TAKING THE PULSE OF LOCAL GOVERNMENT IN 2017 A report on the issues concerning Mayors and Chairs About Simpson Grierson Simpson Grierson is New Zealand's leading local government law firm. Our expertise ranges from the day-to-day operation of councils in their statutory and political environments, to the highest level strategic developments affecting local government as a whole. We advise many of the local authorities in New Zealand, including major city and regional councils based in , and . We have extensive and long-standing networks with key policy and decision makers throughout local government.

About LGNZ Local Government New Zealand is the strong voice for great local government. It is governed by a National Council, made up of 15 elected members from throughout New Zealand. LGNZ's purpose is to deliver the sector’s Vision: “Local democracy powering community and national success.” LGNZ represents the national interests of councils in New Zealand and leads best practice in the local government sector. It provides advocacy and policy services, business support, advice and training to members to assist them to build successful communities throughout New Zealand.

Contacts

Malcolm Alexander – Chief Executive LGNZ Email: [email protected]

Jonathan Salter – Partner Simpson Grierson Email: [email protected]

2 Contents Introduction 2 Our 10 Key Findings 3 Key Finding 1: Investment and growth provide the greatest opportunities 4 Key Finding 2: Water resources and management, and funding infrastructure for growth and renewals are the greatest challenges 6

Key Finding 3: Funding and affordability issues remain by far the biggest impediments 7

Key Finding 4: Housing affordability is a major issue for communities, but the National Policy Statement on Urban Development Capacity doesn't provide tangible solutions 9

Key Finding 5: Inequality, substance abuse and poverty are the greatest social issues, but primary responsibility lies with central government 11

Key Finding 6: Funding and investment in infrastructure pose the biggest challenges to improving communities' resilience and preparedness 14

Key Finding 7: Swimmable lakes and rivers by 2040 is achievable 15 Key Finding 8: There is strong support for reversing the current statutory presumption that freedom camping is authorised except where it is specifically prohibited 17

Key Finding 9: Opinion is divided on whether new mayoral powers have enhanced governance arrangements, but endorsement that new annual plan consultation has improved community engagement 18

Key Finding 10: NZTA makes the most effective contribution to local authorities 20

Methodology 21

1 Welcome to the 2017 'Taking the policy making was further revealed to Introduction pulse of local government in New be a major hindrance to councils Zealand' report. After receiving so achieving results for communities. many thought-provoking responses However, an encouraging result of to our earlier surveys, we thought in the survey was the diversity in the election year it was time to ask again greatest opportunities open to what Mayors and Chairs of local councils and their communities, authorities think about the major including iwi investment, local issues facing their organisations and business growth, population growth, communities. water resources, transport, and The quantity and quality of the tourism. Taking into account the responses we have received has, vastly different needs and resources once again, been impressive. We of local authorities across New would like to thank the 55 Zealand, this result seems to suggest respondents who represent the the presence of an overall positive leaders of 71% of New Zealand's local and responsive attitude in local authorities. government. Funding and affordability has been Simpson Grierson and LGNZ are revealed by the survey to be the delighted to have collaborated on this biggest impediment to local research project. We hope you enjoy authorities achieving results for their reading this report and find it a communities. For a majority of helpful insight into the current respondents, funding was the 'single perspectives of local government. We biggest thing' that kept them awake look forward to discussing it with you at night. Intensified financial support at the LGNZ conference and would and investment in local communities welcome your feedback. from central government was Thanks again for your support with repeatedly identified as a solution to this initiative. the issue of funding. Responsibility for social issues, including inequality, poverty, and substance abuse, was overwhelmingly seen as lying with Malcolm Alexander Jonathan Salter central government. As in 2015, Chief Executive Partner inconsistency in central government LGNZ Simpson Grierson

This survey was carried out in June/July 2017. Responses were received from Mayors and Chairs of 55 rural, provincial, metropolitan, and regional councils throughout New Zealand, a response rate of 71%.

2 Our 10 Key Findings

1: Investment and growth provide the greatest opportunities

2: Water resources and management, and funding infrastructure for growth and renewals are the greatest challenges

3: Funding and affordability issues remain by far the $ biggest impediments

4: Housing affordability is a major issue for communities, but the National Policy Statement on Urban Development Capacity doesn't provide tangible solutions

5: Inequality, substance abuse and poverty are the greatest social issues, but primary responsibility lies with central government

6: Funding and investment in infrastructure pose the biggest challenges to improving communities' resilience and preparedness

7: Swimmable lakes and rivers by 2040 is achievable

8: There is strong support for reversing the current statutory presumption that freedom camping is authorised except where it is specifically prohibited

9: Opinion is divided over whether new mayoral powers have enhanced governance arrangements, but endorsement that new annual plan consultation has improved community engagement

10: NZTA makes the most effective contribution to local authorities

3 Key Finding 1

Our first set of questions focused on the 'big picture' issues for Mayors "Township revitalisation – and Chairs. making our towns more When it comes to the factors that welcoming to visitors, and can provide the greatest permanent people moving opportunities for councils and their Investment and communities, there was a range of here for lifestyle choice." growth provide the responses. Don Cameron, Of the 55 respondents who Mayor, Council greatest answered this question, the majority opportunities selected a form of investment – either local business growth and "Investment by central investment (47%), transport and infrastructure investment (36%), Iwi government into rural investment (35%), or external areas (that is easily investment into your district/region achievable) to grow rural (31%). areas and take away the While the majority of respondents favoured investment opportunities congestion in the bigger on the whole, population growth centres, particularly was second on the agenda, with Auckland." 45% of respondents suggesting this could provide a significant Craig Little, opportunity for their councils and Mayor, Council community over the next five to ten years. Tourism and events was identified "Digital transformation by 35%. – massive change is coming." Donna Favel, Mayor, Council

4 Q2. Which of these factors provide the greatest opportunities for your council and your community over the next five to ten years? (Respondents could select up to three issues).

Local business growth and investment 47%

Population growth 45%

Transport and infrastructure investment 36% Water resources and management 36%

Tourism and events 35%

Iwi investment 35%

External investment into your district/region 31%

Environmental management 25%

Cost management 7%

Local government reorganisation 7%

Rating and funding reform 7%

5 Key Finding 2

We asked Mayors and Chairs which issues provide the greatest "With the district becoming challenges for their councils and more attractive to live and communities over the next five to ten years. Funding infrastructure for work, there could be a Water resources and growth and renewals (44%) and widening gap of long-term water resources and management residents who cannot management, and (44%) were considered the greatest funding infrastructure challenges by the majority of local afford to rent and/or find authorities. Local authorities are also suitable work. Rural for growth and struggling with rates affordability (39%) and risk and resilience and broadband and cell phone renewals are the natural hazard preparedness (35%). coverage is important to greatest challenges This is quite a change from the 2015 provide better job creation survey, where economic growth and and social contact." jobs was overwhelmingly considered the major challenge (69%). Don Cameron, Mayor, Ruapehu District Council

"There is a need for central Q3. Which of these issues provide government co-investment the greatest challenges for your in housing." council and your community over the next five to ten years? Steve Chadwick, (Respondents could select up to Mayor, Lakes Council three issues).

Funding infrastructure for growth and renewals 44% Water resources and management 44%

Rates affordability 39% Risk and resilience and natural hazard preparedness 35% Transport and infrastructure affordability 33%

Impact of tourists/visitors 31%

Economic growth and jobs 24% Social issues such as homelessness, safety and substance abuse 17% Housing affordability 15%

Population change (growth or decline) 13%

6 Key Finding 3

Question 4 asked respondents about the biggest impediments "Central government, funding they face in achieving results for and affordability issues, and their communities. inconsistency of central government policy making and $ The majority of respondents (78%), across all types of local authorities, legislative changes go together Funding and indicated that funding and and we have seen many strange affordability issues are the major government decisions, which affordability issues impediments. Inconsistency of local government either has to remain by far the central government policy making cover or wear the fall out. and legislative changes was a clear Above all being able to fund biggest impediments second major impediment (48%). growth and still keep the city These results are consistent with affordable is a real challenge." our 2015 survey. Grant Smith, Mayor, City Council "We are feeling and seeing the growing gap between wealth and poverty. Central "Earthquake Prone Building government is disinterested in issues are a concern – there's demarcation zones where local the potential to destroy the leadership can set shared Fielding CBD and lose our objectives and manage Edwardian heritage. The devolved resourced to a local required investment does not level." stack up economically for Steve Chadwick, building owners. Legislated Mayor, Rotorua Lakes District timeframes are not achievable." Council Helen Worboys, Mayor, Council

Q4. What are the biggest impediments you face in achieving the results you wish for your community? (Respondents could select up to two issues).

Funding and affordability issues 78% Inconsistency of central government policy making and legislative changes 48% Central government 30%

Public perception of local government 20% Unwillingness of elected Councillors to work collaboratively 7% Lack of engagement from your community 6% Population decline 2%

7 Q5. We also asked the Mayors and Question nine asked respondents Chairs, as community leaders, what if they could have access to one was the single biggest thing that new source of funding, what would keeps them awake at night. By a it be? significant margin, funding affordability was that issue! The results were overwhelmingly in favour of some form of increased "Having resources and funding to central government investment and make the most of the potential this support (83%). More specifically, place has without driving rates to 25% proposed a portion of GST and an unaffordable level," 25% proposed the implementation Winston Gray, of a tourism levy either regionally or Mayor, Kaikoura District Council at a national scale. Others sought government support for water and "Providing modern facilities to make roading infrastructure, loans for our district a more affordable place social housing, and the to live. We have plenty of jobs, but reinstatement of funds for smaller significant numbers drive in each communities. day to work. We want to provide modern, fit-for-purpose "A visitor levy, or bed tax." recreational facilities to make us as Jim Boult, attractive as larger centres, but Mayor, Queenstown Lakes District have limited ability to fund such Council facilities, and the marketing "A portion of GST." required to support strong "liability" Tony Bonne, campaigns," Mayor, Whakatane District Council Brian Hanna, Mayor, Council. "Congestion charging revenue." Chris Laidlaw, "Population growth. We have Chair, Greater Wellington growth, but with very low Regional Council unemployment and strong economic growth we need to "Central Government funding as a attract, retain new and existing co-investor in major infrastructure." people into our district. We need John Tregidga, better central government tools to Mayor, Council encourage migrants (and others) to move to rural provincial New Zealand." Damon Odey, Mayor, Council

8 Key Finding 4

The following set of questions asked Mayors and Chairs to consider "As the least affordable housing affordability, the most district in New Zealand significant constraints, and whether the National Policy Statement on this is a major issue for Urban Development Capacity will our council." provide tangible solutions to the Housing affordability Jim Boult, issues. Mayor, Queenstown Lakes District is a major issue for The majority (70%) believe housing Council affordability is a significant issue for communities, but their community (although only 15% the National Policy regarded it as a top three issue). Of the 70%, respondents believe market "Central government Statement on Urban forces to be the most significant should provide the social constraints (40%), followed by funding housing stock to meet Development new infrastructure (24%). Land Capacity doesn't availability/supply was identified as a their needs and then the significant constraint by a mere 5%. market will correct itself. It provide tangible is not the role of local solutions Q6. Do you consider housing, and affordability, to be an issue for your government to provide community? housing stock." Garry Webber, Mayor, Western No District Council. 30%

Yes 70% "We have high growth, increasing prices, and low income and young people are increasingly squeezed." Richard Kempthorne, Mayor, Council

"Values have been rising, but we are middlish "The big increases in compared to Christchurch. property prices in There is ample land for Auckland are flowing housing development in through to our region the medium term." reducing affordability." David Ayers, Bill Shepherd, Mayor, Council Chair, Northland Regional Council

9 Q7. If yes [you consider housing, and affordability to be an issue for your community] what do you consider to be the most significant constraints? (Respondents were asked to select up to two options).

Market forces 40%

Funding new infrastructure 24% Planning framework 22%

Land availability/supply 5%

There have been blocks "We find difficulty in 'land-banked' by a few key recruiting qualified landowners who only planners to process the release or develop when increased demand in the price is right � building and resource constraining the market. consents." We need more Sheryl Mai, subdivisions opened up." Mayor, Council Grant Smith, Mayor, Palmerston North City Council

Q8. If yes [you consider housing, and affordability to be an issue for your community] do you consider that the National Policy Statement on Urban Development Capacity will provide tangible solutions to the issues?

Yes "There are issues with 22% these policies delivering No sub-optimal urban design 78% outcomes, not taking into account hazards. There's a lack of ability to get public "Policy is too focussed on transport into subdivisions, Auckland's issues." for example." Helen Worboys, Stephen Woodhead, Mayor, Manawatu District Council Chair, Otago Regional Council

10 Key Finding 5

The next set of questions covered social issues within each region or "I think poverty is a real district. Forty-five percent of but unseen problem in our respondents believe inequality is the greatest concern, followed by region. However P is a substance abuse (41%) and huge problem which poverty (37%). crosses our socio- Inequality, economic lines." substance abuse "Inequality – and perceived Richard Kempthorne, and poverty are the inequality – I believe holds Mayor, Tasman District Council greatest social some of our people back issues, but primary from realising their potential." responsibility lies Winston Gray, with central Mayor, Kaikoura District Council government Q12. What are the main social issues in your district or region? (Respondents could select up to two options).

Inequality 45%

Substance abuse 41% Poverty 37%

Crime 25%

Homelessness 14%

Unemployment 8%

Begging 4%

11 However, the vast majority of respondents (84%) believe these issues fall within the responsibility of central government. To the extent it is councils' responsibility, 63% of respondents believe they do not have the powers and tools to make a difference in addressing these issues.

Q13. Do you regard primary responsibility for these issues as falling on the council or central government?

Central government 84%

Joint responsibility 12%

Council 4%

"I believe council does also "This needs to be a have a role in creating a balanced partnership positive healthy between council and community. We must get government." those disengaged from Don Cameron, everyday education, to Mayor, Ruapehu District Council engage in bettering themselves by any means." Winston Gray, "Central government Mayor, Kaikoura District Council. continues to dump responsibilities on local authorities without taxpayer funding coming with it." K Gurunathan, Mayor, Kāpiti Coast District Council

12 Q14. To the extent it is the council's responsibility, do you think that your "We hosted the only really council has the powers and tools to make a difference in addressing successful social sector these issues? trial, and made huge gains in key targeted areas. Our

Yes biggest challenge was 37% gaining support from

No government agencies, 63% who felt threatened, as we held them to account!" Brian Hanna, Mayor, Waitomo District Council "We have certain tools, but this requires a whole of community response." Richard Kempthorne, Mayor, Tasman District Council

"Not as much as we should – nor the resourcing." Lianne Dalziel, Mayor, Christchurch City Council

13 Key Finding 6

"We've had a major "We need national earthquake sequence and leadership and regulations. another close by. We have Having 74 local been doing what we need government organisations Funding and to do and our community doing their own thing is an has supported us. The real absolute waste of investment in challenge was the resource." infrastructure pose September 2010 quake." Garry Webber, Mayor, Western Bay of Plenty David Ayers, the biggest District Council Mayor, Waimakariri District Council challenges to improving communities' "Specifically regarding resilience and climate change, it is lack of preparedness long term understanding." Dave Cull, Mayor, City Council

Q18. What are the biggest challenges for your council in improving your community's resilience and preparedness? (Respondents could select up to two options).

Investment in relevant infrastructure 55%

Financial pressure and funding issues 43% Community engagement 42%

Regulatory environment 25%

14 Key Finding 7

One set of questions asked whether Mayors and Chairs thought that the "Although I have said yes it government's water reform cannot be made at the programme (including the target of 90% of rivers and lakes swimmable expense of our productive by 2040) is achievable for New capacity and it will be Swimmable lakes Zealand. Eighty percent of challenging for the respondents said yes. and rivers by 2040 community to afford the is achievable Q10. Do you think that the necessary measures." government's water reform Bill Shepherd, programme (including the target Chair, Northland Regional Council of 90% of rivers and lakes swimmable by 2040) is achievable for New Zealand? "We need a more sensible

No definition of what 20% swimmable is."

Yes Jim Mylchreest, 80% Mayor, Council

"Subject to strong government financial "But [central government] support and good need to recognise the scientific backing. Has to costs to local government be economically to meet the capital costs achievable and to achieve their goals." sustainable." Garry Webber, Mayor, Western Bay of Plenty Alan Livingston, District Council Chair, Regional Council

15 However, 56% of respondents believe the biggest challenge in achieving the national target depends onfunding for infrastructure upgrades, followed by land use changes (44%). Q11. What do you think will be the biggest challenges for your region/ district in achieving the national target (90% of lakes and rivers swimmable by 2040? (Respondents could select up to two options).

Funding for infrastructure upgrades 56%

Land use change 44% Regulating nutrient levels 30%

Existing contaminant levels 27%

Community support 23%

Technical capability 15%

"A pragmatic approach is required to ensure investment is made to maximize benefits. There is no point in investing millions of dollars on point source community discharges, where there will be no measurable environmental gain, when that community investment could be better targeted to riparian planting in the rural areas. The whole community needs to work together on this one so that the economic impacts are not so severe." Jim Mylchreest, Mayor, Waipa District Council

16 Key Finding 8

The Freedom Camping Act 2011 currently provides that freedom "The current situation is camping is a permitted activity not sustainable and nor is everywhere except where it is explicitly restricted or prohibited by the idea of continually a local authority bylaw. When providing more free-for- asked whether this fundamental There is strong proposition should be changed, the use infrastructure as more support for majority of respondents (76%) and more freedom indicated a belief that freedom campers are encouraged reversing the camping ought to be prohibited to arrive." current statutory unless provided for. Dave Cull, presumption that Q16. Would you support a change Mayor, Dunedin City Council to the fundamental proposition of freedom camping is the Freedom Camping Act – ie so that freedom camping is prohibited authorised except unless it is specifically provided for? "I could write a book. where it is However, three specifically suggestions: 1.on board No facilities are a proper flush prohibited 24% toilet. 2. make fines the Yes responsibility of the 76% vehicle owner not the hirer. 3. give councils uniformity across New Zealand to limit the number in some areas and ban in others." Jim Boult, Mayor, Queenstown Lakes District Council

"We value freedom campers, but need help in providing facilities for them." Sheryl Mai, Mayor, Whangarei District Council

17 Key Finding 9

Respondents were asked whether the mayoral powers in section 41A "Mayoral powers really of the Local Government Act 2002 have enhanced governance only work under present arrangements for their respective rules if you have the councils. Fifty-five percent agree, support around council while 45% are of the opinion they Opinion is divided do not. table, otherwise you get over whether new overturned." Q17. Have the mayoral powers in Craig Little, section 41A enhanced governance mayoral powers Mayor, Wairoa District Council have enhanced arrangements for your council? governance No arrangements, but 45% "I still use democracy and take council with me; endorsement that Yes 55% what's the point of a new annual plan power that can be over- consultation has ridden if your Councillors improved disagree?" Damon Odey, community Mayor, Timaru District Council engagement

"Yes, but you still need to bring the 'team of council' along with you." Grant Smith, Mayor, Palmerston North City Council

18 Following the changes to the annual plan consultation requirements, the "The success of improved majority of respondents (62%) engagement depends on believe the changes have improved community engagement. councils exploring new ways to involve people in Q15. Have the changes to the annual plan consultation our communities." requirements improved engagement Helen Worboys, with your communities? Mayor, Manawatu District Council

No 38% "I feel we have the trust of

Yes the majority of our 62% community to just 'get on with it'." Brian Hanna, Mayor, Waitomo District Council

19 Key Finding 10

Finally, respondents were asked which central government body makes the most effective contribution to local government. As in our previous two surveys, the majority of respondents agree that it is the NZ Transport NZTA makes the Agency (55%). most effective The Ministry of Business, Innovation & Employment was a clear second choice contribution to (27%), with no other government body local authorities receiving above 10%. Q19. Which central government body makes the most effective contribution to local government? (Respondents could select up to two options).

NZ Transport Agency 55% Ministry of Business, Innovation & Employment 27% Ministry of Transport 10% Department of Internal Affairs 10%

Department of the Prime Minister and Cabinet 8%

Ministry for Primary Industries 6% Local Government and Environment Select Committee 2% Ministry of Social Development 2%

Statistics NZ 2%

"Our ability to manage and "Central government improve our infrastructure agencies in general lack relies heavily on good understanding of the support from NZTA." modes and accountability Helen Worboys, of local government." Mayor, Manawatu District Council Chris Laidlaw, Chair, Greater Wellington Regional Council

20 Methodology This research draws on 55 responses from the Mayors and Chairs of local authorities across New Zealand. Questions in the survey were not compulsory leaving respondents to answer the topics they were most knowledgeable about. The respondents were from a mix of rural, provincial, metropolitan, and regional councils.

Question Number of responses 1 55 2 55 3 54 4 54 5 47 6 54 7 37 8 36 9 48 10 51 11 52 12 51 13 49 14 49 15 53 16 54 17 47 18 53 19 51

Q1. Please identify your category* of council

Rural Council 34.5%/19 respondents

Provincial Council 34.5%/19 respondents

Regional Council 18%/10 respondents Metropolitan Council (including Auckland) 13%/7 respondents

* Category terms defined by LGNZ

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