Local Government Forum

Media Release
20 September 2012

Local Government Bill Supported

The Local Government Forum today presented its submission on the Local Government Act Amendment Bill to Parliament’s Local Government and Environment Select Committee.

“The Local Government Forum agrees with the Government that the current Act does not adequately focus councils on operating efficiently or on delivering those services that only councils can provide or performing those roles that only councils can perform,” said Forum Chair Michael Barnett.

“We agree that the Act’s ‘four well-beings’ purpose statement is an overly broad and all encompassing job description and that its language is overly activist.

“Local government spending, rates, and debt have all increased dramatically since 2002. Spending and rates have both doubled and debt has quadrupled.

“While there is plenty of debate on what exactly has driven these large increases, the Forum believes that the current Act’s purpose statement has been a factor and the Government needs to do its bit to provide an environment that makes it easier for councils to rein in their spending.

“This is especially so because over the coming decade local government spending is forecast to increase by 49 percent, rates by 58 percent, and debt by 97 percent.

“The Forum believes that the changes in the Bill will help but we also believe that they might not go far enough and that changes could be considered to focus councils more on efficient provision of public goods.

“If the Bill’s approach doesn’t work then it may be necessary to go further and be more directive of what councils should and shouldn’t do but we’d prefer first to give councils a chance,” said Mr Barnett.

The Forum’s submission is available from its website at:
http://www.localgovtforum.org.nz/lgf_documents

ABOUT THE LOCAL GOVERNMENT FORUM

The Local Government Forum comprises organisations that have a vital interest in the activities of local government. Its members include Business New Zealand, the Electricity Networks Association, Federated Farmers of New Zealand, New Zealand Initiative, New Zealand Chambers of Commerce, and New Zealand Retailers’ Association. The Forum was established in 1994 to promote greater efficiency in local government and to contribute to debate on policy issues affecting it.

Forum members are each significant representatives of ratepayers in their own right but the Forum’s perspective is to advance community welfare through the advocacy of sound public policy. We believe that local government can best serve the interests of the community and ratepayers by focusing on the efficient provision of public goods at a local level.

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