If it Ain’t Broke Don’t Fix it, says Local Government New Zealand

27 July 2012

Local Government New Zealand says there’s no good reason for the removal of the economic, cultural, environmental and social well-beings from the Local Government Act 2002.

In its submission to the Local Government and Environment Select Committee, the organisation, which represents all 78 local authorities in New Zealand, stated there is no evidence to support the removal of the ‘four well-beings.’

LGNZ President Lawrence Yule says the examples used by the Government to justify their removal do not demonstrate failure of the purpose of local government as described in the current Act.

“The cases cited by the Government are, in the main, a result of governance issues or activities mandated by communities. The issues are not systemic. LGNZ could point equally to many instances of project or commercial failures in the central government and business sectors.”

“There’s also no evidence to suggest local authorities can’t say no to unsound or overly costly proposals. In fact, the recently completed long term planning round, where councils consult with their communities to develop a business plan for the next three years, suggests the opposite,” said Mr Yule.

Mr Yule says local authorities are aware of the straightened financial circumstances their communities face, and are being fiscally prudent as a result.

LGNZ does support benchmarking in the local government sector but under the proviso that it is truly a benchmarking approach and not a trigger to prompt government intervention in councils.

“Our concern is that central government imposed benchmarks are tied to a new ministerial intervention regime. By linking benchmarks to a new ministerial intervention regime they become in effect ‘triggers’ for intervention.”

“This could also result in creating perverse incentives for local authorities to under-invest in their infrastructure spend in order to stay within thresholds and so avoid intervention. This raises the prospect of a future infrastructure deficit – the very thing the Government’s National Infrastructure Plan seeks to avoid.”

LGNZ supports the Government having a broader suite of intervention options but opposes the proposed new option of a crown manager. The option is unnecessary and can be invoked by the Minister almost at whim. Such a regime threatens fundamental principles of local democracy.

LGNZ’s submission to the Select Committee is available on its website under news.

ENDS

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