It's been a big week in politics. Last week saw the first
reading in Parliament of the Local Government (Community Well-being) Amendment
Bill. The purpose of the Bill is to reverse changes made to the Local
Government Act in 2012 by the then National government.
The 2012 change redefined the purpose of local government
as,
"(a) to enable democratic local decision-making and action by, and
on behalf of, communities; and
(b) to meet the current and future needs of communities for
good-quality local infrastructure, local public services, and performance of
regulatory functions in a way that is most cost-effective for households and
businesses."
The Labour lead troika intends removing the requirement for
local councils to act in a way that is the
most cost-effective for households and businesses, and reinstate the
purpose of promoting the social, economic, environmental and cultural
well-being of communities (the four well-beings).
The Bill also reinstates the powers of Council to collect
development levies for a much wider range of purposes, rather than the limited applications
required by National's amendment.
While the well-being change may seem like a return to the
past, Labour's motivation is more likely to be to enable local government to
advance their transformation social change agenda. For example removing the
need for local authorities to function in a cost effective way will open the
door to council's introducing a "living wage" policy into their
workplace.
Another consequence may be that councils adopt a "buy local" policy, even though the cost of buying local may not be the most cost-effective
way of spending ratepayers’ money. This is more likely given Labour's direct influence
in local councils - particularly in Auckland, Christchurch, and Rotorua, where
former Labour MPs hold the mayoralty.
Local councils are of course over the moon about the
changes. They can now return to the status that existed between 2001 and 2012
where they could be all things to all people and pretty much spend whatever
amount on whatever they wished.
Local Government NZ President Dave Cull said, "Local
government around New Zealand has been seeking reinstatement of the four
well-beings in legislation to once again recognise the work to deliver social,
economic, environmental and cultural outcomes for communities…These importantly
acknowledge that local authorities have a broader role in fostering liveable
communities, than simply providing ‘core services’."
Local Government NZ is also lobbying the new government for
a law change to give them the exclusive right to create Maori seats on councils.
As the law currently stands, a council decision to create Maori wards can be
challenged if more than 5% of the electorate petition their council to hold a binding
referendum. The principle behind this right is that everyone should have a say
on the composition of their elected Council. This right has been exercised on a
number of occasions and in almost all cases has resulted in the public
overwhelmingly voting against Maori wards.
Local councils however want to remove the public's right of veto.
They and they alone want to make the decision about Maori wards without the
risk of having that decision being challenged by voters. It seems they support
democracy - but only when they have the final say!
Those who follow these issues will know that this is part of
a co-governance agenda that is now targeting local councils. The objective is
to have half of all elected Councillors elected from the Maori electoral roll.
The other big announcement is the coalition government’s decision
to end offshore oil exploration and put a stop to any new onshore permits - with
the exception of Taranaki which has a three year reprieve. All existing mining
and exploration permits will remain in place.
In effect it is a wind-down of the oil and gas industry in
New Zealand. The Greens and the anti-oil sector are jubilant, and NZ First is red
faced trying to justify supporting a proposal that is anti-regional
development.
The loquacious NZ First leader-in-waiting, Shane Jones, will
have a hard job convincing the good folk of Taranaki that the decision was the
right one. Mr Jones has promoted himself as the people's champion for the
regions. Rather than explain their support as a reality of MMP, he should put
some courage behind the bluster and front up to community leaders in Taranaki,
and in particular the 11,000 people who rely on the industry for their
livelihood. He needs to tell them how he intends creating the new "clean"
jobs in their region that they will apparently transition into. Another native
tree nursery perhaps?
Unfortunately for New Plymouth it will now be seen as a city
with an uncertain future. That will be too big a risk for many investors with
long-term capital available to invest. The effect on its economy will be
immediate.
Frank Newman, an investment analyst and former councillor on the Whangarei District Council, writes a weekly article for Property Plus.
1 comment:
As a former District Councillor I can affirm that the "four well-beings" is just a further example of Central Govt. passing the buck onto ratepayers...double-dipping.
Also your comment "Local councils however want to remove the public's right of veto....etc" - I would say this decision was undertaken entirely by the 18 committee members of LGNZ without any consultation with Councils or communities whatsoever. Be interesting to know.
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