By Steve Mooney
The local government sector in New Zealand is going through some of the most significant changes since the reforms carried out in the 1980s.
Under the direction of the national government, local governments are being asked to streamline their operations, improve financial accountability and also address the ongoing issue of financial sustainability.
Today there are 78 councils across New Zealand comprised of 11 regional and 67 local councils.
They are set to spin off water and wastewater services into new regional companies and focus on core services and resource management reforms which, as Infrastructure Minister Chris Bishop advised the government last month, could involve a “reduction in the role of local government.”
The national government has resource management reforms on the table, and according to the Ministry for the Environment this could deliver savings of NZ$4.98 billion.
Amalgamations and restructuring are on the agenda and the number of local and regional councils could be cut by a dozen or more as the sector looks or scale and efficiency.
With local authorities under financial pressure, some are reportedly looking at scaling back.
Tauranga City Council revealed in May that it is looking at cutting more than 100 roles to save costs, while Napier City Council also says that around 100 jobs are on the line in a restructuring which aims to find NZ$3 million in efficiencies.
These changes have some support among participants in local government, with some believing that local government has become too complex for small districts with only a few thousand households.
Southland mayor Rob Scott went public with this view recently, coming out in support of council amalgamations.
Scott had the experience of sharing a tent with the regional council at a Fielday’s event recently and told New Zealand’s ‘Newsroom’ that it was the “best move we ever made.”
“90% of the inquiries coming to both councils were having to be passed on to the other council, because the ratepayers didn’t understand which one to talk to,” he told the masthead.
The local government sector has responded more widely to the issues, voting for a review at the Local Government New Zealand annual general meeting in July.
The proposal was part of a remit submitted by Tauranga City Council, with support from other metropolitan mayors.
Tauranga Mayor Mahé Drysdale said that since taking office in August last year, it had become clear that structural inefficiencies exist across the local government sector and with some key central government legislation changes now underway, it’s timely that thought be given to how we can do things better.
“In my view, we need a local government system which delivers services and infrastructure more efficiently and effectively, while maintaining democratic local decision-making and action by, and on behalf of communities,” said Mahé.
“As the sector responds to the current central government policy and legislation reforms, we need to be proactive and lead the change required.
“I believe it’s opportune for LGNZ to work with central government and councils to examine whether our current model is fit-for-purpose now, and for the foreseeable future.
The Luxon Government has introduced the Local Government (System Improvements) Amendment Bill into the Beehive, which reforms councils to focus on core services such as roading and waste management.
Local Government Minister Simon Watts says the Bill will help restore discipline, transparency and performance across the sector to the benefit of ratepayers.
“Kiwis are frustrated with rising rates, expanding bureaucracy, and poor value for money,” Watts said in a statement in July.
“This Bill puts councils back to work on the basics, their core services, so ratepayers see real value for what they pay.”
Watts said the Bill is another major milestone in a significant period for local government reform.
Other key developments this week include the Local Government (Water Services) Bill, and the first City and Regional Deal agreements which will boost local investment and development in three regions, and the establishment of the first water services entity, Selwyn Water.
“These changes show we’re not just talking about reform – we’re delivering it. Stronger accountability, clear priorities, better infrastructure delivery – these are central to our vision for local government,” Watts said.
