Hide Rodney: Estimates Debate — In Committee 
Hide Rodney: Estimates Debate — In Committee 
[Volume:656;Page:5829] 
Hon RODNEY HIDE (Leader—ACT) 
: 
 First of all it is really pleasing to be here as Minister of Local Government. 
Hon Member 
: Didn’t think you were going to make it! 
Hon RODNEY HIDE 
: Thank you. Let me please see if I can respond to that very sustained incisive and critical attack on the estimates of Vote Local Government in the time available to me. 
It is good to have an opportunity to highlight the key areas of interest in the Local Government portfolio. In particular following on from members who have previously spoken I want to focus first on the work being undertaken to reform local governance in Auckland. To put it simply if Auckland’s economy thrives New Zealand’s economy thrives. That is why the Government is so determined to set up governance arrangements that enhance the productivity and the competitiveness of Auckland’s businesses. 
Second I want to talk briefly about the work I have directed to improve local governance transparency accountability and financial management. There is much good work being undertaken by local councils but I am convinced that we can do more and that we can do it better without burdening ratepayers further. 
The Government has moved quickly to respond to the recommendations of the Royal Commission on Auckland Governance. Working to strengthen Auckland’s governance is one of the key areas of the work of the Department of Internal Affairs in local government in 2009-10 and beyond. This work is critical not just for the prosperity of Auckland but for the country as a whole. The Local Government (Tamaki Makaurau Reorganisation) Act 2009 was enacted in May—and I thank Labour members for their support in this—to allow implementation of the new structure to get under way. That Act established the Auckland Council and formed the Auckland Transition Agency. The Auckland Transition Agency is empowered to design to establish and to manage the transition from the existing eight councils to the new core local governance arrangements for Auckland by October 2010 in time for the next local body elections. Budget 2009 included funding to facilitate the establishment of the Auckland Transition Agency and the board. The department has assisted with the set-up of the agency and has developed a framework for monitoring its performance. The Local Government (Auckland Council) Bill the second piece of legislation was introduced in May. That bill provides for the high-level structure of the Auckland Council and allows for the determination of boundaries and the membership and number of local boards. 
Aucklanders have recently had the opportunity to have a say on these important matters. Over 2500 submissions were received by the Auckland Governance Legislation Committee on the Local Government (Auckland Council) Bill. The committee is expected to report back to the House by 4 September with an enactment expected by late September 2009. A third bill will be introduced late this year to provide further detail on the governance structure functions roles and powers of the Auckland Council and its local boards. 
That bill is expected to be enacted in either May or June 2010. Over the coming months the department will be developing detailed policy for the third bill on issues relating to water transition issues interim arrangements the ongoing governance framework and advisory panels for ethnic and Pacific people. Work is also being undertaken by other agencies relating to transport planning economic development and key projects waterfront development and social development. Some of this work is needed for the third bill. 
Over recent years there has been widespread concern about the growth in local authority rates and the choices some councils have made in their funding decisions. There is strong evidence that rates have been growing faster than local authority input costs. The Government has agreed therefore to review aspects of the Local Government Act to improve the transparency the accountability and the fiscal management of local government which is something I know the Hon Shane Jones is vitally interested in. I want to ensure ratepayers and citizens have better tools for controlling the cost of council rates and council activities and I will be looking at ways to ensure local government operates within a defined budget and focuses on core activities. 
The review is not about prohibiting local government from doing things; rather it seeks to enable the sector while at the same time providing greater opportunities for the involvement of ratepayers and citizens in authorising what is done on their behalf. The review is guided by the following principles: first that local government should operate within a defined fiscal envelope—that is to say a budget; secondly that councils should focus on core activities; and thirdly that council decision-making should be clear transparent and accountable. 
The review will look at how to make local government’s long-term planning processes less complex and costly and look at ways in which each council’s financial reporting can be improved to provide better and more readily understood information. Firstly the department will be working on options for simplifying long-term council community plans and making them more strategic. This will reduce councils’ costs and ensure that ratepayers have access to material they can understand. Officials will also consider mechanisms for plain English financial disclosure and for developing comparisons between councils. Secondly we will look at where the changes are needed to the current requirements around community outcomes. Officials will examine options for a more focused and less costly service performance system. Finally the work will also look at ways of enhancing councils’ accountability to their ratepayers and citizens. I believe that some councils go ahead with expensive projects without gaining a clear mandate from ratepayers. Officials will consider options for the use of referenda to ensure councils have a mandate for those projects. 
That is a very hefty work programme and let me with your indulgence Mr Chairperson take a minute to also say how wonderfully I have been served by the officials of the Department of Internal Affairs. I could not ask for better people in terms of their intelligence their experience their insight into local government their commitment and the hard work they have provided to the Government and to me in particular as a new Minister in getting this work stream under way. I consider myself truly blessed to have such a wonderful team assisting me and I think all Governments are very lucky to have had people of such— 
Hon Steve Chadwick 
: Creating another grievance. 
Hon RODNEY HIDE 
: I hear Steve Chadwick jumping up and down about creating another grievance. I have three words for her: foreshore and seabed. Thank you very much.