Auchinvole Chris: Local Government Borrowing Bill — First Reading 
Auchinvole Chris: Local Government Borrowing Bill — First Reading 
[Volume:672;Page:18757] 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 It is with great pleasure that I rise to speak in support of the Local Government Borrowing Bill. This is all about lowering borrowing costs for councils and it is all about the cooperative approach for that purpose. Estimates are that the provisions outlined in this bill could save local councils around $25 million a year. I will say that again: $25 million. Perhaps that is a small amount in the context of the Government’s overall Budget but it is a significant amount of money none the less. If we have the opportunity to save it we should we could—it will be good. 
This is just the latest in a string of initiatives by this Government that will see costs to taxpayers and to ratepayers lowered through a cooperative approach. Whether it be the merging of Government departments where it makes sense or providing a way for councils to save costs through cooperative borrowing this is another initiative of the Minister of Local Government that does so much credit to his position and the way he has approached his tasks. Speaking of a cooperative approach I say that something I immediately noticed about this bill is that it came from the National-led Government’s Job Summit. Very early in the term of this Government the Prime Minister took the initiative of inviting over 200 participants to a job summit to work on ideas in a cooperative way—a cooperative way. 
Phil Twyford 
: How many? 
CHRIS AUCHINVOLE 
: Well $25 million worth I say to Mr Twyford—$25 million worth. That might not be very important to members of the Opposition but it certainly is to the people who would benefit from it. At the time we heard endless criticism from members on the other side of the House who claimed that it achieved nothing while putting forward no more constructive ideas than simply to spend more borrow more and not worry about the consequences. All one can say to that is “Ha!”. They could not be further from the truth. Here we have yet another initiative.  
So what does it do? Under this bill cost-effective borrowing will be achieved through the New Zealand Local Government Funding Agency. The agency will operate as a large-scale borrower borrowing on behalf of councils and then re-lending to them. As is typical of the approach of this National-led Government this bill merely creates the opportunity for councils to make significant savings on their borrowing. It does not mandate councils to borrow in a particular way. It does not compel or introduce compulsory aspects. What it does is recognise the contribution that local councils make to the overall economy and assist them in making economies. The Government will provide the opportunity and if the cooperation from councils is there if they take up this opportunity in sufficient numbers the savings will be significant too. If any council for some reason does not wish to borrow through the agency then that is its choice. We are not here to tell councils that they must borrow in a certain way. We are not here to tell councils or individuals how they should conduct their business. Some may have longstanding arrangements that are beneficial to them but it is anticipated that for the vast majority of councils the savings possible under this new model of council borrowing will be well worth the switch. They will be led by their wallets. Let us remember that this is actually not about councils so much as it is about ratepayers. Those are the people who will be the beneficiaries. Ultimately there is no such thing as council money just as— 
Phil Twyford 
: Speak from the heart! 
CHRIS AUCHINVOLE 
: Wait for it I say to Mr Twyford. From the heart I say that members on the other side of the House eventually have to realise that there is no such thing as Government money; it all belongs to individuals. 
Hon Christopher Finlayson 
: Say that again. They need to know. 
CHRIS AUCHINVOLE 
: Let us help members on the other side of the House. There is no such thing as Government money. We are here talking about ratepayers’ money or taxpayers’ money and it is a good thing that councils will have the option of taking part in this scheme which keeps their rate increase down. 
Hon Christopher Finlayson 
: Stalinist minds— 
CHRIS AUCHINVOLE 
: I just missed that quote from my colleague the Hon Christopher Finlayson Attorney-General but it is something about the Stalinist attitude of the other side. Indeed but I would encourage all councils to take serious consideration of this opportunity and I hope that many will take it up. In fact we had a most interesting mineral symposium for the West Coast in the Parliament Buildings tonight. It really was very very good. Forty people came up from the West Coast including three local district mayors and regional council representatives. These are small councils with a small rate base; this is exactly the sort of thing that can help them. They are still here in the House and I would like to acknowledge the presence in the House of Pat McManus Mayor of Buller; Tony Kokshoorn famous Mayor of Grey District; and Maureen Pugh the Mayor of Westland. I say to them that they can be sure that I will be encouraging them along with all the other mayors in my electorate to take this opportunity to make these significant savings provided by a far-sighted local government Minister working in conjunction with a far-sighted Government. Thank you.