Local Councils to be Held More Accountable

The Minister of Local Government Hon Rodney Hide today introduced to Parliament a Bill to amend the Local Government Act 2002 to improve the transparency, accountability and financial management of local government.

The Minister says that ratepayers’ control of council activity needs to be strengthened, and that this Bill is a major step towards making councils more accountable to their constituents.

"The Local Government Act 2002 is being amended to give ratepayers clearer, and better quality information on the work of local councils, providing them with the tools required to influence local government decisions.

"All councils must now produce a pre-election report outlining financial performance over the last three years, as well as financial plans and projects across the next three years. This will have the effect of stimulating debate at local elections.

"There will be more opportunity for public-private partnerships and the reduction of restrictions on the use of the private sector to deliver local authority services.

It is important to note however, that this bill is not a means towards privatisation of Local Government assets.

Nor does it remove the restrictions on the sale of council water services, which continue to be bound under the same Local Government Act 2002 provisions already in place.

"Ratepayers will be pleased to see the Bill contains measures such as a financial strategy with limits on rates and debt to ensure council costs, rates and activities are better controlled.

"Plain English financials will ensure ratepayers can understand what they are paying for and how, and additional financial disclosures will also be required to provide them with more detailed information.

"Another improvement is the standardisation of reporting so that ratepayers can more easily make comparisons between councils. For example, a common definition of rates income will be adopted, and all councils will be required to separately report on those infrastructural activities that consume the largest proportion of council budgets."

"Ultimately, this should make councils nationwide far more accountable for their actions," the Minister said.

ENDS

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