Making local government more effective
Local government has always been a big part of my life. I served nearly three terms on the Horowhenua District Council, and I’m lucky to be the 5th generation of the Guy family to serve in local body politics.
My father Malcolm and grandfather Duncan were both County Chairman of the Horowhenua District for decades, including a time when it stretched as far south as Waikanae.
I’m a firm believer that effective local government builds strong and successful communities.
That’s why I was pleased with the Prime Minister’s announcement last week of “Better Local Government” - reforms to make councils more sustainable and responsible to ratepayers.
It’s concerning that since the last law change in 2002, average rates have increased by 7% per annum across the country, and overall council debt has quadrupled from $2 billion to $8 billion.
Recent Government figures on council debt per capita have Kapiti Coast District at $1448 and Horowhenua District $915, the 22nd and 29th highest in the country respectively.
Local government is big business. 78 local councils make up 4% of New Zealand’s GDP, with $100 billion in public assets and $7.5 billion a year in spending.
These reforms will help keep rates affordable and debt at prudent levels by focusing councils on their core roles. There will be clear fiscal responsibility tests, and councils will be given more tools to better manage costs.
I’m sure there will be wide ranging debate on what some of the targets around income, expenditure and debt should be.
Our two local councils face different challenges. Kapiti is one of the fastest growing districts in New Zealand, and catching up on infrastructure has been a challenge for both local and central government. This is why we are seeing such major investment into the Kapiti expressway, Transmission Gully, new trains and improved rail tracks.
The Horowhenua district also needs to prepare for population growth when the new four-lane expressway reaches Levin, which will mean the Wellington CBD will be just an hour away.
The eight key reforms are:
1. Refocus the purpose of local government
2. Introduce fiscal responsibility requirements
3. Strengthen council governance provisions
4. Streamline council reorganisation procedures
5. Establish a local government efficiency taskforce
6. Develop a framework for central/local government regulatory roles
7. Investigate the efficiency of local government infrastructure provision
8. Review the use of development contributions
The Government will be consulting with Mayors and Chief Executives from around New Zealand, and you can find more information at http://www.dia.govt.nz/better-local-government.