Burton Mark: Local Government Law Reform Bill — Second Reading 
Burton Mark: Local Government Law Reform Bill — Second Reading 
[Volume:631;Page:3640] 
Hon MARK BURTON (Minister of Local Government) 
: 
 I move  
That the Local Government Law Reform Bill be now read a second time 
. The purpose of the bill is to refine the legislative framework within which local authorities operate in order to reflect recent policy decisions clarify existing provisions and improve the effectiveness of regulatory tools. 
I first acknowledge the hard work of the Local Government and Environment Committee in hearing submissions and preparing the report we are discussing today within a relatively tight time frame and I also acknowledge the excellent work of the officials from the Department of Internal Affairs local government policy group the Ministry for the Environment and the Ministry of Transport. The time frame was driven by the provisions of Part 7 of the bill which deal with two anomalies in the Rates Rebate Act 1973. Those amendments must be passed by 1 July in order to ensure that those eligible for assistance are able to receive their full entitlement as intended. 
From 1 July there will be a significant increase in the number of people eligible for assistance to pay their rates. In most cases the income threshold under which people will be eligible for a full rebate is to increase from $7400 to $20000. [ 
Interruption 
] 
The ASSISTANT SPEAKER (Ann Hartley) 
: I am sorry to interrupt you Mr Burton. There really is just far too much chatter. Would those people who are standing up please move and talk to others outside the Chamber. Please be seated everyone. 
Hon MARK BURTON 
: I am sure members will want to hear this part; it is of great interest to their constituents. In addition there will be increases in the maximum rebate from $200 to $500 and the additional income allowance for each dependant is to increase from $156 to $500. Therefore whereas in the 2004-05 rating year fewer than 4000 people actually received a rebate members will be thrilled to know that up to 300000 New Zealanders will be eligible for a rates rebate as a result of these changes. These changes will have a positive impact on many New Zealanders particularly on older people and others on low incomes. I am pleased to note this part of the bill has been reported back without amendment. A number of complex issues were raised in submissions; they will be the subject of further policy work. 
Much of this bill is technical in nature reflecting the robust nature of the policy and legislative process this Labour-led Government ran in 2001-02. That process led to the rewriting of the three main pieces of local government law: the Local Government Act the Local Government (Rating) Act and the Local Electoral Act. 
The committee has responded to the 49 submissions it received by recommending several changes to the bill as introduced. I will now address some of the more important of them. 
 Part 1 deals with amendments to the Dog Control Act. A number of changes were introduced in this bill in order to help to further improve public safety around dogs. Those changes include clarifying that dangerous and menacing dog classifications apply across New Zealand which provides enhanced abilities for dog control officers to seize dogs that have attacked; dealing with disqualification; and increasing the penalties for irresponsible dog owners. The Government does not agree with the amendments made by the select committee that would limit microchipping to only dangerous or menacing dogs. Microchipping is not—and never was—intended to be the complete answer to dangerous dog issues. A microchip cannot stop a dog from biting or mauling nor can a microchip stop a dog from behaving in a menacing fashion. The value of microchipping however is as a simple and permanent way of identifying dogs and linking them to a particular owner. That makes it easier for councils to keep track of lost stolen roaming menacing or dangerous dogs. 
The committee has amended Part 2 on litter control to allow local authorities to retain an infringement fee where a litter control officer appointed by the local authority issues the notice. I concur with the committee’s concerns about littering and the unlawful dumping of waste and I concur that a local authority should be able to retain the infringement fees to help offset the costs associated with enforcement without recourse to the courts. 
Part 4 makes amendments to the Local Government Act 2002. The committee has reported this part of the bill with several additional amendments. The committee has recommended that council-controlled organisations formed in the last half of a financial year should not be required to complete a statement of intent for the balance of that year. The committee recommended clarifying the scope of local authority powers to donate money and resources outside of the district to include donations of money and resources to support international initiatives that share information and experience. The committee also recommended clarifying the consultation requirements around the disposal of parks in recognition of the special nature of parks as a source of recreation and visual amenity for all. The committee has made amendments to clarify that development contributions levied under the Local Government Act 2002 are not available to be challenged through the processes under the Resource Management Act 1991 or the Building Act 2004. It was always the intent of the legislation that like should be treated as like and that all challenges in respect of funding mechanisms should be treated in the same way. 
Most members will be aware that local authorities are in the final steps of adopting long-term council community plans for the period from 2006 through to 2016. Some of the changes in this bill would require further information to be included in those plans though most of them will be finalised in the coming days and weeks. I note that the committee has addressed this issue by including transitional provisions that clarify that those plans do not have to immediately incorporate amendments that are otherwise required by this bill. Rather local authorities will be expected to attend to such matters when they first amend their new plans and I think that makes sense. 
Part 6 contains amendments to the Local Government (Rating) Act 2002. In particular the bill empowers local authorities to offer ratepayers the option of making a lump-sum contribution towards the cost of a capital project. The provisions are quite detailed but as the committee notes that is necessary in order to provide the clarity and certainty that local authorities were looking for. A lump-sum contribution is a contract in effect between a ratepayer and the local authority. The ratepayer undertakes to pay the contribution and the local authority commits to funding the project in a certain way. Those decisions are binding on the future ratepayers of the relevant land and on future councils. All parties must be very clear about that and have full information on the costs benefits and risks involved in taking up an option to make a contribution. 
Part 8 contains amendments to the Land Transport Act 1998. The select committee has confirmed this part of the bill as introduced clarifying that local authorities and Transit New Zealand may enforce bus and transit lanes and that the police may issue infringement notices where a third party such as a local authority or Transit New Zealand provides the police with evidence of a breach. The committee also confirms that the Minister of Finance has discretion as to the amount of the infringement fee that an enforcement authority may retain for infringement of the rules relating to special vehicle lanes. 
The committee has also noted that the amendments contained in Part 8 expire on 1 July 2009. That is the expiry date of the Transport Act 1962 which contains local authorities’ traffic enforcement powers. The timing of the expiry will allow the transit lane enforcement powers under the Land Transport Act 1998 and the traffic enforcement powers under the Transport Act 1962 to be reviewed at the same time. 
In the course of deliberating on Part 8 relating to offences in special vehicle lanes the committee received requests from three councils to validate infringement notices issued for those offences in the period from August 2002 to December 2005. Validation in those circumstances would undermine the principles of natural justice. 
It is highly desirable that this bill be enacted before 1 July so that those who need and deserve support under the expanded rates rebate scheme are able to receive the full level of entitlement. I trust members will bear that in mind during the coming debate.