Re-building New Zealand Economy
The Government's plan to pull New Zealand up in the global competitiveness stakes has always been firmly based on stimulating economic and employment growth. February's Job Summit made this clear.
Like central government, local government has a big role to play in supporting economic development. Whatever verb we use to describe our impact, whether it's ‘enable', ‘support', ‘build' or "stimulate", interaction with the economy takes place at the regional and local level, and cannot take place without our involvement.
It's the role of councils, as part of the machinery of government, to maintain local infrastructure, stimulate local economies, and manage major long-term infrastructure projects. Councils must do all these things to ensure communities continue to thrive - and we must do all these things largely from the limited funding base of rates.
Given the new focus on the economy, Local Government New Zealand has been actively engaging with the Government on a raft of new economic measures on behalf of our member councils.
We have made an important and very vocal submission on the Infrastructure: Facts and Issues discussion document. The document sets out the purpose of a National Infrastructure Plan "to present a high-level view of the state of New Zealand's infrastructure, describe the principles and direction of future investment, improve alignment between national and regional planning, establish greater discipline between infrastructure decisions and increase public awareness about the role that infrastructure plays in supporting and raising the nation's living standards".
We're supportive of more transparent and consistent decision-making in this area. Central vs local funding continues to be a sticking point, in particular the advocacy by the infrastructure facts and figures document of greater use of rates to fund locally-owned and operated infrastructure. This is at odds with the reality in virtually every other OECD economy, where central government is acknowledged as having superior revenue-raising powers and the ‘national' benefits delivered from local infrastructure are recognised.
The deployment of broadband infrastructure is another of the Government's big-ticket items to stimulate economic growth. We're currently preparing submissions to three upcoming discussion papers: the Rural Broadband Initiative; TSO Reform and Funding Telecommunications Development and Facilitating the Deployment of Broadband. Our end goal is to focus on the balance between reducing costs and creating robust enduring infrastructure for our members. We encourage our members' feedback on these issues.
Another large economic opportunity fast approaching us is the Rugby World Cup. Local government's role as venue providers, transport co-ordinators, and regional tourism operators will be pivotal if New Zealand is to successfully host one of the largest sporting events on the world-stage - one that is likely to leave an enduring impression of New Zealand as an event and tourism destination.
The reality is local government has a strong stake in economic development. The next few months will be crucial as we continue our active engagement with central government on how the different networks supporting economic growth are funded, and on the strong linkages between social and economic well-being.
Lawrence Yule
President
Local Government New Zealand
