Tremain Chris: Local Government (Auckland Council) Amendment Bill (No 2) — First ReadingText is incorporated into the Bound VolumeTremain Chris: Local Government (Auckland Council) Amendment Bill (No 2) — First Reading[Sitting date: 05 June 2013. Volume:690;Page:10791. Text is incorporated into the Bound Volume.]Hon CHRIS TREMAIN (Minister of Local Government): I moveThat the Local Government (Auckland Council) Amendment Bill (No 2) be now read a first time. I nominate the Local Government and Environment Committee to consider the bill. The Local Government (Auckland Council) Amendment Bill (No 2) will amend the Local Government (Auckland Council) Act 2009 to provide powers for local boards to delegate responsibilities allocated to them under the Act. These powers of delegation are currently provided for through transitional regulations that will expire on 31 October 2013.Providing delegation powers to local boards through transitional regulations was intended as an interim solution to allow a better understanding of the operation of local boards to be reflected in a later amendment to the Local Government (Auckland Council) Act 2009. The Auckland Council has indicated that the efficient and effective operation of local boards requires that they continue to have the powers to delegate that they currently have now. The bill therefore replicates the effect of the relevant provisions in the transitional regulations. The Auckland Council requested the amendment and supports the detailed drafting of this bill and I understand that no local board or local board members have sought the enactment of different delegation powers. Given the important but straightforward nature of this legislation I am sure theselect committee will work constructively to ensure that the council’s request is supported. Quick passage of this bill will result in minimal disruption to the ability of local boards to delegate their functions.Auckland’s 21 local boards were established as part of the Auckland governance reforms. These reforms were instigated in the 2009-10 year by central government in response to the royal commission’s report on Auckland governance. These changes were necessary because of longstanding problems with Auckland. The eight councils lacked a collective sense of purpose and did not have the constitutional ability to effectively address the region’s many issues.Andrew Williams: What a load of rubbish!Hon CHRIS TREMAIN: Local issues and parochial attitudes had created an insurmountable barrier to regional progress and integrated development.Phil Twyford: You’ve offended Andrew.Hon CHRIS TREMAIN: Ha ha! A successful Auckland is crucial to the success of New Zealand as a whole. I wonder—oh I will not go there. This is due to its size uniqueness and economic influence. For example Auckland is home to 1.5 million New Zealanders—34 percent of the country’s population—and is responsible for approximately 38 percent of our national gross domestic product. It is one of only a handful of cities internationally responsible for generating over a third of their country’s national GDP.The creation of Auckland Council has already proved to be a success. For the financial year 2011-12 Auckland Council achieved $81 million worth of efficiency savings. This enabled it to deliver a lower than expected 3.94 percent average rates increase to Aucklanders. The rates increases projected for the same year by the former councils averaged some 6 percent. Auckland Council is forecasting further permanent savings resulting in $1.7 billion in projected efficiency savings over the 10-year period of the current long-term plan. The proposed rates increase for the 2013-14 year is 2.9 percent which is lower than the 4.8 percent forecast in last year’s long-term plan.The Auckland two-tier model in which governance is shared between the council’s governing body and local boards is unique within New Zealand’s local government. The governing body and the local boards are non-hierarchical and share complementary decision-making responsibilities. The governing body has a region-wide strategic focus while local boards make decisions on local matters. The local boards model has understandably taken some time to bed in and be understood—not least by those involved in it—but it is now starting to deliver. The relationship between local boards and the governing body is maturing in recognition of the fact that there are few if any regional decisions that do not have a local dimension and few local issues that do not have regional implications. This is a successful model and this Government is actively considering making it available in a modified form in other parts of New Zealand with smaller population bases.Auckland’s 21 local boards have a significant and wide-ranging role that spans most local government services and activities including firstly making decisions about non-regulatory local matters including negotiating service delivery standards. Secondly it includes developing monitoring and implementing local board plans every 3 years and negotiating local board agreements with the governing body. Thirdly it includes providing local leadership and developing relationships with the governing body the community and special-interest groups.Andrew Williams: Who wrote this speech? Who wrote this speech at the DIA?Hon CHRIS TREMAIN: This bill will enable the continued delegation of some of these responsibilities to a committee a local board or an officer of the Auckland Council. It actually might help if the member across the road opened his ears to listen tothis wonderful speech because he might learn a thing or two that he was unable to learn in his period as mayor in one of the former parts of Auckland. However that is an aside.The bill would not enable the delegation of certain functions such as the duty to identify and communicate the interests of people in the local board’s area in relation to strategies policies plans and by-laws of the Auckland Council. Nor will any local board be able to delegate the ability to propose amend confirm modify or revoke a by-law adopt a local board plan agree the local board agreement for its area or apply to the Local Government Commission for a determination in respect of a dispute with the governing body of the Auckland Council. These are critical core functions for a local board and it is appropriate that local boards retain direct responsibility for these powers.In conclusion it is worth noting that only two of the 21 Auckland local boards have populations fewer than 45000 people. This figure is around the average number of people who live in each city or district outside of Auckland. Elected bodies serving populations of this size need flexibility in how they structure their decision making. They need to be able to create committees and subcommittees and to delegate appropriate responsibilities to them. In order to ensure that this ability to delegate continues it is essential that we pass this bill. This will enable the continued effective and efficient operation of local boards in Auckland after the transitional regulations expire. I commend this bill to the House.