Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
16 JUNE 2016

Speech by New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters

Local Government New Zealand

Rural and Provincial Local Government Sector meeting

Mac’s Function Centre

4 Taranaki Street Wharf

1pm, Thursday, June 16th 2016

LOCAL GOVERNMENT NEW ZEALAND

Last night the government passed the Local Government Act 2002 Amendment Bill (No 2) through its first reading.

The Bill among other things seeks to cement Auckland City “Council Controlled Organisations” further into Local Government around New Zealand.

New Zealand First, concerned with the ongoing obsession of the National government with Local Government, voted against this Bill. An obsession of meddling endlessly in the affairs of Local Government, trying to fix things that are not broken, and constantly criticising Local Government for not performing.

Frankly, it is Central Government who should be in the dock explaining its shoddy performance.

Ever heard of the saying lead by example?

They should try it before preaching to Local Government politicians and administrators about what they think you should be doing.

They will tell you they are doing this to help, implying you are incapable of managing YOUR own affairs, and unable to write the legislation you need to overcome the real difficulties you all face.

This National Government suffers an affliction called PNS - a Patronising Nanny State syndrome something National accused Labour of when they were trying to get your vote.

Sadly, Labour is no better, and last night supported the Bill in part because of the Kaipara sewerage project cost blowout.

They both justify a wholesale revamp of the Local Government Act, a proliferation of CCOs, the undermining of democracy, the right for the people to elect councils to own, manage and administer the ratepayers’ assets built up over the last 170 years.

They both turned a blind eye to a corrupt set of circumstances leading to cost blowouts, which over five years the New Zealand Audit Office failed to discover.

I don’t think the National Party actually respects you as evidenced by the ministers they have given you since 2008.

Nick Smith; Gerry Brownlee; David Carter; Chris Tremain; Paula Bennett; and now poor Sam Lotu Iiga - almost a new minister every year.

Let’s be very clear that under this government you have had a succession of Ministers “OF” Local Government. Meddling and interfering and forever looking for ways to remove your autonomy and tell you how to do your job, whilst all the while increasing your costs and the costs to ratepayers.

Under a New Zealand First government you would have a Minister “FOR” Local Government.

The government is slashing police resources in the provinces telling you that crime is reducing. You know that is demonstrably false. Instead of the police charging many for criminal offences they are merely warning them.

The 90 per cent non clearance rate of burglaries is further proof of police under-resourcing.

That 18 councils are banding together to lobby against these police cuts and closures of stations shows that the government has no care for your concerns.

That councils are now budgeting tens of millions of dollars to cover the shortfall in policing is clear evidence of the government shifting costs.

Just yesterday in reply to questions asked by my colleague Ron Mark as to why councils had banded together to lobby the government about the shrinking police presence, Minister Judith Collins blamed “a local government election going on this year’ … and “ local government needs to take some responsibility”.

LOCAL GOVERNMENT EXCELLENCE

New Zealand First has seen the Local Government Excellence Programme.

We believe you know what is best. Here it is.

And we have seen straight out of the Internal Affairs office, secret until this morning, an entirely inappropriate plan for government to impose its brand of monitoring and measurement of your performance.

Here it is.

Ministry of Internal Affairs paper. They call it Snap Shot. A document that tries to measure and compare your performance.

Let me make New Zealand First’s view very clear.

Local government is not, repeat NOT, accountable to Central Government.

You know that, I know that, Ron Mark knows that, the Productivity Commission knows that, and said so in their report.

It seems everyone knows that except this government.

We are not interested in a performance measuring tool that has been copied from DHBs being applied to Local Government.

DHBs are accountable to central government because they get their money from central government.

Local Government does not and, therefore, is not.

It is absolutely astonishing just how ill-informed this government is as to how Local Government and the Act works and their complete lack of understanding of what their role is and what it is not.

It is inappropriate to compare rurals with cities, cities with regionals, it doesn’t give the right information.

Measuring inputs and outputs is not relevant. Measuring outcomes is.

And it is against those outcomes that you, the democratically elected governors of the provinces, will assess the performance of your council’s performance and how you will be assessed by your rate payers.

And you and I both know how tough they can be.

So, take it from me, New Zealand First will stand with you and will resist this new exercise in Nanny State micro management and interference of Local Government by this National government.

But this is really the work of bureaucrats and weak ministers, ill-prepared to act against them.

It is breathtaking, audacious and arrogant, and if applied to the government’s own performance barely one box would be ticked.

You don’t need to be told all the time by this government that you are crap at your job and, frankly, you need to stop taking it.

The Local Government Excellence Program you have produced and which the government does not want to understand, is a pathway to your improved performance.

What is behind this attack on local government from central government?

A multiplicity of problems in Auckland has pushed the regions into the background, forcing provincial New Zealand to try and go it alone.

This is unfairness because provincial New Zealand produces a huge chunk of New Zealand’s wealth. As former director of the New Zealand Institute of Economic Research, Kerry McDonald, pointed that out this week when he said: “The key to New Zealand’s living standards are exports and foreign exchange earnings. Most of this comes from the regions. Because Auckland exports very little, it is subsidised by the rest of New Zealand.”

Mr McDonald said Auckland is booming but the regions contribute the most to the economy through exports and tourism.

He also said low-value immigration is hurting New Zealand.

He advised New Zealand to focus on high skilled, high-value immigrants.

All of those statements are a repeat of what New Zealand First has been saying for years.

Mr McDonald said reducing the amount the regions would pay would benefit the New Zealand economy.

That in part I presume is what your conference is about.

Southland contributes $84 million more than it receives back in infrastructure funding in just two major areas – roading and electricity.

The government is spending over $400m on cycleways yet leaves the West Coast with only 16 per cent of its land rateable to its own devices.

There are smaller councils struggling to retain their ratepayer base and paying for escalating costs.

New Zealand First says a better system must prevail and one way for this to happen is to ensure a fair return of this nation’s wealth goes to the regions.

The Reserve Bank Act has got to be amended, to remove the overvalue of our dollar and to give the export provinces a fair go. That is New Zealand first’s policy.

The fact is if regional New Zealand got a fair go at lifting their economic performance it will also advantage Auckland.

It would help ease pressure on Auckland roads, schools, hospitals and take some of the heat out of the housing market that is reaching ridiculous, unsustainable levels.

As representatives of 78 local, regional and unitary councils you work actively for your own towns, cities and regions.

Local self-government is a wonderful feature of our system but it is important that central government plays its part also. That’s not happening and every reasonable person in this room knows it.

Roads/rail

A major concern around New Zealand is the decline in the state of the roading network, especially rural roads.

But earlier this year all Mr Key and his government could offer was $115 million for roading projects in just three regions of the country – Gisborne, Marlborough and Taranaki.

This after removing rural road funding for the last seven years.

What about the rest of New Zealand?

Regional New Zealand needs a big investment programme, not just maintenance.

Many of our rural roads are now in a sad state because government stopped its funding in real terms in 2009.

Rural road support money went instead to Roads of National Significance. On Northland’s Road of National Significance not one metre has been built between Puhoi and Wellsford since 2009.

At the same time roads are under huge pressure from increased numbers of large trucks – and the government wants to allow even bigger trucks.

To make matters even worse the government is letting KiwiRail run down to the point it is now dying.

KiwiRail has said they are just doing enough to keep our main rail lines, the North Island and South Island Main Trunk lines, up to their current state.

It’s a mess.

Instead of using a combined transportation plan involving road, rail and sea transport, we have a government not interested in rail but only transport by road.

Water

Water has become an issue that concerns many New Zealanders.

It’s economic idiocy that New Zealand’s pure, clean water is being taken by overseas companies - Fiji Water, Coca-Cola, Suntory Holdings, Oravida - for a token fee.

The PM’s comment, “No one owns water,’’ is like saying: “No one owns oil; no-one owns coal.”

New Zealand First says we would introduce our Royalties for Regions (RFR) scheme.

This policy would see a minimum of 25 per cent of royalties collected by the government from enterprises such as mining, water extraction and petroleum, to name just some, remain in the region where the enterprise is located.

Under our scheme well over $100m annually would remain in the regions for investment – it would help regenerate regional New Zealand.

Freedom camping/tourism pressures

The government made a song and dance when they announced recently they would provide $12 million funding over four years for local communities to deal with huge tourism numbers.

All over New Zealand there must have been dancing in the streets at such a magnanimous statement, or wailing because that statement would make a grown man cry.

It would pay for the same number of toilets to cover tourism and freedom camping all over NZ as are at the end of Wellington’s Courtenay Place.

Last year the government received $929 million from GST on international visitor spending which Professor Simmons, Lincoln University Professor of Tourism, estimated ended up being a $630 million surplus once costs were deducted.

Let’s remember also that Tourism Industry Aotearoa called on government to provide $100 million to support local councils deal with the influx of tourism.

Every council is having to pay for the impact of tourism. Professor Simmons has calculated that in 2015 councils spent on average $37.90 per head of population on the tourism industry.

In areas with populations less than 10,000 this average cost per ratepayer rose to $59.60 per head.

Some councils, such as Mackenzie and Waitaki, are over $80 per head in rates.

Finally, some leaders in the tourism industry have approached the prime minister suggesting a tourism tax should be introduced.

Mr Key said a departure tax could give the government up to $80 million a year.

His biggest worry was, he said: “What the hell do we spend the money on?” (NBR, June 10, 2016)

Really?

That’s what happens when the people in the regions become invisible to central government and the bureaucrats to the extent that you really don’t matter to them.

What the hell do we spend the money on?

I am certain by the end of this conference you will have an answer for the PM.

ENDS

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