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Submission Guide: Local Government Act 2002 Amendment Bill

Sue Kedgley MP
Sue Kedgley MP

The date for sending in a submission on this issue has passed.

Your submission must be received by the Local Government and Environment Committee by 18 June 2010.

How to make your submission

This Bill sets out changes to the local government system of New Zealand that will limit the activities of Councils, and privatise, by stealth, the water assets that have been built up by generations of New Zealanders.

A 35 year lease with management control ceded to a private company is effectively privatisation. This means there will be no accountability to the rate payers if prices rise for this essential service.

It also imposes a sinking lid funding system which has proven disastrous to communities, like Colorado, USA, where it has been implemented. This system sets a tax and expenditure limit, the aim of which is to reduce spending. This sounds attractive, but it has the effect of driving down the resources of local government, to the point where it becomes effectively bankrupt and Councils are forced to sell off their assets. This year Colorado's budget will have a shortfall of US$28 million, brought about by the strangulating effects of tax and expenditure limits. Many basic Council services have been abandoned, and one-third of Colorado Springs' 24,000 street lights were turned off earlier this year, as a result of its cap and expenditure limits.

The Bill stipulates that local government should concentrate on 'core services', but it does not adequately define core services. It does not take into account the diverse needs of the many and varied communities of New Zealand and in this way takes away some of their right to decide what is best for their community.

The environment is not mentioned as a core service in the Bill. The concern is that activities which fall under 'core services' will be funded, while activities that are not defined as 'core services', such as the environment, will miss out. This has the potential to even further degrade New Zealand's ecology.

The rates of generations of New Zealanders have gone into building water infrastructure and other public amenities. Local government has been providing solid services and public goods, and catered for diverse communities throughout New Zealand.

It is simply privatisation by another name to allow 35 year leases on this public property and to limit what local bodies can do.

This Bill fails to address its stated aim of improving transparency. It solely focuses on limiting local government and preparing assets for sale.

Key points we recommend you cover

Oppose 35 year leases on water infrastructure

  • I strongly oppose the extension of leases on water infrastructure from 15 to 35 years. Generations of New Zealanders have paid for water infrastructure. This Bill hands over control of this key asset to private hands (Clause 31, subsection 1).
  • I am opposed to the removal of local government management of water services. This is a core service that needs to be in the public's hands (Clause 31, subsections 2 and 3).
  • I strongly oppose the extension of leases on council property from 15 to 35 years (Clause 32).

Oppose the defined fiscal envelope

  • I am strongly opposed to making local bodies operate in a fiscal envelope (because this system does not work well in times of economic hardship) (Part 1, Clause 17)

  • I am opposed to making local bodies operate in a fiscal envelope because the proposed system is similar to the Taxpayer Bill of Rights (TABOR) system of Colorado where the local body can no longer afford to run many services such as street lights. (Part 1, Clause 17)

  • I am opposed to making local bodies operate in a fiscal envelope because it creates a sinking lid of funding. (Part 1, Clause 17)

  • I want this section changed to ensure a greater level of transparency and the promotion of information rather than limiting what local bodies can spend. (Part 1, Clause 17)

Oppose the focus on core activities

  • I am opposed to the focus on core activities because local bodies should be able to chose what their activities are by engaging with the needs and wants of the community (Part 1, Clause 5).
  • Limiting local bodies to core services reduces their functionality and creates red tape because local bodies will spend time arguing what are and what are not core services (Part 1, Clause 5).

How to make your submission

Everyone can have a say on the Bill by sending a submission to the Select Committee. Your submission should be clear and concise, use your own language and ideas - that is the most effective way to get your voice heard. Length is unimportant. If you do write a long submission be sure to include a summary, and number the paragraphs.

Your submission must be received by the Local Government and Environment Committee by 18 June 2010.

Submit by post

Mail two copies of your submission to:

Committee Secretariat

Local Government and Environment Committee

Parliament House, Wellington

Submit online

You can make an online submission by clicking here. If you are unable to get past the human-checker (with the fuzzy letters) then turn off your browser's popup blocker or allow popups for http://parliament.nz

If you need assistance with writing, copying or submitting, sue [dot] kedgley [at] parliament [dot] govt [dot] nz (please contact us). If this is your first time making a submission to a Select Committee, please take the time to read this guide.

Cabinet papers on the Bill can be found here.

Submission process

  • Give your name, address, phone number and email address, and a description of who you are (e.g. student, retired. If you are speaking on behalf of a group, who the group is, the number of members)
  • State that you wish to appear before the Select Committee to speak on your submission - you can always change your mind. If you live outside Wellington ask to be heard in the city nearest to you.
  • Clearly state your opposition to the Bill as it stands
  • Outline your key concerns about the Bill clearly and concisely.

Thanks for taking the time to make this submission.

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