Mahuta NanaiaLOCAL GOVERNMENT (COMMUNITY WELL-BEING) AMENDMENT BILLSecond ReadingHon NANAIA MAHUTA (Minister of Local Government): I move That the Local Government (Community Well-being) Amendment Bill be now read a second time. By amending the Local Government Act 2002 the bill represents a significant step change in the way central government thinks about local government. The bill aims to achieve three main objectives. The first is to restore the purpose of local government to promote the social economic environmental and cultural well-being of communities. These dimensions of community well-being need to be considered as a whole rather than separately working together. Combined they provide a mandate for the vital role of local government in supporting communities whānau and individuals to fulfil their potential and be engaged in the well-being aspirations of the community. The second is to restore territorial authorities' power to collect development contributions for any public amenities needed as a consequence of development and for reserves from non-residential development. The third is to make a technical change to the development contributions power. This clarifies the recoverable advances of financial assistance from the New Zealand Transport Agency do not prevent territorial authorities from collecting development contributions for the same projects. I want to thank the Governance and Administration Committee for its work considering the bill. The select committee was unable to reach agreement on whether to recommend that the bill be passed or whether to make any changes to the bill. Naturally I'm disappointed that this is the case. I will introduce a Supplementary Order Paper so necessary technical changes to the bill can be made at the committee of the whole House stage in the process. I'd like to thank all submitters on the bill especially the 34 submitters who made oral submissions to the select committee. The 131 submissions provided useful perspectives on the proposals. I was particularly pleased to see that the bill received a number of submissions from the local government sector and that these submitters generally supported the bill. Local authorities also expressed support for the detailed and helpful submissions made by Local Government New Zealand and the New Zealand Society of Local Government Managers.The bill will provide clear authority for local councils to shape their activities based on what their communities require and reinstate community well-being into the purpose of local government. Restoring the social economic environmental and cultural well-being of communities to the purpose of the Local Government Act reinstates the position that applied before the previous Government's amendments. This change restores the true purpose of local government—the well-being of communities—and in fact that's what councils get elected for. The specific focus on functions and service delivery introduced by the previous Government doesn't accurately reflect the way local councils work or what they seek to achieve for their communities. So we're going to fix it. A high percentage of submitters supported the reinstatement of the four dimensions of community well-being to the purpose of local government. Two of the most common reasons for supporting this amendment were that it gives local councils the mandate to take a leadership role in fostering democracy at a local level and ensures better outcomes for communities. It is crucial that central government supports local government in fulfilling these roles. The majority of local authorities who submitted on the bill support the expanded powers to collect development contributions. Local government submitters said that making all public amenities eligible for development contributions funding means that existing residents are no longer required to pay the full cost of community amenities for new residents. They said that successful and sustainable housing policy is not just about building houses and infrastructure but it's also about building communities and I agree with those views. The expanded powers to collect development contributions reinstate the position that applied before the amendments made by the Local Government Act 2002 Amendment Act 2012. These changes are consistent with the overall aims of the bill and the wider objectives of the Government. This amendment will help councils by removing a barrier to growth. It will also enable councils to provide the services communities want and shape the liveable places communities need.I've taken note of the submissions made regarding the use of development contributions for community assets. Submitters noted that territorial authorities are increasingly providing community infrastructure partnership with third parties. They thought the law on development contributions funding should reflect this. I agree it is important to find innovative ways to provide community infrastructure. I've asked officials to investigate this policy approach more fully.In conclusion community well-being is at the heart of what local authorities do. So it only makes sense for the legislation to recognise this important role. To work effectively all levels of government must listen to the needs of communities. This is the only way to ensure social cohesion inclusion and develop thriving and sustainable local communities. The bill is forward looking. The change to the purpose of local government addresses the dynamic nature of well-being so that local authorities can best serve their communities now and into the future. I commend the bill to the House.