Hide Rodney: Local Government Act 2002 Amendment Bill — In Committee Third Reading 
Hide Rodney: Local Government Act 2002 Amendment Bill — In Committee Third Reading 
[Volume:660;Page:15539] 
Hon RODNEY HIDE (Minister of Local Government) 
: 
 I thought I would do something novel and speak to Part 1 of the Local Government Act 2002 Amendment Bill. It is clear to me that Mr Phil Twyford is traumatised by the success of Auckland and cannot bring himself to talk on this bill. 
Part 1 inserts several new provisions so that local authorities will be required firstly to have particular regard to the contribution made by particular core services; secondly to assess the risks and returns of commercial investments which I thought would be a good thing; thirdly to develop a financial strategy and include this in the authority’s long-term plan—again I would have thought that that was a good thing—and in particular fourthly to publish a pre-election report. These provisions are under clause 16. The information that will be included in the pre-election report for members is set out in schedule 1. 
By the way I should say that Part 1 contains the bulk of the substance of this bill. Part 1 also provides for more consistent financial reporting and the disclosure of infrastructure service information. For example it enables regulations to be made that prescribe that forms for funding impact statements are included in long-term plans annual plans and annual reports in schedule 1. It also enables a Secretary for Local Government to make rules specifying standard performance measures for five groups of activities and sets out the purpose and criteria for doing so. These performance measures will be included in long-term plans and annual plans which are intended to take effect from 2014. The part amends the definition of “community outcomes” in clause 4 so that it is about the outcomes a local authority aims to achieve for its community. 
Chris Auchinvole 
: Is this the hidden evil bit? 
Hon RODNEY HIDE 
: Maybe. The part also repeals requirements for local authorities to carry out separate processes for identifying monitoring and reporting on community outcomes under clause 12. 
Part 1 repeals requirements for local authorities firstly to consider the views of interested or affected persons at four specified stages in the decision-making process. 
Dr Cam Calder 
: How many is that? 
Hon RODNEY HIDE 
: Four. It will be up to the council to decide how many times it will consult. Secondly the part repeals requirements for local authorities to consult on proposals to change the mode of the service delivery of a significant activity from a local authority to a council-controlled organisation or other body under clause 11. The council can still decide to do it; it is not a legal requirement. Thirdly the part includes certain proposals decisions and long-term plans. These include proposals to construct replace or abandon a strategic asset in clause 14 and proposals for the sale or exchange of endowment land in clause 33. I have to say that these provisions have been overwhelmingly received by the local government sector. Part 1 removes most funding and financial policies from long-term plans while requiring separate consultation on some of those policies. That is set out in clauses 18 to 26. 
Regarding the provision of water services Part 1 gives local authorities and their communities more options for providing and financing their water services so that they can decide for themselves what is in their best interests. That will help to facilitate private sector investment in water infrastructure. The provisions in clauses 31 and 32 extend permitted time limits on water service contracts and joint arrangements with the private sector from 15 to 35 years which makes those arrangements more workable. I do not understand the position of Labour members. They were happy for the term to be 15 years but somehow 35 years is suddenly the end of Western democracy as we know it. 
Phil Twyford 
: It’s private ownership. 
Hon RODNEY HIDE 
: Mr Twyford keeps yelling out. I think he should concentrate on finding somewhere in Auckland where the Labour Party would like him to stand; that would be a positive thing. 
This part also enables councils to build own and operate transfer schemes by allowing a private partner to open new infrastructure during the contract period. The public would have to be consulted on these proposals and on any other kind of joint arrangement. The bill does not require any changes to be made and does not privatise water services. For example it does not enable permanent ownership by or the transfer of council water services to the private sector. Local government would remain legally responsible for providing water services and for pricing and policy decisions. Customers would continue to have a direct relationship with the local government organisation which would be accountable to those customers. The bill prohibits arrangements in which the private partner has the right to revenue from the water service such as concessions or other franchise agreements. It also prohibits the sale or transfer of the ownership of existing infrastructure— 
Chris Auchinvole 
: Could you say that again—inhibits the sale? 
Hon RODNEY HIDE 
: I will say it again because I know Mr Auchinvole is interested. 
Chris Auchinvole 
: Did you say it prohibits the sale? 
Hon RODNEY HIDE 
: Yes Part 1 prohibits the sale or transfer of ownership of existing infrastructure unless that is incidental to and desirable for the success of the joint arrangement. Again the public would be consulted. 
Hon Darren Hughes 
: He was a celebrity once; now his fan base is Chris Auchinvole. 
Hon RODNEY HIDE 
: It is so interesting is it not? We have Mr Darren Hughes who I think lost his seat at the last election. We have Mr Twyford who cannot— 
Phil Twyford 
: How’s your polling in Epsom Rodney? 
Hon RODNEY HIDE 
: Actually it is very good. Mr Twyford cannot even convince his own Labour Party to let him have a crack at a seat. 
We will also have a Supplementary Order Paper to make minor drafting amendments to Part 1 of the bill— 
Hon Darren Hughes 
: Don’t show off about victories. 
Hon RODNEY HIDE 
: —and I know that Mr Hughes will be interested in that Supplementary Order Paper. Clause 16 is amended to clarify that the provision will relate to a local authority “referred to in subsection 1A”. Clauses 25 and 26 are amended to fix cross-reference errors. Clause 32(4) is amended to fix the amending terminology used in the provision. I am looking forward to the Labour Party actually addressing Part 1.