Hide challenged to back asset sale bill

Labour MP Phil Twyford has challenged Act leader Rodney Hide to support a bill that would require a referendum to be held before any of Auckland's public assets are privatised.

Mr Twyford's member's bill was drawn from the ballot yesterday and would outlaw the sale of parks, swimming pools, libraries and public housing.

Mr Twyford said there were concerns that the Auckland Super City reforms being led by Mr Hide as Minister of Local Government were "a prelude to privatisation".

Mr Hide is a proponent of a referendum being held before councils increased rates.

Mr Twyford challenged Mr Hide and his Act colleagues to support his bill, which was consistent with their belief that a referendum be held before "significant and irreversible decisions".

"If selling our community assets is not significant and irreversible, I don't know what is."

Mr Hide said Mr Twyford was worrying about "imaginary things" and there was no intention to privatise any asset as part of the reforms.

Mr Hide said the aim was "good fiscal policy" by getting council budgeting and rates under control.

Mr Twyford and Mr Hide clashed earlier yesterday at the local government and environment select committee. Mr Twyford said he found Mr Hide's definition of core council services "confusing", as he supported spending $84 million on the development of Queens Wharf for the Rugby World Cup but had castigated spending on the proposed stadium in Dunedin and the Nelson performing arts centre.

Mr Twyford asked how Mr Hide would define Santa parades, libraries or Manukau City Council's policy of free swimming pools. Mr Hide did not respond directly but said Mr Twyford "managed to take a paragraph and twist it" for political points.

Mr Hide said his intention with core services was to ensure there was a mechanism in place for councils to do the basics well before the "whatever, whatever" for which they would be required to take the people with them.

Mr Hide gave a further indication from the Government that changes could be made to the proposed second tier of 20-30 "local boards" following the select committee hearings that begin in Auckland next week.

Mr Hide said rate increases were predicted to go "thundering up" in response to questions from National MP Nikki Kaye who said she had heard of increases of 50 per cent in Auckland over the next 10 years, and over 100 per cent in Waitakere.

Mr Hide said these increases were based on long-term estimates by the individual councils and did not take into account the Super City reforms.