Déjà vu at LGNZ conference

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

If you attend the LGNZ conference every year, as I do, the events of previous years tend to meld into one in the mind's eye. While the venues change, the faces mostly remain familiar and the real business is done outside of the conference rooms.

Every year there are speeches from the Prime Minister and the Leader of the Opposition to remind us where we are in the political spectrum. Can it really be the same John Key charming delegates effortlessly at this year's conference who a couple of years of go as newly elected leader of the opposition, gave a speech so bland no one could derive a single policy direction from it? And is it really possible that the seamless authority of Helen Clark in past years has been replaced by the genial vagueness of Phil Goff?

The theme of this year's conference was Building Prosperous Places. But despite the best intentions of the conference organisers the 'place' part of the equation kept returning to the conference venue, Auckland. This is hardly surprising in a year where Auckland's eight local authorities are about to become one Auckland Council.

Nevertheless there was enough in the conference programme to interest delegates from throughout the country, including some outstanding overseas speakers. As LGNZ president, Lawrence Yule pointed out, prosperous places do not just depend on economic development, but also on social, cultural and environmental wellbeing and prosperity. In this respect the speakers did not disappoint, generally taking an integrated approach to what constitutes a 'prosperous place'.

Prime Minister John Key got the ball rolling by highlighting the importance of local government to the economy. In 2009 central government consumption was around 25 per cent of the economy, and local government spending another 5 per cent of GDP. Government sector spending is steadily increasing, and whether or not that trend continues will be part of the economic debate in New Zealand. However, government and local government spending will always be a significant part of New Zealand's economy. According to John Key the Government's view is that local government can contribute significantly to economic growth, particularly in relation to infrastructure development. He gave his own Government a pat on the back for reforms to the Resource Management Act 1991 intended to assist infrastructure development, and for other legislative changes such as to the Building Act 2004 and the review of the Local Government Act 2002, which he said were intended to make it easier for local government to do its job.

Looking ahead, the Prime Minister pointed to further RMA reform and movements on the aquaculture front, as well as long-term strategies for freshwater management. He also focused on the forthcoming Rugby World Cup and the continuing strength of the tourism industry notwithstanding the global economic downturn over the last two years. Economic transparency came in for discussion, with a suggestion that recent media exposures would lead to greater transparency in government and local government over time.

He couldn't resist finishing his speech with discussion of the Auckland Council, which he promoted as simplifying and streamlining governance structures within the Auckland region. Although he noted the implementation of the Auckland Council was not without risk, he expected to see similar changes in other regions, albeit community, not central government, led.

Campbell Newman, Lord Mayor of Brisbane City proved a popular speaker, notwithstanding being constantly goaded by other speakers about the fact that the Auckland Council will overtake Brisbane as Australasia's largest city. Even so, with a population of 1.1 million and an area of 1200 square kilometres, Brisbane is Australia's fastest-growing capital, and is aiming to be Australia's next new world city. Campbell Newman's vision is of the city as a liveable urban place where tolerance, technology and talent are essentials, and the best and brightest citizens in the world wish to live. With an annual budget of $2.8 billion, 26 wards and a Mayor elected at large, the structure of the city is not dissimilar to the new Auckland Council. The functions are also similar, and as in Auckland, growth is an issue. Campbell Newman emphasised that growth is not the problem however. The problem is providing for growth, for example by funding the required investment in infrastructure. He sees such large urban conglomerations as crucial to national economies, and notes that they generate intense political competition, which he views as healthy.

In terms of its infrastructure and public transport, the picture of Brisbane painted by Campbell Newman is far in advance of Auckland. He detailed recent advances in transport infrastructure in particular, arising from a planning document (which sounds similar to our proposed spatial plan) entitled Vision 2026. The city is aiming for 40 per cent of morning travellers to use public transport in the city. Like Auckland, independent business structures have been created to manage specific functions such as the marketing of the city, and an investment agency to target key business opportunities and the keys to driving a prosperous city forward – vision, community buy-in, branding, and delivering on promises.

The other important keynote speaker was Greg Clark, an international authority on city and regional economic development from the United Kingdom. Gregg was kind enough to warn delegates at the outset that he had 64 slides to present, but what he didn't tell us was that each one was packed with information such that the printout from his speech could easily morph into a small textbook on urban development. His focus was on Auckland, but could have applied to any large urban area. It is difficult to imagine what the provincial delegates would have made of his presentation, but he certainly had some interesting facts to impart. For example, in 1925, 25 per cent of the world population lived in cities, but by 2025, 75 per cent will do so. A further 17 of the world’s 25 largest cities will be in coastal regions in Asia.

He suggested local government in the 21st Century would have four roles – representation, services, regulation and development and investment. The fourth role is relatively new and requires new and different expertise than has traditionally been found in local government. There was much on this theme and how it should best be achieved, and like Campbell Newman and the Prime Minister he emphasised the important role larger cities have in national economies and economic development.

There is far too much in his address to cover even superficially in this article, but two of the more interesting tools he described being used internationally were inter-city networks co-operating to achieve economic success, and the development of metropolitan spatial plans. He also gave us a glimpse of the importance of local leaders by focusing on a number of dynamic and successful mayors from cities all around the world.

Last but not least, the Minister of Local Government Rodney Hide was at the conference, appearing relaxed and confident and perhaps getting a better reception than he did a year ago. After touching on Auckland's government structure he went on to discuss the other jobs he sees in front of him in his role as Minister of Local Government. Already underway is the reform of the Local Government Act 2002, which is available in bill form with submissions having been called for and a select committee process underway. However he described his next job as "the biggest and most significant". It is his intention to produce a first principles discussion document of the proper constitutional status of local government in New Zealand. The document will include discussion of the proper function and structure of local government, and the relationship between central and local government decision-making and work programmes. The aim is to improve the service of local government and central government to the community. He is calling this project Smarter Government – Stronger Communities.

No doubt he won a few hearts and minds by going on to state: 'What local government needs to thrive and prosper is better central government'.

For more information, please contact:

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

Last updated:   August/September 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.