Local Government Takes a Star Turn

Published in the New Zealand Local Government magazine - click here for pdf version

Local government has come out from behind the curtains and takes centre stage on the political agenda this year.

Not only is 2010 an election year with all its attendant hoo-ha and machinations, it is also the year Auckland becomes the biggest local authority in Australasia.  It promises a focus on local government reform that may usurp some of the changes introduced in the Local Government Act 2002.

The restructuring of Auckland local governance is undoubtedly the headline act.  Now that some of the bigger uncertainties have been removed with the release of the Local Government Commission Determination of Wards, Local Boards and Boundaries and with papers from the Auckland Transition Authority on issues such as the organisational structure and staff transition process, local boards and council-controlled organisations, we are left to anticipate the enactment of the Local Government (Auckland Law Reform) Bill.  With 825 submissions to consider from individuals and organisations ranging from the Glenfield Community Board to the Service and Food Workers Union, it is clear there continues to be a huge degree of interest in the detail of restructuring; just as there was in the question of whether the restructuring should occur at all.

It is to be hoped that this interest extends to the October elections and results in an increased voter turnout. A report released by the Ministry of Social Development in 2009 notes that voter turnout in the 2007 local authority elections was 44 per cent, down from 46 per cent in 2004. It further notes:

"This was the lowest turnout since the restructuring of local government in 1989. Voter turnout peaked at 61 per cent in 1992 and has declined steadily since then, except between 1995 and 1998 when it increased from 53 per cent to 55 per cent."

We suspect that the media saturation coverage of the Auckland Council will result in higher voter interest, but fear that voters in Auckland will be confused by the new structure and the need to separately elect ward members of the Auckland Council as well as local board members. The media could play a useful role in educating the public about the election, which is particularly important in relation to the mayoralty since that role has been significantly enhanced by the provisions of the Local Government (Auckland Council) Act 2009.

The changes coming to Auckland have flow-on effects. For example there are amendments to the southern boundary of Auckland that result in increases to the areas of both Waikato District and Hauraki District. These are seen as minor amendments in the context of Auckland, but have significant implications for those two districts in terms of their operations, assets and liabilities, and electoral divisions.

The northern boundary of Auckland has created a different set of difficulties. The future of the northern part of Rodney district swung both ways at one point in time, but the whole of the district is now firmly within the Auckland Council area following the Local Government Commission Determination. That is not necessarily the end of the matter. Some Rodney residents and politicians alike are dissatisfied with the outcome, and Kaipara District looks likely to seek the inclusion of the northern part of Rodney in its district in order to consolidate the control and management of the land area surrounding the Kaipara Harbour in one local authority. The local bill process may be used to seek this outcome.

In the meantime the changes in Auckland have set off consideration of the local government structure in the Northland region. The three district councils in the region commissioned a report from McKinley Douglas Limited on local government options for Northland. As a result the Far North and the Whangarei District Councils have currently issued discussion documents that address a range of options for the future, including the possible creation of new unitary authorities replacing the role of the Northland Regional Council.

Elsewhere in the country the ramifications include discussions initiated by local authority leaders that seek to pre empt any enforced restructuring, notwithstanding the Minister of Local Government and the Prime Minister's assurances that any further restructuring must arise from the regions themselves. Nevertheless, options ranging from shared service arrangements to full amalgamations and restructurings are being discussed, and it is likely some will result in firm proposals for change.

As if this excitement were not enough, legislative change looms on the horizon. Phase 2 of the Resource Management Act reform is scheduled for later in the year. The second phase of reform will include looking at issues such as the alignment of various pieces of legislation, including aquaculture legislation reform, urban development and water allocation. Further changes to the resource consent process are also signalled.

In addition, reform of the Local Government Act itself remains a priority for the Minister of Local Government. In a recent speech he described work he was promoting to improve the transparency, accountability and fiscal management of the local government sector. He referred to a recent analysis by the Department of Internal Affairs of data from 2009 to 2019 long-term Council community plans showing cumulative increases in rates per head of 49 per cent over the next 10 years, and stated his view that more effective and responsive local government could easily be achieved by improving certain aspects of the Local Government Act. In particular he noted the following principles:

• Local government should operate within a defined fiscal envelope.
• Councils should focus on core activities.
• Council decision-making should be clear and transparent.

Accordingly, we await his proposed amendments to the Act, that will focus on council costs, rates and activities, and in particular change the manner in which the long-term council community plans are prepared and presented. The current consultation processes, an integral part of decision making under the Act, are also likely to be simplified. At the same he promises a return to core council services (whatever they may be) and better decision-making about council spending.

For more information, please contact:

Linda O'Reilly
Partner
t: +64 9 979 2167
e: Linda O'Reilly

Last updated:   April/May 2010

The contents of this publication are general in nature and are not intended to serve as a substitute for legal advice on a specific matter. In the absence of such advice no responsibility is accepted by Brookfields for reliance on any of the information provided in this publication.