Local Government Reform to curb rate rises

Andrew von Dadelszen
Former Regional Councillor

I have watched with interest our local councillors' comments speculating on local government reforms. Minister of Local Government, Hon DR Nick Smith's, announcements on Monday have signaled big changes are coming.

The most significant being the amending of the 2002 legislation to remove the power of general competence. This will require councils to replace reference to 'social, economic, environmental and cultural wellbeing of communities” (the four wellbeings) with a new, much more focused core business focus, including 'providing good quality local infrastructure, public services and regulatory functions at the least possible cost to households and business”.

Minister Smith also signaled that the 2002 Act will be amended to ensure better fiscal responsibility. He will also change legislation to better enable local council amalgamation. I have to say that all of this is long overdue.
I was horrified to see just last week regional councillors Jane Nees and Paula Thompson both commenting on a proposed rate increase of 12 per cent for the coming year. Councillor Nees (in her March 16 editorial) commented that 'Much as we would have liked a zero rate increase, this would see the region go backwards”

I note from the draft 10 Year Plan (which will be out for consultation next week) that the regional council is not only looking to increase rates by 12 per cent for the coming year, but is also budgeting on increases every year through to 2022 – proposing rates increase over that period from $26m to $60m annually (a 130 per cent increase over this period).

This is plainly ludicrous, and these local government reforms should definitely put a stop to this inept governance. Back in 2010, I was a virtually lone voice when I objected to the 2009-2019 plan which proposed a 113 per cent increase in rates (the highest increase by far of any regional council in New Zealand) – and yet low and behold, this current council has voted to propose a 130 per cent 10 year increase.

In 2010, I alerted to a 113 per cent blowout in rates – now it is revised to over 130 per cent.

The regional council has a very strong balance sheet, and yet they seem to be just empire building, with very little improvement in our environment being obvious. Now that we have an Environmental Protection Authority, is it time to say goodbye to regional councils? The argument seems more compelling when we consider these governance and financial management issues.

If you have a view on these or any other local government issues, I invite you to email me at andrew@vond.co.nz .

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