Quarterly Review Issue 94, December 2011

New funding options open for councils Wednesday 30 November saw the incorporation of the Local Government Funding Agency (LGFA) giving local authorities a more efficient way of raising funds and diversifying funding sources.

The LGFA is owned by 19 councils and “First we had to develop an efficient capital domestic bond programme. Over time the the Crown, and is a Council Controlled structure allowing the LGFA to perform as LGFA’s issuance should replace existing Organisation (COO) operating under the a borrowing agent for councils…not as a local authority bond securities. Local Government Act 2002. bank. Sourcing international credit rating “Currently there is approximately $5 billion in line with the Government’s was another The incorporation is the result of three of local authority debt on issue amongst milestone and of course going through years work by Local Government New 79 local authorities. Under existing ten year the process of enabling the legislation Zealand (LGNZ) together with councils Long Term Plans councils have signalled and advisors from Cameron Partners and endorsed by all political parties brought an intention to expand their borrowings Asia Pacific Risk Management. the agency to fruition. to approximately $11 billion. If the LGFA “Finally the appointment of the New The initiative for the funding agency came becomes the primary source of funds Zealand Debt Management Office as the from the 2009 Jobs Summit hosted by the for councils the LGFA will be the second LGFA’s middle and back office service Government. Funding for an initial viability largest New Zealand dollar non-bank study for the LGFA was provided by nine provider, and the commitment by councils borrower after the Crown,” said Mr Stobo. councils together with the Crown. to use it marks the successful culmination Craig Stobo expects the LGFA will have “The LGFA succeeded because it was of the LGFA. LGNZ and councils should be a significant impact on New Zealand’s driven by councils and supported very pleased with the results.” capital markets giving investors a new by the Government,” said LGFA The LGFA’s will begin issuing bonds in independent chair Craig Stobo. February 2012 in a process that will look source of fixed income securities rated at But Mr Stobo says reaching key to replicate the issuance procedures and AA+, the same rating as the Government. milestones was a complex process. bond maturities of the Government’s

The LGFA has six founding directors: executive of the LGFA and will commence • District Council • Mr Stobo (independent chair) the Wellington-based role in the New Year. • Council • Abbey Foote (independent) The local authority shareholders of the • Council • Phil Cory-Wright (independent) LGFA at incorporation are: • Tasman District Council • John Avery (independent) • • • Mark Butcher (Auckland Council treasurer) • Bay of Plenty Regional Council • City Council • Paul Anderson ( City • Christchurch City Council • Council corporate services general • • Greater Wellington Regional Council manager). • Western Bay of Plenty District Council • Hamilton City Council • Whangarei District Council. In November Phil Combes, currently deputy • Hastings District Council secretary of the New Zealand Treasury • Käpiti Coast District Council The Government is a 20 per cent and head of the New Zealand Debt • District Council shareholder and additional councils Management Office, was appointed chief • New Plymouth District Council have agreed to join in 2012.

In this issue

2 Our views 5 Local government and road safety 8 LGNZ Conference 2012 3 Youth in local government 6 Waste management 4 Key issues 7 LGNZ celebrates and farewells Our Views

The elections are over, and the government elected looks very like the Eugene Bowen government we interacted with so well in the last political term. We are well- Chief executive, LGNZ placed for the next three years.

This is the last QR for the year, and my last • the Local Government Funding Our newest offering was launched in late as chief executive of LGNZ. I am going to Agency, established by stature and November, with the inaugural economic indulge myself a little, as is appropriate recently incorporated with the former development workshop. With this iniative, at the end of the year to look at what Debt Management Office Treasurer we are combining our objectives of we have done together over the last Phil Combes as chief executive improved local governance across New government term. • the leaky homes financial Zealand and of educating our membership assistance package which gives to best position the case for co-operation Our mission is to represent your interests, to certainty to home-owners with between central and local government be the national voice of local government. a guaranteed contribution by This requires engagement, with the If this sounds like an unashamed sales central and local government, Cabinet, politicians, and the bureaucracy. pitch – it is. LGNZ needs your support and which caps our liability and your mandate to continue our In July 2008 Lawrence Yule was elected • the defeat of proposals to limit, advocacy on your behalf. Leading up President and as a new incumbent was by statute, the core functions of to my departure at the end of the year well placed to engage following the local government as part of the we have a well-grounded transition plan significant regime change at the 2008 Transparency, Accountability and and management arrangements until my elections. LGNZ quickly won the trust Financial Management legislation successor takes up their duties in the first and the respect of the Prime Minister • the government’s back- quarter of next year. The transition should and the Minister for Local Government. down on allowing overweight be seamless. We continued our strong bureaucratic vehicles on our roads connections with the heads of department • freedom camping legislation in the On a personal level, I have immensely and at all levels of the bureaucracy. shape you wanted – strengthening of enjoyed the last eight years and getting up to speed with a sector about Within one month of the 2008 election the infringement powers while retaining which I knew very little in 2003. I have President, Vice President and sector chairs discretion in application probably topped one hundred thousand met with the new Cabinet. A measure of • reviews underway of the Remuneration kilometres visiting zone meetings this influence is the appearance, in the Authority’s system for elected member over this period and learning, at grass local government manifesto’s of both the remuneration and of the Elected root level, what the hot issues were major parties, of policy planks we have Members Interest Act. and how to dampen them down. been strongly promoting over the last It’s hard to believe that it is only three three years - no forced amalgamations, I was able to travel this much because years ago since we started operating our a focus on local government and the of the quality of the Wellington-based KnowHow elected members’ professional economy, an examination of the cost LGNZ policy and administrative teams, development programme. In that time, impact of government regulation on local whose expertise more than made workshop participation has tripled and government and a re-examination of the up for any shortcomings of my own. the range of offerings quadrupled, with central-local relationship. I thank you all for the opportunity to more sophisticated options for continuing serve you, and wish local government Some of the more tangible achievements students, and new beginner courses in key well over the coming years. of the last three years include: areas like financial management.

Events Calendar

Date Event Venue 16-17 February Rural/Provincial Sector meeting Wellington 21 February Metro Sector meeting Wellington 22 February Regional chief executives group meeting Wellington 23 February Chief executives environment forum Wellington 24 February Zone Six meeting TBC

2 | lgnz.co.nz Our Views

Lawrence Yule The recent general election sees the National Party return to Parliament as President, the majority party with support from a couple of minor parties. This gives the LGNZ Government a very similar look to the past three years.

LGNZ’s relationship with central Core Cities project designed to identify will be of particular interest to LGNZ. government has focused on the role collaborative opportunities among New The management of freshwater local government plays in the economic Zealand’s six larges metropolitan cities and quality and quantity, under a national and social life of this country. There improve the country’s productivity through strategy for water, is something are significant opportunities for local increasing scale. LGNZ is advocating for. and central government to work We are looking at how local government The political manoeuvrings of the general together to improve the quality of life can create an environment which supports election end what has been a busy year in our communities while enhancing the greater productivity and improves for many of us in local government. LGNZ economic performance of the nation. The relationships with export markets. has had a number of wins on behalf of the two are not mutually exclusive. sector from the Freedom Camping Law Our work with economic research house Our National Council will meet with the and a commitment from Government to Berl demonstrates the contribution our Prime Minister and relevant Government help meet the costs of leaky homes, to the sector makes to the economy and the ministers in March next year at the Central establishment of the Local Government learnings from this research have been Government Local Government Forum. Funding Agency and consistent strong made available through our KnowHow This forum is the pre-eminent means of issues based advocacy. professional development training. You engaging with central government… can read more on this at www.lgnz.co.nz As Christmas is nearly upon us I’d like to getting both sets of cards on the table. wish everyone a safe and happy holiday Resilient national infrastructure – energy, The forum is our annual opportunity to season ahead of what is bound to be a transport, ports – is vital to our economy. identify priority areas for the sector in the busy and eventful 2012. I look forward Local government must play a significant coming term and develop a plan of action to seeing many of you in the new year role here. On the topic of infrastructure for how we roll out those priorities. if not early then certainly at our annual LGNZ will aim to work with the Government conference. This year it’s being held in LGNZ will put the spotlight on the economy to identify a broader range of funding Queenstown - 15 to 17 July. Look for over the next parliamentary term. We tools to support investment, and address more information on the back page. know deficit reduction is the driver for all the challenges of ongoing maintenance of Government policy over the next three years. existing infrastructure such as transport.

Local government must stay in that picture The impacts of climate change on hazards if New Zealand is to remain competitive in and flood control are a pressing issue for a global context. That’s why we are working local government and this is an area we across our and other sectors to help must also address with central government create an environment where our cities are in the new term. economic catalysts and have the resilience Together with Phase 2 Resource to respond to any future economic shocks. Management Act reforms, the LGNZ is working with the sector and the alignment of legislative frameworks Ministry of Economic Development on a to avoid duplication of processes

News

Youth in local government representatives from local councils such as To see the programme and The Youth and local government leadership policy makers, youth advocates and those register visit http://southlandnz. conference to be held in from working in community development teams com/VisitSouthland/Conferences/ 18-20 April 2012 provides the opportunity and in other arenas with the aim of creating YouthandLocalGovernmentConference. for those working in local government to vibrant cities full of youth participation. aspx develop stronger links with young people, Topics to be covered during the conference build networks and discuss issues. include leadership and communication The conference is relevant to young skills, youth engagement and development people, mayors, councillors and and workshops looking at capacity building.

LOCAL GOVERNMENT NEW ZEALAND QUARTERLY REVIEW DECEMBER 2011 | 3 Key Issues

LGNZ supports a team of policy experts who provide policy advice and advocacy on issues relevant to local government on behalf of its members. The team works across a range of specialist areas from governance and the environment, to regulation and development and infrastructure.

E-voting: LGNZ sits on the Society of supported increasing the requirements to Productivity Commission: Local Government Managers Electoral strengthen earthquake prone buildings. The Productivity Commission (see Working Party (EWP) which has been set www.productivity.govt.nz) is undertaking “We want to see earthquake prone up to investigate e-voting options for local two inquiries which are of relevance buildings strengthened to 67 per cent of government elections and polls. to the local government sector the new building standard and we want looking at housing affordability and LGNZ policy advisor Mariska Wouters greater flexibility around compliance international freight transport services. says it’s expected any e-voting timeframes. We’re also asking for a risk LGNZ has provided feedback on the system recommended would based strategy for implementing the Commission’s issue papers on the simply be an addition to the current higher standard so those areas where the two inquiries and the Commission has postal voting method so voters risk is highest are required to meet the indicated that its draft reports will be would have two voting options. standard faster,” said LGNZ policy advisor available this month for submissions. Frances Sullivan. It is hoped that a trial of the e-voting To read LGNZ’s submissions to the option will be possible at the next While strengthening earthquake prone Commission visit www.lgnz.co.nz local body elections. If an e-voting buildings is a complex issue because system was to be introduced nationally of heritage and cost considerations the amendments would have to be made priority must be safety said Ms Sullivan. LGNZ policy team to the Local Electoral Regulations Act To read the LGNZ submission visit Policy manager Kate Macnaught 2001 which could be passed in time www.lgnz.co.nz [email protected] for the 2016 local body elections. Remuneration Review: In November Principal policy advisor Mike Reid NPS for freshwater management: The LGNZ met with the Remuneration [email protected] Ministry for the Environment has released Authority as part of the Authority’s review Principal policy advisor Geoff Swainson a guide on implementing the National of the remuneration system for councillors [email protected] Policy Statement (NPS) on freshwater and community board members. It management. LGNZ was consulted in the became clear during the meeting that Policy advisor Simon King development of the guide which gives Authority did not have enough information [email protected] background information and commentary on the number of hours elected members Policy advisor Philip Shackleton on the intent of the NPS and is intended worked. [email protected] to help local authorities in considering LGNZ has distributed a survey to chief how the NPS’s key messages, concepts Policy advisor Frances Sullivan executives asking for information on the and directions should be realised. For the [email protected] average number of hours a week that details go to www.mfe.govt.nz an ordinary councillor spends on council Policy advisor Clare Wooding Canterbury earthquakes: In its business. Once that information is collated [email protected] submission to the Royal Commission of LGNZ will meet with the Remuneration Policy advisor Mariska Wouters Inquiry into building failure caused by the Authority in the New Year. [email protected] Canterbury earthquakes last month, LGNZ

4 | lgnz.co.nz In review

Local government and road safety The Local Government Road Safety Champions Forum will meet for the first time in December with a focus on leveraging support for road safety across the local government sector. The Forum has been established by LGNZ is responsible for managing nearly 90 per and brings together mayors and elected cent of New Zealand’s road network and members. provides the bulk of the infrastructure used by cyclists and walkers. “The Forum will work together to influence government on road safety issues and “Local government has close ties with develop greater consistency in responding communities and this relationship can to road safety issues across the sector,” help build the grass-roots demand for the said LGNZ policy advisor Simon King. principles underpinning a safe system,” said Mr King. Local government has a crucial role to play in road safety initiatives as the sector

LGNZ offers support in wake of Rena grounding LGNZ provided financial assistance to the Tauranga Chamber of Commerce in its work supporting local businesses affected by the grounding of the container ship Rena.

Recognising this was a unique situation they followed in their response activities oil was off the vessel and the removal of with potentially profound impacts on the and communicate with their members. containers and the vessel off the reef and local economy it was important LGNZ “This information will be made available to the restoration of Tauranga’s reputation offer support and economic leadership for LGNZ for sharing with councils who may for clean beaches with a pristine marine the business community in Tauranga says face a similar situation,” said Mr Shackleton. environment. LGNZ policy advisor Philip Shackleton. The documentation is likely to be in two The money helped the Tauranga Chamber parts; the initial response from when the of Commerce document the processes ship grounded through to when all the

New KnowHow workshops meeting demand LGNZ’s KnowHow professional development team have developed a number of new workshops which will be available to councils on request. In November new KnowHow workshops The half day Conflicts of Interest workshop Also new in November was the workshop focused on economic development, was developed in partnership with the Effective Directorship which is targeted effective directorship and conflicts of Office of the Auditor General and focuses to elected members who also hold a interest were launched. LGNZ professional on the parameters around conflicts of directorship of a Council Controlled development manager Anne Gibson says interest and how elected members deal Organisation (CCO). the KnowHow team work hard to provide a with them. The workshop, developed together full education service to elected members. with Graeme Nahkies of BoardWorks The workshop specifically looks at what a “The growth of our KnowHow suite of International, helps elected members conflict of interest is and the rules around workshops has been driven by demand understand their responsibilities as a conflict of interest. The workshop also and are designed to give members CCO director and the disciplines that offers examples on how elected members the skills they need to represent their go with their role. can deal with a situation where there may communities to the best of their abilities,” For further information on these new said Mrs Gibson. be a conflict of interest and know the right questions to ask on the issue. KnowHow offerings and for all your All KnowHow workshops have been professional development needs visit created by the relevant subject matter “The rules around conflicts of interest can www.lgnz.co.nz/knowhow/ experts with the Conflicts of Interest be confusing so this workshop answers workshop launched on 1 December a many of the common questions elected perfect example of this. members have,” said Mrs Gibson.

LOCAL GOVERNMENT NEW ZEALAND QUARTERLY REVIEW DECEMBER 2011 | 5 News

Councils face waste deadlines in 2012 The issue of waste will be a hot topic for many councils in 2012 as they face a number of deadlines across the year.

In 2012 councils will be required to report Plans which councils must complete by on landfill gases for the Emissions Trading July 2012. Scheme and prepare waste assessments and The waste assessment provides Waste Minimisation and Management Plans. background information about waste From 1 January 2012 councils that own a streams and key priorities for the future landfill must start reporting emissions from while also setting the foundation for that landfill, and from 1 January 2013 pay identifying options for future management for these emissions by purchasing carbon of waste. units. At the current price of $15 per carbon “Completing a comprehensive waste unit this obligation equates to $165,000 per assessment is important for councils annum for 10,000 tonnes of waste to landfill. because it can also help them reduce their There is no obligation for closed landfills. emissions trading scheme obligation by Others who don’t own a landfill will see an identifying diversion options for waste. increase in the cost of waste disposal. It’s worth running a bit late on the plan to Councils are also required to complete get a good assessment,” said LGNZ policy waste assessments which will feed into advisor Frances Sullivan. the Waste Management and Minimisation

Cutting waste in Putaruru In the face of paying more to manage waste, South is working with its waste contractor Earthcare Environmental to cut back the waste sent to the landfill.

A food waste programme is being trialled positive with 70 per cent of the community waste processing facility in Tuakau for in Putaruru which sees homeowners taking advantage of the programme. recycling into compost for agricultural and separating food waste from general waste, horticultural use. The free trial is a partnership between for recycling. And the results are promising South Waikato District Council and Mr Pascoe says the 12 month trial will - six months into the trial the amount of Earthcare Environmental. Residents in be reviewed next year to see if it can be waste sent to the landfill from Putaruru Putaruru put their kitchen waste into rolled out across the district. has been reduced by 1,400 tonnes. corn starch bags and a container which For more information on South Wiakato South Waikato District Council services is then collected as part of the weekly District Council’s food waste programme manager Andrew Pascoe says the kerbside rubbish collection service. After visit www.southwaikato.govt.nz response from the community has been collection the food waste goes to a food

Planning for waste management and minimisation Development of a comprehensive Waste Minimisation and Management Plan (WMMP) was a major undertaking for Selwyn District Council but that work is already paying dividends.

Before the plan could be developed authorities are required to review their centres in some supermarkets and a full waste assessment was WMMPs by July 2012. hardware stores and is looking to completed, which Selwyn District “The plan gives the district a comprehensive implement a similar programme for Council solid waste manager Gavin policy and strategy for the management of small batteries. Sole says was an important step. waste across the district for the future. Mr Sole says fluorescent light bulbs “We had to get an understanding of “Education is a key to minimising waste and small batteries have traditionally where waste was coming from in the because the attitudes of many New been difficult items to deal with in terms district and where it was going.” Zealanders to waste needs to change. We of disposal so to find new options for Mr Sole says after the assessment the can’t continue to dump rubbish like we recycling the items is really positive. use to,” said Mr Sole. council then consulted on the plan and To read Selwyn District Council’s WMMP six months later it was signed off after Following the assessment and plan visit www.selwyn.govt.nz further research and planning. Under the process Selwyn District Council has Waste Minimisation Act 2008, all territorial opened fluorescent light bulb recycling

6 | lgnz.co.nz News

LGNZ policy manager Kate Macnaught

LGNZ welcomes new policy manager From the North East of England to Wellington with a few stops along the way Kate Macnaught has joined the LGNZ team as policy manager.

Mrs Macnaught joined the LGNZ time in “The LGNZ policy team have an enormous the services are that the sector delivers. September after a stint with New Plymouth depth of knowledge and understanding about I have to say I am very privileged to be District Council as the corporate manager the sector and they are actively involved in able to be part of this sector and proud to of strategy and policy. ensuring the views of the sector are reflected serve our members,” said Mrs Macnaught. in early discussions with central government In her role with LGNZ Mrs Macnaught is Mrs Macnaught hails from Scotland and when new legislation or regulation is being responsible for managing a team of policy before coming to New Zealand six years designed,” said Mrs Macnaught advisers who are specialists in their field ago was the head of business and enterprise across areas such as social, environment, Early engagement is vital for both central with the North East of England regional governance, economic and development and local government if improvements to development agency and before that was and infrastructure. implementation and service delivery are chief executive of Northern Business Forum. to be achieved believes Mrs Macnaught. During her time with LGNZ Mrs Macnaught would like to see the sector gain “Local government is often seen by some recognition for the vital work delivered in a negative context but here at LGNZ we by local government. want to promote how valuable and vital

LGNZ celebrates and says farewell Thursday 1 December was an opportunity for LGNZ to celebrate another successful year and also farewell chief executive Eugene Bowen. The function, held in Wellington brought together LGNZ members, staff and local government stakeholders.

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1 LGNZ chief executive Eugene Bowen and 3 LGNZ National Councillor Adrienne Staples, 5 Kirsty Anderson, LGNZ National Councillor wife Elizabeth Ellis. Council Mayor Frana David MacLeod, Basia Arnold 2 LGNZ President Lawrence Yule, Local Cardno, Mayors Taskforce for Jobs executive 6 Land and Water Forum chair Alastair Government Commission chair Basil officer Jan Francis. Bisley, Parliamentary Commissioner for the Morrison, Manawatu District Council Mayor 4 LGNZ National Councillor Brendan Duffy, Environment Jan Wright, Ministry for the and Member of Parliament Ian McKelvie. Mayors Taskforce for Jobs executive officer Jan Environment chief executive Paul Reynolds. Francis, LGNZ National Councillor Tracy Hicks.

LOCAL GOVERNMENT NEW ZEALAND QUARTERLY REVIEW DECEMBER 2011 | 7 remarkable people Remarkable location remarkable conference

Queenstown, New Zealand’s adventure central government agencies, politicians, tourism capital and home to The “Conferences are always a fantastic the public and media. Remarkables mountain range, hosts opportunity for networking but Along with keynote speakers the LGNZ conference in 2012 from 15-17 July. the 2012 conference will also be conference will also offer parallel sessions Taking inspiration from those mountains led by LGNZ’s team of policy experts. that characterise a spectacular landscape, a chance to recognise all that is The sessions will look at some of the this conference will celebrate all that’s remarkable in local government issues facing the local government sector remarkable in the local government sector. across social, environment, governance and celebrate our achievements,” and transport and infrastructure areas. Taking advantage of the theme LGNZ President Lawrence Yule. conference attendees will hear from “I always find conference to be an remarkable New Zealanders, high opportunity to hear new ideas, discuss achieves in their specialist fields, who Given the location in Queenstown and the the hot topics in the sector and take will offer inspiration and motivation. unpredictable nature of the weather LGNZ a fresh look at what works in different communities around New Zealand,” Leading the speakers line up will is recommending that delegates consider said Mr Yule. be world cup winning rugby coach taking out travel insurance to offset the Graham Henry along with political risk of delayed or cancelled flights. A trip to Queenstown isn’t complete commentator Fran O’Sullivan and without a ride on the gondola to New for conference 2012 will be an Andrew Hamilton, chief executive of the Skyline and delegates attending awards component that acknowledge business growth centre The ICEHOUSE. the traditional welcome reception and celebrate achievement in will get to enjoy that delight with a Conference 2012 has been shortened the local government sector and glass of mulled wine as the sun sets from the traditional four days to three showcase its positive nature. on spectacular Lake Waktipu. to help keep costs down. The LGNZ Annual General Meeting will be held on The awards will recognise and endorse Further information on the conference the afternoon of Sunday 15 July before those local authorities which strive is available at www.lgnz.co.nz the conference opens and conference towards excellence and leadership and will close on Tuesday 17 July in time for motivate others into making a difference. delegates to make connecting flights The awards will help showcase significant home that afternoon. local government achievements to www.lgnz.co.nz 114–118 Lambton Quay, Wellington 6011 PO Box 1214, Wellington 6140, New Zealand Phone: 64 4 924 1200 Fax: 64 4 924 1230

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