Future Wellington – Proud, Prosperous and Resilient Rt Hon. Sir Geoffrey Palmer SC (Chair), Sue Driver, Sir Wira Gardiner, Bryan Jackson. October 2012 Contents 1. Vision – Proud, Prosperous and Resilient 4 2. Summary of Recommendations 6 3. Themes from Public Engagement 15 4. The Nature of the New Governance Model 36 5. Financial Governance and Management 57 6. Interacting with Local Government: Democracy, Participation and Engagement 80 7. Community and Social Infrastructure 87 8. Planning 95 9. Transport 110 10. Three Waters and Solid Waste 123 11. Economic Development 138 12. Efficiency in Service Delivery 148 13. Council Controlled Organisations 155 14. Appendices 175 1 The Panel’s Terms of Reference The Wellington Region Local Government Review Panel is an independent group set up by Greater Wellington Regional Council and Porirua City Council to examine existing local government arrangements in the Wellington region. The Panel has been asked to prepare a report that will: • Assess possible local government options for the Wellington region and identify an optimal one, which may include either structural and/or functional changes • Contain a description of the preferred model and how it would operate, including levels of decision making, functions, governance arrangements and a proposed approach to financial arrangements concerning rates/other revenue, debt and liability management • If the preferred option includes any changes, outline transition arrangements, including approximate costs and a timeframe for implementation The report may be used by the Greater Wellington Regional Council and Porirua City Council to form the basis of a submission for reorganisation to the Local Government Commission. In coming to its conclusions, the Panel will need to be satisfied that its recommendations meet the different needs of Wellington’s regional, rural and urban communities and will strengthen the ability of the region to meet future challenges. In particular, the Panel has been asked to consider: • Appropriate locations/levels for decisions on, and delivery of, local government functions • Institutional arrangements that will embed enhanced opportunities for community/ neighbourhood decision making on local issues and meaningful citizen engagement in the development of regional policy and delivery options • The role of local government in fostering cultural identity and community character • The role and representation of iwi/Mäori in the proposed model • Challenges faced by local government in delivering costly and complex infrastructure • The provision of local and regional facilities and amenities • Ways of enhancing the effectiveness and efficiency of planning and regulatory processes across the region • How best to achieve integrated planning, including for transport and land use, to deliver optimal economic and environmental outcomes • How changes in demographics will impact on the region and its constituent parts • The role of local government in assisting the region to be globally competitive • Ways in which the region’s local government could better align with central government and its agencies, for example health, education, and police • Ways in which the region’s local government could better align delivery with the private sector and the community/NGO sector • The impact of any proposed changes on local government finances and revenue models, including rates and the management of assets, debt and other liabilities 2 • Rationale and criteria for any Council Controlled Organisations and other models of arms-length service delivery • The costs and benefits of the status quo and of any preferred option for change • How and between which parties the financial costs of any transition should be apportioned • Any other issues the Panel consider relevant 3 1. Vision – Proud, Prosperous and Resilient 1. The Panel’s vision is for a prosperous and resilient Wellington region that stands out among its peers; a region that builds on its strengths and is acknowledged around the world as a place that has something special to offer. We think this is about: • Having an outstanding quality of life, full of opportunities for people to work, live and play • Being proud about the quality of place • A place where talent wants to live and people want to learn and innovate • Being proud to host Government and be the capital of New Zealand • Being highly connected socially as well as physically in all areas for all people 2. In coming to this vision, the Panel drew from the many thoughtful and passionate responses received through this process, including a submission from the New Zealand Council for Infrastructure Development (NZCID), which struck a chord with the Panel by providing an excellent summary of the challenges and opportunities facing the Wellington region. 1 3. To this effect, the Panel agrees with the NZCID that there is a lot that local government in Wellington can do to achieve this vision and ‘realise the potential of Wellington’. The activities and structures of local government play a major role in providing for the long- term prosperity and wellbeing of the Wellington regional community. For communities to flourish, they need to have the basic building blocks in place, including: • A resilient economy that retains and creates jobs • Social and cultural cohesiveness • Living environments that are safe, attractive and hold interest • Identity and a sense of place • A sustainable and healthy natural environment • Stable and effective government that is engaged with the community 4. The Wellington region has many of these building blocks and has long been characterised by the diversity of its communities and the strength of its culture, economy and people. There are challenges ahead that need to be addressed. 5. Economic growth has slowed, jobs are harder to find, technology is changing rapidly, we have an ageing population, and managing the environment - particularly water - is becoming more complex. We face an uncertain future in relation to climate change and natural hazards. From a political economy perspective, we are caught between two major centres of heavy economic activity - Auckland and Christchurch. The eye of central government is being drawn away from Wellington. We think Wellington’s relatively small size and New Zealand’s geographic isolation from global markets make the challenges substantial. 6. The Wellington region needs to keep up and adapt if it is to succeed. This applies to the region as a whole, but equally to the business of local government, which has been the focus of this review. 1 Submission #173 New Zealand Council for Infrastructure Development. 4 7. The Panel’s view, and of the many we met, was that the Wellington region seems to have lost its way in recent years. A decade ago, the Wellington region was recognised as being at the forefront of governance, vision and place – with new development initiatives including the Westpac Stadium, Wellington Waterfront, Te Papa, Pataka, the Dowse and Expressions. We had forward-thinking planning and urban design approaches - centre upgrades, award-winning village planning and main street upgrades. We saw new cultural events and innovative marketing - Martinborough wine, Absolutely Positively Wellington, the Sevens and the World of Wearable Art. There was the foundation of a new and exciting film industry in Miramar. Today, there is a feeling that the region is living on these past glories. 8. The Panel has the view that local government can, and needs to, do a lot more to ensure that optimal conditions again exist to enable the Wellington community to flourish. 9. The Panel believes that this vision cannot be achieved under the current arrangements for local government in the Wellington region. Delivering on this vision relies on governance structures that provide: • Unified regional leadership on strategic issues and local leadership on local issues • A clearly articulated strategy for the entire Wellington region, backed up with place- based responses for local places • An efficient and effective administration with serious implementation capability and expertise • Inclusive democratic structures and processes • World-class social, cultural and physical infrastructure 5 2. Summary of Recommendations The task and the method 10. The Independent Wellington Region Local Government Review Panel has been established to assess governance models for the Wellington Region and identify an optimal one. It was a task about which the Panel was enthusiastic, even passionate. As greater Wellington residents we are all ardently committed to the region’s success. We are of the view that it has fallen behind and lost its way. But it can be re-born. 11. In order to arrive at our recommendations, which are unanimous, we have engaged in consultations with the units of local government and communities within the region on the basis of an 84-page Future Wellington Issues Paper that was published on 19 July 2012.2 12. We met with the Wellington City Council, the Porirua City Council, the Kapiti Coast District Council, the Hutt City Council, the Upper Hutt City Council, the Masterton District Council, the Carterton District Council, the South Wairarapa District Council and the Greater Wellington Regional Council. We have conducted nine public meetings that were well attended. We received 234 submissions from members of the public. We were also given numerous submissions received by territorial authorities of the region in their separate consultation processes. We conducted