G Compton [email protected] www.gwynncompton.co.nz

Hon Hon Debbie Ngarewa-Packer Rawiri Waititi Parliament Wellington

24 November 2020

Kia ora Minister and Members of Parliament,

Local government in New Zealand is rapidly reaching a crisis point. Caught between the fires of catching up with years of under-investment in infrastructure (itself caused by the political realities of the sector’s overwhelming dependence on the rating system for funding), playing our part in the response and recovery from COVID-19, accommodating rapid population growth, mitigating and adapting to climate change, and facing significant reforms with both the Three Waters and Resource Management Act, we are already seeing this pressure reach boiling point across the country with issues that cannot be solely attributed to clashes of personalities or ideologies at governing tables.

The role, structure, and financing of local government has remained largely unchanged (bar the Auckland Super City) since the reforms of the Fourth Labour Government in the late 1980s. With the challenges and changes facing the sector outlined above, I believe you all have a unique opportunity to work together and overhaul local government to ensure its role, structure, and financing are fit for purpose so we can keep serving our communities in the 21st century.

Since being elected as a districtwide councillor to Kāpiti Coast District Council in October 2019, I have been calling for a comprehensive review and reform of the role, structure, and financing of local government. My experience over the past year has only reinforced the need for this to happen as soon as possible.

To illustrate the scale of this opportunity, even a reform such as the Three Waters would, on its own, necessitate this work to be undertaken given these assets alone account for roughly a third of local government’s balance sheet, revenue, and expenditure. But the sector is facing not just change in the Three Waters space, but also the proposed repealing and replacement of the Resource Management Act during this term of Parliament too.

With the direction of travel towards centralisation/regionalisation of these activities, some important questions need to be asked? • After these reforms, what roles should the remaining parts of local government be carrying out? • To best deliver these roles, while also strengthening community participation in decision making, how should local government and democracy be organised? • What is the best way to finance those activities in a way that ensures local government remains adequately and sustainably funded over the long-term?

It is notable that, in order for the Auckland Super City reorganisation to gain the political momentum needed to proceed, the Royal Commission on Auckland Governance played a critical role in pushing this forward and creating the impetus for change.

It is also worth contrasting the Royal Commission approach with that taken from 2013 by the Local Government Commission for the Wellington region, which ultimately failed. The failure of this proposal to gain broader support was in part due to the top-down nature in how the Local Government Commission carried out its work, a lack of clear political buy in or appetite from central government for any further reorganisation at the time (which stymied efforts to build political consensus for change), poor communication and community engagement from the Local Government Commission, and the fact the Local Government Commission generally lacked any political weight with decision makers and the wider community.

The world has changed immensely in the past 12 months, let alone the more than 30 years since the last major reorganisation of local government. I encourage you all to work together and support a Royal Commission on Local Government to undertake this necessary work, with a view to it reporting back by the end of 2022 so that any changes can be implemented in time for the 2025 territorial authority elections. I would also suggest that ensuring a consistent approach to Māori wards and participation across local government, as well as reviewing the role and work of the Local Government Commission itself, should also be considered under any terms of reference for such a Royal Commission.

While this letter represents my own personal view and not that of Kāpiti Coast District Council, I am aware of significant and growing support throughout the greater Wellington region both from elected representatives and the wider community.

People are increasingly aware that decisions made in one part of our region have a direct impact on the rest of it, especially with Transmission Gully poised to open in the near future and in doing so linking Kāpiti, Porirua, the Hutt Valley, and Wellington closer together than ever before. They recognise the need to have not just a voice at the table in the various forums and joint committees that currently exist, but that it is vital to have a vote on issues across the region in order to achieve the best outcomes for communities throughout Wellington.

If you are up for this challenge, then I am ready to help you in any way I can and look forward to hearing from you. With everything that is happening, it is clear our existing local government arrangements cannot continue the way that they are. With the changes already on the table through Three Waters and Resource Management Act reform, then we need to move quickly to ensure local government remains relevant, representative, efficient, and effective in serving our communities for decades to come.

Ngā mihi,

Cr Gwynn Compton