Speech to Howick Rotary Club

Speech given on 8 June 2010 by Hon Rodney Hide, to the Howick Rotary Club, Howick Bowling Club, 70 Sale Street, Howick.

Ladies and Gentlemen, thank you all for having me here tonight. I especially thank John Osborne, and the Howick Rotary Club which has always provided an outstanding contribution to the Howick community.

Last week the Government passed the final piece of Auckland legislation - the Local Government (Auckland Law Reform) Act.

For 100 years Wellington has set Auckland up to fail with divided and fragmented leadership. We have set Auckland up to succeed.

The proposed name of this ward was a hot topic. The Local Government Commission chose the name Te Irirangi for the new ward and local board that included the areas within the boundaries of the Howick, Pakuranga and Botany community boards. 

I received letters from concerned residents, including representatives from the community boards, who felt as though the choice of name did not adequately reflect or represent the character and history of their areas. 

Local MPs Maurice Williamson and Pansy Wong listened to local concern and made strong representation. As a result, the Government changed the ward and local board name to Howick.  The Government has listened and acted upon local concern.

We live in this great city of enormous potential and energy. It has jewelled harbours rimmed by ancient volcano cones and lush kiwi bush. It has energy, entrepreneurial and artistic talent, and diverse communities and cultures. And yet it's failing. Its governance structure sets it up to fail. It is divided, fragmented and lacks any coherence or ability to address the challenges the region confronts and to deal decisively to them. We spend most of our lives stuck in Auckland’s literal- and metaphorical - gridlock.

Michael Joseph Savage recognised the problem back in 1919, calling for a unification of the regions disparate and ineffective councils.

The Royal Commission on Auckland Governance found that Auckland's eight councils lacked the collective sense of purpose, constitutional ability, and momentum to address issues effectively for the overall good of Auckland.

It's taken nearly 100 years for Wellington to agree to set Auckland free from the bureaucratic mess that has held Auckland back.

Auckland has had too many missed opportunities. Important decisions affecting the lives and well-being of our largest population base are delayed, or not made at all. Services are poor and cost more than is necessary. Roads are clogged. Councils across Auckland cannot agree on, or apply, consistent standards and plans.

Not any more. We are unifying Auckland’s leadership and governance. We are giving it a structure that will work. We are putting Auckland in charge of its own destiny. We are setting Auckland up to succeed. That’s something that Wellington has always feared.

At midnight on October 31st, multiple organisations will be disestablished and their staff and assets moved into new or different organisations; and as of one minute past Midnight on Nov 1 the new Auckland council will be up and running. Local boards, a brand new local government structure in NZ, will be established and integrated as part of the Auckland Council’s planning and decision making systems.

The third and final Act provides a governance framework for council-controlled organisations, to ensure they achieve the regional effectiveness of operation which these governance reforms demand, and also provides a mechanism to complete the rationalisation of existing CCOs in Auckland.

It establishes Auckland Transport and the Waterfront Development Agency, and makes further provision for Watercare Services Ltd.

The CCO structure provides transparency and accountability. They allow us to achieve public outcomes with commercial discipline.

The third and final Act also provides mechanisms to enhance Maori, Pacific and Ethnic participation in Council processes and decision-making.

The council will have two decision-making groups in the new Council - the governing body made up of the Mayor and councillors, and the local boards which have specific decision-making responsibilities. The local boards ensure local democracy and community input.

The main governing body is responsible for the overall financial management and the provision of services and facilities and activities across its region. 

It is responsible for the council's regulatory functions of the Council as a local authority, and also has the power to delegate these functions to local boards. 

Local boards are responsible for the two way communication about the strategies, policies and plans of the Council, as well as developing bylaws for their local board areas and presenting them to the governing body.

The governing body determines how responsibility is allocated for any particular decision by applying a set of principles set out in the Act. 

To summarise, these principles state that non-regulatory decisions should be allocated to local boards, unless the nature of the activity is such that an Auckland-wide decision will better promote the well-being of the total Auckland community.

Before the Local Government election in October the Auckland Transition Agency will publish the Local Board's baseline list of responsibilities and functions, and their baseline funding. Any minor changes will be negotiated and agreed between the Auckland Council and the local boards at the time of developing the 2012 Long Term Council Community Plan (LTCCP).

The Council will be required to publish in its long-term and annual plans which responsibilities have been delegated to the local boards so that Aucklanders know where the responsibility lies.

In future the number of Local Board members can be increased to a range of 5-12 members, from the current range of 4-9 members. This can occur at the next representation review after the 2013 elections.

The Royal Commission on Auckland Governance estimated the total cost of their proposed reforms to be between $120 -$240 million, across four years. The transition cost is now expected to be just $94 million in less than half that expected time, with further benefits soon to be announced.

To put the transition expenditure into context, local government in the Auckland region will spend more than $2 billion dollars this year, and has a total asset base of more than $27 billion.

I have done my part and I am proud of what we have achieved here as a Government. The rest is up to Auckland’s voters to go to the polls in October and vote in their new Mayor, Council and Local Boards to get this new entity up to speed and begin fixing Auckland’s problems.

Your new Council will have a single vision, under a single leader who will make decisions regionally, plan strategically and act decisively in Auckland’s interests.

Auckland governance will be unified and united. The new council will be empowered to get on with the job of providing for Auckland’s future.

Auckland’s traffic gridlock will now be dealt with by a single body.

No more costly duplications of functions across eight rating authorities, seven district plans and a multitude of differing bylaws.

Aucklander’s anger, despair and frustration over the regulatory red tape and the cost of complying with different district and rural plans across the region will no longer be an issue blocking development.

Your Council will focus on lowering fees and costs and simplifying the paper work under a single district plan.

I can confidently say that ratepayers can now expect efficiency gains in the years ahead from integrated long-term planning and decision-making.

The intent is to make Auckland the most exciting, vibrant metropolitan centre in Australasia. Our aim is to make Auckland one of the world’s great cities and regions.

The Auckland Council's costs will not only be lower, but with better customer service.

Auckland's eight councils have produced a bewildering number of fee categories across the region to confuse and enrage residents.

There are currently sixty categories for registering, impounding and adopting dogs. Once your Council has finished its work, there will be half that number, with charges dropped to the lowest levels.

Building inspections across the eight councils currently range in cost from $110 to $178 an hour. These will drop to $110 across the region in the new Auckland Council.

Anyone who has ever tried to build anything in this city has had to deal with the absurd regime surrounding Resource Consent Forms.

There are over 850 forms currently used by councils. Your new Council will deal with just 120 simplified forms across the region - wherever you are, the consent application will be the same.

There will also be a single Building Control Authority delivering standardised control policy and acceptance criteria, again, producing a consistent review and application process.

What I made sure was a priority in the new city is that it focused on producing a strong service culture.

There will be full service centres operational on day one in central Auckland, Takapuna, Henderson and Manukau, supplemented by local service centres at Orewa, Waiheke, Papakura and Pukekohe.

There will also be neighbourhood service centres at Warkworth, Huapai, Helensville, Great Barrier and Waiuku, with more to follow.

Staffing numbers will fall.

We will create a smaller, tighter top management team to drive the necessary improvement and consistency across the region. Front line staff members will be maintained.

Fears about the powers of Council Controlled Organisations or CCOs have been removed. Auckland’s CCOs will now be the most accountable of any council in the country.

Currently there are over 40 existing CCOs spread over eight Auckland councils, many of which have the same or similar functions.

This ATA’s review of CCOs is intended to create fewer, larger organisations which will perform these functions more efficiently and with full accountability to the new Auckland ‘Super City’ Council.

The Government has already approved three CCOs for Auckland - Auckland Transport, Watercare Services Limited and the Waterfront Development Agency.

For example, Auckland Transport will replace nine separate transport entities that currently exist across the city.

This Government is committed to having a unified Auckland transport body which will provide a transport network capable of supporting Auckland’s continued growth and economic success.

The new CCO structure will remain in place from 1 November 2010 until the new Auckland Council has completed consultation with Aucklanders on any proposed changes.

Any of the existing council entities that are not affected by the new structure will simply transfer to the Auckland Council on 1 November 2010.

These entities will have to conform to the same provisions in legislation as other nationwide CCOs, the Local Government Act 2002.

The model includes strong accountability mechanisms between the Council and the CCOs, including the requirement for a statement of intent, regular reporting to the Council and audits by the Auditor-General.

These organisations will also be monitored by an Auckland Council governance and monitoring unit.

They will have boards appointed by the Council that may also dismiss directors. The council determines the policy and appoints a board to ensure its wishes are carried out, if its not, they can sack the lot.

Furthermore, there is no impediment to the Council disestablishing any of the CCOs, except Auckland Transport, the only statutory entity.

All Auckland Council CCOs will now be required to have two board meetings open to the public, at which the public can participate and speak directly to board members.

These meetings will concern the CCOs statement of intent, and whether it has achieved its goals during the preceding financial year.

The council can increase this number if it so desires, but there will always be that two meeting minimum guarantee.

We know the people of Auckland want their rates kept low. We know they fear a lack of local community involvement and local democracy. And we know they are looking for an improved transport system, and they will get it come November.

Aucklanders can now go to the polls in October to elect their mayor, their councillors and their local board members without any central government interference. They can do so confident in the knowledge that the new Auckland Council will have the tools to take the vision forward - a united, prosperous and dynamic region that all New Zealanders can be proud of.

Thank you.