Three. Our local government is not always connected to the needs of our business community. Business sentiment towards local government has slipped backwards – and we're not unique in this challenge.
Throughout New Zealand, both businesses and ratepayers are becoming increasingly dissatisfied with their local councils' provision of services.
Perhaps it is because we are heading into an election season or perhaps it is reflective of an increase in negative sentiment towards governments – a global phenomenon. Maybe it is a bit of both.
It has got me thinking – with all of the challenges that local government faces, the expectations that we have for their delivery and the recent talk of amalgamation, maybe the problem is that the structure and way of operating within local government is no longer fit for purpose.
We have, by and large, had the same governance structures and the same way of doing things for the last century. The world has changed a great deal in that time, as have our ways of doing things, and as have the challenges.
Once flourishing provincial regions are shrinking
Across New Zealand we are seeing the once flourishing provincial regions now shrinking, often referred to as zombie towns. They can no longer invest in replacing ageing infrastructure because they no longer have a growing population and simply do not have the ratepayer base to fund it. They focus on the core services and nothing else.
The big cities that are starting to merge with their satellite townships want to invest more and do more. For the big city, amalgamation may be seen as the golden goose to achieve economies of scale and more streamlined governance.
No matter where you look – there are challenges and there is no simple solution.
Up and down the country councils have problems. Whether it is access to finance, a bloated bureaucratic machine that is inflexible to change or just poor decision-making.
Is it time for a radical rethink on how local government operates?
Perhaps it is time to radically rethink how our local government operates and consider what do we need to do in order to be able to achieve the best outcomes for the city, for the region, and for New Zealand.
Every business and every ratepayer is affected by local government in one way or another. They dispose of our rubbish, give us access to clean water, provide services and build infrastructure. If any of these were to stop, the impact would be immediately obvious. Local government has an important function – sometimes we only notice it when it is not working.
Whether these services are being delivered effectively, and the right incentives can be put into place to allow local councils to fulfil their responsibilities, requires thinking outside of the box.
Local body elections
Every three years, we jump up and down about the local topic du jour, before electing new representatives who we expect to make changes and make things better under the same structure and the same way of operating.
Does changing the composition of elected members every three years really make that much of a difference or do we need to do more – just like we do in the private sector?
Thinking about your local council. How many of your elected members have had prior governance experience? How many have successfully run their own business? Perhaps it's time to change the governance structure so those appointed have the right skills, experience and attributes to address the real issues of our cities and provinces.
There is no doubt that local councils are in a prime position to make the best decisions for their communities, and we should encourage them to do so. For some the idea of their local council building social housing or administering their schooling systems is radical. How could my council do any better when they can't fix a pothole, you might think.
Local authorities delivering social services have worked quite successfully in overseas jurisdictions. Maybe it is time to try it here in New Zealand?
Local government funding rethink?
How local government is funded also needs a rethink. Are rates really the best and only funding option? One proposal that emerges from time to time is giving local councils a share of local tourism spend to fund tourism infrastructure, or a return of any goods and services tax collected in the region. What is stopping us from doing the same in New Zealand?
At the moment councils appear to have little accountability. What happens if they suddenly have a compelling incentive to deliver the best results for their communities. It creates an incentive to attract residents, attract tourists and encourage growth, and compete with their counterparts. Is that not better than the status quo of collecting rates, spending, and repeating?
If a supercity is on the cards, we should go one step further and put forward a case for local government that is designed to create the outcomes that we want to achieve.
