Local government reforms continue

Federated Farmers supports some local government reforms.

Phase two of the Government's Better Local Government reforms are progressing, with a Local Government Amendment Bill expected to be introduced to Parliament this month.

The Bill will cover several issues, including development contributions; infrastructure and asset management; consultation, planning and decision-making; and local governance. All of these changes follow a series of reviews over the past 12 months.

Changes to the law for development contributions include narrowing the charges councils can put on new developments; providing an independent objections process; and encouraging direct provision of infrastructure to get costs down. The Government believes these changes will more fairly balance the costs recovered from developers, against those of community benefit that should be paid by ratepayers more generally.

Federated Farmers supports the use of development contributions, as an alternative to rates, for funding development-specific infrastructure. However, it agrees that some councils have used them as a more general revenue source, with little connection between a particular development and the costs being sought by the council.

The Federation has even heard of farm buildings being subjected to big charges to pay for 'people-based' community facilities in town. We support changes to re-focus development contributions.

Councils will be required to undertake longer-term infrastructure planning to ensure that a long-term perspective is taken. Local authorities own nearly $100 billion in fixed assets such as roads, the 'three waters' (drinking water, sewerage, stormwater) and flood protection. They are forecasting to spend billions over the coming decades on maintaining, renewing, replacing and adding to these assets. All have longevity, so the Government wants councils to extend their planning horizons from 10 to 30 years.

While supporting the need for councils to manage their assets prudently, Federated Farmers would be concerned if small rural councils were to undertake this level of planning at an excessive cost.

In other areas the Government proposes removing planning requirements to reduce compliance costs for councils. This includes streamlining annual plans and removing the need to re-consult on matters already consulted on (e.g., in the long-term plan); introducing streamlined, focused consultation documents (and therefore reducing the use of technical, overly detailed documents); and providing greater flexibility about methods and frequency of consultation.

Federated Farmers supports reducing the costs of planning, consultation, and decision-making but it doesn't want ratepayers to lose the chance to have their say on their council's spending and rates each year. It is very important to get in front of the full council every year to reinforce the need to keep spending under control and for a fair and equitable rating system.

On the other hand, it is good that councils will be required to report the number of rating units and the capital value and land value of their districts. Federated Farmers supports such transparency as it gives ratepayers the chance to provide better, informed feedback.

Federated Farmers also supports moves to provide more flexibility for delivering shared services between councils. It sees this as a way to achieve better service delivery at a lower cost, without resorting to mergers.

In the case of mergers we support the extension of Auckland's local boards to unitary councils to enable more local representation and better service delivery.

On balance, the Government's changes should improve the efficiency and effectiveness of local government and Federated Farmers looks forward to seeing the detail when the Bill is introduced.