HOME   >   THEMES   >   TRANSFORMING THE ECONOMY   >   SPEECHES

20 June 2008, 2008, Wellington

Acknowledgements:

• SOLGM President, Steve Parry (CE, Gore District Council)
• SOLGM CE, David Smith
• Sue Piper (Chair, Local Government Commission)
• Guest speakers
• Chief Executive members from local government sector

 

Introduction:

It's my pleasure to join you this morning for the annual Local Government Chief Executives Forum. This year's theme to some extent highlights the general approach that the Labour-led Government has continued to advocate across the governments sector, alongside the private and community sector- working together and "Making Connections" is fundamental towards achieving sustainable and enduring change.

 

Local government plays a major role in ensuring we progress towards achieving better outcomes for our communities and country, that's not an easy task and it requires a high level of coordination and collaborative effort.

 

Working together sounds easy to achieve, in practice it requires a different way of thinking and approach. I want to acknowledge and thank all of you for your contribution to ensuring we are moving in the right direction - together.

 

Working Together

Since 1999, the relationship between central government and local government has been characterised as a partnership. The establishment of the Central and Local Government Forum in 2000; and the joint development of new local government legislation are just two examples of the partnership approach which underpins the collaboration between central and local government. Other examples of this partnership approach include:

• the development of the central and local government interface in support of the community outcomes process, facilitated by the Department of Internal Affairs;
• the establishment of the Deputy Secretaries Group to coordinate central/local government engagement on policy initiatives of regional significance;
• the Chief Executives Environmental Forum, run by the Ministry for the Environment, which allows central government and regional council chief executives to build a collaborative relationship and share views on environment issues.

 

The partnership approach ranges across a wide number of portfolios, to policy development and working towards achieving outcomes across the four wellbeings. Local government is also an important partner in public health, tourism, and housing. I believe that collaboration is about finding ways to do things better, smarter and more efficiently - together.

 

New Zealand is a small country where we face many challenges, and this is where your leadership comes in.  Striving for excellence, having the ability to innovate and not being afraid of change is crucial to us moving forward.

 

This government has prided itself a vision of planning for the future by managing our economy while securing the best possible living standards for kiwi families. Whether it be by way of cheaper doctors visits, early childhood education, the rates rebate scheme or affordable housing solutions.

 

 

Partnering Local Government

One of the myths that needs to be refuted certainly at a political level is the amount of investment central government has made across the government sector which serves to support the aspirations at a local government level.

 

Between 1999 and 2007, central Government funding to local government increased by 96 per cent from $390.6m to $764 m. This figure excludes the Rates Rebate Scheme and some targeted assistance appropriations. In percentage terms that indicates movement from 10.8 per cent to just over 13 per cent of local government revenue.

 

In addition to this funding, the Government:

• is providing $1.3 billion in new transport funding - a significant share of which will go to local government;
• has allocated $150 million over 10 years for drinking water schemes;
• has provided around $9.8 million for sewage schemes for smaller communities; and
• plans to spend $600 million over six years for urban rail in Auckland and Wellington

 

While Budget 2008 has continued to deliver in core areas we understand that many kiwi households are under pressure. The Government understands that need now more than ever before, and this is why the tax relief for families is so important.

 

There is a strong belief that to grow our economy, we need to continually invest in core infrastructure and the Government is working hard to address the broader issues facing sectors at this time.

 

The Budget reinforces what Labour is all about, building a fair economy and a strong future for all New Zealanders. It consciously rewards the many for their contribution to New Zealand's economic success. It delivers right across the board.

 

So while Local Government has only small funding impacts in this Budget cycle, it received funding for five very important initiatives. 

• The first sees the Rates Rebate Scheme indexed to inflation which raises the rebate from $500 to $530 and the income threshold from $20,000 to $21,180.
• Some funding has been provided ($700,000) over two years for ongoing work and delivery of a professional development programme for local authority elected members
• Funding has been provided to support dog control and public-safety related programmes
• The Chatham Islands Council will continue to receive funding, to fulfil its statutory responsibilities.
• The Department of Internal Affairs has also been funded ($521,000 in 2008/09) to lead the Government response to the Royal Commission of Inquiry into Auckland Governance, while continuing to lead and coordinate central Government engagement in Auckland.

 

The government has also allocated an additional $40 million over five years for the Sanitary Works Subsidy Scheme. Part of that will contribute to applications that have currently been held and partly for some new projects.

 

SUSTAINABILITY

 

Global climate change will be the defining issue of the 21st century. It presents very real challenges for our country and we have a once in a generation opportunity to make some critical decisions about rising to meet that challenge. The benefits of which should improve our way of life, the state of our environment and put sustainability at the heart of our thinking and decision making.

 

During this term of government in particular, we have been rolling out a comprehensive package of strategies, policies, and initiatives to put New Zealand on the path to greater sustainability. The package includes:

• the Emissions Trading Scheme legislation currently before Parliament
• the New Zealand Energy Strategy
• the New Zealand Energy Efficiency and Conservation Strategy
• revision of the Building Code and transport and tourism strategies
• investment in insulation and energy efficiency retrofits for households, and
• a raft of initiatives within government on energy efficiency, procurement, eco-verification, and support for programmes aimed at enabling households and businesses to become more sustainable.

 

As you know the climate change challenge requires strategic thinking, long-term vision, and leadership at all levels - central and local government, business, science, education, research and community.  Through partnerships across these areas we can make our country more sustainable and transform our society and economy to one of higher value at the same time.

 

Local councils can lead by example on sustainability. Through their efforts, they can involve and encourage people to make more sustainable choices. In some areas, central and local government will need to work together on sustainability issues. Using public transport is one of the most significant things individual New Zealanders can do to lower greenhouse emissions and contribute to our quest for carbon neutrality. 

 

Central government is providing $1.3 billion in new transport funding, a significant share of which will go to local government.  It will then be up to local government to use this funding to encourage sustainable transport choices.

 

There was extensive local government involvement in the early stages of the Sustainable Water Programme of Action and this is continuing through the Resource Managers Group, which includes Local Government New Zealand representation, through this forum [Chief Executives' Environment Forums], and Regional Affairs Committee.  Local government representatives are also providing input into the development of the National Environmental Standards for Measurement of Water Takes, for Setting Ecological Flows and Water Levels and for Freshwater Management.

 

Reducing waste and managing it better has been an underlying goal of this Labour-led government. The Waste Minimisation Bill will contribute to supporting industry and its product stewardship efforts as well as councils to reduce waste to landfill. Again the Recycling in Public Places initiative (RPPI) is designed to support local council efforts to encourage recycling in a range of tourist destination communities.

 

LONG TERM COUNCIL COMMUNITY PLANS

Councils have already started work on the process of developing their 2009/19 Long Term Council Community Plans.  This time councils will have the benefit of learning and experience from the last full LTCCP round. 

 

I don't want to spend much time on this topic as I understand that the Auditor General may cover this area. Can I just add how important this process is to better engage the community in setting local priorities and provide a context to understand some of the longer term funding objectives to be able to achieve such outcomes.

 

AUCKLAND OUR MAJOR INTERNATIONAL CITY

The Auckland region constitutes approximately one third of the country's population and is our major international gateway. The development of Auckland is critical because of the region's contribution to New Zealand's economic, social, cultural and environmental life.

 

The Government wants to ensure that Auckland is a world class city that remains internationally competitive and instrumental in New Zealand's long-term success. The government already plays a significant role in the provision of services, infrastructure and funding necessary for the successful development of Auckland, and will continue to do so. 

 

The work currently underway will provide the blueprint for the future. The One Plan now being developed will provide a single strategic framework and plan of action in the Auckland region. This will certainly inform central government funding priorities for the Auckland region. It's intended that the Regional Sustainable Development Forum (RSDF) report the first "one Plan' by September this year.

 

Alongside the ‘One Plan' process, the Royal Commission on Auckland Governance is a pivotal focal point for looking towards the future.

 

The aim is to maximise, in a cost effective manner;

• the current and future well-being of the region and its communities; and
• the Auckland region's contribution to wider national objectives and outcomes.

 

OTHER LOCAL GOVERNMENT PORTFOLIO ISSUES

• The Local Government Commission is nearing completion of its review of the operation of the Local Government Act 2002 (LGA02) and Local Electoral Act 2001(LEA).

 

While the Commission undertakes its review independently of the Government, I have received initial briefings on the review.  It promises to be a wide-ranging review of how the LGA 02 has bedded in after five years.  

 

One area the review will cover is already being looked at by the Government.  We are considering a range of amendments to the LEA, including the following matters: 

• the electoral (voting) system;
• representation arrangements;
• the representation review process;
• candidate issues;
• elector issues;
• the appointment and role of Electoral Officers; and
• the conduct of elections and polls.

 

The work of the Electoral Officers' Working Party was extremely important to making the 2007 local elections run smoothly.  The operation of the LEA has been the subject of a considerable amount of work by the Working Party, the Commission and the Justice and Electoral Committee.  This has allowed us to begin work on proposals to go into a local electoral amendment bill before the Commission's final report is presented.

 

CONCLUSION

The Labour-led government has been a responsible steward and ambitious in its programme of action to invest where it matters most and not lose sight of our strategic opportunity as a nation. Economic conditions and international pressure continue to put strain on many of our households and families and subsequently ride through this uncertain economic weather.

 

But our priorities remain clear strong families build strong communities, people working together are far more effective than working in isolation. We have been able to continue our roll out of policies that deliver assistance to our families, young people and older New Zealanders, while ensuring continued investment in infrastructure, research and development , growth and innovation. While the balance of priorities creates obvious tensions it's important to not lose sight of positioning our country to foster greater labour productivity, high value exports, greater security for all, well communities and active citizens.

 

Once again thank you for the opportunity to address your forum this morning. Teenaa koutou katoa.

 

 

 

 

• OUR MPs | 
• FEATURES | 
• LATEST NEWS | 
• SPEECHES | 
• PORTFOLIOS | 
• POLICY | 
• MULTIMEDIA | 
• SEARCH | 
• CONTACT US