Local Government, Governance And Local Government, Governance And - - PowerPoint PPT Presentation

Local Government, Governance And Local Government, Governance And Raising The Quality Of Public Debate

A presentation in the Treasury Academic Lecture Series by Stephen Selwood of the New Zealand Council for infrastructure Stephen Selwood of the New Zealand Council for infrastructure development and Peter McKinlay of McKinlay Douglas Ltd 25 June 2014 25 June 2014

Introduction Introduction

This paper’s basic proposition is the need to lift the scope and quality of public debate on the the scope and quality of public debate on the role and purpose of local government and local governance. Above all there are two matters we need to get i ht th f t ki d i l ti right – the means for taking and implementing decisions with regional or supra‐regional impact, and what must inherently be managed at a neighbourhood or community level, by whom and what does that imply.

What We Will Cover What We Will Cover

Context: the major issues driving the need for change in how we think about and enable local government and local governance: what’s happening with central government/local government relationships. g / g p What needs to be decided at a regional or supra‐regional level and the options. The ‘what’ and ‘why’ of decision‐making at the neighbourhood or community The what and why of decision‐making at the neighbourhood or community level. Conclusions.

Context – Major Influences Context – Major Influences

Globalisation and the rise of metropolitan centres. Demographic change. Fiscal constraints Fiscal constraints. Changing priorities for resident involvement. Central government engagement with communities.

Context – Central Government/Local Government Relationships

Seen as a principal/agent relationship? Local government trapped in a compliance culture. culture. Distrust between the sectors; central government ; g

• ften misunderstanding local government; public

misunderstanding and lack of trust. Focus on the peculiarities of a set of subsidiary institutions rather than on the governance needs

• f New Zealand’s communities.

Core functions of local government (existing)

• Local democracy

C i i

• Community services
• Land use planning & regulation
• Environmental protection
• Infrastructure

Community Services Infrastructure

Local National

Community Services Local Democracy Land Use Planning & Regulation Environmental Protection Infrastructure

National Significance of Infrastructure National Significance of Infrastructure

7.0

RELATIONSHIP BETWEEN INFRASTRUCTURE & GLOBAL COMPETITIVENESS SCORES

WORLD ECONOMIC FORUM GLOBAL COMPETITIVENESS INDEX 2013‐14 [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE]

5.5 6.0 6.5 7.0 ESS SCORE

[CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE]

4.0 4.5 5.0 5.5 MPETITIVEN

R² = 0.8503

2.5 3.0 3.5 4.0 GLOBAL COM 2.0 2.5 1.0 2.0 3.0 4.0 5.0 6.0 7.0 G INFRASTRUCTURE SCORE

International trends

• National & Regional Spatial Planning

– Ireland, Scotland, Wales, Denmark, the Netherlands, Australian States

• Strong national leadership for major cities

– Australia, Denmark, Sweden

• Advanced planning, design, funding, tools

– Housing market assessments, urban design commissions and capability building, value capture instruments, innovative financing instruments, master‐plans and specialised zoning, urban regeneration/development agencies, and instruments to enable land assembly in strategically important areas such as compulsory purchase strategically important areas, such as compulsory purchase

• Consolidation in capital intensive infrastructure

Empirical research signals broad consensus regarding the existence of scale economies for capital p g g g p intensive infrastructure provision – Evidence of scale economies for local services is mixed and inconclusive – Efficiency gains from consolidation is more likely to be reflected in enhanced strategic capacity or improved service delivery than reduced rates

Scottish National Planning Framework

Irish National Irish National Development Plan – 2007 to 2013 2007 to 2013

• €184 billion investment

programme to deliver programme to deliver National Spatial Strategy

• €54bn economic

i f t t infrastructure

• Transport 21 targets road

and rail connectivity Dublin to provincial cities to the west

• Mixture public and private
• Mixture public and private

funding

• Pricing thru user tolls

Source: http://www.ndp.ie/viewdoc.asp?fn=/documents/publication s/annual/default.htm&mn=pubq&nID=6

Ambitious planning & delivery

High Speed Rail to connect main cities in

• Connectivity strategic

importance G t B lt B id d

Jutland

• Great Belt Bridge opened

1998

• Oresund 2000

Copenhagen

Copenhagen Great Belt Bridge Oresund Oresund Bridge & Tunnel Great Belt Bridge

• SOE delivery model ‐ 30 year

concession T ll d DKK250 ($NZ60) t

Oresund

Fehmarnbelt Tunnel

• Tolled DKK250 ($NZ60) to

match ferry

• Fully funded by tolls but debt

backed with govt guarantee

• Extensive assessment of

environmental impact environmental impact

• Now planning Germany

Copenhagen link by 2018

Great Belt Bridge

Scale Matters for Infrastructure: Scottish Water since inception in 2002 to 2010 Scottish Water since inception in 2002 to 2010

Scottish Water Target & Actual

• Operating Costs

reduced by 40%

• Capital programme

delivered well below Scottish Water Target & Actual Overall Performance Achievement delivered well below budget

• Significant increase

in Service P f Performance standards

• Future bill target

2015 to 2021 is CPI – 1.75%

• Smart technology

solutions manage

• ver 30 000 reactive
• ver 30,000 reactive

and routine work

• rder tasks

undertaken every month across month across Scotland

Source: Water Industry Commission for Scotland Performance Report 2010; p5

Water Industry Pilot Study

• Scale matters

– improved strategic focus, specialisation of technical staff purchasing power & economies staff, purchasing power & economies

• Shared services can achieve some (but not all) of these

benefits benefits

• Direct pricing enables strong customer supplier link

Small councils struggle to meet t d d standards

Proportion of population with water that complies with NZ Drinking Water Quality Standards 2012/13

Timetable to comply with sections 69S to 69ZC of the Health Act 1956:

• large drinking‐water supplies

( th 10 000 l ) f

Small

(more than 10,000 people) from 1 July 2012

• medium drinking‐water

supplies (5001 to 10,000 people) from 1 July 2013

Minor

• minor drinking‐water supplies

(501 to 5000 people) from 1 July 2014

• small drinking‐water supplies

Minor

• small drinking‐water supplies

(101 to 500 people) from 1 July 2015

• neighbourhood drinking‐water

supplies (25 to 100 people) from 1 July 2016

Medium

1 July 2016

• rural agricultural drinking‐water

supplies from 1 July 2016 or the date on which the Standards are amended to include them, hi h i l t

0% 20% 40% 60% 80% 100% Large

whichever is later.

Source: Annual Review of Drinking-Water Quality in New Zealand 2012/13

0% 20% 40% 60% 80% 100% Overall achievement Chemical achievement Protozoal achievement Bacteriological achievement

Compliance with monitoring requirements under section p g q 35 (2) of the RMA

Percentage of local authorities monitoring and reporting, 2007/08 and 2010/11

Source: Resource Management Act: Survey of Local Authorities 2010/2011 p50

Significant demographic change challenges ability to fund core infrastructure ability to fund core infrastructure…

Complex Dis‐Integrated Planning Laws

TAURANGA CITY COUNCIL ROTORUA DISTRICT COUNCIL

Coast Community Brd

OPOTIKI DISTRICT COUNCIL KAWERAU DISTRICT COUNCIL WHAKATANE DISTRICT COUNCIL

5 Community Boards

WESTERN BAY DISTRICT COUNCIL BAY OF PLENTY REGIONAL OUNCIL CROWN BoP LOCAL AUTHORITY SHARED SERVICES REGIONAL TRANSPORT COMMIITTEE ANIMAL CONTROL BUILDING & PLANNING CEMETERIES ELDERY HOUSING ENVIRONMENTAL ANIMAL CONTROL BUILDING & PLANNING ELDERY HOUSING ENVIRONMENTAL ANIMAL CONTROL BUILDING & PLANNING CEMETERIES & CREMATORIUM ELDERY HOUSING NZ TRANSPORT AGENCY KIWIRAIL ANIMAL CONTROL BUILDING & PLANNING CEMETERIES ECONOMIC DEVELOPMENT ANIMAL CONTROL BAYCOURT THEATRE BUILDING & PLANNING CEMETERIES & ANIMAL CONTROL BUILDING & PLANNING CEMETERIES ECONOMIC DEVELOPMENT COMMIITTEE BAY OF CONNECTIONS CIVIL DEFENCE EMERGENCY MGT GRP ENVIRONMENTAL FOOD & HEALTH GRAFFITI & NOISE LIBRARY SERVICES LIQUOR LICESNING PARKING PARKS & RESERVES WATER SERVICES FOOD & HEALTH GRAFFITI & NOISE LIBRARY SERVICES LIQUOR LICESNING PARKING SWIMMING POOLS TOURISM ELDERY HOUSING ENVIRONMENTAL FOOD & HEALTH GRAFFITI & NOISE LIBRARY SERVICES LIQUOR LICESNING PARKING PARKS & RESERVES MINISTRY OF EDUCATION NATIONAL HEALTH BOARD HOUSING NZ ENVIRONMENTAL FOOD & HEALTH GRAFFITI & NOISE HARBOUR DEV LIBRARY SERVICES LIQUOR LICESNING PARKING CREMATORIUM ELDERY HOUSING ENVIRONMENTAL FOOD & HEALTH GRAFFITI & NOISE LIBRARY SERVICES LIQUOR LICESNING DEVELOPMENT ENVIRONMENTAL FOOD & HEALTH GRAFFITI & NOISE LIBRARY SERVICES LIQUOR LICESNING PARKING PARKS & RESERVES CASTLECORP

• 3 WATERS
• REFUSE
• FOOTPATHS
• PARKS
• GARDENS &

ROADS AND TRANSPORT PUBLIC TRANSPORT COMMITTEE MGT GRP SMART GROWTH IMPLEMENTATION COMMITTEE WATER SERVICES WASTE & RECYCLING PARKS & RESERVES HARBOUR DEV SWIMMING POOLS TOURISM WATER SERVICES WASTE & RECYCLING HEALTH BOARD BAY OF PLENTY DHB LAKES DHB PARKS & RESERVES SWIMMING POOL TOURISM WATER SERVICES WASTE & RECYCLING PARKING PARKS & RESERVES HARBOUR DEV SWIMMING POOLS WATER SERVICES WASTE & RECYCLING PARKS & RESERVES SWIMMING POOL TOURISM WATER SERVICES WASTE & RECYCLING GARDENS & SPORTSFIELDS

• CEMETARIES &
• CREMATORIUM
• FLEET MAINT
• RURAL FIRE

WHAKATANE AIRPORT TAURANGA CITY ROUTE K TOLL ROAD ROADS AND ROADS AND TRANSPORT ROADS AND TRANSPORT ROADS AND TRANSPORT ROADS AND TRANSPORT WBOP JOINT ROAD SAFETY COMMITTEE WESTERN BAY JOINT RURAL FIRE AUTHORITY ROTORUA TE ARAWA LAKES STRATEGY GROUP OHIWA HARBOUR IMPLEMENTATION FORUM WORK & INCOME NZ BoP REGION CHILD YOUTH MINISTRY SOCIAL DEVELOPMENT LOCAL AUTHORITY SHARED SERVICES WAIKATO PORT OF BAY LEISURE & EVENTS LTD TAURANGA CITY INVESTMENTS QUAYSIDE HOLDINGS ROADS AND TRANSPORT TAURANGA ART GALLERY GROW ROTORUA TOI ECONOMIC DEVELOPMENT AGENCY PRIORITY ONE WESTERN BoP TOURISM TRUST (TOURISM Bop) RANGITAIKI RIVER FORUM NZ POLICE CHILD YOUTH & FAMILY

MIDLAND REGION

BoP DISTRICT 23 STATIONS CROWN AGENCIES COUNCIL SERVICES KEY:

Regional Governance

Bay of Plenty Example

ROTORUA INTERNATIONAL AIRPORT TAURANGA AIRPORT WAIKATO PORT OF TAURANGA ROTORUA DISTRICT COUNCIL HOLDINGS LTD REGIONAL INFRASTRUCTURE FUND CREATIVE TAURANGA TCC WBOP JOINT GOVERNANCE COMMITTEE INTERMEDIATE 23 STATIONS MINISTRY OF JUSTICE 4 DISTRICT COURTS

CENTRAL REGION

CROWN AGENCY / DEPARTMENT CROWN AGENCIES TRANSPORT & ROADS SHARED SERVICES ECONOMIC DEVELOPMENT EMERGENCY SERVICES MAORI CONSTITUENCIES COUNCIL SERVICES URBAN PLANNING INVESTMENTS & LATES AIRPORTS CREATIVE ARTS IWI HYDRUS ENGINEERING CONSULTANTS COUNCIL NURSERY HOUSING WORKING PARTY Ngati Ranginui Ngai Te Rangi Te Arawa Ngati Awa Whakatohea Nga Tai Whanau‐a‐ apanui Tuhoe MAUAO Constituency OKUREI Constituency KOHI Constituency CROWN AGENCY / DEPARTMENT CROWN AGENCY RELATIONSHIPS WITH COUNCILS NATIONAL LAND TRANSPORT FUNDING COUNCIL CONTROL / FUNDING / MEMBERSHIP / SHAREHOLDING OR SIGNIFICANT INFLUENCE IWI REPRESENTATION ON REGIONAL COUNCIL

Summary Attributes of Different Forms

• f Consolidation

Source: Australian Centre of Excellence for Local Government, Local Government Association of South Australia and Local Government New Zealand “Consolidation in Local Government: A Fresh Look” p7

Form follows function Form follows function

Democratic Democratic

Spatial Planning – infrastructure &

Community Voice

• od

infrastructure & land use Environmental Protection Local Arts, Culture & Events

ational bourho

Community Services Regulation Economic Development

egional Na Neigh

Libraries Sports Parks & Gardens Community Halls g Transport Infrastructure

Re

Power Lines y Water infrastructure Ports Stadia Rubbish Power Lines

Corporate

Improving Infrastructure Planning & Delivery

Source: Local Government Infrastructure Efficiency Expert Advisory Group

The ‘What’ And ‘Why’ Of Community Decision Making The What And Why Of Community Decision Making

Problematic governance/Management split. The nature of ‘owner’ expectations. The changing context for engagement – not just as customers but as citizens. Growing central government interest in engagement with communities with communities. Why community capability matters.

Conclusions (1) Conclusions (1)

Our purpose has been to demonstrate that current understandings and practices in respect of local government practices in respect of local government

• ur seriously out of line with what is

needed to deal with the challenges New needed to deal with the challenges New Zealand’s economy and society face now and for the foreseeable future.

Conclusions (2) Conclusions (2)

The present legislative and regulatory framework for local government is basically framework for local government is basically unchanged since the reforms of the late 1980s/early 1990s. 1980s/early 1990s. This contrasts markedly with the fundamental changes which have taken place in local g p government’s operating environment.

Conclusions (3) Conclusions (3)

• An increasingly dysfunctional set

We contend present

• An increasingly dysfunctional set
• f governance and accountability

arrangements.

present arrangements for an understanding

g

• A persistent failure to address the

quite different requirements and

g

• f local

government are

capabilities for regional issues on the one hand and neighbourhood issues on the other

no longer ‘fit for purpose’ for reasons

issues on the other.

reasons including:

Conclusions (4) Conclusions (4)

• Increasing duplication, complexity and
• ften incompatibility of a wide range of

local regulatory instruments as a consequence of fragmented

Further

consequence of fragmented responsibility – and a mismatch between regulatory and economic boundaries.

• Inadequate funding arrangements

Further reasons:

• Inadequate funding arrangements.
• The evolution of new and different

approaches to governance at a

reasons:

community level.

Recommendations Recommendations

Establish a Royal Commission to undertake a first principles consultative review of the purpose, principles consultative review of the purpose, structure and funding of local government and the legislative and planning framework in which the legislative and planning framework in which local government operates.

The Royal Commission should report to Parliament

• n options for local government and planning law

p g p g reform as early as practicable in the next triennial term with a view to legislation being introduced in 2018 – following the next general election in 2017.