TAKING THE PULSE OF LOCAL GOVERNMENT IN NEW ZEALAND. A report on the issues concerning Mayors and Chairs

Transcription

1 TAKING THE PULSE OF LOCAL GOVERNMENT IN NEW ZEALAND A report on the issues concerning Mayors and Chairs

2 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 malcolm.alexander@lgnz.co.nz Jonathan Salter Partner Simpson Grierson jonathan.salter@simpsongrierson.com 2

3 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

4 Introduction Welcome to 'Taking the pulse of local government in New Zealand', a report on what Mayors and Chairs of local authorities think about the major issues facing their communities and organisations. Simpson Grierson and LGNZ are delighted to have collaborated on this research project. We are pleased with the quantity and quality of the responses we have received. We would like to thank the 62 respondents, who represent nearly 80% of New Zealand's local authorities. Our principal objective with this research is to provide solid data to help inform LGNZ's future agenda. To this end, it is interesting and informative to 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 surprising that funding limitations and the consistency of central government policy making are seen as the major impediments to achieving results for communities. The tension between central government and local government was a consistent theme throughout the survey results. Encouragingly for communities around the country, the roles of local authority governing bodies and management are overwhelmingly seen to be clearly understood and correctly balanced. We hope you enjoy reading this report and find it useful as well as relevant. We look forward to discussing it with you at the LGNZ conference, and would welcome your feedback. Thanks again for your support with this initiative. Malcolm Alexander Chief Executive LGNZ Jonathan Salter Partner Simpson Grierson This survey was carried out in June 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

5 Summary of Key Findings ECONOMIC GROWTH & JOBS are the important issues Funding availability and consistency of central government policy making are CONSIDERED MAJOR IMPEDIMENTS While the new purpose statement DOES NOT MAKE progressing initiatives easier it also does not constrain COUNCILS The roles of GOVERNING BODIES and management are clearly understood and correctly balanced Housing affordability is not an issue BEST SOLVED by local government Reorganisation has little COMMUNITY SUPPORT is unlikely to bring &ECONOMIC BENEFITS The NZ Transport Agency makes the most effective CENTRAL government contribution 3

6 Key Finding 1 Economic growth and jobs are the important issues The first set of questions identified the issues that are most important to Mayors and Chairs and those where they believe they can effect the greatest change. The headline message is clear. Of the 62 respondents who completed the survey 84% believed economic growth and jobs are the top issues for Mayors and Chairs and their communities. This result was consistent across all types of local authority. Environmental impact and sustainability (46%) as well as rates affordability (40%) are also important across all types of local authority. And for provincial councils local government reorganisation is a key issue. Mayors and Chairs were split over where they can effect the greatest change. Rates affordability (47%) and economic growth and jobs (45%) were the two highest ranked issues overall. And for regional councils, unsurprisingly, environmental impact and sustainability and water resources and management are the top two issues. "Economic growth and jobs [are] most important by light years. [We] can effect most of these issues and most are critical." Mayor John Forbes, Opotiki District Council "As a rural council we are concerned that there is little desire from central government to formulate a sub-regional economic policy that recognises urban drift and an aging population that will find it difficult to continue funding local government." Mayor Neil Sinclair, South Waikato District Council 4

7 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 economic growth and jobs environmental impact and sustainability perceived value of local government natural event preparedness (eg earthquakes and weather) transport, infrastructure and funding water resources and management local government reorganisation population change (growth or decline) housing affordability 47% 45% 37% 32% 30% 25% 25% 17% 10% 5% 5

8 Key Finding 2 Funding availability and consistency of central government policy making are considered major impediments We asked Mayors and Chairs what the two biggest impediments are that they face in achieving the results they want for their communities. By a significant margin, and across all types of local authority, funding availability (66%) and consistency of central government policy making and legislative changes (61%) are considered the major impediments. Consistency of central government policy making and legislative changes is, in particular, a significant issue for regional councils. "[The] level of constant change. [There is] no sense of stability to embed a fixed position." Douglas Leeder Chair, Bay of Plenty Regional Council "[There is a] lack of regard for costs and [the] effects of implementation by 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 consistency of central government policy making, and legislative changes central government intervention population changes (growth or decline) perceived value of local government lack of engagement from your community management limitations willingness of your elected Councillors to work collaboratively 15% 14% 10% 7% 7% 3% 61% 66% 6

9 Key Finding 3 While the new purpose statement does not make progressing initiatives easier it also does not constrain Councils Questions 7 and 8 considered the new Local Government Act purpose statement. Most respondents (72%) indicated that the new purpose statement does not make it easier for Councils to progress their initiatives. However, it also does not constrain most Councils (74%). These results were consistent across all types of local authority. For many respondents the removal of the four well-beings has caused concern. Mayor Brendan Duffy of Horowhenua District Council says, "How can you possibly remove the four well-beings? Who is it locally that takes up the issues and challenges and actually cares? Dear old local government pretty much every day!" "It has made no material difference." Mayor Stuart Crosby, Tauranga City Council "It has made us more resolute to do those things that only councils can do. We can therefore be more innovative around the delivery of those other aspects such as the social wellbeing, economic wellbeing of our community that can be sustained through a trust or incorporated society." Mayor Margaret Kouvelis, Manawatu District Council Q7. Overall, does the new purpose statement make it easier for your Council to progress initiatives to benefit your community? Q8. Has the new purpose statement in anyway constrained what you do? Yes 28% No 72% Yes 26% No 74% 7

10 Key Finding 4 The roles of governing bodies and management are clearly understood and correctly balanced One set of questions asked Mayors and Chairs for their thoughts on governance. Most respondents (84%) think the roles of governing bodies and Council management are clearly defined and understood. A large majority (92%) also think the respective roles are correctly balanced. However, this view was not shared by everyone. Again, these results were consistent across all types of local authorities. Q9. Do you think the respective roles of the governing body and management within your Council are clearly defined and understood? "Our elected council and management team work very effectively together to achieve real progress as a team." Mayor Brian Hanna, Waitomo District Council "The answer is 'yes' but it does need constant work to maintain." Bill Shepherd Chair, Northland Regional Council No 16% Yes 84% Q10. Do you think the respective roles of the governing body and management within your Council are correctly balanced? "Hauraki does make it work but only because of a solid relationship between the governing body and senior management." Mayor John Tregidga, Hauraki District Council No 8% Yes 92% 8

11 Key Finding 5 Housing affordability is not an issue best solved by local government Question 11 asked whether housing affordability is an issue best solved by local government. 84% of respondents do not see housing affordability as an issue best solved by local government, with respondents from rural councils particularly adamant on this point. Many see it as a problem solely concerning Auckland and other metropolitan centres. Q11. Do you see housing affordability as an issue best solved by local government? Yes 16% No 84% "Only a small number of the factors in the housing affordability equation are either controlled or influenced by local government. [There is] certainly a need to play a part in limiting bureaucratic constraints and costs but we should not be the whipping boy of central government. This issue is largely one of a small number of the larger metropolitan centres." Mayor Jim Mylchreest, Waipa District Council "Housing affordability is all to do with the costs incurred by Central Government's policies." Mayor Tony Bonne, Whakatane District Council "Central government needs to intervene with policies to assist the moving of new residents to the regions." Mayor Andy Watson, Rangitikei District Council 9

12 Key Finding 6 Reorganisation has little community support and is unlikely to bring economic benefits One set of questions covered the issue of local government reorganisation. Reorganisation is seen as a current issue by the majority (55%) of local authorities overall, and in particular for provincial and regional council respondents. However, respondents from rural councils were less likely to see this as a current issue. However, the majority of respondents do not think there is community support for reorganisation (79%) or that it would bring economic benefits (63%). Metropolitan council respondents were more split on these issues though, with a majority believing that reorganisation would lead to economic benefits. "[The] constant threat of local government reorganisation is a total distraction." Mayor Steve Chadwick, Rotorua District Council "Our community has already held 2 surveys and 67-75% said 'no'. Some said 'yes' and others didn't know." Mayor Craig Little, Wairoa District Council "We think efficiencies could be achieved differently." Mayor Annette Main, Wanganui District Council Q12. Is reorganisation a current issue for you and your Council? Q13. If a poll was held now, do you think your community would support any proposed reorganisation? Q14. Would reorganisation bring greater economic benefits to your district/region? No 45% Yes 55% Yes 21% No 79% Yes 37% No 63% 10

13 Key Finding 7 The NZ Transport Agency makes the most effective central government contribution The next set of questions considered which central government body makes the most effective contribution to local authorities. 42% of respondents, and in particular those from metropolitan and rural councils, rated the NZ Transport Agency (NZTA) as the most helpful, significantly more than any other body. One respondent summed up the thoughts of many saying: "Out of all the central government bodies mentioned, NZTA has been the most proactive in informing, engaging, providing assistance with proposed change and regularly attending LGNZ meetings and providing many opportunities for face to face discussion. They have also listened to the feedback and provided appropriate responses." The Ministry of Business, Innovation and Employment was highly rated by provincial and regional councils. "47% of our rates go into roading. They [NZTA] engage directly with the TA. We may not necessarily agree (eg recent changes to FAR) but we are able to discuss [issues] freely." Mayor Don Cameron, Ruapehu District Council Q5. Which central government body makes the most effective contribution to local government? NZ Transport Agency Ministry of Business, Innovation & Employment Department of Internal Affairs Office of the Auditor-General Local Government and Environment Select Committee 5% Ministry for the Environment 4% 10% 10% 18% 46% Other* 7% * Includes Ministry for Primary Industry, Ministry of Social Development, Ministry of Transport and Treasury 11

14 Methodology This research draws on 62 responses from the Mayors and Chairs of local authorities across New Zealand, a response rate of nearly 80%. 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 Comments Q1. Please identify which category* characterises your Council Rural Council Metropolitan Council (including Auckland) Regional Council Provincial Council 15% 13% 32% 40% * Category terms defined by LGNZ 12

15 13

16 BARRISTERS AND SOLICITORS AUCKLAND: Level 27, Lumley Centre, 88 Shortland Street, Private Bag 92518, Auckland 1141, New Zealand. T WELLINGTON: Level 24, HSBC Tower, 195 Lambton Quay, PO Box 2402, Wellington 6140, New Zealand. T CHRISTCHURCH: Level 11, HSBC Tower, 62 Worcester Boulevard, PO Box 874, Christchurch 8140, New Zealand. T