Major reforms could ‘ravage’ city councils

‘‘We'll be left sitting around as a community board with no power, effectively.’’

Proposed changes to the way local government is organised in New Zealand could reduce councils to powerless entities, says Upper Hutt mayor Wayne Guppy.

‘‘This is probably the most major reform that’s ever been seen,’’ Guppy said at a meeting finalising Upper Hutt’s submission on The Local Government Act 2002 Amendment Bill (No 2).

Proposed amendments allow the Local Government Commission to amalgamate councils and transfer responsibilities to Council Controlled Organisations [CCOs]

Some existing CCOs will take over council responsibilities immediately.

‘‘There’s no question the amendments give the LGC far reaching powers,’’ Guppy said.

‘‘We are talking about creating major public monopolies without any public accountability.’’

The Bill’s legislation would amount to a ‘‘ravaging of local government’’,and lead to amalgamation by ‘‘stealth’’.

‘‘Really, the [super city] amalgamation was mum and apple pie compared to what is involved in this,’’ Guppy said.

‘‘We’ll be left sitting around as a community board with no power, effectively.’’

Upper Hutt ‘‘has significant concerns with many parts of the Bill,’’ the submission says.

‘‘The power provided to the LGC in directing outcomes goes too far, and will provide for the amalgamation of councils or establishment of CCOs without the necessary demographic accountability.’’

Upper Hutt ‘‘considers the transfer of some responsibilities, without the need for a poll, will result in the privatisation of council infrastructure in all but name.’’

The amendment bill has passed a first reading in Parliament and has been referred to the Local Government and Environment select committee.

It ‘‘will enable more innovation and collaboration across local government to deliver better local services and infrastructure’’, Local Government Minister Peseta Sam Lotu-Iiga said.

The proposed changes are essential for planning and supporting jobs, regional growth and community development, he said.

Current local government structures limit the ability of the country’s 78 councils and 66 water authorities to work together to manage critical infrastructure and deliver shared services across regions.

‘‘The bill will enable two or more councils to create CCOs,’’ Lotu-Iiga said.

‘‘Multiple-owned CCOs can have greater size, scale and capacity than can be achieved by individual councils,

‘‘The bill also provides for the Local Government Commission to have enhanced powers to work with councils and government to support reorganisation proposals.’’

The Government expects the legislation will be passed by the end of the year.

Councils formed from in October’s local body elections would be able to use the reform options in their new terms, Lotu-Iiga said.

Submissions to the select committee close July 28.