Local Government Act 2002 Amendment Bill Submission

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LOCAL GOVERNMENT AND ENVIRONMENT SELECT COMMITTEE SUBMISSION – JULY 20127.7 LGNZ has significant concerns with the way in which a Crown Manager can be appointed (new section 258B).The appointment of a Crown Manager is arguably unlimited and gives the Crown wide powers. For example,the Minister does not have to first appoint a Crown Review team or Crown Observer before appointment of aCrown Manager (new section 258B(2)). A Crown Manager can also be appointed simply on therecommendation of a Crown Review Team or Crown Observer, with no limits on that recommendation (newsection 258B(1)(a)).7.8 The only real test for the appointment of a Crown Manager is that the Minister believes on "reasonablegrounds" that a "significant problem" (as defined in new section 254) exists and is such that the local authorityis unlikely to effectively address the problem. The local authority must comply with any directions the CrownManager makes.7.9 While the concept of what is "reasonable grounds" is fairly well understood in law and requires there to bereasonable evidence to support the decision to act, the appointment of a Crown Manager is such an invasiveprocedure, it needs a high threshold to justify its use. The appointment of a Crown Manager effectivelysubverts local democratic processes by overriding the ability of a democratically elected and accountable bodyto act, and should therefore be very carefully controlled.7.10 At a minimum, a greater sense of the possible widespread, long-term, or irreversible effects of the problemshould be imported into the test for the appointment of a Crown Manager. This would make clear that it is only asignificant problem whose effects are irreversible that triggers the consideration of appointment. Otherwise, theappropriate response would be to wait until the next election, when residents and ratepayers can determinehow the "problem" should be fixed, in accordance with the democratic accountability that underpins the LGA2002.7.11 If legislative amendment to introduce the role of Crown Manager proceeds, LGNZ recommend that new section258B (1) be amended to read as follows:“258B Minister may appoint Crown Manager―(1) The Minister may appoint a Crown Manager to a local authority if—(a)―the Minister believes, on reasonable grounds, that a significant problem relating to the local authorityexists which is likely to disrupt social, environmental, or economic interests of residents and ratepayerswithin the district or region and the effects of the disruption are likely to be widespread, long-term, orirreversible, and the nature or extent of the problem is such that the local authority is unlikely toeffectively address the problem without the appointment of a Crown Manager; or(b) the Minister has received a written request from the local authority to do so.(1A) When making a decision under subsection (1), the Minister may have regard to:(a) the recommendations of a Crown Review Team or a Crown Observer appointed to the local authority;and(b) whether, for no good reason, the local authority has not adequately implemented a recommendation ofa Crown Review Team or Crown Observer in relation to the problem.‖7.12 This will ensure the test to appoint a Crown Manager is sufficiently robust.7.13 LGNZ reiterates its view that the local democratic process is generally sufficient to address problems that arisein councils. Ministerial intervention should only exist as a means of last resort.
LOCAL GOVERNMENT AND ENVIRONMENT SELECT COMMITTEE SUBMISSION – JULY 20128 Reorganisation8.1 The membership of LGNZ has differing perspectives on this aspect of the Bill. This reflects the nature ofdiffering political approaches to reorganisation in particular areas of the country.8.2 Accordingly, LGNZ confines its comments to certain high-level observations.Forced Amalgamation not Supported8.3 LGNZ supports the democratic right of communities to choose the nature of the political structure that governstheir locality. As such, LGNZ does not support the enforced amalgamation of local authorities.8.4 Population and technological change inevitably means that over time administrative boundaries get out of stepwith community boundaries. Therefore an effective process to reorganise local authorities to respond to thatchange is necessary. A reorganisation process must balance efficient and effective service delivery withresponsiveness to community concerns and issues.Consultation on a Proposal8.5 The Local Government Commission is not obligated to consult with residents, though it may do so. LGNZbelieves that the Commission should be required to consult. While it is important to consult with stakeholderorganisations, individual citizens have the right to be heard when it comes to the subject of changing their localrepresentation arrangements. Given an assessment of significant community support need only involvegathering a view from the whole community, consultation may be the only opportunity for the whole communityto make their views known.Polls8.6 The new provisions do not require a poll of the affected area. Many, but not all, of LGNZ’s members believe apoll should be required.Ministerial Expectations8.7 The Bill places a new section 31A into the body of the Act that gives the Minister the power to ―specifymeasures and expectations relating to the Commission’s performance of its powers and duties.‖ The Billspecifically mentions timeframes within which the Commission must progress certain matters, and whichapplications are to have the highest priority.‖8.8 This provision appears to permit a future Minister to direct the Commission to progress some applications at theexpense of others. This potentially would insert a political dimension that is inconsistent with the overallframework which is designed, through the Commission, to put the reorganisation process at arm’s length fromcentral government’s political considerations.9 Role and Powers of Mayors9.1 The proposed new section 41A inserts provisions relating to the role and powers of Mayors. As the Bill’sExplanatory Note states, these provisions are based on section 9 of the Local Government (Auckland Council)Act 2009 which sets out the role and powers of the Mayor of Auckland. In the Auckland model, funding isprovided to the Office of the Mayor. Such a provision is not present in the Bill. Moreover for the majority of
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Local Government Act 2002 Amendment Bill Submission

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