NZCPR Newsletter: The State of Local Government

Local Government is in crisis. The numbers tell the story: local authority rates increased 12.2 percent in the 12 months to the March 2025 quarter – a 14 percent contribution to the 2.5 percent annual increase in inflation. As a result of the reckless spending of local authorities, interest rates are staying higher for longer, with all New Zealanders paying the price.

So why have local authorities gone off the rails?

Frank Newman: Creaming it

A few weeks back Fonterra disclosed that its chief executive received remuneration of $8.3m in the year ended July 2017, making him New Zealand's highest paid chief executive. That payment includes base salary, bonuses and other benefits and works out to be about $4,150 an hour!

By way of comparison, the average hourly rate for a heavy truck driver is in the region of $20 to $25, and the average income in New Zealand is about $30 an hour. The Prime Minister receives about $460,000 a year, or $230 an hour, assuming an average working week which his is not.

Frank Newman: RMA racketeers

Unfortunately the population at large do not appreciate how much the Resource Management Act (RMA) has destroyed the economy. I guess they don't because they are not engaged in the RMA process so it does not affect them directly.

Bob Jones summed up some of the problems in an article called "Councils promoting rackets of cultural correctness a disgrace" (NZ Herald of the 9/9/14). It's well worth a read. Here are some snippets from the article.

Frank Newman: Rotorua Mayor abolishes impact development fees

Not surprisingly the proposal in the Auckland draft unitary plan requiring Auckland property owners to seek iwi approval to work on what is a vast area covering some 3600 sites of "value to mana whenua" has come under a lot of criticism, from private property owners. Most landowners can see the proposal for what it is: yet another money making scheme based on Maori privilege.

In reply to that attention the Maori Party put out a press release which included this comment from Co-leader Tariana Turia, “this is also a Treaty issue. It's about tangata whenua having a right to participate in decision making over our natural resources…