Talking TAFM
Local government in New Zealand is most definitely in the spotlight at present and a lot of recent Government policy announcements have implications for our sector, among them the RMA, the NLTP and Auckland governance decisions. The question is, is anyone at the centre considering their cumulative impact on the role of local government?
This week I had a detailed, constructive and encouraging discussion with the Prime Minister during which I was able to convey a wide range of concerns that you have expressed to Local Government New Zealand, and to me.
I will report back to members on the details of that meeting in my next Fortnightly Update. This will be sent to Mayors, Chairs and Chief Executives on September 11.
Meanwhile, I want to update you on TAFM, the Government's review of Transparency, Accountability and Fiscal Management in local government.
A Cabinet paper which outlined the scope of the review was released to the public earlier this year. It is notorious for its statement that rate levels were never an issue at local government elections and therefore accountability of the sector was low.
The TAFM review has a wide brief. The issues being considered by the Minister of Local Government and the Department of Internal Affairs (DIA) include:
- streamlining the LTCCP (which is supported by Local Government New Zealand)
- cost-index for benchmarking purposes
- pre-election financial updates (more costs for councils to meet)
- plain English financial disclosures
- defining core services and exploring the use of binding referenda when councils want to increase rates above headline inflation (both of which are opposed by Local Government New Zealand).
The Minister hopes to finalise his proposals in time to introduce a local government amendment bill into Parliament by the end of the year.
Local Government New Zealand and SOLGM have been working with the DIA on options for meeting the Minister's objectives.
The nature of these discussions is confidential. We are not party to the discussion between the Minister and the DIA and therefore do not yet know what the Minister and Cabinet will finally agree and what will go forward to the bill.
Many of the ideas that have been floated - such as mandatory referenda - would dramatically change the way in which local government works and undermine the roles of elected members. The risks to the future effectiveness of local government are such that I urge all elected members to make their concerns known to their local MPs.
We will not know which of these suggestions make it into the final bill until December. And we will not know if they have the Government's support until the Select Committee reports back - towards the middle of 2010. Meantime, if you want to know more, contact Local Government New Zealand Governance Manager Mike Reid: mike.reid@lgnz.govt.nz
Lawrence Yule
President
