Future for Local Government review: What it could mean for Whanganui, Rangitīkei

Whanganui Mayor Andrew Tripe. Photo / Bevan Conley.

There could be millions more in Whanganui District Council coffers if a new local government recommendation becomes legislation.

However, how councils are made up in the future is also up for discussion.

A final report has been released from the Review into the Future for Local Government, with one key point being an annual transfer of revenue equivalent to the GST charged on rates.

Whanganui mayor Andrew Tripe said based on the 2022/23 financial year, that amounted to around $10 million for the district.

“For me, that is the gruntiest [recommendation],” Tripe said.

“Ultimately, we haven’t got enough money to do the things we need to grow and sustain our community, whether it be infrastructure or initiatives to improve lifestyle, accessibility, and just quality of life.”

Whanganui’s average rates increase for 2023/24, set to be officially signed off next week, is expected to be 8.3 per cent.

Tripe said all councils across New Zealand had significant rates increases, a lot of them double-digit.

“That just shows the rates system is not working. Increasing funding mechanisms will help with that.”

Two council structures are recommended; a unitary model - one council for a region - or a combined network model.

A combined network would retain local councils and mayors but have an additional combined council that would carry out “functions that affect the whole region or require specialist capability”.

Rangitīkei Mayor Andy Watson said there was a strong indication for the reorganisation of councils into a regional model.

Both the RMA (Resource Management Act) and Three Waters reforms were also heading in that direction, he said.

Andy Watson says his councils has already “gone a long way down that path” in terms of iwi involvement and Treaty recognition. Photo / Bevan Conley

“We have hesitation around that. We would like our communities to be responsible for their own destiny.”

Watson said he would need to do further reading into the timeframes of the recommendations.

“We [the council] are looking to go out and recruit a new chief executive and what we put in the job description is quite important.

“People need to remember, this panel has had an incredibly important job - making recommendations - but that doesn’t necessarily mean this is law.

“How many recommendations will be picked up by whichever government it is? That’s yet to be decided.”

The implementation of new council structures - stage three - would take place after three-plus years.

Tripe said council amalgamation of some kind was inevitable.

“As far as what the best model is, that’s still to be worked through. Any model has to be efficient. When you have efficiency, you reduce cost and you get things done quicker, faster and better,” he said.

“For Whanganui, we could go west, we could go east, or we could follow the mountain to the sea. What this [report] does is invite the conversation about how we might look in our future.”

Another recommendation is amending the Local Government Act 2002 to require councils to prioritise and invest in developing and strengthening their capability and capacity in Te Tiriti o Waitangi, te ao Māori values, mātauranga Māori, tikanga, and the whakapapa of local government.

Watson said his council had already “gone a long way down that path” in terms of iwi involvement and Treaty recognition.

“That’s through the ability to nominate from what we call Te Roopuu Ahi Kaa (Trak), straight onto council standing committees.

“We’ve still got a way to go to meet the suggestions that they’re pointing at.

“From our point of view, that is a worthwhile conversation and we shouldn’t be afraid as a community about that conversation either.”

A panel to complete the review was appointed by the Minister of Local Government at the request of the sector two years ago.

Panel chair Jim Palmer said it had spent the time since listening to local councils, central government, iwi leaders, community and business representatives, rural communities, minority and interest groups, and the public to identify what they wanted, needed and expected from their local government system.

“Local government and communities must be empowered to build local solutions for national-level problems, with vital collaboration and funding from central government.

“We recommend a new Crown department is established to manage the relationship between central and local government that clarifies roles, allocates resources and together delivers greater value for communities.”

While that could add another layer of bureaucracy, the current system wasn’t working, Tripe said.

“Let’s try something different. It might mean we have a conduit to work more directly with central government via this Crown department.

“At the moment, we’re scrambling around talking to different ministers about different things.”

Whanganui, Ruapehu and Rangitīkei iwi representatives could not be reached or did not wish to comment.