Auchinvole Chris: Local Government Act 2002 Amendment Bill — Second Reading 
Auchinvole Chris: Local Government Act 2002 Amendment Bill — Second Reading 
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CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 I am delighted to stand before the House today to support the Local Government Act 2002 Amendment Bill in its second reading. All one can say with regard to the previous speaker Phil Twyford is “What about the bill Phil?”. We heard an awful lot of criticism of what the bill might do and we heard how Phil felt but we did not hear much about the bill itself. I know that in his heart of hearts Phil thought that parts of it were not too bad at all. 
As the chair of the Local Government and Environment Committee I am very cognisant of the need for this bill to be passed into law and of the issues surrounding it. I would like to thank the select committee for working so tirelessly—all members—on making the bill the bill it is. I think we have got the balance just right. If I may I would like to commend the Minister of Local Government for introducing the bill and bringing these things into good order. 
In spite of what we have heard from the previous speaker I found and I continue to find that local government is supportive of the thrust of this bill. It is supportive of it. When we think about it we realise that local government really is a business. Businesses like to be accountable to their shareholders. They like a good relationship. This bill will help local government to have a better relationship with its ratepayers. 
The general purpose of the bill is to make local authority decision-making more transparent and more accountable. There is really only one question that needs to be asked—only one question. Does the bill do that? The answer is yes it does. The bill also reflects the principle that local authorities should focus on core services and operate within a defined fiscal envelope. Members on the other side of the House should think of those people who are on fixed incomes; when they see rates going up it is a bit overwhelming for them. This bill defines the activities. It will simplify the decision-making process and level the playing field to better enable the private sector to deliver council services. That will improve the financial management of local Government. 
But let us look first at the issue of transparency and accountability. I would like to acknowledge the minority view of the Opposition—so roundly expressed as detailed in the select committee report—that this bill would do the opposite of what it intends to do. Let us see what those members say to explain how misguided their view is. Labour and the Greens believe that by removing some consultation requirements the bill could undermine transparency and accountability. I would like to assuage their fears: this will not be the case. One must remember that the proposals in the bill have been considered and designed in terms of the broader decision-making framework of the Act. We have only to ask builders contractors—people who are dependent on work from councils—whether they would like to have available to them this sort of future planning and they will say yes. The majority of the provisions that allow local people to continue to be involved in council decisions and to be consulted on important issues are retained in the Act. 
The Act also contains several principles relating to local authorities requiring them for example to conduct their business in an open transparent and democratically accountable manner. I do not know of many council officers who if we asked them whether they are happy to do that would tell us otherwise. They are already required to give regard to community opinions. This bill will provide councils with greater flexibility and discretion to determine how to give effect to this principle. It seeks to simplify council decision-making processes and remove some of the more prescriptive elements of the Act so that consultation is not merely a quick tick-box exercise. 
Phil Twyford 
: Speak from the heart. 
CHRIS AUCHINVOLE 
: Very well if the member wishes. Phil Twyford has asked me to speak from the heart. Well I was not really going to do it I say to Phil but honestly his point about privatisation of water could not be further from the truth or further from the mark. The member is completely wrong on that one. I look forward to the various parts of this bill being read and I think we will have fun with that one. No council will be compelled to use private services to extend its water. Members should think about it from a business point of view—but maybe people on that side of the House are not particularly familiar with a business approach. If we are to limit the amount of time that a private service is extended I ask my colleagues on this side of the House what that will do to the price. It will take it up. If one extends it over a longer period one can spread one’s overheads over a longer period. One can reduce one’s profits because one has a longer-term income and that is the way it works. 
The bill’s new provisions will give ratepayers better information about their council so that they are in a stronger position to participate when consultation does occur. 
The provision for a financial strategy will provide transparency for the overall effect of the proposals on services rates debt and investment and this is a very very important thing. We had a presentation from the Deputy Auditor-General. He talked about the debt levels that councils have. He talked about the need to foresee how much is being spent by councils. He talked about the need for transparency of future funding and this is very important. 
Provision is made for a pre-election report to be produced by the chief executive of each local authority. This in effect will be a summary of key financial information about each council covering both the past and the coming 3 years as well as details of planned projects. It will include a statement that compares rates rate increases borrowing and returns on investment with the targets set in the financial strategy. 
With this bill ratepayers will have greater confidence in local government. I must say that I am very pleased to have been part of the planning process. Thank you.