Whaitiri MekaMEKA WHAITIRI (Labour—Ikaroa-Rāwhiti): Tēnā koe Mr Deputy Speaker. Otirā e ngā mema o Te Whare nei tēnā tātou katoa. Labour has serious reservations about this bill which I will outline in my contribution this evening. But it is important that those reservations and concerns be tested in a very public manner. So it is for that reason and that reason alone that Labour will support this bill to the select committee. Our support however is not guaranteed beyond that point.Tonight we will look at the package of amendments that the Minister mentioned. In my contribution I would like to go through the six main amendments methodically and then raise the concerns or reservations that I mentioned in my opening statement. Amendment No. 1 talks about increased powers for the Local Government Commission to unilaterally initiate an investigation into any aspect of local government reform such as the establishment of multiple-owned council-controlled organisations—commonly known as CCOs—joint governance arrangements transfer of powers boundary changes and amalgamations.The point labours on around the unelected Local Government Commission and the ability to unilaterally initiate investigations. That is a concern for Labour. It is also important to draw the House's attention to the Government's track record when it comes to local government reform. The last time the Government tried this in 2012 the reforms led to failed amalgamation proposals in Wellington Northland and my very own Hawke's Bay and the current situation with Auckland Council and the North Rodney and Waiheke proposals where those two particular communities want to opt out of the super-city. The Minister of Local Government has not even provided the Local Government Commission with a letter of expectation nor the public with any assurances around how these increased powers will help councils or improve local democracy. A Government committed to improving the performance and administration of its agencies should be setting out expectations. This can include outlining broader Government policy frameworks and strategic direction managing risk and ensuring that the commission acts in accordance with best practice.Amendment No. 2—the introduction of council-led reorganisations with the objective of securing the support of all affected local authorities and communities and endorsement by the commission. No problem with council-led organisation; in fact this bill should be all about council-led reorganisation. No problem with support of all affected local authorities and communities. The endorsement by the commission though begs the question: why?Amendment No. 3—greater use of CCOs particularly for water and transport services. That raises three issues for me. One is about accountability. I acknowledge the Minister's contribution about improving the accountabilities of the Local Government Commission but also accountabilities in relation to the role and expectations of CCOs. We have had examples of what happens when CCOs go unchecked. I have got a very local example of that called the Hawke's Bay Regional Investment Co. over the Ruataniwha Dam debacle. When you look at the case of the Hawke's Bay Regional Investment Co. a CCO that has been allowed to push back the deadline for financial close on the Ruataniwha Dam not once not twice not three times but seven times and has operated in a secretive manner and with an air of contempt for Hawke's Bay ratepayers the perils of vesting too much authority in a CCO are plain to see.Amendment No. 3—the greater use of CCOs for water and transport services also raises the issue for me around the ownership of assets. Who will own these assets? Will they stay in public ownership or will they be privatised? We hope we can get clarity from the Minister through the select committee process. The third issue I have around CCOs is the elected officials on the board. The Minister in his briefing to us mentioned that no elected officials will sit on the CCO boards and gave as one of the reasons managing conflicts of interest. But these will be major major CCOs. If I just draw the House's attention to this year's Auditor-General's report Governance and accountability of council-controlled organisations it is mentioned in this report that councils need to be clear about the purposes of CCOs. They need to appoint the right people to govern CCOs and they need to meet the requirements of monitoring the accountability. There is a clause in the bill that talks around having no elected bodies on the CCO board. That is making a decision on behalf of elected councils.Amendments Nos 4 5 and 6 all refer to the removal of the ability of local ratepayers to petition their local authorities for a poll on any amalgamation or reorganisation changes. It also mentions the removal of the poll of electors for any council-led proposals on reorganisation and where all affected local authorities agree. It also mentions in one of its main amendments restricting the mandatory holding of a poll of electors to Local Government Commission - led amalgamations when a major transfer of water transport and/or Resource Management Act functions from one local authority to another is proposed. It is important that the Minister assures ratepayers that this bill does not remove the requirement for a public poll on council-led amalgamations.We look forward to this bill coming to the select committee to be examined. It is important that I highlight the risk to ratepayers so that we ensure that they are not left carrying the can for changes without them having a say. We also want to make sure that crucial utilities remain in public ownership. The Better Local Services packages must not be used by the Government to force amalgamation and privatise council assets. We have concerns about the additional powers as I have mentioned conferred on the Local Government Commission an unelected body and how this will benefit local democracy. Enhancing the powers and scope of the unelected Local Government Commission or LGC is also risky and at odds with the stated aims of promoting council-led reorganisations.It is unclear where the justification is for the Local Government Act 2002 Amendment Bill (No 2) or how it will lead to any real community benefits. I have attempted like I said in my introduction to identify the reservations I have with this bill and the concerns I have. I stand by the fact that we will test those concerns and reservations through a public process. On behalf of the Labour Party we support it to the select committee. We encourage people to have their say so we can help shape this bill to what I think the Minister is trying to do and allay any fears ratepayers may have with it. Thank you very much.