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Taking the Pulse of Local Government in New Zealand

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TAKING THE PULSE OF LOCAL GOVERNMENT IN NEW ZEALAND 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 most local authorities in New Zealand, including the major councils based in Auckland, Wellington, and Christchurch. 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 Summary of Key Findings 3 Key Finding 1: Economic growth and jobs are the important issues 4 Key Finding 2: Funding availability and consistency of central 6 government policy making are considered major impediments Key Finding 3: While the new purpose statement does not make 7 progressing initiatives easier it also does not constrain Councils Key Finding 4: The roles of governing bodies and management 8 are clearly understood and correctly balanced Key Finding 5: Housing affordability is not an issue best solved 9 by local government Key Finding 6: Reorganisation has little community support and 10 is unlikely to bring economic benefits Key Finding 7: The NZ Transport Agency makes the most effective 11 central government contribution Methodology 12 1 Welcome to 'Taking the pulse of local policy making are seen as the major Introduction government in New Zealand', a report impediments to achieving results for on what Mayors and Chairs of local communities. The tension between authorities think about the major issues central government and local facing their communities and government was a consistent theme organisations. throughout the survey results. Simpson Grierson and LGNZ are Encouragingly for communities around delighted to have collaborated on this the country, the roles of local authority research project. We are pleased with governing bodies and management are the quantity and quality of the overwhelmingly seen to be clearly responses we have received. We would understood and correctly balanced. like to thank the 62 respondents, who We hope you enjoy reading this report represent nearly 80% of New Zealand's and find it useful as well as relevant. local authorities. We look forward to discussing it with Our principal objective with this you at the LGNZ conference, and would research is to provide solid data to help welcome your feedback. inform LGNZ's future agenda. To this Thanks again for your support with this end, it is interesting and informative to initiative. see the clear messages emerging from the research. It is not surprising that economic growth and job creation are top of mind for Mayors and Chairs. Nor is it Malcolm Alexander Jonathan Salter surprising that funding limitations and Chief Executive Partner the consistency of central government LGNZ Simpson Grierson This survey was carried out in June 2014. Responses were received from Mayors and Chairs of 62 rural, provincial, metropolitan and regional councils throughout New Zealand, a response rate of nearly 80%. 2 Summary of Key Findings Funding availability and consistency ECONOMIC of central government GROWTH policy making are & CONSIDERED MAJOR JOBS are the important issues IMPEDIMENTS While the new purpose statement The roles DOES NOT MAKE of Housing progressing initiatives GOVERNING affordability is easier it also does BODIES and management not an issue not constrain are clearly understood and BEST SOLVED COUNCILS correctly balanced by local government Reorganisation has little The NZ Transport Agency makes the COMMUNITY SUPPORT most effective is unlikely to bring CENTRAL ECONOMIC government & BENEFITS contribution 3 Key Finding 1 The first set of questions identified the issues that are most important to "Economic growth and jobs Mayors and Chairs and those where [are] most important by they believe they can effect the light years. [We] can effect greatest change. most of these issues and Economic growth The headline message is clear. Of the most are critical." 62 respondents who completed the and jobs are the survey 84% believed economic growth Mayor John Forbes, Opotiki District Council important issues and jobs are the top issues for Mayors and Chairs and their communities. This result was consistent across all types of local authority. "As a rural council we are Environmental impact and concerned that there is sustainability (46%) as well as rates affordability (40%) are also important little desire from central across all types of local authority. government to formulate a And for provincial councils local sub-regional economic government reorganisation is a key policy that recognises issue. urban drift and an aging Mayors and Chairs were split over where they can effect the greatest population that will find it change. Rates affordability (47%) and difficult to continue economic growth and jobs (45%) were funding local government." the two highest ranked issues overall. Mayor Neil Sinclair, South Waikato And for regional councils, District Council unsurprisingly, environmental impact and sustainability and water resources and management are the top two issues. 4 Q2. Which of these issues are most important for you and your community (respondents could select up to 3 issues) economic growth and jobs 84% environmental impact and sustainability 46% rates affordability 40% population change (growth or decline) 30% local government reorganisation 22% transport, infrastructure and funding 22% natural event preparedness (eg earthquakes and weather) 14% perceived value of local government 11% water resources and management 9% housing affordability 5% Q3. For which of these issues does your local authority have the greatest ability to effect change (respondents could select up to 3 issues) rates affordability 47% economic growth and jobs 45% environmental impact and sustainability 37% perceived value of local government 32% natural event preparedness (eg earthquakes and weather) 30% transport, infrastructure and funding 25% water resources and management 25% local government reorganisation 17% population change (growth or decline) 10% housing affordability 5% 5 Key Finding 2 We asked Mayors and Chairs what the two biggest impediments are that "[The] level of constant they face in achieving the results they change. [There is] no sense want for their communities. of stability to embed a By a significant margin, and across all fixed position." types of local authority, funding Funding availability availability (66%) and consistency of Douglas Leeder Chair, and consistency of central government policy making and Bay of Plenty Regional Council legislative changes (61%) are central government considered the major impediments. policy making are Consistency of central government "[There is a] lack of regard considered major policy making and legislative changes for costs and [the] effects is, in particular, a significant issue for of implementation by impediments regional councils. central government." Mayor Glenn Leach, Thames-Coromandel District Council Q4. What are the biggest impediments you face in achieving the results you wish for your community (respondents could select up to 2 issues) funding availability 66% consistency of central government policy making, and legislative changes 61% central government intervention 15% population changes (growth or decline) 14% perceived value of local government 10% lack of engagement from your community 7% management limitations 7% willingness of your elected Councillors to work collaboratively 3% 6 Key Finding 3 Questions 7 and 8 considered the new Local Government Act purpose "It has made no material statement. difference." Most respondents (72%) indicated Mayor Stuart Crosby, that the new purpose statement does Tauranga City Council not make it easier for Councils to While the new progress their initiatives. However, it purpose statement also does not constrain most Councils (74%). These results were consistent "It has made us more does not make across all types of local authority. resolute to do those things progressing initiatives For many respondents the removal of that only councils can do. easier it also does not the four well-beings has caused We can therefore be more concern. Mayor Brendan Duffy of innovative around the constrain Councils Horowhenua District Council says, "How can you possibly remove the delivery of those other four well-beings? Who is it locally aspects such as the social that takes up the issues and wellbeing, economic challenges and actually cares? Dear old local government – pretty much wellbeing of our every day!" community that can be sustained through a trust or incorporated society." Mayor Margaret
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