards Communityplanning
Corporateservices Council-controlledorganisations
Crematorium Crimeprevention
Culturalheritageconservation Democracyandgovernance
Democracyservices Districtplanning
Districtpromotion Dogcontrol
Economicdevelopment Educationandemploymentadvocacy
Entertainmentandculturalvenues Environmentalhealthcontrol
Environmentalmonitoring Eventspromotion
Farminginparks Filmfacilitation
Fireprotection Floodprotection
Foodpremiseslicensing Forests
Gamblingandgamingmachinepolicy Gardens
Graffiticontrolandremoval Grants
Harbourmaster Hazardregister
Hazardoussubstancescontrols Hazardsmanagement
Health–advocacyandprogrammes Holidayparks
83
Landdevelopment Landdrainage
Landinformationmemoranda(LIMs) Landmanagement
Landuseplanning Landfills
Libraries Liquorlicensing
Managementofsocialfacilities Mäorirelations
Marinaoperations Migrantsettlementfacilitation
Museums Naturalheritageconservation
Noisecontrol Parkingcontrol
Parkingplaces Parksandreserves
Passengertransportpolicyandfacilities Pensionerhousing
Planning Playgrounds
Pollutionresponse Pounds
Propertyinformationmemoranda(PIMs) Propertymanagement
Publicinformation Publictransportplanning
Quarries Rating
Recreationandsportprogrammes Recreationcentres
Recycling Refusetransferstations
Regionalanddistrictleadership Regionalgrowthplanning
Regionalparks Regionalplanning
Regionalsocialdevelopmentstrategy Resourceconsentsprocessingandmonitoring
Revenuecollectionandmanagement Roadassetmanagement
Roadconstruction Roadmaintenance
Roadsafety Safetyinpublicplaces
Sharedservicedevelopment Shareholdingsandinvestments
Sistercityprogrammes Socialwell-beingadvisorygroup
Sportsgroundsandvenues Stormwatermanagement
Streetfurnitureandtrees Swimmingpools
Toilets–public Touristfacilitiesandinformation
Towncentreandbusinessprecinctspromotion Transportnetworkmanagement
Transportpolicyandplanning Treasuryanddebtmanagement
Urbanandruraldesign Vehicletestingstation
Visitorservices Walkingandcyclingstrategy
Walkways Warmemorials
Wastemanagement Wastewater
Waterqualitymonitoring Watersupply
Wharfmanagement Zoo
84