Summary
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Prime Minister Christopher Luxon gave a speech at the Local Government New Zealand (LGNZ) conference on 21 August 2024.
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Prime Minister Luxon’s speech to the conference of mayors and councillors focused on council’s wasteful spending and the need for local government to do the basics.
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Prime Minister Luxon made a reference in his speech to the $180 million Tākina convention centre as an example of the issue with Local government spending priorities. The conference was being held in that convention centre.
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Some mayors criticised the speech and attempted to defend their spending.
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Prime Minister Luxon made announcements about four points of a “local government work programme”.
The four points of the “local government work programme” can be summarised as:
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“get councils back to basics” & “abolishing the four wellbeing provisions in legislation”,
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“investigate performance benchmarks for local councils” & “performance measures for “financial performance and customer service delivery”,
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“investigate options to limit council expenditure on ‘nice-to-haves’” such as “revenue caps” being “applied to non-core activities to control rates increases”,
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“review the transparency and accountability rules that apply to councils” with a mention of the problem of “unelected officials” preventing “elected members from accessing the information they need to represent their communities”.
The full speech text is worth reading for the details and context.
Video
Speech Text
Link:
https://www.beehive.govt.nz/speech/speech-lgnz-superlocal-conference
Archived Link:
Article Details
Headline: Chistopher Luxon had a message for councils, Tory Whanau had a message for Christopher Luxon
Authored by: Thomas Coughlan
Published on: 21 August 2024
Published by: NZ Herald
Link:
Archived Link:
Headline: Whanganui Mayor Andrew Tripe says Prime Minister’s LGNZ speech missed the mark
Authored by: Mike Tweed
Published on: 24 August 2024
Published by: Whanganui Chronicle, NZ Herald
Link:
Archived Link:
Headline: ‘Slippery slope to mediocrity’: Mayors hit back at PM’s speech
Authored by: Max Frethey
Published on: 22 August 2024
Published by: RNZ
Link:
https://www.rnz.co.nz/news/ldr/525887/slippery-slope-to-mediocrity-mayors-hit-back-at-pm-s-speech
Archived Link:
Important Quotes
“All of us in the room felt like we were being told off – the naughty kids who have been chucked in the corner for doing something wrong.”
Ruapehu Mayor Weston Kirton as quoted by Mike Tweed in Whanganui Mayor Andrew Tripe says Prime Minister’s LGNZ speech missed the mark, Whanganui Chronicle, 24 August 2024
“Finally, if there was any doubt about our commitment to getting local government back to basics, I have some announcements to make today on our local government work programme.
First, Cabinet has agreed to streamline the purpose provisions in the Local Government Act to get councils back to basics.
For Councils, that means abolishing the four wellbeing provisions in legislation and restoring focus on local services and infrastructure.
For ratepayers, it’s simple. The central government focuses on must-haves, not nice-to-haves, and we expect local government to do the same.
Second, Cabinet has agreed to investigate performance benchmarks for local councils, similar to the approach some Australian states apply to their local authorities.
In theory, the Local Government Act establishes the accountability of local authorities to the communities they serve. But in reality, it’s difficult to get consistent, easily accessible and comparable information about how councils are actually performing.
The performance measures we’re looking to introduce are in areas councils should already be monitoring closely, such as financial performance and customer service delivery.
But sunlight is the best disinfectant – and ratepayers deserve to know exactly what they’re getting for their rates.
Third, Cabinet has agreed to investigate options to limit council expenditure on ‘nice-to-haves’.
In some Australian states, revenue caps are applied to non-core activities to control rates increases.
We’re interested in how a similar approach could work here in New Zealand, ensuring the right balance between ratepayers’ interests and councils’ financial positions.
Yes, councils need adequate revenue to fund core responsibilities like roads, rubbish and water, but the value-for-money proposition is more questionable in a range of other areas.
Councils need to examine those areas more closely, and I’m up for any tool – like revenue capping – that makes them do so.
Fourth, Cabinet has agreed to review the transparency and accountability rules that apply to councils.
It’s unacceptable that the rules as they stand today allow unelected officials, in many cases, to prevent elected members from accessing the information they need to represent their communities. We will review those settings.
There have been too many absurd scenarios in which ratepayers are effectively shut out of decision-making because elected members’ rights to access information are treated as a secondary consideration.
My expectation is we find a way to end those practices. ”
Local government work programme part of Prime Minister Christopher Luxon’s Speech to the LGNZ Conference, 21August 2024
“…go line by line, stop the wasteful spending, remove the bureaucracy, focus on better customer service, and end the projects that aren’t delivering value for money”
Prime Minister Christopher Luxon as quoted by Thomas Coughlan in Chistopher Luxon had a message for councils, Tory Whanau had a message for Christopher Luxon, NZ Herald, 21 August 2024
“Pick up the rubbish, fix the pipes, fill in potholes, and more generally, maintain local assets quickly, carefully, and cost effectively.”
Prime Minister Christopher Luxon as quoted by Max Frethey in ‘Slippery slope to mediocrity’: Mayors hit back at PM’s speech, RNZ, 22 August 2024
“Ratepayers expect local government to do the basics and to do the basics brilliantly”
Prime Minister Christopher Luxon as quoted by Max Frethey in ‘Slippery slope to mediocrity’: Mayors hit back at PM’s speech, RNZ, 22 August 2024
“A government capping local government’s ability to reflect what its communities are asking for is a slippery slope to mediocrity.”
New Plymouth Mayor Neil Holdom as quoted by Max Frethey in ‘Slippery slope to mediocrity’: Mayors hit back at PM’s speech,RNZ, 22 August 2024
“Councils should decide for themselves on the use of Māori wards,” Whanau said to applause from councillors…We should be able to decide for ourselves, how we honour Te Tiriti o Waitangi and how we work in partnership with mana whenua, iwi, and Māori,”
Wellington Mayor Tory Whanau as quoted by Thomas Coughlan in Chistopher Luxon had a message for councils, Tory Whanau had a message for Christopher Luxon, NZ Herald,21 August 2024
“We know your communities need the tools to sustainably finance the necessary investment. So, we’re making changes.
Through changes agreed by the Local Government Funding Authority, we’re alleviating pressure on council debt caps, which will relieve a lot of pressure on fast-growing councils.
We’re presenting a suite of options for achieving local water reform that will satisfy ratings agencies’ concerns while maintaining local control of water.”
Local government work programme part of Prime Minister Christopher Luxon’s Speech to the LGNZ Conference, 21August 2024
