Media release 30 March 2009

Statement from David Thornton

Representation, Rates and Roles are the major concerns in Royal Commissions Report

Representation

The report slashes the number of elected representatives from about 249 down to 81 + 3 Maori members will give the Auckland Region the worst representation ratio (residents per elected member) by far of any local authority in Australasia – and possibly in most of the western democratised world.

It reduces the power of the individual by removing him far from the decision-makers who make the big spending decisions.

For the SuperCouncil the representation ratio varies from 1; 54,000 in a rural ward to 1; 198,000 in the present Auckland City – almost 3 times the ratio for MPs.

The existing four cities and the surviving two districts will be reduced to the level of existing community boards – with a representation ratio averaging 1; 20,000 far higher than existing levels.

What will not change is the level of staffing –all 6,500 staff will be employed by the SuperCity council

Rates

The Commission claims efficiency savings of 2.5%-3.5% on the total budget of $3.2BN.

However the Financial Analysis from which these savings are draw is extremely cautious in suggesting this level savings and points out that less than half of big organisational mergers produce any savings – and many see increased costs. [Example - Toronto which continues to hover on the edge of bankruptcy several years after amalgamation]

The Commission’s recommendation for local council’s to get much more involved in social services – including more public housing – could produce significant additional funding requirements.

And ratepayers will be far removed from any position to influence spending levels and therefore rates increases.

This separation between ratepayers and rates-spenders re-awakens the call for ‘no taxation without [adequate] representation’.

And again any reform of the unfair rating system has been put off further study at some time in the future.

The result of the amalgamation of rates income and expenditure will produce wealth redistribution on a scale never witnessed before in New Zealand.

Highly rated homes will be subsiding Great Barrier Island, Waiheke Island, South Auckland, parts of central Auckland, train services for the West and South, and Social
Services for poorer parts of Manukau City where social deprivation levels are high.

Roles

The position of independent executive Mayor is entirely new to New Zealand – and by recommending a four-year term the Commission is aiming at the most radical and disenfranchising system the county has ever seen.

The role of the Executive Mayor as the one person to set the budget – assisted by non-elected advisers – together with the role of Cheerleader for Auckland on the national stage and the world stage seems far too big a load for one person to carry.

We will see non-elected bureaucrats largely running the region.

To do the first job will require a huge time commitment – but the second part will also require huge time commitment on getting out to the world and capturing all those benefits we are told will accrue from an Auckland SuperCity.

Caution urged

While the Royal Commission has rightly recommended the regionalisation of many council services – with expected efficiency gains – it cannot be commended for decimating the representational power of the individual citizen.

I urge the Government to move with caution as it considers the implications of these hugely significant proposals which will affect all Aucklanders – and probably the rest of the country.

ENDS

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