Guy welcomes Local Government reforms
Local Government reforms announced by the Prime Minister today will help local councils become stronger, more sustainable and responsible to ratepayers, says Otaki MP Nathan Guy.
“The Government is concerned that changes made in 2002 have seen average rates increase by 7% per annum across the country, and council debt quadruple 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.
“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.
“The reforms will help keep rates affordable and debt at prudent levels by focusing councils on their core roles, setting clear fiscal responsibility tests and giving councils more tools to better manage costs.
“The reforms will set benchmarks for councils to meet in respect of income, expenditure and debt. I’m sure there will be wide ranging debate on what some of these targets should be.
“Our two local councils face different challenges. Kapiti is one of the fastest growing districts in New Zealand and is catching up on important infrastructure, while Horowhenua is gearing up for population growth when the new four-lane expressway reaches Levin.
“As a former Horowhenua District Councillor myself, I believe these reforms will help deliver better value for ratepayers.
“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
“This is part of the Government’s strategy to build a more productive, competitive economy and better public services,” says Mr Guy.
The first four points will be included in legislation which will be introduced to Parliament in May and will be passed by September, with the subsequent four points feeding into a second Local Government Reform Bill proposed for 2013. The Government will be consulting with Mayors and Chief Executives from New Zealand’s 78 councils this week to discuss the changes.
More information is available online at http://www.dia.govt.nz/better-local-government.