Councils should be able to compete for ratepayers, says Sir Roger

Sir Roger Douglas wants ratepayers to be able to shop around for the best local council, saying that being able to defect to one nearby even if they do not live there will invoke the spirit of competition.

Sir Roger told a parliamentary select committee considering legislation setting up Auckland's Super City that there should be a flexible community council structure with ratepayers able to decide its size and even set up their own councils.

Groups of ratepayers who lived next to another community council should also be able to opt out and join another council.

"The capacity to change council will create competition for ratepayers, which is likely to see value for money being delivered by local government," Sir Roger said.

The Act MP, whose leader Rodney Hide is in charge of the Super City reforms, said Auckland should be largely run by the community councils which would have the powers to set rates.

Rates demands should set out where the money was being spent and ratepayers should be able to decide whether they preferred to get services such as rubbish collection and recycling from the private sector.

"Unless they are required to raise the revenue, community councils will join the queue of special interests which advocate increased spending," Sir Roger said. "The golden rule is that decisions must be made by those closest to the action. Capability to make decisions also necessitates responsibility for revenue to pay it."

The Super City council should resemble a board of directors of a large company. He suggested the council board should be made up of a mayor and eight councillors elected at large, responsible for setting policy and looking after region-wide issues such as roading and water.

Former Auckland City Mayor Dick Hubbard told the committee he strongly supported the proposed powers for the Super Mayor after his experience of being hamstrung by the "power-hungry" Deputy Mayor Bruce Hucker.

Mr Hubbard said he was elected on a vision, but then obstructed in implementing it by Dr Hucker who had a voting bloc on the council. For this reason, the Super Mayor must be given the power to hire and fire the deputy.

He supported Maori seats, "at large" councillors and said "social wellbeing should be defined as a core council activity".

- Staff reporter and NZPA