The government’s recently proposed council shake-ups aim to deliver significant changes to local government. Along with the current creation of arms-length organisations to manage water services, the reforms would result in the biggest change since 1989 when around 850 individual local bodies were consolidated into 86 councils.
Katie Mayes
Changes include introducing a rates cap of between 2-4 percent per year, simplifying planning legislation, disestablishing regional councils and requiring councils in each region to develop a plan to work together more effectively and efficiently (preferably at a larger geographic scale).
The stated intent is to keep rates affordable, and support councils lift efficiency and find smarter ways of operating. However, the reforms would go further – significantly changing how communities are represented and what your council may deliver.
All businesses and ratepayers would be impacted. Councils provide essential services and infrastructure that shape our daily life and the places we live, work and play – from managing public transport and waste to maintaining flood protection schemes, roads, parks and libraries, ensuring a sustainable environment and responding to civil defence emergencies.
Under the reforms, council rates would be capped at 2-4 percent annual increases. As rates are councils’ primary source of revenue, this would limit how they balance affordability with meeting community needs and wants. Exceeding the cap would require permission from a regulator appointed by central government, granted only in extreme circumstances such as natural disasters.
The reality for councils (and central government agencies such as NZTA) is that the cost of managing, renewing, and building infrastructure has been rising well beyond two to four per cent in recent years. These cost pressures have been a major driver of rates increases. If councils cannot find smarter ways to provide infrastructure, they may need to cut services or reduce service quality.
Resource management reform is aimed at creating a more permissive and simplified planning system. Developers and communities would see a combined plan for each region with a 30-year blueprint for development and infrastructure investment, and land use and environmental protection rules. There would be more national consistency and direction, improved natural hazard management, and faster and fewer consents with reduced opportunities for community submissions.
Local government would be simplified in two steps to streamline decision making. Step 1 would see mayors form a Combined Territories Board (CTB) to lead regional issues and govern the regional council. Step 2 would require the CTB to develop a Regional Reorganisation Plan, consulted on with the community, examined independently, and approved by the Minister of Local Government. Options could include more shared services, more council-owned companies, reallocating functions, and/or merging territorial authorities into new unitary councils.
Consultation on the reform proposals closes soon. I encourage you to find out more and consider making submissions.
After all, the best way to predict your future is to create it.
Katie Mayes, executive director, Waipa District Council
