Local Government NZ recommendations much needed

Local Government NZ recommendations much needed

Property Council is encouraged by Local Government New Zealand’s (LGNZ) Funding Review Plan on funding local authorities around the country.

It is pleasing to see Local Government acknowledge the increasing expectations and their implications with changing economic and demographic dynamics.

Property Council has been advocating for incentivising economic growth for many years, which are reinforced the Plan’s 10 proposals. Property Council specifically endorses the following inclusions:

• An agreed priority and action plan to advance “special zones” for growth to test new ideas and drive economic prosperity.

• When new centrally imposed costs are considered (and particularly where national benefit applies) a cost benefit analysis and agreed cost sharing with central government should be mandatory.

• Reconsider the decision to limit the range of community amenities funded through development contributions.

Property Council chief executive Connal Townsend says they have long called for more collaboration and engagement between central and local government.

“We are very encouraged to see that alternative funding mechanisms are being looked at, even if they’re not exactly what we had hoped for.

“What we desperately need is private sector involvement in these decisions, to bring commercial realities to the table of decision makers, and it’s pleasing to see LGNZ has made the same recommendation.

“Both Central Government and the private sector are key partners of local government, which we need to fully embrace to help our communities prosper. I note with pleasure that LGNZ is clear about the need to put ourselves and our communities in the best possible position to manage our issues.

“In this regard, we want Central Government to set specific development targets for councils to achieve, and establish development budgets with grants being contingent on achieving these targets.

“We agree with the Plan’s ‘fit-for-purpose’ funding options to finance local government, and cautiously support the creation of special economic zones.

“Ultimately, we want the Government to support these recommendations.”

ENDS

© Scoop Media