Lotu-Iiga SamLOCAL GOVERNMENT ACT 2002 AMENDMENT BILL (NO 2)First ReadingHon Peseta SAM LOTU-IIGA (Minister of Local Government): I move That the Local Government Act 2002 Amendment Bill (No 2) be now read a first time. At the appropriate time I intend to move that the bill be considered by the Local Government and Environment Committee with instruction that the committee report to the House on or before 28 October 2016. This timing will allow councils to make submissions on the bill before the break for local body elections. The intention is to pass legislation in time for the newly elected councils and the Local Government Commission to use these improvements early in the new council term.Local government touches everyone's lives. Councils help to build our roads supply our water and collect our rubbish. They manage our libraries our community halls and our swimming pools. They make decisions that affect the lives of all New Zealanders in their local communities every day. Councils provide essential infrastructure and services to support regional growth jobs and community development. They have a challenging task and their world is changing. The costs of providing local services and managing council infrastructure are rising faster than council revenues. Councils need new ways to manage finances improve efficiencies and create better value for ratepayers.There are currently 78 councils and 66 ward authorities across New Zealand. Some regions in New Zealand are facing rapid growth while others have to deal with declining populations. As a result some councils are struggling to provide services to their communities at optimal levels. This is because individually their rating base is small and they are unable to attract the necessary levels of expertise within their ranks.The current legislation focuses on amalgamation to gain scale for shared services. Communities in Northland Hawke's Bay and Wellington have told us that they do not want full-scale amalgamation but this bill provides a middle ground. Communities will retain their elected councils; the councils in turn will be able to work more collaboratively to manage infrastructure and services across our regions. This will deliver more joined-up cost-effective services and better value for our ratepayers. I have engaged with councils iwi and local government sector groups around the country over recent weeks and have received their feedback on the Better Local Services reform package. This bill as tabled takes on this feedback and implements this package. First this bill will allow two or more councils across a region to create more effective council-controlled organisations (CCOs). CCOs are a proven way to deliver cost-effective services and infrastructure to communities. The current legislation restricts the kinds of CCOs that can be created. Through multiple-owned CCOs councils across regions will be better able to achieve cost savings and improved service delivery of water transport and other council services. Multiple-owned CCOs can have the size and scale to enable them to have much greater capability and capacity than can be achieved by individual councils. For example this bill will allow a water CCO owned by multiple councils in the Waikato area. I know that councils are already exploring options for shared services to run a Waikato water network and I know Mr Macindoe will be happy about that too. A multiple-owned CCO could own the infrastructure do the planning and manage the network for its shareholding councils.This bill will also remove some of the barriers to possible transport CCOs. Two models for regional transport multiple-owned CCOs will be specifically provided for in the legislation and if councils prefer there is provision to create a bespoke model that will require the approval of the Minister of Transport and I know in the Canterbury region that will be welcomed. The bill also enables region-wide planning with joint council committees able to prepare combined plans under the Resource Management Act. This would make life easier for communities and developers as they would have only one set of planning rules to deal with across a region.The bill also introduces much stronger accountability arrangements for CCOs. Councils can appoint a joint committee to oversee the management of their CCO interests. CCO planning and delivery documents will be closely aligned with council plans to ensure that ratepayers get the services and the sustainable infrastructure that they need. Secondly the Local Government Commission will be empowered to work with councils and communities to deliver local solutions. This bill will expand the processes available to the Local Government Commission. Current processes mean the commission is limited to reacting to reorganisation applications that it receives. The bill will enable the commission to be much more proactive in setting its work programme. Ratepayers and residents will see a commission that is much more responsive to local circumstances working with local communities and councils as well as with iwi to find local solutions.To balance these enhanced powers the bill will also place greater transparency and accountability arrangements on the commission. Any reorganisations will need to protect the integrity of any council - iwi arrangements. The commission and councils will need to consult with their local communities as well as with iwi on any proposed reorganisation. The commission will be required to provide annual statements of intent and agree the commission's work programme with the Minister of Local Government at that time. The commission will also be subject to the Official Information Act upon the completion of its investigations dispute resolutions and determinations of appeals. They will also be subject to the Ombudsmen Act. It is expected that the commission will have an increased workload as it works with communities on shared arrangements. For this reason I am proposing the number of permanent commissioners be increased from three to a maximum of five.This bill will make a number of changes to the Local Government Act. It will enable council-led reorganisations for the first time. Councils will be able to develop and implement reorganisation proposals in consultation with their communities and their neighbouring councils. The Local Government Commission will have enhanced powers to work with councils and Government to support reorganisation proposals. But most importantly these changes will enable more effective delivery of quality local services that will support regional growth jobs and local communities. I urge members to support this bill and I commend this bill to the House.Mr DEPUTY SPEAKER: The Minister indicated that he intended to nominate a committee but he has not done that so he should.Hon Peseta SAM LOTU-IIGA: I move that the bill be considered by the Local Government and Environment Committee with an instruction that the committee report to the House—Hon Michael Woodhouse: He doesn't have to do that.Hon Peseta SAM LOTU-IIGA: I can do that at the end of the bill.Mr DEPUTY SPEAKER: Thank you.