Two tier unitary council best option for Wellington

Media Statement
3 May 2013

In its submission to the Wellington Local Government Review Working Party the New Zealand Council for Infrastructure Development has supported a two tier unitary council structure covering the entire Wellington region to create the second largest local authority in New Zealand.

“The efforts of the Wellington and Porirua city councils, Kapiti Coast District Council and the Greater Wellington Regional Council in seeking submissions on options for a united authority are to be commended,” says Stephen Selwood of the NZ Council for Infrastructure Development.

“A two tier unitary council structure provides the opportunity for strong community representation through Local Boards whilst improving scale and efficiency in infrastructure service delivery across the Wellington region. Savings can then either be returned to ratepayers or invested back into core services to deliver better community outcomes.

“The experience of Auckland’s publicly owned regional water services provider, Watercare, gives an insight into what can be achieved. Since integration in November 2010, $104 million of savings have been realised. This meant that the 2012 retail price of water was 40 per cent, and overall water and wastewater charges $74 million, lower than those projected by the former councils and local water network operators.

“Other key advantages of regional governance include not only scale efficiencies, but improved financial and asset management, regional spatial and economic development planning and enhanced influence with central government.

"We are hoping that an application for council amalgamation might be lodged with the Local Government Commission by the Wellington working party councils once they have had an opportunity to evaluate and consider the submissions received.

The Commission's response is due shortly on the Far North District’s application for unitary authority status, a response which will be closely monitored in Wellington. Contrary to the trend towards council consolidation, the Far North is applying to separate from the wider Northland region, something Wairarapa may also choose to replicate.

“Yet with static and increasingly aging populations of just 60,000 and 40,000, respectively, potential Far North and Wairarapa (including the districts of Masterton, Carterton and South Wairarapa) unitary authorities would fall short of the size required to leverage economies of scale, attract and maintain skilled staff and meet rising community expectations.

“The total revenue streams available to a potential Far North or Wairarapa unitary authority to deliver roading, water, regulatory and other services combined will be barely equivalent to the Auckland Council’s planning budget. It will therefore be very difficult for these councils, which are geographically larger than Auckland, to effectively plan for their communities, foster economic development and protect the environment.

“The primary driver of public support for unitary status among smaller districts is clearly local representation and community concerns that smaller districts will be drowned out by metropolitan centres.

“But the best way to address these concerns without also passing lower service levels or higher costs onto residents is with a two-tier governance structure comprising a regional council and local boards.

“Advancing local needs and ensuring community representation at the regional level is the reason why we support the second of the two options put out for discussion in Wellington.

“Ensuring critical road, water, planning and other naturally “regional” services benefit as much as possible from economies of scale while providing for local community representation is the holy grail of local governance reform. It is essential that the Local Government Commission gets these initial decisions right if we are to have vibrant and dynamic provinces and regions,” Selwood says.

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