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Local Government Reform in the Wellington Region Council Workshop - 18 April 2012

Local Government Reform in the Wellington Region Council Workshop - 18 April 2012. Invitation from Greater Wellington Regional Council Preparation for regional governance discussion #758688. Contents of presentation. Introduction – GWRC invitation Local Government Reform (1989; 2009; 2012)

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Local Government Reform in the Wellington Region Council Workshop - 18 April 2012

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  1. Local Government Reform in the Wellington Region Council Workshop - 18 April 2012 Invitation from Greater Wellington Regional Council Preparation for regional governance discussion #758688

  2. Contents of presentation • Introduction – GWRC invitation • Local Government Reform (1989; 2009; 2012) • Wellington options explored (2009 onwards) • GWRC invitation – questions to consider • Options • Next steps

  3. Introduction - GWRC invitation to region’s councils (and others) • Independent Review Panel to re-engage on reform • Reference and Technical Groups to support • Council staff and budget • By Oct 2012: Options; Funding; Transition; Timeframe • Mayoral Forum to consider this and other councils efforts • Local Government Commission to consider proposals • In place for local elections Oct 2013 • inviting “other regionally representative organisations” • Should we take up the invitation?

  4. Local Government Reform (1989; 2009; 2012) • 1989 – structural reform: • ~700 councils and bodies down to 87 • larger population and area (urban and rural) • 2002 – strategic, purpose, process reform: • replaced Local Government Act 1974 • Long Term Plans • Purpose also social, economic, environmental, cultural wellbeing • 2010 – Transparency, Accountability, Financial Management: • “core services” • Auckland Council (own Act) • 2012 - Better Local Government: • replaced 2011 “first principles review” of Smarter Government, Stronger Communities: Toward Better Local Governance and Public Services

  5. (1) Better Local Government – March 2012 • Bill #1 (Introduce May; enact Sept/Oct 2012): • 1. Refocus the purpose of local government: • replace “wellbeing” with “providing good quality local infrastructure, public services and regulatory functions at the least possible cost to households and businesses” • 2. New fiscal responsibility requirements • 3. Strengthen council governance provisions • 3a employment and remuneration • 3b Mayoral powers • 3c assistance and intervention framework • 4. Streamline, simplify, council reorganisation procedures

  6. (2) Better Local Government – March 2012 • 5. Establish local government efficiency taskforce (planning, consultation, reporting requirements) – report by Oct 2012 • 6. Develop framework for central/local government regulatory roles (report by April 2013) • 7. Investigate efficiency of local government infrastructure provision (TOR mid 2012; report early 2013) • 8. Review the use of development contributions (start review after Auditor-General report on 2012-22 LTPs – late 2012, early 2013?) • Aim to have Bill #2 introduced early 2013

  7. Wellington discussions since 2009 • Mayoral Forum • PricewaterhouseCoopers: Wellington Region Councils – Governance Review October 2010 • MartinJenkins: Submissions Analysis of Wellington Region Governance Review August 2011 • MartinJenkins: draft material for further consultation (post submissions review above) • Other forums • http://shapethefuture.co.nz/

  8. PricewaterhouseCoopers – October 2010:Six options put forward … • Status quo – do nothing • Strengthened regional council – centralising more regional functions • Clusters – Wairarapa, Hutt Valley, Wellington/Porirua or Wellington, Porirua/Kapiti • Two tier local government – regional council and fewer local councils • Two sub-regional unitary authorities – Wairarapa and Wellington • A single regional unitary authority

  9. (1) MartinJenkins submissions analysis Aug 2011 • 165 submissions - numbers differ across Councils • Change preferred over status quo • Change from within, not imposed • Benefits submitters expected included: • Stronger regional leadership • Better relationship with central government • Better regional decision making (transport, waters, disaster response) • Single regulatory authority and consistent approach to regulation - reduce compliance costs; easier for business and developers • Improved efficiency – economies of scale, reduced duplication, increased focus on services, improved financial management • Improved capability - more technical expertise, enhanced strategic management However – expectations and understanding of potential efficiency benefits of amalgamations are contentious

  10. (2) MartinJenkins submissions analysis Aug 2011 Commonly held views from submissions: • Local democracy must be maintained and assisted to flourish under any new governance arrangements (a view of both opponents and supporters of structural change) • Concern that changes will lead to higher rates and/or reduced services • Wairarapa is seen across the region as distinctly different and should remain separate to a large degree

  11. Have other councils accepted invitation? • No acceptances to date • Most TLAs have stated that they are taking their own approach (eg the 3 Wairarapa councils to continue with governance report commissioned from Morrison Low, report May, then consult) • Mayoral Forum agreed to: • discuss results of all councils efforts prior to any approach to Local Government Commission for amalgamation • continue focus on regional cooperation

  12. GWRC invitation points to consider • PCC contribution to costs ($15-20,000?) • selecting candidates for membership (do we need a Council s’cttee?) • what other 'regionally representative organisations' might be invited? • what would we want to see in the Terms of Reference? • "up to four possible options" to be assessed (six in PwC) • membership of Reference Groups; Technical Groups • seconded staff – who?; what impact on work?; what role any other regional forums in this process?

  13. Risks • Regional – centrally imposed change is likely if there is no consensus or at least no promising process and timeframe • Local - If Councils have not done some basic preparation (strengths, weaknesses, opportunities, threats etc): • 1) The regional consensus is likely to prevail (but not necessarily avoid centrally imposed change) • 2) Councils will not be ready to promote and defend local priorities in an imposed change process • The community expects us to be ready with a clear position and to have involved them in this process

  14. Questions to consider • How should we prepare for change? • Are we clear about: • Porirua’s role in the region? • What we seek to offer the region in future? • What we would want to gain for our residents?

  15. Options • 1) Accept GWRC invitation • 2) Carry out an independent process • 3) Do nothing – wait to see other councils options • 4) Get ready – alongside any of above: prepare basic impact analysis on 2012-22 Activity Areas and Strategic Priorities

  16. Next steps • Paper to Council 2 May 2012 for decision on GWRC invitation and options • The Mayor could indicate outcome of workshop to GWRC and that paper going to Council, so that PCC is included in discussions between now and 2 May • What else do you need to help you consider the changes and impacts of local government reform?

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