Jane Nees BOP Regional Councillor www.janenees.co.nz

It is expected that the Local Government Act 2002 Amendment Bill will be further progressed by Parliament before Christmas.

The Bill was changed very little through the Select Committee stage because the committee was sharply divided on most key issues and was unable to agree on many proposed amendments. As a result, the Bill had its second reading in November and was voted through with the same margin as the first reading (61-60). Most notably, the ‘impasse' means the new purpose of local government is currently retained as it is proposed in the Amendment Bill.

The new purpose states that the purpose of local government is 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”. This means the reference to promoting social, economic, environmental and cultural well-being of communities is removed.

The Parliamentary next step is the Committee of the House stage, where, given the close vote, the Bill may be hotly debated clause by clause. Punters are predicting we won't see substantial change and the Bill will then undergo its third reading, including a final vote in the House to pass the Bill.

The Bill, as it currently stands, would be enacted the day after it receives royal assent. This means that, before the end of the 2012 calendar year, it could be enacted and local government would have a new purpose, amongst other amendments.

Fiscal prudence benchmarks covering things such as debt ratios and caps in rate increases will be established by regulations already in development and these could apply from July 1, 2013.

In the interim, work needs to start on next year's regional council annual plan with the changes in mind. Local government will have to get on with its business with a new purpose as well as it can, knowing there are much more substantial changes on the horizon coming through Resource Management Act and further Local Government Act reforms.

If you have any views on this or any other issue, please contact me on neesj@xtra.co.nz or ring me on 07 579 5150, or visit www.janenees.co.nz