Hutchison Paul: Franklin District Council (Contribution to Funding of Museums) Amendment Bill — First Reading 
Hutchison Paul: Franklin District Council (Contribution to Funding of Museums) Amendment Bill — First Reading 
[Volume:652;Page:1664] 
Dr PAUL HUTCHISON (National—Hunua) 
: 
 I move  
That the Franklin District Council (Contribution to Funding of Museums) Amendment Bill be now read a first time 
. I am pleased to sponsor this bill on behalf of the Franklin District Council because it is designed to remedy an unfair anomaly of rating whereby residents living in the Waikato part of the Franklin District Council are rated not only by Environment Waikato but also with an extra levy for the Auckland Museum and the Museum of Transport and Technology. I am hopeful that the bill will pass its first reading and be referred on to the Local Government and Environment Committee for consideration. 
Those ratepayers who live in Tuakau Port Waikato Pokeno and the vast areas south of the Waikato River unfairly receive a double whammy of rates where if equity prevailed they would be subjected to rates only from Environment Waikato. The explanation of this bill is well described in the general policy statement and it is appropriate to paraphrase some of that statement. The bill does indeed seek to ensure that in calculating the levies payable by the Franklin District Council to the Auckland War Memorial Museum and the Museum of Transport and Technology any part of the district— 
Hon Clayton Cosgrove 
: Ergh! 
Dr PAUL HUTCHISON 
: I was laughing at the emanation from Mr Cosgrove. Yes—it is of concern to me. I will just say that again: the bill seeks to ensure that in calculating the levies payable by the Franklin District Council to the Auckland War Memorial Museum and the Museum of Transport and Technology any part of Franklin District that is not within the boundaries of the Auckland Regional Council is excluded. 
The Auckland War Memorial Museum Act 1996 and the Museum of Transport and Technology Act 2000 require the Franklin District Council to make a contribution to the funding of both museums. Franklin District sits over the boundary of both the Auckland Regional Council and the Waikato Regional Council known as Environment Waikato. 
Historically the Auckland War Memorial Museum Maintenance Act 1979 which is now repealed set out in a schedule numerous local authorities upon which the levy was charged and the differential to be applied depending on their distance from the museum. In 1980 the geographical area over which the contribution was levied was reviewed by Parliament and under the provisions of the Auckland War Memorial Museum Amendment Act 1980 the schedule was amended. The amended schedule contained considerably fewer authorities upon which the contribution was levied; clearly it was recognised that some limit had to be placed on the area from which to levy. 
Hon Shane Jones 
: What about Mount Eden park? 
Dr PAUL HUTCHISON 
: What does Mount Eden park have to do with it? Perhaps the member could explain. Yes there does seem to be a lack of rationality from the backbenches of Labour. 
The Auckland region as it now stands was constituted by the  
Final Reorganisation Schedule (Scheme) Auckland Region 
 dated June 1989. That document sets the boundaries for both Franklin District and the Auckland region. Previously the Valuer-General was involved in the provision of approved equalised capital values for the purpose of the museum levy limited to that part of the district lying within the Auckland region. However that requirement was removed with the introduction of the new Local Government (Rating) Act 2002. In the absence of the Valuer-General each museum has interpreted its Act to mean that the Franklin District Council’s share is based on the entire Franklin District and is not limited to only that part of it lying within the Auckland regional boundary. However the legislative change has not altered the geographical area upon which the levy should be assessed. 
The Franklin District Council believes that this historical accident means that the museums are gaining a windfall at the cost of residents living outside the Auckland region. 
Hon Shane Jones 
: But Rodney says they’ll all be a part of Auckland soon anyway! 
Dr PAUL HUTCHISON 
: Indeed he does. But the effect of this change alone meant an increase of 25 percent in the Franklin District Council’s share of the levies from 1 July 2004. A windfall gain is not entirely correct and I will explain why it is not in a moment. 
If passed this bill will ensure that levies for the museums are calculated only on the basis of the population of the area of Franklin District that is contained within the Auckland region; that is not those properties that are within the Environment Waikato region. 
Yesterday I was almost overwhelmed by what I am sure was the generosity of spirit of the Labour chief whip Darren Hughes. He suggested that as this bill is the result of a specific anomaly that clearly needs to be remedied Labour would be prepared to have it pass all its stages this evening. This would have been an interesting precedent but I understand there are some members who feel the bill at least requires select committee consideration. What would be helpful to those ratepayers who are adversely affected is if the Labour Opposition would assist to ensure the bill goes speedily through the select committee process and expeditiously through the second and third readings even if it does not all happen this evening. 
It is not correct to say the museums are gaining a windfall at the cost of residents living outside the Auckland region. It is important to note that this bill does not affect the actual levy that the board makes annually; it affects only the way in which the levy is distributed among the seven contributing territorial authorities that make up the Auckland Regional Council. According to the process followed by the Auckland Museum Trust Board a formula on levies is reached for each territorial authority so that any decrease in the constituent elements of Franklin District will be accordingly redistributed and will increase the amount proportionately levied on the other six contributing authorities and will also result in a small increase in the individual ratepayer amount required of those Franklin District ratepayers who live within any newly defined reduced district. That is fair and appropriate. 
For 2008-09 Franklin has levied $750000 for the Auckland Museum and $290000 for the Museum of Transport and Technology. Of that 38.7 percent or $299920 comes from Waikato ratepayers. There is no doubt that if such unfair levies were set in other parts of New Zealand grave ratepayer disquiet and even internecine warfare could arise. I believe that the affected ratepayers have been very tolerant of a wrong that has been perpetrated on them and I am encouraged that having written and/or spoken to all members of this House there will be good support for them. In my view it is absolutely appropriate to support this bill irrespective of what might happen through the Royal Commission of Inquiry into Auckland Governance and the Auckland Regional Amenities Funding Act as decisions on those issues may take some time. Sadly when central Auckland bodies seek to perpetrate an unfairness in rating such as that for which remedy is sought in this bill it does no good in terms of the way that rural communities think about the central body. I would personally like to see the Auckland Regional Council or whichever body replaces it having just as good a reputation for its appreciation of rural communities as Environment Waikato does. 
I would be most grateful for the support of the House for this bill in this first reading. It is designed to rectify a wrong.