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News 

Royal Commission on Governance for Auckland

George Hawkins

23.04.2008

Let’s make the word “local” in local government meaningful in the context of our Auckland community and ensure functions of a regional nature are managed efficiently regionally

Let's make the word "local" in local government meaningful in the context of our Auckland community and ensure functions of a regional nature are managed efficiently regionally.   The Royal Commission into Auckland Governance offers us a rare chance to do this.   We shouldn't miss it.   The 1989 restructuring reduced some 800 occasionally very expensive and inefficient, local authorities to approximately 100.   A part of the restructuring was the establishment of Community Boards.

It was intended by the Local Government Commission of the time that these community boards would be the "local" voice of communities in the wider system. In reality they became another expense for ratepayers to bear with few meaningful powers.   Fewer Councils with larger areas of responsibilities will not fix Auckland's problems.   These problems are about infrastructure, planning, transport and water.   They have been caught up in a large amount of litigation between the Auckland Regional Council and territorial authorities that is hugely expensive to ratepayers.   Lack of co-operation has been notable.   For example, when Auckland city ratepayers had to meet the cost of the Britomart Centre without contributions from other Councils the result was a facility that is not going to meet future demands.

Local Government reform should recognise two key fundamental realities, administrative and political.   At the administrative level the effectiveness and efficiency of the local Council is not a function of size -- there is much empirical evidence that suggests that big is not better when it comes to local Government.   Auckland may be better served with the abolition of Community Boards and with up to 10 Local Councils servicing a population of between 150,000, - 250,000 that look after local needs.   This would see the word ‘local' being put back into Local Government.

Smaller Councils have a better knowledge of local conditions and public views. The council meetings can be focussed on local issues - the state of footpaths and recreation areas.   People have better access to elected councillors and senior administrators. Administration structures are generally flatter.   There is a logical progression to regional governance.   The regional body could consist of each of the territorial Mayors, accompanied by provision for direct election to it of one person from each territorial council area.   Such a regional body would then reflect the views of councils but also independent opinions from within each of the constituent areas.   Elections for the regional council would be held at the same time as territorial council elections.   The regional group would then oversee regional planning, resource management (environmental responsibilities), appoint Directors to the transport and water agencies and be responsible for other regional functions in a similar manner to the existing regional council.

How do we fix our infrastructure problems?   Let's have one transport authority directing transport planning and delivery, including public transport provision and traffic management on arterial highways, with responsibility for infrastructure delivery.   There are too many divided responsibilities and conflicts in the existing set up and far too many opportunities for political interference based on grounds of narrow self interest.   Some Councils are using charges on services such as water dividends to pretend to keep rates down.

Big savings for the regional community can be made through vertical integration of the Auckland water system into the current water wholesaler and wastewater operator.   Some 11 industry reports carried out since 1995 have shown that there is potential to achieve savings of between 10 and 20 percent in the cost of water services. It is especially significant that not one of these reports has seen merit in retaining any of the existing retail companies operated by territorial councils.   The reason is clear. With integration through the current wholesaler there would be less cost duplication, one asset plan for the Auckland water industry and one agency operating one network from dams to tap.

A vital role of this entity will be demand management - aligning efficient use of the water resource with environmental considerations and matching new infrastructure requirements with capital available.   Public consultation carried out in 2001 showed that 68 percent of some 2300 people canvassed supported vertical integration as the preferred option for the future structure of regional water and waste services.   I'd appoint a community Ombudsman to guard against excessive charging and bloated administration, as well as adjudicate on any customer complaints.   Where I differ substantially from the one city advocates is that I believe a regional body should assume those responsibilities that overlap and have proved costly, and bureaucratically and politically difficult to resolve.    We keep our local Councils, which will have fewer duties which means we won't need dozens of Community Boards.   This removes a costly, clumsily ineffective, tier of local Government.

Let's put "local" back into local government. - ends

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