Reforms place challenge before local government

"The Better Local Services reform package announced today by Local Government Minister Sam Lotu-Iiga offer the opportunity for Local Councils to improve services, improve economies of scale and deliver better value for rate payers," says Stephen Selwood, CEO of the New Zealand Council for Infrastructure Development.

"The reforms will provide councils greater flexibility to collaborate to deliver services to their region. They will enable the establishment of council controlled organisations to consolidate service delivery, allow council-led reorganisations rather than a single Local Government Commission-led option and empower the Local Government Commission to work proactively with local communities to improve their local government arrangements.

"The challenge is now clearly placed before all councils to take the initiative and proactively lead change themselves, in partnership with their communities rather than have change foisted upon them from the outside through forced amalgamations.

"Council controlled organisations provide opportunities for improved services through economies of scale and specialisation.

"For example, a recent analysis undertaken by Cranleigh in 2015 identified close to half a billion dollars of savings over the next thirty years and $107 million over the next decade, if Waipa, Waikato and Hamiltion councils were to transfer water assets and management to a council controlled organisation.

"These three councils are planning to spend $764 million on water services over the next ten years, so a saving of $107 million or 14 per cent is very significant.

"The report found that savings would come on top of better water services for residents by contributing to:

• stronger and much more resilient waters network across the sub-region;
• improved compliance with environmental and drinking water standards;
• a greater likelihood of attracting and retaining key specialist staff;
• the creation of a regional water centre of excellence; and
• the ability to better harness and maximise the economic potential of the region.

"Similar benefits to these could be realised across New Zealand if councils were to take up the opportunities now placed before them.

"Council consolidation would enable better more integrated regional planning, a stronger voice with central government, sufficient scale of operation to attract specialist expertise and a greater rate payer base to fund investment in new and better services for communities.

"This pathway announced by Government puts the power in local communities to collaborate, consolidate and choose their own organisational arrangements. The challenge for councils will now be to enable collaboration to prevail over parochialism," Selwood says.

ENDS

© Scoop Media