Local Govt. Analyst sees pros & cons in Wellington SuperCity

Media Release

Local Govt. Analyst sees pros & cons in Wellington SuperCity Proposal

4th December, 2014

Local Government Specialist, PwC Director David Walker has identified benefits and disadvantages in the regional wide amalgamation of local government bodies in Greater Wellington, as recommended by the Local Government Commission today.

BENEFITS

CONSOLIDATION OF GOVERNANCE – The creation of one voice, one Mayor and one body instead of nine makes for a much more efficient decision making structure from a leadership, process and cost point of view.

Having one body responsible for all regional infrastructure networks (transport, water services, parks, recreation facilities, waste management etc) is more efficient and effective.

The Auckland model has shown that it improves service levels across the region and it is usually more advantageous for the smaller districts that were less able to invest in upgrading infrastructure. In Auckland the Franklin and Rodney Districts had lower drinking water quality than the metropolitan areas until the merger when upgrading was able to occur.

PLANNING – Being able to align planning across the region, beginning with a single regional spatial plan, allows the streamlining of regulation and compliance and has major benefits for residents and business.

FUNDING – Able to be optimised through non duplication of effort and resources e.g. avoiding the creation of multiple stadia whilst maximising the utilisation of those facilities already in place.

GENERAL OPERATION – rationalising the administration function into a single operation means Wellington would only need one CEO, CFO, CIO and many other executive and senior managerial positions instead of having nine of each.

Generally in a merger of this type most staff are rehired to continue the day to day operations involved in running council, rationalisation happens at the senior levels.

Auckland has estimated that it will save $170 million per annum as of the 2014/15 financial through streamlining costs and creating efficiencies.

LOCAL BOARD AREAS – The Commission’s recommendation for the Local Board looks to align well with the existing communities of interest (Carterton, Masterton etc) which would make for smoother integration and feel less like change.

DISADVANTAGES

CONNECTEDNESS – It’s more difficult for a large centralised body to be connected to communities and people but the local board representation model is the Commission’s answer to mitigating this obvious disadvantage. This model is good but its success is measured by its execution. The Local Board model in Auckland is still relatively new and the Local Government Commission has indicated there were significant lessons learned.

The difficulty with it is merging the benefits of running infrastructure networks and planning at a regional level whilst keeping well connected at the community level.

LOCAL BOARD ROLE & RESPONSIBILITIES – The Commission has recommended Local Boards take responsibility for some infrastructure such as waste, recycling and recreation facilities.

These appear to be network assets and accordingly are likely to be better managed with one regional strategy.

However, the detail of what is best operated at each level could be sorted during the consultation process.

ENDS

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