Just more bureaucratic institutional failure

Hugh Pavletich
Performance Urban Planning
Christchurch
New Zealand
22 November 2014

The major reason for getting the Annual Demographia International Housing Affordability Surveys underway some 10 years ago, was to provide a foundation for sound public discussion and political action.

A facts based discussion.

Housing is a massive problem in New Zealand … as I explained recently with New Zealand’s Bubble Economy Is Vulnerable | Hugh Pavletich | Scoop News .

That is, to restore housing to normal affordable levels at or below 3.0 times annual household incomes, requiring sensible mortgage loads of about 2.5 times.

The reason why housing is currently severely unaffordable, is because of many decades of bureaucratic bungling, where land supply is strangled and infrastructure is financed inappropriately.

As the eminent Hoover Institution economist Dr Thomas Sowell said “We have spent the past few decades replacing what works, with what feels good”. People … both here in New Zealand and internationally … are waking up though, particularly the young .

New Zealand’s bureaucracies at central and local level, are infested with washed up 1970’s type hippies. Most of their brain dead policy thinking could be summed up in the spaced out John Lennon song JOHN LENNON - All You Need Is Love - YouTube .

Little wonder then then larger local authorities have lost control of their costs.

Economists refer to this in dry technical terms as institutional failure .

New Zealand’s public service has “institutional failure” in abundance … at both the central and local level.

Indeed ... it could fairly be said that New Zealand has a Bureaucratic Cancer Problem … with weak and inept political leadership, that is extremely hesitant to take it on.

Ineptly protecting and masking one another’s failings is sadly the name of the game. A culture of impunity (Kiwipolitico) .

The all at sea CERA

This week Roger Sutton theatrically exited the stage for “serious misconduct” in his dealings with a senior female staff member, as Chief Executive for the “all at sea CERA” Canterbury Earthquake Recovery Authority .

This organisation is filled to the gunwales with redundant Wellington bureaucrats and a large contingent of wordsmiths manufacturing progress fiction.

Recovery Minister Gerry Brownlee ran the show … badly … with Roger Sutton playing very much a subservient “Yes Minister” role. It was much like the old days with the dominant John Gray (a former Army guy), the then Chief Executive of the Christchurch City Council as his patron. He took young Sutton under his wing.

Tedious (John Lennon style … “All you need is love”) and time wasting policy papers and public relations fiction do not build affordable housing and repair broken cities.

Mr Sutton was never interested to learn why Christchurch housing is internationally rated “severely unaffordable.” Hardly a sexy subject of course. Not surprisingly … he made it clear he wasn’t interested in what I had to say !

As former Speaker of the United States House of Representatives Tip O'Neill said … “Perception is reality in politics.”

Roger Sutton had learnt that much. But only that much.

The real issue .. the long-term dysfunctional Christchurch Council

The real issues … being a long-term dysfunctional Council … meaning that the earthquake costs will likely be in the order of a staggering $40 - $50 billion, when they should have been somewhere between $15 - $20 billion, have been ignored to date.

This was clearly all beyond Sutton’s comprehension.

Brownlee proved incapable of learning anything either … as Chair of Parliaments 2007 / 2008 Commerce Committee Housing Affordability Inquiry, as I explained late 2012 within Housing: Mr Key – Get on the Programme .

Not surprisingly, Brownlee is being jettisoned as Recovery Minister. “Can kicker” Key has even had more than he can stand. That’s how bad it is.

I had written on these serious issue back June 2011 (soon after Sutton’s appointment at CERA) for Interest Co with OPINION: Hugh Pavletich accuses Christchurch City Council of blindness, blunders and chain dragging; calls for effective leadership, 'open land' policy and bendy zoning. Your view? | interest.co.nz .

What did these realities have to do with a broad governance and management leadership more interested in perception ... and masking constant failure ?

“Image” has been what it’s all about.

Docile and infantile media … remember “Fingers Fahey” ?

This was helped in no small measure by a docile gullible and infantile local mainstream media.

Sadly … the local media (with a few notable exceptions who are to be applauded) appears not to have learnt a thing from its earlier “dereliction’s of duty” with the one- time Deputy Christchurch Mayor Dr Morgan Fahey (known widely as “Fingers Fahey”).

And years following this, with the inappropriate appointment of Tony Marryatt as Chief Executive of the Christchurch Council. Marryat’s annual pay antics with his former employers at the Hamilton Council were well known within local government circles. Not surprisingly other local government bureaucrats (and the fee farming consultants) were very supportive of Marryatts salary ratcheting abilities.

The CCC’s Dalziel and Edwards ineptly protect Sutton

Remarkably … the Christchurch City Council still appears to have learnt nothing.

Mayor Lianne Dalziel and Chief Executive Dr Karleen Edwards clearly participated in the Sutton “snow job”, with a “convenient” media release Monday 17 November (the day of the media fiasco) … Statement from Christchurch Mayor and City Council CEO | Scoop News .

It is useful to reproduce this embarrassing drivel in full, to illustrate the extent of inept media manipulation and what lengths the Authorities at central and local level went to, in vainly attempting to protect the bureaucrats and in masking the real problems and issues.

Talk about dumb.

Note … there is no mention whatsoever by Daziel (surprisingly a lawyer by training) and Edwards about the real victim … the female complainant and the “serious misconduct” involved. Dalziel and Edwards has much explaining to do …

“Monday, 17 November 2014, 3:13 pm
Press Release: Christchurch City Council”

“Statement from Christchurch Mayor Lianne Dalziel and Christchurch City Council Chief Executive Dr Karleen Edwards”

“We are sad to hear that Roger Sutton has today resigned as Chief Executive of the Canterbury Earthquake Recovery Authority (CERA).”

“Roger Sutton has been a stand-out leader for our city and region. He has been a strong advocate for Christchurch following the 2010/11 earthquakes.”

“As CEO of Orion at this time, Roger took community engagement to a new level and never shied away from fronting the community whose interests he always had totally at heart. Residents will remember him turning up on his bike with maps in hand to community meetings held in local parks.”

“Given the leadership he showed in the aftermath of the quakes and his total commitment to Christchurch, he was the logical choice for CEO for the new Government Department, CERA.”

“He gave up so much to take this role, including a large drop in salary and he worked incredibly hard and long hours on behalf of Christchurch residents.”

“Roger had a huge challenge to establish and head a new Government department which employed a lot of staff not from Christchurch and who had not experienced first-hand the devastation of the earthquakes.”

“Despite the challenges of this unprecedented recovery structure, he maintained his commitment to his community and never shirked from speaking out on behalf of his city. In these difficult times, he was the voice of Christchurch.”

“When Karleen Edwards took up her new position this year as the incoming Chief Executive to the Council, Roger was enormously supportive and helped her with her transition into the role. She says they had a strong working relationship built on mutual trust and respect.”

“Roger Sutton has been a real asset to the city and our only hope is that his experience, passion, knowledge and desire to get his city back on its feet will not be lost to the Christchurch community.”

“We will be making no further comment.”

Just horses..t.

Very sick indeed. What will the female complainant be thinking ?

Christchurch’s problems and solutions are well known

What needs to happen in Christchurch was clearly spelt out at the 4000+ strong Peoples Protest 1 February 2012 and amplified a few months later with Christchurch: The Way Forward .

These are issues Dalziel and Edwards chose to ignore, simply because they are not prepared to take on the bureaucrats.

Following the Monday media circus … some of my comments appeared at Scoop NZ as well … Sutton Quits ... The sorry saga of CERA | Scoop News .

At central level, there has been an urgent need for political leadership, to start us on the path of progressively de-risking New Zealand’s metros.

This is essentially making them increasingly affordable and mobile, as Alain Bertaud, former Principal Urban Planner with the World Bank makes clear within the introduction to this years Annual Demographia Survey.

Mr Bertaud (with his delightful wife and fellow researcher Marie-Agnes) spoke to them at the Christchurch City Council late July, as part of a hugely successful 3 city New Zealand speaking tour. Deputy Prime Minister Bill English and Labour’s Housing Spokesperson Phil Twyford met with the Bertaud’s as well.

Unfortunately Dalziel and Edwards still appear more interested in constantly masking political and bureaucratic failure … and ignoring the issues that really matter.

This writer has built up some knowledge of urban issues over a 35 year period as a successful commercial property development practitioner, former industry leader as South Island President for the Property Council and international advocate on Local Government related issues. Rather amusingly, he has inadvertently likely built up more knowledge of bureaucratic bungling and media manipulation !

Generally, bureaucratic bungling … with its associated poverty creation and economic destruction … is a rather boring exercise.

It is quite some job to get the public excited and energised about it. People getting increasingly angry and frustrated is about as far as it goes. They feel powerless and ignored by those in authority.

The bureaucrats interests always seem to prevail … constantly protected by weak politicians across the spectrum.

The Monday media circus

This week’s Sutton / CERA saga was different.

It was pure theatre.

Theatrical incompetence on a truly epic scale.

The only thing State Services Commissioner Iain Rennie failed to do in putting together the Monday media circus, was the appropriate theme music … FREDDIE MERCURY: The Great Pretender - YouTube

John Cleese of the BBC sitcom Fawlty Towers and his pals certainly have serious competition in New Zealand.

As the “bureaucratic bungled” theatrics evolved, I commented extensively and contributed information (with many others of course) at the National leaning David Farrar’s Kiwblog.

Labours The Standard has most useful contributions as well. Some who contributed here had worked with Sutton in the past.

Special mention must be made of the important, courageous and candid contributions by former CERA employee Tina Nixon … and too … Andrea Vance of Fairfax New Zealand. We need to see much more of this.

Meantime … the local The Press ran stories, with no scope for comment.

It was a serious failing by The Press Editor Joanna Norris . She has much explaining to do. It was a very sad day when Andrew Holden left this position for The Age in Melbourne.

My contributions to Kiwiblog starting Saturday 16th November with the Authorities “softening up” SUTTONS FUTURE … the media circus Monday 17th November SUTTON QUITS … and as the stage managed fiasco starting to unravel Wednesday 19thNovember MORE TO SUTTON CASE THAN A HUG …

http://www.kiwiblog.co.nz/2014/11/more_to_sutton_case_than_a_hug.html

http://www.kiwiblog.co.nz/2014/11/sutton_quits.html

http://www..kiwiblog.co.nz/2014/11/suttons_future.html

These evolving comments and others need to be read closely.

It is helpful in illustrating how public opinion swiftly changed, as the truth bubbled to the surface soon after Mondays media fiasco.

There is much more to come.

Sutton was finished within 48 hours of it, due to the backlash.

It was expected Iain Rennie, the State Services Commissioner would be gone by the Friday. He should have. But ‘can kicker” Prime Minister John Key is not known for his decisiveness.

Hutching of the NBR describes the Monday media circus

Local long-term and respected correspondent for the National Business Review, Chris Hutching, opined with (behind subscription wall) Sutton, workplace manners and political agenda's stir up turgid mix on the bureaucratically botched Monday media conference, with Roger Sutton and his wife Jo Malcolm playing to the gallery. He states …

“The atmosphere at the media conference earlier this week was curious.”

“There were the usual CERA flunkeys and PR hacks on hand to check visitors and steer them to the briefing room.”

“As is the case these days, the media contingent was largely comprised of young women. The cameramen still tend to be blokes.”

“Several of the young reporters prefaced their questions with expressions of sympathy and admiration for Mr Sutton. Many of them have dealt with Mr Sutton in recent years and may enjoy his youthful exuberance when compared with the starchy demeanour of the more typical chief executive.”

“At the conclusion of the media conference at least one senior female journalist went to the front of the room and demonstrated her loyalty by giving Mr Sutton’s wife Jo Malcolm a heartfelt embrace. Ms Malcolm then held her own mini conference at the back of the room where her words were eagerly absorbed.”

“The complainant was notably absent, on gardening leave.”

No leadership that passes the “Truman Test”

Let’s be clear … Roger “Goldilocks” Sutton wasn’t all bad.

It’s just that Sutton’s skills begin and end as a ‘public communicator”. That’s what his proper role should have been.

Within the Kiwiblog threads I make mention of President Harry Truman, who had this to say on leadership …

“In reading the lives of great men, I found that the first victory they won was over themselves... self-discipline with all of them came first.”

Roger Sutton … and too, others involved …. do not pass the “Truman Test.”

ENDS

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