20 Jul 2022

'Uniquely challenging time' for local government - Prime Minister

7:16 pm on 20 July 2022

Prime Minister Jacinda Ardern says local government is having to deal with major and rapid change but it is not insurmountable.

Prime Minister Jacinda Ardern

Jacinda Ardern today gave a speech at the Local Government New Zealand conference, Te Wa Heke Mai: the Future, in Palmerston North (file picture). Photo: RNZ / Angus Dreaver

She told the Local Government New Zealand conference in Palmerston North that challenges included infrastructure, climate, the future shape of local government itself, increasing weather events, the ongoing pandemic and community wellbeing.

Challenges must be faced together and central and local government had cooperated to deal with the Covid-19 pandemic during the past three years, Ardern said.

"I very much see it as my job to ensure that you are supported, and that when it's a joint challenge, that you have a partner in central government," she said.

Substantial reforms were needed across a wide range of areas including three waters, resource management, climate change, and there were no quick fixes, Ardern said.

Ardern acknowledged that councils were having to deal with these reforms on top of local emergencies, of which there had recently been many.

"Altogether this is a tough ask of local government, I know. I understand that together the speed and scale of change on so many fronts plus the demands of service delivery in the here and now make this a uniquely challenging time."

Three Waters reforms

In acknowledgement of the challenges a new Associate Minister of Local Government Kieran McAnulty had been appointed, Ardern said.

McAnulty has now met with 21 out of 55 councils and yesterday announced $44 million in immediate funding to help with this early Three Waters transition work.

"Minister McAnulty has told me much about his engagements over the past few weeks, the need for more information, for more support, especially as councils begin to incur costs on transition activities for three waters - such as demands on staff time and engaging specialist expertise, which is particularly challenging for smaller and rural councils who are always spread more thinly," Ardern said.

She said the status quo would mean an unaffordable rates burden particularly for rural and provincial ratepayers and could mean an additional $9000 per year for some households.

Legislation was underway with the introduction of the Water Services Entities Bill in June to establish the four new publicly owned water services entities, and The Water Services drinking standards regulations would come into effect in November, Ardern said.

"There are opportunities for us to continue to improve and refine the details around these reforms, and we genuinely want to do that," she said.

Local Government Review panel

The draft Local Government Review panel report is due out in September, while the final report is now due in June 2023, Ardern said.

"As you know, we set up the review at the specific request of the sector to provide an opportunity for local government to think about its role 30 years in the future and to look at whether the current structures, powers, processes and funding systems will be fit for purpose over that timeframe."

Ardern stressed it was the sector's review.

She said she would not embark on another substantial reform of local government or governance unless there was broad consensus among councils.

"It will not be the policy of any government I lead to embark on another substantial reform of local government or governance unless it is sought and unless and there is broad consensus amongst local government about the need for and the direction of change," she said.

Electoral reform

Ardern thanked the conference for changes those within local government had suggested to electoral law.

It was "abhorrent" to have seen examples of those representing their communities to have been subjected to violence, she said.

"You told us that the local electoral environment was becoming dangerous, and that one of the barriers to candidates standing was the requirement to publish a physical address on election advertising, as that could put candidates at risk of opportunistic abuse."

The law was changed as a result of that feedback, Ardern said.

Ardern said she was keen to hear any feedback that could make the role of public service as safe as possible.

"I want us to keep working together on how we can ensure these public service roles don't take so much out of our councillors and mayors that we lose you in short order," she said.

Ardern also thanked them for supporting diversity around the council table.

"You asked the government to change the law to allow local council decisions to establish local wards to stand, without being subject to a poll."

That enabled more councils to create Māori wards and the number had gone from two prior to the change, to 35 this year, Ardern said.

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