Mahuta NanaiaHon NANAIA MAHUTA (Minister of Local Government): I just want to take a brief moment to respond to some of the questions and in no particular order. There was some conversation around the role of the Local Government Commission (LGC). Can I just reiterate in my opening remarks and in response to the member across the Chamber that the changes in relation to the Local Government Commission represent the first part of reforming the independent role and function of the Local Government Commission and were more attuned to what in the current environment the independent nature of the LGC could look like. But it was still important to retain some key functions—for example ensuring locally led reorganisations—to ensure that the LGC was able to focus on representation reviews and boundary changes and the establishment of local boards and community supported reorganisations as per the changes in Supplementary Order Paper (SOP) 323. So while I hear the concerns of the member now is not the appropriate time to set out what stage two will look like in terms of the functions of the LGC. But can I say this: it is important that there is a body that has a level of independence that can undertake some roles and functions that could improve and give confidence to the sector in a number of areas some of which are already well-known and are kept; some in terms of greater transparency governance and capability that we are still yet to think through. So I don't want to leave the impression that the whole focus of the LGC is starting to be eroded or minimised—that is not the case. What we are ensuring is that stage one of retaining the current functions and I guess raising the threshold to initiate amalgamations or reorganisations is something that actually works for the community. The other thing that I wanted to comment on is in relation to council-controlled organisations (CCOs) and commercial CCOs in particular. If we look at some of the challenges within Auckland and the transparency and accountability of those CCOs we need to continue to ensure that the provisions around CCOs can give greater line of sight to the shareholder—to the council—about what they undertake on behalf of the council area. Many members across this House will have heard a number of concerns from the community about how commercial CCOs lack the level of transparency and accountability for the functions that they undertake and I think we can do better in that space. So I wanted to signal that as an important point to note because again the SOP seeks to change a bill that we inherited. The changes that we will continue to go down will ensure again fundamentally greater transparency and accountability for the role and function of CCOs and that there is an independent role for LGC—this is stage one of that change process. I'll come to the question that was raised in relation to how we foster collaboration if amalgamation is not the preferred approach of this Government. Actually in the space of water reform that is a fertile area within which we will see local government leadership about how they discuss their arrangements for improved service delivery and we're encouraging that. But the more again that we can encourage local government to come up with the solutions themselves rather than central government pushing a particular approach I think we continue to gain trust that we are working with the sector and that's a partnership that the Prime Minister has been leading. Without detracting too far from the legislation in terms of the points that were raised by my colleague Greg O'Connor in relation to proposed section 24 in clause 9—very well pointed out may I say—and it only amplifies the points that I've been highlighting around the scope of local government reorganisation and the roles and functions there. I think that there are real opportunities to extend this conversation in the space of the transparency of CCOs.