Auchinvole Chris: Local Government Act 2002 Amendment Bill — First Reading 
Auchinvole Chris: Local Government Act 2002 Amendment Bill — First Reading 
[Volume:662;Page:10705] 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 It is my pleasure to speak on the Local Government Act 2002 Amendment Bill. The Local Government Act 2002 is the cornerstone of local government and is fundamental to all decisions made by local authorities. As chair of the Local Government and Environment Committee I have regularly paid significant attention to this Act. [ 
Interruption 
] Members opposite should listen. As such it became clear to me that although the Local Government Act 2002 which is the previous Government’s legislation is good legislation albeit a little bit untidy in areas there are aspects that need improving and modernising. This bill does both of those things very well. It will meet the needs and requirements of not only the ratepayers but the general public and all those who interface with councils. 
The significant purpose of this bill is to improve transparency accountability and financial management in local government. The explanatory note of the bill states: “The underlying policy for the Bill is informed by the following principles: that local authorities should operate within a defined fiscal envelope:”. I am sure that all of us who represent our electorates are very aware of the concern amongst constituents that local authorities should operate within a defined fiscal envelope. The last thing constituents want is profligate local authorities. The public expectation is that local authorities must be rigorous with their finances. This is one of the reasons why we are introducing a financial strategy to the long-term plan to help local authorities and their communities debate and resolve the key financial and service delivery trade-offs that local authorities are obliged to make in the transaction of their programmes. The second principle is “that local authorities should focus on core activities:” and the third principle is “that local authority decision-making should be clear transparent and accountable.” 
This bill will provide ratepayers and residents with better information about council costs rates and activities and enable them to understand and influence planning and decision-making processes. The electorate of West Coast - Tasman has four councils with relatively small ratepayer bases. This legislation will be particularly significant to those areas and those councils to enable ratepayers and residents to understand and influence planning and decision-making processes. This will be achieved through introducing pre-election reports to stimulate debate during council elections and through achieving plain English financial reporting so that ratepayers can understand what they are paying for and how. I spoke this afternoon to the Buller District Council one of the councils in the West Coast - Tasman electorate and the councillors say that they are very conscious of the need for a plain English financial statement. 
At an operational level this bill will simplify decision-making processes. This will be achieved by removing unnecessary auditing and that will go down very well. This legislation will remove unnecessary consultation. We have heard previous speakers talk about the complex situation that has resulted from the incredibly tough demands on consultation. Levelling the playing field will enable the private sector to better deliver local authority services. This will improve councils’ flexibility to choose effective and efficient delivery methods for water and other services. 
I have already heard the concerns about water expressed by a number of speakers in this first reading debate but I am sure they will be reassured once they give the legislation full consideration. The horror stories that are already emerging will not be sustained. This bill will remove unnecessary barriers to water infrastructure development. I say to those who are not familiar with the area that water is something we are blessed with on the West Coast. The rainfall in the area where I live is 3 metres a year and further down the valley it is 6 metres a year but we still need potable water and a reticulated water supply. This bill will enable local authorities to enter into contracts for the supply of services for a period of up to 35 years and to delegate aspects of water services management to contractors and lease water assets from the private sector. But it will not allow local authorities to walk away from the responsibility associated with all those things. I have heard criticism already—I have taken note of it and I look forward to it being discussed further at the select committee—concerning the length of time for those contracts but when we consider the amount of capital involved in providing water services we need a fair amount of time to recoup the expenses of putting it all together. 
Good local government is essential for our communities our economy and our environment. The National Government values having an honest and open working relationship with the local government sector and recognises that there cannot be a one-size-fits-all approach to local government. This amendment bill represents significant progress towards better local government and towards easier and more effective participation by ratepayers and residents in the activities and decisions of local councils. The bill strengthens ratepayers’ control of council activity making councils more accountable to their constituents and gives ratepayers clearer and better quality information on the work of local councils. It provides them with the tools required to influence local government decisions. Ratepayers will be pleased that the bill contains measures such as a financial strategy with limits on rates and debt to ensure council costs rates and activities are better controlled. The changes are coherent and necessary and are a great improvement to the Local Government Act 2002. They are welcome changes. I am very happy to speak in support of them. Thank you. 
Debate interrupted.