PM John Key Address to 2011 Local Government New Zealand Conference

It's a great pleasure to be back again to open the Local Government New Zealand conference.

I'd like to acknowledge the hard work of your President, Lawrence Yule, and board members.

I'd also like to extend my personal thanks to Local Government Minister Rodney Hide.

Rodney has been an effective and focused Minister for the past two and a half years. He has been instrumental in the Auckland governance reforms and, as you know, he is a dedicated advocate for the local government sector.

Congratulations, Rodney, for the outstanding contribution you've made.

Today I want to focus on our efforts to rebuild Canterbury, and on some of the progress we've made in Auckland since the governance reforms.

But, first, I want to mention the Rugby World Cup.

I know that local authorities all over New Zealand are putting in a huge effort at the moment to make sure the World Cup is a great success.

With only a couple of months to go, preparations are on track and ticket sales have hit one million.

I'd like to say thanks for your hard work so far. Whether you're adopting a team or setting up festival events, it's great to see you getting behind this opportunity.

I'm looking forward to getting out and about during the World Cup and REAL New Zealand Festival, and seeing the best of what this country has to offer.

The World Cup is one of many opportunities that local authorities around the country need to make the most of.

Because the work you do is vital. It's essential for the success of our communities, our economy and our country.

It's your job to help build strong, vibrant communities that are attractive places for people to live, work and invest in.

It's also your job to lead those communities through difficult times, and we have seen that in the past year.

Local government leadership and ratepayers alike expect central government to respond quickly and effectively in difficult times, and we do.

Since the last Local Government New Zealand conference, we have experienced the Pike River Mine disaster.

I'd like to take this opportunity to acknowledge Greymouth Mayor Tony Kokshoorn for his leadership in the aftermath of the disaster. Tony became the face of the West Coast community, and he continues to advocate for the people he represents.

Since the last conference, we have also experienced the devastating Canterbury earthquakes.

Earthquakes and aftershocks that have severely damaged land, buildings, homes and infrastructure.

Earthquakes that have resulted in loss of life and injury.

This is the largest natural disaster we have ever faced in New Zealand.

The Earthquake Commission has received nearly 370,000 claims for all the earthquakes since 4 September last year, and paid out more than $1 billion.

It's one of the highest numbers of claims ever handled by a single insurer in the world.

The previous biggest event for the Earthquake Commission was the Gisborne earthquake in 2007, with 6224 claims.

I'd like to thank Christchurch Mayor Bob Parker, Waimakariri Mayor David Ayers, and Selwyn Mayor Kelvin Coe, for the excellent leadership they have shown in the most challenging circumstances.

Good local government leadership is crucial at times like this.

Immediately following the earthquakes, staff from affected councils rallied together.

They established emergency operations centres. They worked alongside volunteers and other agencies in welfare centres around Christchurch. They moved quickly to red-sticker buildings that were unsafe. They worked with urgency to clear roads, and reinstate electricity, water and sewage services. They supported the work of Civil Defence and other central government agencies.

It was also great to see the moral and practical support offered by the local government community up and down New Zealand. Councils from around New Zealand sent staff and resources to support the response.

I'd like to thank all those who have helped the people of Canterbury in their time of need, and all those who continue to help.

The Government's commitment to rebuilding Canterbury stands firm. We provided $5.5 billion in Budget 2011 to do that over six years.

We have also set up CERA - the Canterbury Earthquake Recovery Authority - as a specialist agency to aid recovery and cut through red tape.

In addition, nearly a quarter of a billion dollars has been provided in business and employment support to help people through the immediate aftermath of the earthquakes.

We have also been working hard to give residents a clearer picture of what their future holds.

Recently Canterbury Earthquake Recovery Minister Gerry Brownlee and I announced that greater Christchurch land had been mapped into four zones - red, orange, green, and white.

We also presented options for property owners with insurance in the residential red zone.

We will continue to provide updates on the land as more information becomes available in coming weeks.

I know many local authorities have been concerned about the issue of insurance in light of the earthquakes.

I understand that most councils around the country have been able to get insurance, although you have had to pay much more to get the same coverage as before.

In regard to Christchurch and Waimakariri, we understand things have been more difficult - particularly with their cash flows as they deal with severely damaged infrastructure.

The Government will ensure early repayment of the costs these councils claim for damaged infrastructure.

If there is further damage to essential infrastructure, it will be repaired.

It is just a question of where the balance of costs will fall between ratepayers and taxpayers.

There is already provision for this kind of cost sharing in the Civil Defence and Emergency Management Act and the Government has been mindful of the Canterbury local authorities' reduced ability to pay.

As we work to rebuild Canterbury, the Government will continue to work closely with local authorities.

We will stand together in the face of this disaster, because together we can achieve far better outcomes.

The ongoing partnership between central and local government is very important for the people of Christchurch.

In May we signed an interim alliance agreement for the rebuilding of Christchurch's waste water, storm water, water supply systems and roads.

The alliance team includes CERA, the Christchurch City Council, the New Zealand Transport Agency, and contractors City Care, Downer Construction, Fletcher Construction, Fulton Hogan and MacDow New Zealand.

It's great to see central and local government - and contractors - working together on such an important project.

The City Council is also leading the development of a recovery plan for the central business district. The Council has received more than 90,000 ideas, which are now being considered before public consultation in August.

I'm looking forward to continuing to work alongside local government for the benefit of the people of Canterbury.

Together we will rebuild the region.

Alongside the work we're doing in Canterbury, there are many other areas in which local government and central government can achieve more by working together.

The combined central government and local government forums are good opportunities to discuss issues affecting communities large and small - and to talk about how we can speed up economic growth.

Local government already makes a valuable contribution to our economy.

You contribute four per cent to New Zealand's GDP. You have infrastructural assets worth $89 billion. And you employ more than 22,800 people.

Our joint commitment to economic growth is crucial for New Zealand's success.

Together, we are an enabling force for the private sector to generate jobs and economic growth.

New Zealand needs a more competitive economy to grow.

That's why the National-led Government is working hard to build an outward-looking economy, based on savings and exports.

It's important that local authorities understand our export and growth focus and align their own priorities accordingly.

The Government is building a competitive tax system, more infrastructure, better results from education, more trade, less red tape and a much more productive public sector.

That's what this Government is focused on and we have made good progress.

We've cut red tape and regulation.

We're improving vital infrastructure such as broadband, road and rail.

We're building better public services in health, education, and law and order.

We're building savings and investment, and getting the Government's books back in order.

We are building the foundations for a stronger economy.

Local government also has an important role to play in creating the right conditions for businesses to succeed and help grow our economy.

The progress you've made in Auckland is a good example of this.

I'd like to congratulate Mayor Len Brown - and everyone at the Auckland Council - for your hard work since the new structure came into place.

The new structure provides the Council with a great opportunity to deliver better, more cost-effective local government to more than one million Aucklanders.

The size and scale of council business in Auckland is huge. In the first six months, its libraries issued over eight and a half million items. There were nearly one and a half million customer service calls, and nearly 55,000 building inspections.

In a period of enormous change, the council maintained all critical services to Auckland ratepayers and businesses.

From day one, the council was determined to show that it was going to make a positive difference to Auckland.

The new structure has been a success so far and that's a credit to all those here today from the Auckland region.

The Super City has reduced bureaucracy.

Previously there were nine local transport entities, eight councils and five water and wastewater companies. Now there is just one of each.

And the new structure has kept rates down.

The modest 3.9 per cent rates increase is a good achievement in the first year of the new governance arrangements.

All the former councils in Auckland had foreshadowed rates rises above this figure - the highest being 11.9 per cent.

Mayor Len Brown set a target rate of a maximum of 4.9 per cent then directed council officers to see what further savings could be made.

The new structure has also enabled clear decision-making on important pieces of infrastructure.

Last month I announced negotiations with SkyCity to build a large international convention centre in Auckland.

This is a project that will boost tourism, create jobs and put New Zealand on the map as a business events destination.

I'd like to thank Len Brown for his support, which meant the important project could move forward quickly.

Under the previous structure with seven local councils and mayors, projects were harder to get off the ground.

Take the example of the Government's proposal for a cruise ship terminal on Queen's Wharf.

The cruise ship terminal did not progress because mayors from across the region were unable to reach consensus on the location.

The cruise terminal, like the convention centre, is an important project for Auckland - and for all of New Zealand.

I'm hopeful that we will reach consensus under the new structure.

This governance structure is unique among New Zealand's local authorities.

I know that sharing ideas and experiences from the Auckland reforms will be invaluable for other regions.

In central government we are actively looking for better ways to provide public services. And, of course, local authorities are, too.

Between us, we hold responsibility for spending ratepayer and taxpayer money. We need to ensure that money is being spent wisely.

I anticipate there will be other regions that will, over time, come forward to make the kind of governance changes that we've seen in Auckland.

As always, the Government is keen to hear your ideas on how local authorities could operate more efficiently and effectively.

But we are very keen for any changes to be community-led, not central government-led.

We recognise that there can't be a one-size-fits-all approach to local government. We believe in healthy local democracy because our communities are diverse and have different needs.

Local communities need to debate openly their own priorities and work out how much they want to tax themselves to achieve them. This process is at the core of local democracy.

The main thing for all of us is to focus on our local and national economies growing strongly, because that serves both taxpayers and ratepayers best.

Thank you.

Have a great conference.

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