NEW ZEALAND SUMMARY - CLGF

 
CONTINUE READING
NEW ZEALAND SUMMARY - CLGF
THE LOCAL GOVERNMENT SYSTEM IN new zealand                                                        COUNTRY PROFILE 2017–18

NEW ZEALAND
                                              SUMMARY
                                              New Zealand has two levels of government, national and local, which are politically,
                                              financially and administratively independent of one another. New Zealand has no
                                              written constitution and the general powers of local government are defined in the
                                              Local Government Act 2002. The minister of local government is responsible for local
                                              government’s core legislation, although s/he holds no oversight role except in situations
                                              where a council may have failed to discharge its statutory duties. Local government in
                                              New Zealand has two types. Regional councils, of which there are 9, are responsible for
                                              environmental management policy and regulations with regard to water, air and the
                                              coastline. Territorial authorities, of which there are 67 (13 city councils and 54 district
                                              councils) deliver a wide range of local services including potable water, sewerage, libraries,
                                              parks, recreation, cultural and community facilities, town planning and economic
                                              development. Six territorial councils also have responsibility for regional council functions
                                              and are known as unitary councils. These include both cities and districts. Almost 60% of
                                              operational revenue comes from property tax. Councils are required to take account of
                                              community diversity, the interests of the indigenous Māori population and the interests
                                              of both current and future generations, when making decisions.

                                              1. NATIONAL GOVERNMENT                           This general empowerment
 Area of detail                               New Zealand is a constitutional                  fundamentally changed the basis on
                                              monarchy with a unitary parliament.29.1a         which local authorities in New Zealand
                                              Based in the capital Wellington, the             operate. Previously they could only
KEY FACTS                                                                                      undertake activities permitted by law.
                                              parliament comprises 120 members;
                                              however numbers can vary slightly                Now local authorities are empowered
POPULATION (2016 estimate):                   should a party gain more seats than              to undertake what is necessary to
4,692,700                                     its relative share of the vote. Members          achieve their purpose, subject only to
                                              are elected every three years by                 other legislation, the general law and
AREA (UN 2006):                                                                                the accountability processes set out
                                              universal suffrage on a mixed-member,
270,467 sq km                                                                                  in the Act. Prior to the LGA 2002 local
                                              proportional system of representation
CAPITAL:                                      in which voters elect constituency MPs           government reform in 1989 reduced
Wellington                                    and vote for party lists. Following the          the number of local authorities from
                                              2017 national election, 38.3% (46/120) of        more than 850 to 86. This number
CURRENCY:                                     elected representatives.29.1b The head of        has since been further reduced to 78.
New Zealand dollar (NZD)                      government is the prime minister and is          Local government’s authority to set
                                              generally the leader of the party with the       property taxes is outlined in the Local
HEAD OF STATE:
                                              largest number of seats.                         Government (Rating) Act 2002, while
HM Queen Elizabeth II
                                                                                               the legislation governing the local
GOVERNOR-GENERAL:                             2. LEGAL BASIS FOR                               electoral process is the Local Electoral
Dame Patsy Reddy                              LOCAL GOVERNMENT                                 Act 2001. Another significant piece of
                                                                                               legislation is the Resource Management
HEAD OF GOVERNMENT:                           2.1 Constitutional provisions
                                                                                               Act 1991 (RMA 1991), which promotes the
Prime Minister Jacinda Ardern                 New Zealand has no written constitution.
                                                                                               sustainable management of natural and
                                              Local government is a creature of statute
FORM OF GOVERNMENT:                                                                            physical resources. A key feature of this
                                              with the first Municipal Corporations
constitutional monarchy                                                                        Act is the extent to which responsibilities
                                              Act having been passed by the country’s
                                                                                               and powers for resource management
PARLIAMENTARY SYSTEM:                         then Legislative Council in 1842.
                                                                                               are devolved to local and regional
unicameral                                                                                     authorities. Recent changes to the RMA
                                              2.2 Main legislative texts                       1991 have given government ministers
STATE STRUCTURE:
                                              Local government’s purpose is currently          increased intervention powers. The
unitary
                                              defined in Section 10 of the Local               Local Government Official Information
LANGUAGES:                                    Government Act 2002 (‘LGA 2002’)29.2a,           and Meetings Act 1987 ensures that
English, Māori and sign language (official)   which gives the following dual purpose           the public has access to local authority
                                              for local government: ‘to enable                 information and meetings. Information
NATIONAL ELECTIONS:                           democratic decision-making and action            can only be withheld from public
last: Sept 2017, turnout: 78.8%; next: 2020   by, and on behalf of, communities and            request for commercial reasons or
WOMEN IN PARLIAMENT (2017):                   to meet the current and future needs             personal sensitivity. All meetings must
38.3%                                         of communities for good-quality local            be advertised in advance and open to
                                              infrastructure, local public services and        the public unless a council resolves to
LOCAL ELECTIONS:                              performance of regulatory functions              go into public-excluded session, which
last: Oct 2016, turnout: 43%; next: 2019      in a way that is most cost-effective for         can only be justified on the basis of
                                              households and businesses’. It also              commercial or personal sensitivity. In
WOMEN COUNCILLORS (2016):
                                              provides local authorities with full rights,     addition to recent changes to the RMA
32.5%
                                              powers and privileges. Section 12 of the         1991, the LGA 2002 has been subject to
LOCAL GOVERNMENT EXPENDITURE                  LGA 2002 gives councils full capacity            considerable change over recent years.
as a percentage of total government           to undertake any activity or business in
expenditure 2015/16:                          order to achieve their purpose.
9.8%

152                                                                                                             www.clgf.org.uk/new_zealand
COUNTRY PROFILE 2017–18                                                           THE LOCAL GOVERNMENT SYSTEM IN new zealand

These changes have increased the                      consulted on a proposal to enable                     managing their effects; meeting a range
powers of the Local Government                        Urban Development Authorities to be                   of demands for housing and business
Minister to intervene in cases where                  created to fast-track housing and urban               land; understanding and enabling a
a local authority is experiencing a                   redevelopment projects. If progressed,                competitive land and development
problem, required councils to adopt                   this would require new legislation that               market; improving the alignment between
30 year infrastructure strategies and                 would have significant interactions with              land use planning and infrastructure;
sought to strengthen the role of mayors.              the Resource Management Act.                          and, fostering cooperative roles and
The government recently passed the                                                                          relationships between councils. There
Resource Legislation Amendment                        2.4 National urban policy                             is also the 2005 Urban Design Protocol,
Act 2017, which makes a number of                     New Zealand does not have a single                    which is a voluntary commitment by
significant changes to the Resource                   ’national urban policy’ which articulates             public and private organisations to make
Management Act and related pieces                     its full vision for urban areas in the                New Zealand’s towns and cities more
of legislation, with the objective of                 country, however there are a number                   successful through quality urban design
supporting more effective environmental               of key relevant initiatives. These include            initiatives. Additionally there is a proposed
management and driving capacity for                   the National Policy Statement on Urban                national direction on managing significant
development and economic growth.                      Development Capacity29.2b (NPS-UDC),                  risks from natural hazards and the New
                                                      which was adopted in November 2016,                   Zealand Coastal Policy Statement 2010,
2.3 Proposed legislative changes                      and is a significant legislative tool which           which provides further direction on
Prior to the 2017 election, the National              requires local authorities to provide,                planning for development in the coastal
Party indicated that, if it was re-elected,           in their land use planning decisions,                 zone. There is also new ability to create
it would introduce urban planning                     sufficient capacity for housing and                   National Planning Standards to improve
laws that would be separate from                      business development to meet demand                   consistency in plan and policy statement
the Resource Management Act to                        in the short, medium and long terms.                  structure, format and content so they are
speed up development of urban areas.                  The NPS-UDC has five themes: enabling                 easier to prepare, understand, compare
The Government has also publicly                      urban growth and development while                    and comply with.

Table 29.1a Distribution of councils and population
                                                                Territorial authorities*
 Region                           Regional                                                               Unitary       Population      Population    % rural
                                  councils          City/metro          District/ Island                 councils      Census 2013     2016 (est.)    2013
                                                     councils              councils            All

 North Island

 Northland Region                       1                 –                    3                3            –           155,805         171,400      49.0

 Auckland City Region                                     1                    –                1            1          1,438,446      1,614,400       3.9

 Waikato Region                         1                 1                    9               10            –            413,202       449200        22.2

 Bay of Plenty Region                   1                 1                    5                6            –           273,360        293,500       18.5

 Gisborne Region                                          –                     1               1            1             43,938        47,800       25.6

 Hawke’s Bay Region                     1                 1                    3                4            –            156,018       161,500       12.5

 Taranaki Region                        1                 –                    3                3            –            110,079        116,700      22.6

 Manawatu-Wanganui Region               1                 1                    6                7            –            225,411       236,900       18.8

 Wellington Region                      1                 4                    4                8            –           478,290       504,800         3.6

 Total North Island                     7                9                     34              43            2          3,294,549    3,596,200        11.8

 South Island

 Tasman Region                                            –                     1               1            1             51,258        50,200      40.1

 Nelson City Region                                       1                    –                1            1             48,444        50,600        1.9

 Marlborough Region                                       –                     1               1            1            46,302         45,500       23.1

 West Coast Region                      1                 –                    3                3            –             36,294        32,500       43.3

 Canterbury Region                                        1                    9               10            –            554,919      599,900        16.7

 Otago Region                           1                 1                    3                4            –            223,017       219,200      20.3

 Southland Region                                         1                    2                3            –             97,821       98,000       30.2

 Total South Island                     2                4                     19              23            3          1,058,055      1,095,900      20.4

 Area outside regions                                     –                     1               1            1               600             610       n/a
 (Chatham Islands)

 Total New Zealand                      9                13                   54               67            6          4,353,198      4,692,700      13.7

 Source: DIA communication with CLGF and 2013 Census29.3a LGNZ 201729.3b *Territorial authorities are not sub-divisions of regions. For the purposes
        of this table, a territorial authority whose area spans more than one region is listed under the region containing the largest proportion of its area.

www.clgf.org.uk/new_zealand                                                                                                                                  153
THE LOCAL GOVERNMENT SYSTEM IN new zealand                                                           COUNTRY PROFILE 2017–18

3. STRUCTURE OF LOCAL GOVERNMENT                    However, they are required, as far as           4. ELECTIONS
3.1 Local government within the state               is practicable, to separate out their           4.1 Recent local elections
National and local government in                    regulatory functions, so in most cases          These were held in 2016 with a total
New Zealand are independent of one                  a council will establish a committee            turnout of 43%, slightly higher than the
another politically, financially and                specifically to handle its regulatory           turnout for 2013 which was 41.3% and
administratively.                                   responsibilities. Councils will normally        down from 49.0% in 2010.29.4a The next
                                                    establish Audit and Risk Committees.            elections will be held in 2019.
                                                    A new model of local government was
3.2 Ministerial oversight                           introduced with the creation of Auckland
The minister of local government,                   Council in November 2010. Auckland              4.2 Voting system
supported by the Department of                      Council, an amalgamation of eight local         The Local Electoral Act 2001 gives local
Internal Affairs,29.3c is responsible for           authorities29.3d, has a number of unique        authorities the choice of conducting
local government’s core legislation. The            features such as a more powerful mayor,         their triennial elections using either
minister has a number of oversight roles            21 local boards responsible for sub-            the first-past-the-post or the single
including in situations where a council             metropolitan issues and the creation of         transferable vote (STV) electoral system.
has significant or persistent organisational        arm’s-length entities (known as council-        For the 2004 elections, ten councils used
weaknesses which have resulted in a                 controlled organisations or CCOs) to            STV for the first time, though this had
failure either to perform its statutory             operate transport and roading, water and        reduced to five in the 2007 elections.
duties or execute its functions efficiently,        wastewater, economic development and            In 2016 eight councils used STV with
or where there have been irregularities             tourism, and a number of other functions.       another two councils choosing to adopt
in the decision-making process.                                                                     STV for the 2019 elections, which will
Previously, in such a case, an inquiry                                                              bring the number up to 10. Councils have
                                                    3.3.1 Regional councils are responsible
could be instigated and if necessary a                                                              the option of running elections by either
                                                    for setting environmental policy and
commissioner appointed to replace the                                                               postal voting or booth voting. In every
                                                    regulations with regard to water, air
council. This has only occurred twice in                                                            election since 1992 all councils have used
                                                    and the coastline. Regional councils’
the last 50 years.29.3d A change to the LGA                                                         postal voting. This system has been seen
                                                    boundaries are designed to reflect water
2002 in 2012 gave the minister of local                                                             to result in substantially higher voter
                                                    catchment areas. Some regions have
government a range of new powers to                                                                 participation, which has recently been
                                                    responsibilities in public transport, bulk
intervene in a local authority if there was                                                         around 50%; however, there has been
                                                    water, regional parks and regional stadia.
evidence of a significant problem. This                                                             a gradual decline in turnout since 2001
                                                    Regional councils are responsible for
was used in 2013 to appoint a Crown                                                                 (but with an increase in 2010).
                                                    territory up to the 12-mile limit out to sea.
manager to Christchurch City Council
to address problems associated with                                                                 Voters must be 18 years of age or over,
the council’s loss of accreditation as a            3.3.2 Territorial authorities consist of        on the parliamentary electoral roll and
building consent authority. In 2012 the             city (urban) and district (mostly rural)        resident at their address for one month
Government appointed commissioners                  councils that deliver a wide range of           to qualify as a resident elector. Ratepayer
to operate the Kaipara District Council             local services including potable water,         electors qualify by owning property in
after councillors voluntarily stepped down          sewerage, libraries, parks, recreation,         a region or district in which they are
in the face of significant governance and           cultural and community facilities, town         not resident, or by being nominated
financial issues - the council returned to          planning and economic development               by a corporate body. No individual can
democracy in October 2016.                          as well as an extensive range of local          exercise a vote in the same election
                                                    regulatory functions.                           as both a resident and (non-resident)
                                                                                                    ratepayer elector. However, a ratepayer
3.3 Council types
                                                    3.3.3 Unitary councils are territorial          who lives in one local authority and owns
In the New Zealand local government
                                                    authorities which also have regional            a property in another may vote in both.
system there is only one level, although
                                                    council powers.                                 The government has agreed in principle
within that level there are two types of
                                                                                                    to the introduction of an online voting
local authorities. There are 78 authorities
                                                                                                    but this is yet to be trialed.29.4b
made up of 11 regional councils and 67              3.3.4 Community boards have been
territorial authorities. The 67 territorial         formed in more than 40 territorial and
                                                                                                    The independent Local Government
authorities consist of 13 cities – including        unitary councils. These are sub-municipal
                                                                                                    Commission (LGC)29.4c, in addition to its
Auckland metropolitan region – and 54               bodies which are elected but may also
                                                                                                    role in local government reorganisation,
districts, including the Chatham Islands            contain appointed councillors and are
                                                                                                    acts as a review tribunal to ensure
council. Also included are six unitary              given a range of responsibilities for local
                                                                                                    fair and effective representation
councils, two of which are cities and four of       and neighbourhood matters. Auckland
                                                                                                    for individuals and communities.
which are districts, established according          City contains 21 local boards, which
                                                                                                    Councils are required to review their
to their size and degree of urbanisation            are similar to community boards but
                                                                                                    representation arrangements at least
(see Table 1a). Recent legislative changes          have no appointed members and have
                                                                                                    once every six years and citizens can
have enhanced the transparency and                  a broader range of statutory decision-
                                                                                                    appeal to the LGC if they believe the
accountability requirements of local                making powers.
                                                                                                    outcome of a council’s representation
authorities, established distinct roles
                                                                                                    review fails to deliver reasonable and
for territorial authorities and regional            3.3.5 Local boards, currently only              equal opportunities for voters and
councils – especially in the area of resource       found in Auckland but expected to be            candidates. In ruling on an appeal
management responsibilities –                       introduced in future reorganisation             or objection the LGC’s decisions are
and have introduced the option                      schemes elsewhere in New Zealand, are           final. It plays an important role in
of community boards to enhance                      similar to community boards but are             ensuring public confidence in the
participation in territorial authority districts.   given a broader range of service delivery       electoral processes. Local elections
There are no statutory committees which             responsibilities and much stronger              are decentralised and are run by local
councils are required to set up.                    planning and funding roles.                     electoral officers employed by councils.

154                                                                                                                 www.clgf.org.uk/new_zealand
COUNTRY PROFILE 2017–18                                                  THE LOCAL GOVERNMENT SYSTEM IN new zealand

4.3 Elected representatives                          4.4 Women’s representation                  process and on specific policy issues. The
The number of councillors each authority             Following the 2016 elections the            LGA 2002 created a broad requirement
may have is specified in the Local                   proportion of female elected members        to consider community views in the
Electoral Act 2001. Both regional and                reached its highest ever level of 31.8%,    decision-making process as well as to
territorial councils must have a minimum             up from 25% in 1989. Increases in female    consult on the development of annual
of six councillors, with upper limits of 18          representation by type of council were:     plans and long-term council community
for regional councils and 30, including              in regional authorities 24.2% up from       plans. Section 82 contains six consultation
a separately elected mayor, for territorial          21%; district councils 32.5% up from 30%;   principles, including: ‘that persons who
councils. The average size of a governing            and city councils 33.9%, up from 33%.       will, or may be, affected by, or have an
body is 11, including the mayor or chair.            Community and local boards had the          interest in, the decision or matter should
Only New Zealand citizens who qualify as             highest proportion of female elected        be provided by the local authority with
electors are eligible to stand for council,          members.                                    reasonable access to relevant information
however anyone who is a permanent                                                                in a manner and format that is appropriate
resident can vote. The term of office for all        5. SYSTEMS FOR                              to the preferences and needs of those
councillors and mayors is three years. A             COMMUNITY INVOLVEMENT                       persons’ and ‘that the views presented to
councillor or mayor cannot be a member                                                           the local authority should be received by
                                                     5.1 Legal requirement
of both a regional council and a territorial                                                     the local authority with an open mind and
                                                     Local authorities have a legal duty to
authority or community board in the                                                              should be given by the local authority, in
                                                     consult their communities and this occurs
same region at the same time.                                                                    making a decision, due consideration’. All
                                                     both as part of the community planning
                                                                                                 local authorities also have an obligation to
Table 29.1b Number of women councillors and mayors following the last two elections              consult directly with their communities
                                                                                                 on their district plans and regional policy
                                                      2013                       2016            statements prepared under the Resource
 All councillors                                #             %            #             %
                                                                                                 Management Act 1991. It is common for
                                                                                                 legislation empowering local government
 All female councillors                         na            na         269            32.5     or devolving responsibilities to local
                                                                                                 government to include provisions that
 All male councillors                           na            na         558            67.5     mandate public involvement in decision-
                                                                                                 making. For example, under the Resource
 Total councillors                              na           100.0       827            100.0
                                                                                                 Management Act 1991 requirement
 Regional authority (RA) councillors            #             %            #             %       for councils to develop district and
                                                                                                 regional environmental management
 Female RA councillors                          na            21          29            24.2     plans, councils must publish draft plans
                                                                                                 and provide opportunities for public
 Male RA councillors                            na            na           91           75.8     feedback. Similarly, under the land
                                                                                                 transport legislation councils must publish
 Total RA councillors                           na           100.0        120           100.0
                                                                                                 draft transport strategies and provide
 District authority (DA) councillors            #             %            #             %       opportunities for feedback. Councils
                                                                                                 must produce a ten-year long-term plan
 Female DA councillors                          na            na          183           34.0     (LTP) which must be revised every three
                                                                                                 years. Councils are required to provide
 Male DA councillors                            na            na         356            66.0     opportunities for the indigenous Māori
 Total DA councillors                           na           100.0       539            100.0    people to contribute to decision-making
                                                                                                 processes and consider ways of fostering
 City councillors                               #             %            #             %       the capacity of Māori people to participate.
                                                                                                 The LGA 2002 also requires councils to
 Female city councillors                        na            na          57            33.9     take account of community diversity and
                                                                                                 the interests of both current and future
 Male city councillors                          na            na           111          66.1
                                                                                                 generations when making decisions.
 Total city councillors                         na           100.0        168           100.0
                                                                                                 5.2 Implementation
 All mayors                                     #             %            #             %       Territorial authorities may have directly
                                                                                                 elected community boards within their
 All female mayors                              na            na           13           19.4
                                                                                                 district which represent and advocate
 Male mayors                                    na            na          54            80.6     for the interests of their community,
                                                                                                 maintain an overview of services provided
 Total mayors                                   na           100.0        67            100.0    by the territorial authority and undertake
                                                                                                 responsibilities delegated by the territorial
 District mayors                                #             %            #             %
                                                                                                 authority. Boards comprise between
 District female mayors                         na            na           11           20.4     four and 12 members, must include at
                                                                                                 least four elected members, and may
 District male mayors                           na            na          43            79.6     include members appointed by the
                                                                                                 parent territorial authority. There are
 Total district mayors                          na           100.0        54            100.0    108 community boards in more than 45
                                                                                                 councils. The design of Auckland Council
 City mayors                                    #             %            #             %
                                                                                                 is based on the principle of co-governance
 Female city mayors                             na            na            2            15.4    and decision making is divided between
                                                                                                 a metropolitan governing body of 21
 Male city mayors                               na            na           11           84.6     (including the Mayor), and 21 local boards,
                                                                                                 which are responsible for a broad range of
 Total city mayors                              na           100.0         13           100.0
                                                                                                 local services, such as parks and libraries.
Source: DIA communication with CLGF: Local Authority Election Statistics 2016 & UNDP/CLGF 2010

www.clgf.org.uk/new_zealand                                                                                                               155
THE LOCAL GOVERNMENT SYSTEM IN new zealand                                                           COUNTRY PROFILE 2017–18

5.3 ICT use in citizen engagement            Regular meetings occur throughout                   ■■   the Parliamentary Commissioner for
The Department of Internal Affairs           the year between various departmental                    the Environment, who investigates
has also established a ‘local councils’      and local government officials such as                   the effectiveness of environmental
website which provides information           mayors, and it is common, although                       planning and management
about how the New Zealand system of          not formally required, for departments              ■■   the Office of the Ombudsman,
local government works; it also outlines     to consult with local government                         which deals with appeals relating to
how people can get involved in local         representatives when undertaking policy                  official information under the Local
government, gives a statistical overview     reviews and drafting new legislation. The                Government Official Information and
of local government in New Zealand,          Department of Internal Affairs plays a                   Meetings Act
and provides a financial and statistical     critical role in promoting relationships            ■■   the Environment Court, which deals
profile for each local authority area. In    between government departments                           with appeals about the contents of
addition, all local authorities have their   and councils and works to align and                      regional and district statements and
own websites.                                coordinate department and local                          plans, as well as appeals arising out of
                                             government interaction.                                  applications for resource consents.
6. ORGANISED LOCAL GOVERNMENT
6.1 National local government association    8. MONITORING SYSTEMS
                                                                                                 9. FINANCE, STAFFING AND RESOURCES
Local Government New Zealand29.6a            Financial oversight is provided by the
                                                                                                 9.1 Local government expenditure
(LGNZ) represents the national interests     Office of the Auditor General29.8, which
                                             audits councils’ long-term plans and                In the 2015/16 financial year, local
of councils of New Zealand by providing
                                             annual reports to ensure the suitability            government expenditure was 9.8%
policy advice and training to councils
                                             of forecasting assumptions and the                  of total government expenditure, a
and advocating on their behalf.
                                             quality of performance information as               reduction of 0.9% over the previous
Membership is voluntary but all 78 local
                                             well as the prudent use of resources.               financial year (See Table 29.2b.)
authorities are currently members.
                                             Some government departments, such
                                             as the Ministry for the Environment,                9.2 Locally raised revenue
6.2 Other associations of local government   monitor councils’ compliance with                   Currently all councils have the freedom
The New Zealand Society of Local             respect to devolved functions such as               to raise their own finances without
Government Managers29.6b (SOLGM) is          issuing resource consents or regulatory             externally imposed caps or limits overall.
local government’s national professional     inspections. In 2010 the government
management organisation of senior            required councils to use common
local authority officers. SOLGM is                                                               9.3 Transfers
                                             performance measures for their major
committed to building capability and         infrastructural activities, such as roads           The only transfer from national to local
promoting excellence among local             and the three waters and in 2012                    government is a proportion of the taxes
government managers and staff through        prudent financial benchmarks were                   and charges raised on petrol, diesel and
membership services, professional            introduced. The Local Government                    vehicle registration, which is allocated to
development and training, good               and Environment Select Committee                    local government for the maintenance
practice resources and influencing policy    considers draft legislation affecting local         and development of local roads.
development and implementation.              government and both the Office of the               Historically that figure has been around
                                             Auditor General and the ombudsman                   50% of the total road maintenance
7. INTERGOVERNMENTAL RELATIONS               can investigate council decision-making             budget; however recently a greater share
Communication between local                  in response to complaints. Councils are             has gone to the development of the
government and national government           also subject to judicial review; however,           national highway network. It is worth
departments is multi-faceted. At a           no bodies can override a legally made               noting, however, that local government
formal level LGNZ holds an annual            council decision. Other scrutinising                does not consider this a transfer as 90%
meeting with the prime minister and          bodies include:                                     of the nation’s roads are owned by local
relevant members of the cabinet at                                                               authorities. The formula for allocation to
which high-level policy issues and future    ■■   the Local Government Commission,               councils takes into account the capital
directions are discussed. There is also an        which has responsibilities relating to         value of property in districts plus their
annual National Government and Local              reorganisation and representation,             road-building plans and public transport
Government Forum held each spring.                including the hearing of objections            investment programmes.
In addition the president of LGNZ holds           and appeals
bilateral meetings on a regular basis
with both the prime minister and the
minister of local government. Meetings       Table 29.2a Summary of consolidated local government budgets 2015/16
are held with other ministers and their
departments on an issue-by-issue basis        Income                              NZ$m       Expenditure                                NZ$m
as required. The NZ government does           Centre - local transfers                       Recurrent costs
not have provincial offices (except for
a nascent presence in Auckland, the           All transfers                        1,029     Employee costs                             2,057
country’s largest city) so individual
councils will travel to Wellington, the       Own source revenue                             Interest expenditure                         693
capital, or liaise through LGNZ. The
                                              Rates                                5,317     Depreciation and amortisation              1,935
nature of the bilateral relationships will
vary across policy areas. For example, as     Regulatory income and petrol tax      580      Grants, subsidies, and donations           1,072
local authorities undertake a wide range
of environmental policy and regulation        Interest, dividend & investment      1,081     Purchases and other operating expenses     3,523
roles there is ongoing interaction
with the minister and Ministry for the        Sales and other operating income     1,396
Environment29.7 and an annual meeting
                                              Total                               8,865      Total expenditure                          9,280
is held between the ministry and council
chief executives.                                                                          Source: Local Councils Revenue and Expenditure29.9a

156                                                                                                                 www.clgf.org.uk/new_zealand
COUNTRY PROFILE 2017–18                                                  THE LOCAL GOVERNMENT SYSTEM IN new zealand

9.4 Loans                                          10. DISTRIBUTION OF SERVICE                        resources). Territorial authorities have
Since 2010 the government has required             DELIVERY RESPONSIBILITY                            a role in controlling the provision of
councils to establish annual fiscal limits         10.1 Overview of local government                  gambling in their communities. In recent
for themselves in consultation with                service delivery responsibility                    years, they have been given powers
citizens. Councils are able to exceed these        Regional councils and territorial                  to regulate the location of brothels
limits, but have to explain the reasons            authorities have traditionally worked              and enhanced powers to control the
why. Legislation requires councils to              as two spheres of local government                 location and opening hours of liquor
balance their budgets on an accrual basis          with different jurisdictions and little            outlets, following community concern
and to make provision for depreciation.            overlap. The key principle traditionally           at the relatively unregulated spread of
Local governments can borrow from the              underpinning the division between                  such outlets. As a result of the way the
domestic financial market. Other than              regional councils and territorial authorities      boundaries of regional councils have
Auckland Council, local government                 has been the separation of planning and            been drawn, several districts straddle
cannot borrow in overseas currencies.              service delivery responsibilities.                 regional council borders. Territorial
The Local Government Funding Agency is                                                                authorities may delegate responsibilities
jointly owned by a group of councils and                                                              in the same manner as regional councils.
                                                   10.1.1 Regional councils are primarily
the Government.
                                                   responsible for resource management
                                                   (integrated management of the natural              10.2 ICT use in service delivery
9.5 Local authority staff                          and physical resources of the region);             The New Zealand government has been
Councils pay for their own staff, of which         biosecurity; river and catchment                   developing an e-government strategy
there are around 29,000. The only local            management including flood control;                to increase online access to information,
authority officer required by law is a             harbour navigation and safety;                     products and services, to enhance
chief executive, who is appointed for              marine pollution; regional emergency               citizen participation, and to develop
a maximum fixed term of five years                 management and civil defence; and                  e-business initiatives. The government
with a right of renewal for a further              regional land transport planning. In               website provides a portal for access to
two years subject to completion of a               keeping with their prime environmental             national government and local authority
satisfactory performance review. Other             and physical resource management                   services.29.10b The services and information
local government staff are recruited               function, the regional councils’ boundaries        offered vary between local authorities.
by the chief executive on behalf of                have, as far as possible, been drawn along
the local authority and s/he also has              river catchments. Regional councils have           10.3 The role of local government
powers to discipline and dismiss staff.            generally had no direct service delivery           in achieving the UN Sustainable
Each authority is free to determine                functions, except for Auckland and                 Development Goals (SDGs)
its own staffing structure. However,               Wellington regions, which inherited some           The government has acknowledged
it is typical to have a chief executive            regional service delivery functions when           that achieving the SDGs will require
with a management team comprising                  they were established in 1989. These               a cross-government effort.29.10b
managers in areas such as planning                 include bulk water supply in Wellington            Government agencies are reviewing
and policy, service delivery, finance,             and the administration of regional parks in        the goals and their alignment with
asset management and corporate                     both Auckland and Wellington. Regional             existing government priorities. This
affairs. Since 2001 the Remuneration               councils are led by a chairperson elected          analysis will inform a discussion on
Authority, an independent national                 indirectly by the council for a three-year         how New Zealand focuses its efforts.
government statutory body, rather than             term. Regional councils may delegate               At a UN meeting on implementation
the minister of local government, has              responsibilities – such as the power to set        of the SDGs 21 July 2016. The minister
determined elected member salaries                 rates29.10a, make by-laws, borrow money,           for climate change identified those
and allowances, based on statutorily               appoint a chief executive or adopt plans           issues that are of greatest importance
prescribed criteria. In the larger areas,          – to committees or other structures, with          to New Zealanders, and where the
the workload is such that mayors and               certain exceptions.                                New Zealand government is focusing
regional council chairpersons are                                                                     its work. These include: growing the
generally full-time. It is not unusual for         10.1.2 Territorial authorities provide             economy, improving living standards,
councillors also to be near full-time in           services directly or indirectly to the             health and education, creating jobs,
some of the larger authorities. In smaller         community. The city and district                   increasing the supply of affordable
rural authorities the workload and                 councils are responsible for community             housing, encouraging women in
remuneration levels are less and result in         wellbeing. This has traditionally covered          leadership, keeping communities safe,
a less than full-time presence by elected          activities and services such as public             and protecting the environment. The
members.                                           health and safety, infrastructure,                 private sector and civil society can also
                                                   recreation and culture, and resource               help reach the goals. Already a number
                                                   management (control of the effects of              of NGOs and businesses are considering
                                                   use, development or protection of land             how their work helps, and are engaging
                                                   and associated physical and natural                productively with government agencies.

Table 29.2b Local government expenditure as a percentage of total government expenditure 2008–2016
                                                            2008/09    2009/10    2010/11   2011/12     2012/13   2013/14    2014/15    2015/16
                                                             actual     actual    actual    actual      actual    actual     actual    estimated
                                                             NZ$m        NZ$      NZ$m      NZ$m        NZ$m      NZ$m        NZ$n       NZ$m

 Total government expenditure                               66,657      69,711    86,981    75,616      76,994    78,602     80,821     90,918

 Total local government expenditure                           6,923      7,213     7,918     8,250       8,004      8,169     8,672      8,961

 Local government expenditure
                                                             10.4%      10.3%      9.1%      10.9%      10.4%      10.4%     10.7%        9.8
 as a percentage of total government expenditure

                                                                  Source: New Zealand Government Finance Statistics Local Government 201629.9b

www.clgf.org.uk/new_zealand                                                                                                                      157
THE LOCAL GOVERNMENT SYSTEM IN new zealand                                                 COUNTRY PROFILE 2017–18

REFERENCES AND USEFUL WEBSITES                29.3d Royal Commission on Auckland          29.9b Based on the figure of NZ$8.7bn
29.1a National government portal                    Governance www.dia.govt.nz/                  for total local government
      www.newzealand.govt.nz                        Decommissioned-websites---                   expenditure for 2014/15 and
29.1b Women in national parliaments.                Royal-Commission-on-Auckland-                NZ$80.8bn for total government
      Inter-Parliamentary Union                     Governance                                   expenditure. Note that the
      www.ipu.org/wmn-e/classif.htm           29.4a Elections New Zealand                        treasury has since ended the
                                                    www.elections.org.nz                         publication of Finance Statistics
29.2a Local Government Act 2002
                                              29.4b The Department of Internal                   for Local Government after
      www.legislation.govt.nz/act/
                                                    Affairs; Online Voting                       2015. New Zealand Government
      public/2002/0084/latest/versions.aspx
                                                    www.dia.govt.nz/online-voting                Finance Statistics - Local
29.2b National policy statement on
                                                                                                 Government 2016 www.stats.govt.
      urban development capacity              29.4c Local Government Commission
                                                                                                 nz/browse_for_stats/government_
      www.mfe.govt.nz/more/towns-                   www.lgc.govt.nz
                                                                                                 finance/general-government/
      and-cities/national-policy-             29.4d Local Authority Election Statistics
                                                                                                 GovernmentFinanceStatistics​
      statement-urban-development-                  2016 www.dia.govt.nz/diawebsite.
                                                                                                 GeneralGovernment_
      capacity                                      nsf/wpg_URL/Services-Local-
                                                                                                 HOTPYeJun16.aspx
29.3a Statistics New Zealand                        Elections-Local-Authority-
                                                                                          29.9c New Zealand Government
      www.stats.govt.nz/Census/2013-                Election-Statistics-2016
                                                                                                 Finance Statistics Central
      census/data-tables/population-          29.4e UNDP/ CLGF 2010 Women’s
                                                                                                 Government 2015 www.stats.govt.
      dwelling-tables.aspx                          representation in local
                                                                                                 nz/browse_for_stats/government_
29.3b LGNZ New Zealands councils                    government in Asia Pacific: Status
                                                                                                 finance/central_government/
      www.lgnz.co.nz/nzs-local-                     report 2010/12 www.clgf.org.uk/
                                                                                                 GovernmentFinanceStatistics​
      government/new-zealands-councils              default/assets/File/Publications/
                                                                                                 CentralGovernment_
29.3c Department of Internal Affairs                reports/Womens_Representation_
                                                                                                 HOTPYeJun15.aspx
      www.dia.govt.nz                               in_Local_Govt_in_Asia_
                                                                                          29.10a Local Councils New Zealand
                                                    PacificUNDP_CLGF2010.pdf
29.3d In 2000 Rodney District                                                                    www.localcouncils.govt.nz
      Council was deemed to be                29.5  No reference for this section
                                                                                          29.10b New Zealand Foreign Affairs
      dysfunctional and was replaced          29.6a Local Government New Zealand
                                                                                                 and Trade – the Sustainable
      by a commissioner appointed by                www.lgnz.co.nz
                                                                                                 Development Goals
      the minister, and in 2012 when          29.6b New Zealand Society of Local                 www.mfat.govt.nz/en/peace-
      commissioners, at the invitation              Government Managers www.                     rights-and-security/work-with-
      of councillors, were appointed                solgm.org.nz                                 the-un-and-other-partners/
      to the Kaipara District Council to      29.7  Ministry for the Environment                 new-zealand-and-the-sustainable-
      address significant governance                www.mfe.govt.nz                              development-goals-sdgs/#nz
      and financial challenges                29.8  Office of the Auditor General:        29.11 UN statistics surface area
      facing the council. In 2010                   Local Government www.oag.govt.               http://unstats.un.org/unsd/
      the government also enacted                   nz/about-us/our-structure/local-             demographic/products/dyb/
      special legislation to remove                 government                                   dyb2006/Table03.pdf
      the elected members of the
                                              29.9a Local council revenue                 29.12 UNDP HDR New Zealand country
      Canterbury Regional Council and
                                                    www.localcouncils.govt.nz/lgip.              profile http://hdr.undp.org/en/
      replace them with appointed
                                                    nsf/wpg_popup/Profiles-Local-                countries/profiles/NZL
      commissioners. The government
                                                    Government-Statistical-Overview-
      introduced a a transitional
                                                    Operating-Revenue
      model, involving both appointed
                                                    Local council expenditure:
      and elected members, for the
                                                    www.localcouncils.govt.nz/lgip.
      2016 local authority elections in
                                                    nsf/wpg_popup/Profiles-Local-
      Canterbury before fully returning
                                                    Government-Statistical-Overview-
      the council to democracy in 2019.
                                                    Operating-Expenditure

158                                                                                                     www.clgf.org.uk/new_zealand
COUNTRY PROFILE 2017–18                                          THE LOCAL GOVERNMENT SYSTEM IN new zealand

Annex 29a Summary of service provision in different spheres of government in New Zealand
                                                        Delivering authority

 Services                                    National          Regional        Territorial                         Remarks
 GENERAL ADMINISTRATION
 Police                                         n
 Fire protection                                n                                   n
 Civil protection                               n                                             Territorial councils have a role in rural fire
                                                                                              protection
 Criminal justice                               n
                                                                                              Local authorities have civil defence
 Civil status register                          n                                             responsibilities
 Statistical office                             n
 Electoral register                             n
 EDUCATION
 Pre-school (kindergarten and nursery)          n
 Primary                                        n
 Secondary                                      n
 Vocational and technical                       n
 Higher education                               n
 Adult education                                n
 SOCIAL WELFARE
 Family welfare services                        n                                             Territorial councils have a discretionary role
                                                                                              in community development, support for
 Welfare homes                                  n
                                                                                              community agencies, commercial information
 Social security                                n                                             etc
 PUBLIC HEALTH
 Primary care                                   n
                                                                                              Territorial councils are responsible for
 Hospitals                                      n                                             inspections of water quality at commercial
                                                                                              premises, egress, noise etc
 Health protection                              n                                   n
 HOUSING AND TOWN PLANNING
 Housing                                        n                                   n
 Town planning                                                                      n
 Regional planning                                                 n
 TRANSPORT
 Roads                                          n                                   n
 Transport                                      n                  n                n
 Urban roads                                                                        n         National government is responsible
                                                                                              for national highways, which represent
 Urban rail                                     n                  n                          approximately 13% of the road network
 Ports                                                             n                n
 Airports                                       n                                   n
 ENVIRONMENT AND PUBLIC SANITATION
 Water and sanitation                                                               n
 Refuse collection and disposal                                                     n
 Cemeteries and crematoria                                                          n         Slaughter-houses are provided only by the
 Slaughter-houses                                                                             private sector
 Environmental protection                       n                  n                n
 Consumer protection                            n
 CULTURE, LEISURE AND SPORTS
 Theatre and concerts                                                               n
 Museums and libraries                                                              n
                                                                                              The Auckland and Wellington regional
 Parks and open spaces                                             n                n
                                                                                              councils have parks responsibility
 Sports and leisure                                                                 n
 Religious facilities
 UTILITIES
 Gas services
 District heating                                                                             Some local authorities have shares in
 Water supply                                                                       n         electricity companies
 Electricity
 ECONOMIC
 Agriculture, forests and fisheries             n
 Local economic development/promotion                                               n         Although not involved in agriculture or
                                                                                              fisheries, some local authorities have forestry
 Trade and industry                             n                                             interests for investment purposes
 Tourism                                        n                                   n

                                                              n sole responsibility service n joint responsibility service n discretionary service

www.clgf.org.uk/new_zealand                                                                                                                    159
You can also read