Meka Whaitiri: Central-local partnership critical

Meka Whaitiri, the MP for Ikaroa-Rawhiti

There was much discussion about the often unsung, yet vital partnership between central and local government at the Local Government New Zealand (LGNZ) conference this week.

Successive governments have known that many of the most important decisions in people's lives are made in their local town hall, not in Parliament. With responsibility for nearly as much essential infrastructure by value as central government (at $98 billion), our 78 local authorities are powerful partners for any party holding the Treasury benches.

Any successful relationship takes mutual respect and understanding - and when one partner seeks to dominate rather than engage, resentment builds and things sour. I believe this is where National's relationship with local government is heading.

It's fair to say Labour and National take very different approaches to the central-local government partnership.

This was evident in the contrasting speeches given by the Prime Minister and Labour leader Andrew Little. While Andrew Little talked about the many similar viewpoints LGNZ shares with Labour, including taking a long-term approach to strategic planning, John Key's speech was an unusually half-hearted defence of the LGA reforms and an admission he saw "benefit in amalgamation". This was met with a frosty reception from the 565 delegates in attendance.

You can't blame local councils for their scepticism.

National has a bad track record with LGA reform. The major changes in 2012 gave the Local Government Commission (LGC) greater powers and made it easier to initiate reorganisations. This resulted in costly, failed amalgamation proposals in Northland, Wellington and, of course, here in Hawke's Bay. These law changes also led to the current messy situation with the North Rodney and Waiheke bids to break away from the Auckland super city.

Now, National is rushing through the Local Government Act 2002 Amendment Bill (No2), allowing only six weeks from its introduction to the cut-off for submissions. The fourth local government bill in the last six years, this is the latest in National's ongoing package to sideline local government through reforms that centralise power and increase ministerial intervention.

Labour has - with reservations - supported this bill to select committee as it makes some improvements on the 2012 reforms. These improvements include making the LGC subject to new accountability provisions, and providing an option for council-led reorganisations.

But things get murky from there.

The bill makes it easier for the LGC to initiate reorganisations, despite their history of getting it wrong. LGC-initiated reorganisations will be a two-stage process: an investigation and a plan, with no public consultation required at the plan stage.

If passed, the bill will also give the Local Government minister very broad powers to intervene in local democratic matters by directing the LGC to investigate what he wants.
The most significant part of the bill is the new provisions around council controlled organisations (CCOs).

Establishing a CCO - including one owned by multiple local authorities - will not require a poll, and would effectively remove a large share of the budget from council's scrutiny. This raises serious questions around the accountability of councillors, and whether removing such a large part of their decision-making powers will impact on people's willingness to vote or even stand for election.

It's no surprise that an overwhelming 97per cent of its members passed a remit calling on LGNZ to vigorously oppose measures in the bill that directly or indirectly undermines community consultation and local decision-making of councils.

The Government says we need the reforms because councils need new ways to manage their finances.

Labour truly supports a partnership approach. We recognise the importance of local government and so we will elevate the portfolio to the Department of Prime Minister and Cabinet. We will make sure every mayor in New Zealand is empowered to promote a vision for their cities.
We will also provide a major Regional Development Fund and work with local leaders to identify infrastructure projects that will unlock the economic potential of our regions.

¦Meka Whaitiri is MP for Ikaroa-Rawhiti and Labour Party Spokesperson for Local Government