TAKING THE PULSE OF LOCAL GOVERNMENT IN NEW ZEALAND - A report on the issues concerning Mayors and Chairs
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TAKING THE PULSE OF
LOCAL GOVERNMENT IN
NEW ZEALAND
A report on the issues concerning Mayors and ChairsAbout 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
Email: malcolm.alexander@lgnz.co.nz
Jonathan Salter – Partner
Simpson Grierson
Email: jonathan.salter@simpsongrierson.com
2Contents 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
1Introduction Welcome to 'Taking the pulse of local
government in New Zealand', a report
policy making are seen as the major
impediments to achieving results for
on what Mayors and Chairs of local communities. The tension between
authorities think about the major issues central government and local
facing their communities and government was a consistent theme
organisations. throughout the survey results.
Simpson Grierson and LGNZ are Encouragingly for communities around
delighted to have collaborated on this the country, the roles of local authority
research project. We are pleased with governing bodies and management are
the quantity and quality of the overwhelmingly seen to be clearly
responses we have received. We would understood and correctly balanced.
like to thank the 62 respondents, who
We hope you enjoy reading this report
represent nearly 80% of New Zealand's
and find it useful as well as relevant.
local authorities.
We look forward to discussing it with
Our principal objective with this you at the LGNZ conference, and would
research is to provide solid data to help welcome your feedback.
inform LGNZ's future agenda. To this
Thanks again for your support with this
end, it is interesting and informative to
initiative.
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
Malcolm Alexander Jonathan Salter
surprising that funding limitations and Chief Executive Partner
the consistency of central government LGNZ Simpson Grierson
This survey was carried out in June 2014. Responses were received from
Mayors and Chairs of 62 rural, provincial, metropolitan and regional
councils throughout New Zealand, a response rate of nearly 80%.
2Summary of
Key Findings
ECONOMIC Funding availability and consistency
of central government
JOBS &
GROWTH
are the important issues
policy making are
CONSIDERED MAJOR
IMPEDIMENTS
While the new purpose statement
DOES NOT MAKE
The roles
of Housing
progressing initiatives GOVERNING affordability is
easier it also does BODIES and management not an issue
not constrain are clearly understood and BEST SOLVED
COUNCILS correctly balanced by local government
Reorganisation has little The NZ Transport Agency makes the
COMMUNITY SUPPORT most effective
& is unlikely to bring
ECONOMIC
BENEFITS
CENTRAL
government
contribution
3Key Finding 1
The first set of questions identified
the issues that are most important to "Economic growth and jobs
Mayors and Chairs and those where [are] most important by
they believe they can effect the light years. [We] can effect
greatest change.
most of these issues and
Economic growth The headline message is clear. Of the
most are critical."
62 respondents who completed the
and jobs are the survey 84% believed economic growth Mayor John Forbes,
Opotiki District Council
important issues and jobs are the top issues for Mayors
and Chairs and their communities.
This result was consistent across all
types of local authority.
"As a rural council we are
Environmental impact and concerned that there is
sustainability (46%) as well as rates
affordability (40%) are also important
little desire from central
across all types of local authority. government to formulate a
And for provincial councils local sub-regional economic
government reorganisation is a key
policy that recognises
issue.
urban drift and an aging
Mayors and Chairs were split over
where they can effect the greatest
population that will find it
change. Rates affordability (47%) and difficult to continue
economic growth and jobs (45%) were funding local government."
the two highest ranked issues overall.
Mayor Neil Sinclair, South Waikato
And for regional councils, District Council
unsurprisingly, environmental impact
and sustainability and water resources
and management are the top two
issues.
4Q2. 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 47%
economic growth and jobs 45%
environmental impact and sustainability 37%
perceived value of local government 32%
natural event preparedness
(eg earthquakes and weather) 30%
transport, infrastructure and funding 25%
water resources and management 25%
local government reorganisation 17%
population change (growth or decline) 10%
housing affordability 5%
5Key Finding 2
We asked Mayors and Chairs what
the two biggest impediments are that "[The] level of constant
they face in achieving the results they change. [There is] no sense
want for their communities.
of stability to embed a
By a significant margin, and across all
fixed position."
types of local authority, funding
Funding availability availability (66%) and consistency of Douglas Leeder Chair,
Bay of Plenty Regional Council
and consistency of central government policy making and
legislative changes (61%) are
central government considered the major impediments.
policy making are Consistency of central government "[There is a] lack of regard
considered major policy making and legislative changes for costs and [the] effects
is, in particular, a significant issue for
of implementation by
impediments regional councils.
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 66%
consistency of central government policy
making, and legislative changes 61%
central government intervention 15%
population changes (growth or decline) 14%
perceived value of local government 10%
lack of engagement from your community 7%
management limitations 7%
willingness of your elected Councillors to
work collaboratively 3%
6Key Finding 3
Questions 7 and 8 considered the
new Local Government Act purpose "It has made no material
statement. difference."
Most respondents (72%) indicated Mayor Stuart Crosby,
that the new purpose statement does Tauranga City Council
not make it easier for Councils to
While the new progress their initiatives. However, it
purpose statement also does not constrain most Councils
"It has made us more
(74%). These results were consistent
does not make across all types of local authority. resolute to do those things
progressing initiatives For many respondents the removal of that only councils can do.
easier it also does not
the four well-beings has caused We can therefore be more
concern. Mayor Brendan Duffy of
innovative around the
constrain Councils Horowhenua District Council says,
delivery of those other
"How can you possibly remove the
four well-beings? Who is it locally aspects such as the social
that takes up the issues and wellbeing, economic
challenges and actually cares? Dear
old local government – pretty much
wellbeing of our
every day!" community that can be
sustained through a trust or
incorporated society."
Mayor Margaret Kouvelis,
Manawatu District Council
Q7. Overall, does the new purpose Q8. Has the new purpose
statement make it easier for your statement in anyway
Council to progress initiatives to constrained what you do?
benefit your community?
Yes Yes
28% 26%
No No
72% 74%
7Key Finding 4
One set of questions asked Mayors
and Chairs for their thoughts on "Our elected council and
governance. management team work
Most respondents (84%) think the very effectively together to
roles of governing bodies and Council
The roles of achieve real progress as a
management are clearly defined and
team."
governing bodies understood. A large majority (92%)
also think the respective roles are Mayor Brian Hanna,
and management correctly balanced. However, this Waitomo District Council
view was not shared by everyone.
are clearly
Again, these results were consistent
understood and across all types of local authorities.
"The answer is 'yes' but it
correctly balanced does need constant work
Q9. Do you think the respective roles to maintain."
of the governing body and
management within your Council are Bill Shepherd Chair,
clearly defined and understood? Northland Regional Council
No
16% "Hauraki does make it work
Yes but only because of a solid
84% relationship between the
governing body and senior
management."
Mayor John Tregidga,
Q10. Do you think the respective Hauraki District Council
roles of the governing body and
management within your Council are
correctly balanced?
No
8%
Yes
92%
8Key Finding 5
Question 11 asked whether housing
affordability is an issue best solved by "Only a small number of the
local government. factors in the housing
84% of respondents do not see affordability equation are
housing affordability as an issue best
either controlled or
Housing affordability solved by local government, with
influenced by local
respondents from rural councils
is not an issue best particularly adamant on this point. government. [There is]
solved by local Many see it as a problem solely certainly a need to play a
concerning Auckland and other
government metropolitan centres.
part in limiting bureaucratic
constraints and costs but
Q11. Do you see housing affordability we should not be the
as an issue best solved by local whipping boy of central
government?
government. This issue is
largely one of a small
Yes number of the larger
16%
metropolitan centres."
No Mayor Jim Mylchreest,
84% 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
9Key Finding 6
One set of questions covered the
issue of local government "[The] constant threat of
reorganisation. local government re-
Reorganisation is seen as a current organisation is a total
issue by the majority (55%) of local
distraction."
authorities overall, and in particular
for provincial and regional council Mayor Steve Chadwick,
Rotorua District Council
Reorganisation has respondents. However, respondents
from rural councils were less likely to
little community see this as a current issue.
support and is However, the majority of respondents
"Our community has
do not think there is community
unlikely to bring support for reorganisation (79%) or already held 2 surveys and
economic benefits that it would bring economic benefits 67-75% said 'no'. Some said
(63%). Metropolitan council 'yes' and others didn't
respondents were more split on these
issues though, with a majority
know."
believing that reorganisation would Mayor Craig Little,
lead to economic benefits. Wairoa District Council
"We think efficiencies could
be achieved differently."
Mayor Annette Main,
Wanganui District Council
Q12. Is reorganisation a Q13. If a poll was held now, do you Q14. Would reorganisation bring
current issue for you and think your community would support greater economic benefits to your
your Council? any proposed reorganisation? district/region?
No Yes Yes
45% 21% 37%
Yes No No
55% 79% 63%
10Key Finding 7
The next set of questions considered
which central government body "47% of our rates go into
makes the most effective contribution roading. They [NZTA]
to local authorities.
engage directly with the TA.
42% of respondents, and in particular
The NZ Transport We may not necessarily
those from metropolitan and rural
agree (eg recent changes
Agency makes the councils, rated the NZ Transport
Agency (NZTA) as the most helpful, to FAR) but we are able to
most effective central significantly more than any other discuss [issues] freely."
government body. One respondent summed up
the thoughts of many saying:
Mayor Don Cameron,
contribution "Out of all the central government
Ruapehu District Council
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.
Q5. Which central government body makes the most effective
contribution to local government?
NZ Transport Agency 46%
Ministry of Business, Innovation & Employment 18%
Department of Internal Affairs 10%
Office of the Auditor-General 10%
Local Government and Environment
Select Committee 5%
Ministry for the Environment 4%
Other* 7%
* Includes Ministry for Primary Industry, Ministry of Social Development,
Ministry of Transport and Treasury
11Methodology 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
1 62
2 62
3 59
4 58
5 59
6 Comments
7 57
8 60
9 61
10 58
11 55
12 59
13 57
14 56
Q1. Please identify which category* characterises your Council
Rural Council 40%
Metropolitan Council (including Auckland) 32%
Regional Council 15%
Provincial Council 13%
* Category terms defined by LGNZ
1213
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