Luxon wants local government to get back to basics – and Brown announces a trough into which councils can dip their snouts
The PM obviously struck a nerve when he addressed Local Government New Zealand.
That’s reflected in an RNZ headline which says PM Christopher Luxon’s speech on waste rubs councils the wrong way while a Post headline declares In attacking councils, Luxon plants himself a thicket of rhetorical contradiction.
On the other hand, a New Zealand Herald headline says Huge water leak in Wellington delivers perfect backdrop for Christopher Luxon’s speech on council spending and the Spinoff said Christopher Luxon’s simple message for councils: get back to basics.
We can be sure there would have been significant applause for the sentiment conveyed in another Herald headline: PM Christopher Luxon tells councils he wants ratepayers’ funding used appropriately.
That explains the Taxpayers’ Union’s response to the PM’s speech, which Homepaddock’s Ele Ludemann has reported in an earlier Point of Order post today. More important, her article gives us the key points of Luxon’s speech and the policy direction he intends pursuing.
Coincidentally or not, the government’s official website today includes news that Emergency Management and Recovery Minister Mark Mitchell has allocated $16.8 million of Budget 24 funding to support councils in accelerating recovery efforts following the severe weather events of 2023.
Further news that might mollify aggrieved local body leaders came from Local Government Minister Simeon Brown. He fleshed out one portion of Luxon’s speech by announcing the launch of a framework to establish Regional Deals between central and local government “that will drive economic growth and deliver the infrastructure New Zealand needs”.
There’s the strong whiff of a government trough about this framework and the funding that’s intended. Not every oinker will get its snout into the goodies, at least not immediately, because Brown said Cabinet has agreed to a staged approach for rolling out these deals around the country.
“The Government will invite up to five regions to provide straightforward basic proposals for a Regional Deal. I’ve made my expectations clear to councils that we are not interested in seeing ratepayers’ money spent on extravagant proposal documents.
“We will consider these proposals before finalising New Zealand’s first Regional Deal in 2025,” Mr Brown says.
Brown boiled down the PM’s speech in another press release to announce an array of measures the Government will be introducing to ensure councils are getting back to basics.
We can be sure there would have been significant applause for the sentiment conveyed in another Herald headline: PM Christopher Luxon tells councils he wants ratepayers’ funding used appropriately.
That explains the Taxpayers’ Union’s response to the PM’s speech, which Homepaddock’s Ele Ludemann has reported in an earlier Point of Order post today. More important, her article gives us the key points of Luxon’s speech and the policy direction he intends pursuing.
Coincidentally or not, the government’s official website today includes news that Emergency Management and Recovery Minister Mark Mitchell has allocated $16.8 million of Budget 24 funding to support councils in accelerating recovery efforts following the severe weather events of 2023.
Further news that might mollify aggrieved local body leaders came from Local Government Minister Simeon Brown. He fleshed out one portion of Luxon’s speech by announcing the launch of a framework to establish Regional Deals between central and local government “that will drive economic growth and deliver the infrastructure New Zealand needs”.
There’s the strong whiff of a government trough about this framework and the funding that’s intended. Not every oinker will get its snout into the goodies, at least not immediately, because Brown said Cabinet has agreed to a staged approach for rolling out these deals around the country.
“The Government will invite up to five regions to provide straightforward basic proposals for a Regional Deal. I’ve made my expectations clear to councils that we are not interested in seeing ratepayers’ money spent on extravagant proposal documents.
“We will consider these proposals before finalising New Zealand’s first Regional Deal in 2025,” Mr Brown says.
Brown boiled down the PM’s speech in another press release to announce an array of measures the Government will be introducing to ensure councils are getting back to basics.
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Speech
Ka nui te mihi kia koutou. Kia ora and good afternoon, everyone.
- Converting the PM’s speech into hard policy, Simeon Brown announced the Government will be…Refocusing the purpose provisions in the Local Government Act.
- Investigating performance benchmarks for local councils.
- Investigating options to limit council expenditure on nice-to-haves.
- Reviewing transparency and accountability rules.
“Council rates are increasing by around 15 per cent on average this year, which is more than four times the rate of inflation. This is unacceptable and councils must ensure they are doing everything they can to reduce pressure on ratepayers.
“Ratepayers expect local government to focus on delivering the basics, picking up rubbish, fixing water infrastructure, and filling in potholes. We have done our part, and Kiwis expect councils to do theirs.”
The Government has already taken action to support local councils with its clumsily labelled “Local Water Done Well policy”, which aims enabling councils to move water debt into new Council Controlled Organisations and increase borrowings against water revenue to 500 per cent. However, there is more work to do.
Moreover it is removing references to the previous government’s four wellbeings in the Local Government Act, “which distracted councils from the key issues facing communities at a time when Kiwis have been doing it tough”.
The purpose of local government will be refocussed to ensure councils are delivering “the high-quality core services and infrastructure Kiwis expect, in a way that is most cost-effective for households and businesses”.
The Government will also investigate performance measures for local government on the areas councils should already have a close eye on, and will consider options such as revenue-capping to limit councils spending hard-earned ratepayer money on nice-to-have pet projects.
These performance measures will be published regularly to show ratepayers the financial prudence of their councils.
Cabinet has also agreed to launch a review of the transparency and accountability rules that apply to councils.
“While reducing the cost of living is our priority, it is unacceptable that unelected bureaucrats can prevent elected council members from accessing the information needed to represent their communities.
“Ratepayers expect their voice to be heard at the table, and elected members should be entitled to access information to assist in decision-making. We will review the current settings to ensure that democracy is upheld.”
The Government is considering options to implement the Local Government System Improvements workstream and will make final policy decisions later this year.
In his other statement, Simeon Brown said regional deals have been a successful tool used in the UK and Australia to build stronger relationships between central and local Government and to co-ordinate investment to deliver the infrastructure needed for economic growth and productivity.
“Regional Deals in New Zealand will support long-term collaboration between central and local government, deliver a joint, long-term vision for regions, and will be relentlessly focused on economic growth and productivity, delivering resilient critical infrastructure, and improving the supply of affordable, quality housing.
“Regional Deals will be used to help coordinate capital investment between central and local government and will also be a tool to enable regions to utilise new and existing funding tools to fund and finance this infrastructure.”
Point of Order had not yet checked local government reactions to the regional deals when this article was posted.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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