Local Government Act 2002 Amendment Bill Submission

LOCAL GOVERNMENT AND ENVIRONMENT SELECT COMMITTEE SUBMISSION – JULY 2012v. the provisions concerning the role and powers of mayors; andvi. the provision concerning a remuneration and employment policy.1.7 It is LGNZ’s view that the Bill proposes a number of changes that, as presently framed, undermine thedemocratic accountability of elected members to their communities. Some of the proposals also have thepotential to introduce significant cost and uncertainty into the local government sector. Additionally, somechanges may create incentive effects on councils that could have a chilling impact on the sector’s infrastructureinvestment programme. These latter two outcomes are at odds with the Government’s own economicdevelopment and infrastructure investment policy objectives.1.8 Sound regulatory practice requires the development of a robust problem definition that has a solid foundation infact. The Bill before the Select Committee lacks these characteristics. The Regulatory Impact Statement(―RIS‖) that accompanying the Bill states (at page 1):“There is limited evidence to inform the development of these proposals, and the timeframes within which theproposals have been developed have restricted the ability to assess multiple options. As a result, the problemanalysis and option assessments of specific proposals rely on assumptions that are not, or are only partially tested.”1.9 The RIS goes on to state (also at page 1):“The short timeframe for formatting and drafting the legislation creates some risk that interventions could beincorrectly aligned, and/or require subsequent amendment to address unforeseen circumstances.”1.10 Whilst disappointed that there was no substantive consultation with the local government sector prior to theintroduction of the Bill, LGNZ believes that local and central government can and should work together in aconstructive and productive partnership to meet the myriad needs of New Zealanders.