1 00:00:00,080 --> 00:00:01,840 Speaker 1: So the council's got the hard word from the government 2 00:00:01,880 --> 00:00:04,680 Speaker 1: yesterday about costs and spending and pet projects. Our councils 3 00:00:04,680 --> 00:00:07,960 Speaker 1: are looking on average at a fifteen percent rate rise 4 00:00:08,000 --> 00:00:09,799 Speaker 1: around the country. So the idea is we get back 5 00:00:09,800 --> 00:00:12,440 Speaker 1: to basics. Local Government Minister Simming and Browns with us 6 00:00:12,480 --> 00:00:13,640 Speaker 1: on this Siming morning to you. 7 00:00:14,280 --> 00:00:14,840 Speaker 2: Good morning. 8 00:00:15,000 --> 00:00:17,279 Speaker 1: All I heard post the speech was a lot more whining. 9 00:00:17,320 --> 00:00:18,200 Speaker 1: Did they miss the point? 10 00:00:19,280 --> 00:00:21,919 Speaker 2: Well, I think some councils which got the point. There's 11 00:00:21,960 --> 00:00:24,919 Speaker 2: some other councils which didn't. And the reality is with 12 00:00:24,960 --> 00:00:28,560 Speaker 2: an average fifteen percent rate increase, our expectation is that 13 00:00:28,640 --> 00:00:30,720 Speaker 2: councils get on with the work, just like government has 14 00:00:30,760 --> 00:00:32,920 Speaker 2: had to do, go line by line, cut the waste, 15 00:00:33,000 --> 00:00:35,720 Speaker 2: focus on the basics and ensure that they can pass 16 00:00:35,800 --> 00:00:38,440 Speaker 2: those cost savings onto ratepayers at this cost of living 17 00:00:38,680 --> 00:00:41,360 Speaker 2: crisis time. So you know we're doing our part. We've 18 00:00:41,360 --> 00:00:43,280 Speaker 2: also put in place Local Water have done well which 19 00:00:43,280 --> 00:00:46,640 Speaker 2: gives councils far greater access to financing for water infrastructure. 20 00:00:47,040 --> 00:00:48,960 Speaker 2: That means they should be able to do that and 21 00:00:49,000 --> 00:00:50,680 Speaker 2: reduce the cost burn and ordinate payers. 22 00:00:51,080 --> 00:00:52,760 Speaker 1: Are there too many councils. 23 00:00:53,680 --> 00:00:56,360 Speaker 2: Well, there's a need for more shared services is what 24 00:00:56,400 --> 00:00:59,440 Speaker 2: I would absolutely say. The question of amalgamation is one 25 00:00:59,440 --> 00:01:01,600 Speaker 2: that often up. There's pros and cons to it, but 26 00:01:01,640 --> 00:01:03,880 Speaker 2: there definitely needs to be more shared services and that's 27 00:01:03,880 --> 00:01:05,360 Speaker 2: what we're pushing with water services. 28 00:01:05,440 --> 00:01:07,640 Speaker 1: Okay, so that's the water example. What about these are 29 00:01:07,680 --> 00:01:09,760 Speaker 1: the I can't even remember what they're called, Central to 30 00:01:09,840 --> 00:01:12,480 Speaker 1: city or local to whatever. They get to run some 31 00:01:12,560 --> 00:01:14,480 Speaker 1: local projects. Is that being announced today or not? 32 00:01:15,480 --> 00:01:19,920 Speaker 2: Well, where we're putting out this regional deals program, I'm 33 00:01:19,920 --> 00:01:22,319 Speaker 2: going to make some comments about that today. Ultimately that's 34 00:01:22,319 --> 00:01:26,720 Speaker 2: about actually having a longer term relationship between councils and 35 00:01:26,840 --> 00:01:30,479 Speaker 2: regions and government. But it's not just about money. It's 36 00:01:30,480 --> 00:01:33,440 Speaker 2: actually about what the outcomes we're after, how are we 37 00:01:33,480 --> 00:01:37,240 Speaker 2: going to achieve that, and also about having clear accountabilities 38 00:01:37,280 --> 00:01:40,360 Speaker 2: in place. And ultimately these are things which we won't 39 00:01:40,480 --> 00:01:42,360 Speaker 2: enter into councils. I'm playing their part. 40 00:01:42,319 --> 00:01:45,120 Speaker 1: Right, Does that open up, potentially, from their point of view, 41 00:01:45,160 --> 00:01:47,480 Speaker 1: some funding streams that they would argue they need. 42 00:01:48,480 --> 00:01:50,279 Speaker 2: All we said, look, there are a range of funding 43 00:01:50,280 --> 00:01:53,160 Speaker 2: and financing tools already available, such as Infrastructure Funding and 44 00:01:53,160 --> 00:01:56,360 Speaker 2: Financing Actor that helps support new developments, and there's other 45 00:01:56,440 --> 00:01:59,600 Speaker 2: tools such as tolling or congestion charging. There's other things 46 00:01:59,600 --> 00:02:02,800 Speaker 2: that there are available already or that we're putting in place. 47 00:02:03,280 --> 00:02:05,760 Speaker 2: But ultimately what we want is we want to have 48 00:02:05,800 --> 00:02:10,000 Speaker 2: good outcomes for communities. We will have cost effectiveness being 49 00:02:10,080 --> 00:02:13,919 Speaker 2: on being the core business of councils and so we're 50 00:02:13,919 --> 00:02:16,320 Speaker 2: not going to just go and put cash into councils. 51 00:02:16,360 --> 00:02:19,280 Speaker 2: We're very clear that we're about outcomes and there's no 52 00:02:19,360 --> 00:02:20,600 Speaker 2: magic money tree in Wellington. 53 00:02:20,960 --> 00:02:24,320 Speaker 1: Would you, in all honesty, hand on heart cost cap 54 00:02:24,400 --> 00:02:26,240 Speaker 1: or council or are you just trying to jaw bones 55 00:02:27,320 --> 00:02:27,880 Speaker 1: so well. 56 00:02:27,960 --> 00:02:30,160 Speaker 2: We were in Sydney last week. One of the ideas 57 00:02:30,200 --> 00:02:32,880 Speaker 2: we've been looking at is how they've got an independent 58 00:02:33,280 --> 00:02:39,000 Speaker 2: pricing regulatory body which actually regulates council expenditure. That's something 59 00:02:39,000 --> 00:02:41,480 Speaker 2: we've asked officials to do some work ondo set that 60 00:02:41,639 --> 00:02:44,520 Speaker 2: needs to be put in place in New Zealand. Ultimately, 61 00:02:44,639 --> 00:02:48,120 Speaker 2: what we've seen is rates increasing far faster than inflation, 62 00:02:48,680 --> 00:02:50,560 Speaker 2: and so we think there's actually a real need to 63 00:02:50,639 --> 00:02:53,839 Speaker 2: have an independent body to actually help regulate and keep 64 00:02:53,840 --> 00:02:57,560 Speaker 2: those costs under control. Otherwise, what you see is our 65 00:02:57,639 --> 00:03:00,480 Speaker 2: councils continue to say yes to every single idea that 66 00:03:00,520 --> 00:03:02,680 Speaker 2: gets put in front of them rather than actually being 67 00:03:02,680 --> 00:03:05,240 Speaker 2: accountable to their ratepayers, and sometimes they have to say no, 68 00:03:05,520 --> 00:03:06,000 Speaker 2: put your. 69 00:03:05,919 --> 00:03:07,960 Speaker 1: Power hat on for a moment. Is there a deal 70 00:03:08,040 --> 00:03:10,880 Speaker 1: coming between the government and Methodics that's separate to the 71 00:03:10,919 --> 00:03:12,680 Speaker 1: Methodics deal with the two power companies. 72 00:03:13,919 --> 00:03:16,640 Speaker 2: No, there's a deal which has been done in regarding 73 00:03:16,840 --> 00:03:20,960 Speaker 2: the supply of all of methanex gas to the electricity 74 00:03:21,760 --> 00:03:25,120 Speaker 2: companies to provide further electricity supply into the market. 75 00:03:25,440 --> 00:03:27,280 Speaker 1: That's the deal that's already been announced. 76 00:03:27,880 --> 00:03:30,160 Speaker 2: That's right. There is an all the government contract as 77 00:03:30,160 --> 00:03:35,000 Speaker 2: well which is being shattered in regards to schools and hospitals, 78 00:03:35,600 --> 00:03:38,480 Speaker 2: which is under negotiation, but that is separate from the 79 00:03:38,480 --> 00:03:39,280 Speaker 2: deal that was done. 80 00:03:39,160 --> 00:03:41,160 Speaker 1: With me and that all of government deal. When will 81 00:03:41,200 --> 00:03:43,720 Speaker 1: that be announced and will it solve the problem? 82 00:03:43,760 --> 00:03:47,160 Speaker 2: Well, it's currently in negotiation. Ultimately that's about ensuring that 83 00:03:47,240 --> 00:03:51,200 Speaker 2: our schools and hospitals have the the guests supply that 84 00:03:51,240 --> 00:03:53,720 Speaker 2: they need. And ultimately there's a conversation around what the 85 00:03:53,800 --> 00:03:56,680 Speaker 2: price will be. But we can ensure that that that 86 00:03:56,760 --> 00:03:58,960 Speaker 2: has been sorted out. But I would just say we 87 00:03:59,000 --> 00:04:01,280 Speaker 2: have an energy shortage problem. This the reason we're having 88 00:04:01,280 --> 00:04:04,960 Speaker 2: these We don't have energy, and that's why we're seriously 89 00:04:04,960 --> 00:04:07,720 Speaker 2: looking at the importation of l G looquified natural guests 90 00:04:07,720 --> 00:04:11,400 Speaker 2: to actually fill that gap. And we'll we're making the 91 00:04:11,440 --> 00:04:12,200 Speaker 2: decisions very soon. 92 00:04:12,360 --> 00:04:15,000 Speaker 1: Okay, is the EA doing anything at all? 93 00:04:16,480 --> 00:04:19,720 Speaker 2: Well? I started work around making sure that there's accurate, 94 00:04:19,920 --> 00:04:22,440 Speaker 2: regular updates been put in place in terms of the 95 00:04:23,320 --> 00:04:26,719 Speaker 2: whether there's price gouging or not happening, and started. 96 00:04:26,320 --> 00:04:29,000 Speaker 1: Work what but apart from looking at the power industry, 97 00:04:29,040 --> 00:04:32,120 Speaker 1: what does the EA actually do well? 98 00:04:32,400 --> 00:04:35,320 Speaker 2: The job is to is the regulator. We've had some 99 00:04:35,520 --> 00:04:37,880 Speaker 2: we've had some conversations around what they need to be doing. 100 00:04:38,880 --> 00:04:41,600 Speaker 2: The The reality is their job is to ensure that 101 00:04:42,600 --> 00:04:44,520 Speaker 2: they are regulating the market. But I will just make 102 00:04:44,560 --> 00:04:46,520 Speaker 2: this point, Mike, that end of the day is we 103 00:04:46,600 --> 00:04:48,240 Speaker 2: have a shortage of energy. 104 00:04:49,080 --> 00:04:50,920 Speaker 1: I think we all get that. But but but I'm 105 00:04:50,960 --> 00:04:52,919 Speaker 1: focusing on the hero and now and the hero now 106 00:04:52,960 --> 00:04:54,800 Speaker 1: seems to be a bit chaotic, that's all. And all 107 00:04:54,800 --> 00:04:56,560 Speaker 1: the EA seem to be doing is a dumpty. Do 108 00:04:56,720 --> 00:04:58,719 Speaker 1: we might have a look at the market market's bucket 109 00:04:58,800 --> 00:05:01,360 Speaker 1: right now? Haven't they worked that out? Well? 110 00:05:01,520 --> 00:05:04,599 Speaker 2: The market is the market has no energy. Energy we 111 00:05:04,600 --> 00:05:07,600 Speaker 2: needed I say and so yes, there is work being done. 112 00:05:07,680 --> 00:05:10,880 Speaker 2: That there's work being a transpower is consulting on bringing 113 00:05:10,880 --> 00:05:14,320 Speaker 2: forward contingent supply. There'll be an announcement very soon around 114 00:05:14,320 --> 00:05:18,039 Speaker 2: that there's work being done. The method next dealt wise 115 00:05:18,080 --> 00:05:22,000 Speaker 2: reducing supply reducing its demand. So the market is, the 116 00:05:22,000 --> 00:05:24,320 Speaker 2: market is responding, but a lot of these big players, 117 00:05:24,360 --> 00:05:27,800 Speaker 2: it's very chunky and that makes it very challenging in 118 00:05:27,880 --> 00:05:30,679 Speaker 2: terms of how those decisions are made and the impact 119 00:05:30,680 --> 00:05:32,720 Speaker 2: they have. But at the end of the day, all 120 00:05:32,720 --> 00:05:35,000 Speaker 2: of those things can happen. We don't have enough energy 121 00:05:35,080 --> 00:05:36,719 Speaker 2: and that's why we're very focused on how we can 122 00:05:36,760 --> 00:05:38,200 Speaker 2: actually get more supply into the market. 123 00:05:38,360 --> 00:05:40,240 Speaker 1: And you should be appreciated. Geez, they got a lot 124 00:05:40,240 --> 00:05:42,040 Speaker 1: on their plate, haven't they. I'm a Siming and Brown 125 00:05:42,120 --> 00:05:43,719 Speaker 1: local government minister with us this morning. 126 00:05:44,160 --> 00:05:47,080 Speaker 2: For more from the Mic Asking Breakfast, listen live to 127 00:05:47,200 --> 00:05:50,239 Speaker 2: news talks that'd be from six am weekdays, or follow 128 00:05:50,279 --> 00:05:51,880 Speaker 2: the podcast on iHeartRadio.