SOLGM Member Updates

Individual members of the NZ Society of Local Government Managers (SOLGM) receive timely information about key areas of interest affecting local government management. Below are some of the most recent information sent to SOLGM members in response to recent topical issues affecting local government in New Zealand.

• Proposed Changes to Local Electoral Act (and Regulations)

• Local Government Managing Costs - DIA analysis of draft 2009 LTCCPs

• Transparency, Accountability and Financial Management (TAFM) Review - Cabinet Paper Released 

• Response to comments made by OECD on local government systems (updated 30 June 2009)

To receive these timely updates, become a SOLGM member.

Proposed Changes to Local Electoral Act (and Regulations)

The Government has recently completed policy work looking at the Local Electoral Act 2001 (LEA) and the associated regulations (LER).

The Government has announced that it will be making the following changes to the LEA and LER.

Representation Issues

The LEA will be amended to provide TAs with further exceptions to the “fair representation review” (the so-called +/- 10 percent rule) where compliance would:

• limit effective representation of communities of interest by dividing them between wards or
• limit effective representation by grouping two or more separate communities of interest which have few recognisable common interests.

The above exceptions would require approval from the Local Government Commission (LGC).

Other amendments will:

• specify that representation resolutions can only be made after 1 March in the year before the next triennial election
• require that the final notice of any representation proposal include details on communities of interest considered; member to population ratios, and the reasons for this
• enable limited adjustments to existing ward, constituency or community boundaries to be made after three years from the last determination without the need of a full representation review that is appealable to the LGC.

Candidacy and Candidate Documentation

Amendments to the LEA include requirements that:

• candidates that stand for multiple positions must disclose this fact in candidate profile statements
• candidates specify where they principally reside in their statements
• all three components of nomination documents be submitted together.

The proposed amendments also include:

• repeal of provisions that permit candidates to voluntarily withdraw after close of nominations (i.e. death, serious injury or illness are the “only ways out”)
• clarification that all members, whether elected unopposed or after an election, come into office at the same time.

There is also a proposed amendment to the LER that would require publication of the candidate profile statements as soon as possible after close of nominations.

Election Timetables

Amendments are proposed to the LEA and LER that would:

• allow an additional week for processing of nominations and the production of voting documents (in effect nomination day will be brought forward a week – this will have implications for the timing of pre-election reports)
• provide for modification of an electoral timetable by Order in Council, we understand that modifications of up to six weeks will be empowered in a local or national emergency.

Offences and Processing

The Government proposes to amend the LEA to ensure that all voting documents clearly state that it is an offence to complete or interfere with another person’s voting documents.

Local authorities will no longer have to pre-determine by resolution whether or not to take up the option of early processing of votes.  This will be a decision for electoral officers.

E-Voting

The Department of Internal Affairs are developing terms of reference for future investigation of electronic voting as an option for local elections (with a view to enabling a trial).

Comment

For the most part, the above decisions give effect to items that either SOLGM or LGNZ (or both) have long sought, and are welcomed.

This is another illustration of SOLGM’s Industry Good Contributions at work, on this occasion through the auspices of the Electoral Working Party.

What Happens Next?

We understand that changes to the LEA will be made in a LEA Amendment Bill that will be introduced into Parliament in 2012, with amendments coming into force before the 2013 elections.

However, the Government advises that those local authorities undertaking representation reviews should proceed under the current provisions.

The Government has not released the Cabinet papers that supported the above decisions. We have encouraged DIA to do so.

In the meantime those wanting further information should contact either Don Mackay at SOLGM, or Warren George at DIA.
 

Local Government Managing Costs - DIA analysis of draft 2009 LTCCPs

The Department of Internal Affairs has just completed an analysis of the 2009-19 LTCCP statements of proposal. It is releasing a package consisting of:

• a report to its Minister setting out its conclustions
• a summary of the numbers and issues in each council's plan
• a more detailed analysis of the numbers in each council’s plan.

SOLGM found the DIA report to be a generally fair and balanced account of the issues. We note the Department’s headline finding that

“Councils are managing expenditure to keep cost increases down. However inflation, growth, and community expectations are driving cost increases. To cover these costs rates and debt in particularly (sic) are forecast to increase over the next 10 years.” and

"the focus will be on maintaining core infrastructure" (though we don't necessarily agree there is such a thing as 'core')

In the meantime if you have any queries either about the report or our commentary please contact Raymond Horan. Any queries or concerns about DIA’s ‘take’ on your LTCCP should be addressed to James Stratford at DIA (james.stratford@dia.govt.nz).

Access relevant documents on the Good Practice section of the SOLGM website.

 

Transparency, Accountability and Financial Management (TAFM) Review – Cabinet Paper Released
May 2009

28 May 2009 -- The Department of Internal Affairs has commenced a project known as the Transparency, Accountability and Financial Management (TAFM). The Department has invited SOLGM to assist the Department in considering options for improving transparency, accountability and financial management.

As part of our consideration of whether to accept this invitation we requested the relevant Cabinet paper and minute that sets out the scope for the project. At the end of last week the Department released this to SOLGM and Local Government New Zealand under the Official Information Act.

We have attached the following documents:

• the Cabinet paper and Minute (all one document)
• our commentary on the key aspects of the review, the things to note, and what SOLGM’s involvement in the process will be from here.

The SOLGM Executive has agreed to participate in the review on a without prejudice basis to further representations, and on the strict condition that the sector gets to place comments in Cabinet papers if it sees the need. Local Government New Zealand has also been invited to participate and at the time of writing was considering its response.

SOLGM staff and the members of the SOLGM Financial Management and Strategic Planning Working Parties will be participating in discussions around a group of working papers. The first of these is expected in the next week to ten days.

While we appreciate the Cabinet paper is high level, we would like to make the opportunity available to SOLGM members to provide us with comment on the issues it raises.

To ensure any comments you might make are considered in the whole of the process they should be sent to Raymond Horan at rhoran@solgm.org.nz by close of play on 15 June 2009.

Relevant Documents

Transparency, Accountability and Financial Management Cabinet Paper (PDF 778 kb)

Commentary of the TAFM Cabinet Paper by SOLGM (PDF 222 kb)

Response to comments made by OECD on the Local Government System

30 June 2009 - SOLGM received a letter from Andrew Dean, Director Country Studies Branch, Economics Department of the OECD to respond to the letter sent by SOLGM and Local Government New Zealand.  In his letter, Mr. Dean clarified the purpose of the survey and that local government was not its focus.  He has apologised if the report has misrepresented the situation in anyway.  He also advised us that they will schedule a meeting with SOLGM and Local Government New Zealand on their next mission to New Zealand to discuss the issues in depth.

Response letter from OECD dated 11 June 2009 (PDF 51 kb)

18 May 2009 -- Both SOLGM and Local Government New Zealand are completely mystified as to how the OECD came up with its biased and inaccurate description of the state of local government in its recent country report on New Zealand.

Together with Local Government New Zealand, we wrote to the Secretary General of the OECD taking exception to the following seven statements in the report which were unsupportable when examined against available evidence:

1. earlier reforms (of local government) have greatly expanded the scope of local authority powers
2. local governments have progressively moved beyond basic local services such as water, rubbish and sewerage into various cultural, social and economic activities
3. part of the problem stems from weak accountability ...characterised by low turnout in local elections
4. there is undue influence by special interests
5. opaque funding
6. profligate spending has been funded by steadily increasing rates -- which has contributed to domestic inflation
7. while user charges play less of a role

Relevant Documents

OECD Report Extract (PDF 305 kb)

Response letter from SOLGM & LGNZ on the OECD Report (PDF 484 kb)