Local Government Reform in the Wellington Region

Council Workshop - 18 April 2012

1) Invitation from Greater Wellington Regional Council

2) Preparation for regional governance discussion

#758688

Contents of presentation

1. Introduction – GWRC invitation

2. Local Government Reform (1989; 2009; 2012)

3. Wellington options explored (2009 onwards)

4. GWRC invitation – questions to consider

5. Options

6. Next steps

Introduction - GWRC invitation to region’s councils (and others)

• Independent Review Panel to re-engage on reform• Reference and Technical Groups to support• Council staff and budget• By Oct 2012: Options; Funding; Transition; Timeframe• Mayoral Forum to consider this and other councils efforts • Local Government Commission to consider proposals• In place for local elections Oct 2013• inviting “other regionally representative organisations”

Should we take up the invitation?

Local Government Reform (1989; 2009; 2012)

1989 – structural reform:• ~700 councils and bodies down to 87• larger population and area (urban and rural)2002 – strategic, purpose, process reform:• replaced Local Government Act 1974• Long Term Plans• Purpose also social, economic, environmental, cultural wellbeing2010 – Transparency, Accountability, Financial Management:• “core services”• Auckland Council (own Act)2012 - Better Local Government:• replaced 2011 “first principles review” of Smarter Government, Stronger Communities: Toward Better Local Governance and Public Services

(1) Better Local Government – March 2012

Bill #1 (Introduce May; enact Sept/Oct 2012):

1. Refocus the purpose of local government:

replace “wellbeing” with “providing good quality local infrastructure, public services and regulatory functions at the least possible cost to households and businesses”

2. New fiscal responsibility requirements

3. Strengthen council governance provisions3a employment and remuneration

3b Mayoral powers

3c assistance and intervention framework

4. Streamline, simplify, council reorganisation procedures

(2) Better Local Government – March 2012

5. Establish local government efficiency taskforce (planning, consultation, reporting requirements) – report by Oct 2012

6. Develop framework for central/local government regulatory roles (report by April 2013)

7. Investigate efficiency of local government infrastructure provision (TOR mid 2012; report early 2013)

8. Review the use of development contributions (start review after Auditor-General report on 2012-22 LTPs – late 2012, early 2013?)

Aim to have Bill #2 introduced early 2013

Wellington discussions since 2009

Mayoral Forum• PricewaterhouseCoopers: Wellington Region Councils – Governance Review October 2010• MartinJenkins: Submissions Analysis of Wellington Region Governance Review August 2011•MartinJenkins: draft material for further consultation (post submissions review above)

Other forums

http://shapethefuture.co.nz/

PricewaterhouseCoopers – October 2010:Six options put forward …

1. Status quo – do nothing2. Strengthened regional council – centralising

more regional functions 3. Clusters – Wairarapa, Hutt Valley,

Wellington/Porirua or Wellington, Porirua/Kapiti 4. Two tier local government – regional council

and fewer local councils 5. Two sub-regional unitary authorities –

Wairarapa and Wellington6. A single regional unitary authority

(1) MartinJenkins submissions analysis Aug 2011

• 165 submissions - numbers differ across Councils• Change preferred over status quo• Change from within, not imposed• Benefits submitters expected included:

• Stronger regional leadership• Better relationship with central government• Better regional decision making (transport, waters, disaster response)• Single regulatory authority and consistent approach to regulation -

reduce compliance costs; easier for business and developers• Improved efficiency – economies of scale, reduced duplication,

increased focus on services, improved financial management• Improved capability - more technical expertise, enhanced strategic

management

However – expectations and understanding of potential efficiency benefits of amalgamations are contentious

(2) MartinJenkins submissions analysis Aug 2011

Commonly held views from submissions:

• Local democracy must be maintained and assisted to flourish under any new governance arrangements (a view of both opponents and supporters of structural change)

• Concern that changes will lead to higher rates and/or reduced services

• Wairarapa is seen across the region as distinctly different and should remain separate to a large degree

Have other councils accepted invitation?

• No acceptances to date

• Most TLAs have stated that they are taking their own approach (eg the 3 Wairarapa councils to continue with governance report commissioned from Morrison Low, report May, then consult)

• Mayoral Forum agreed to:1. discuss results of all councils efforts prior to any

approach to Local Government Commission for amalgamation

2. continue focus on regional cooperation

GWRC invitation points to consider

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

Risks

Regional – centrally imposed change is likely if there is no consensus or at least no promising process and timeframe

Local - If Councils have not done some basic preparation (strengths, weaknesses, opportunities, threats etc):1) The regional consensus is likely to prevail (but not necessarily avoid centrally imposed change)2) Councils will not be ready to promote and defend local priorities in an imposed change process

The community expects us to be ready with a clear position and to have involved them in this process

Questions to consider

How should we prepare for change?

Are we clear about:• Porirua’s role in the region?• What we seek to offer the region in future?• What we would want to gain for our residents?

Options

1) Accept GWRC invitation

2) Carry out an independent process

3) Do nothing – wait to see other councils options

4) Get ready – alongside any of above: prepare basic impact analysis on 2012-22 Activity Areas and Strategic Priorities

Next steps

Paper to Council 2 May 2012 for decision on GWRC invitation and options

The Mayor could indicate outcome of workshop to GWRC and that paper going to Council, so that PCC is included in discussions between now and 2 May

What else do you need to help you consider the changes and impacts of local government reform?