1 00:00:00,080 --> 00:00:03,600 Speaker 1: The government has declared war again on big rapes, rises 2 00:00:03,600 --> 00:00:06,880 Speaker 1: and council pet projects. Councils will be expected to focus 3 00:00:06,880 --> 00:00:10,160 Speaker 1: on delivering the basic services without paying attention to the 4 00:00:10,240 --> 00:00:14,320 Speaker 1: four well beings that's your social, environmental, economic and cultural 5 00:00:14,360 --> 00:00:18,400 Speaker 1: well being. And there will be an annual report done 6 00:00:18,480 --> 00:00:21,759 Speaker 1: that will allow people to compare rate increases between councils. 7 00:00:21,800 --> 00:00:24,160 Speaker 1: You have to go to the website to check it out. 8 00:00:24,200 --> 00:00:26,880 Speaker 1: So me in Browns are local Government minister, good afternoon. 9 00:00:27,160 --> 00:00:28,080 Speaker 2: Good afternoon, Ryan. 10 00:00:28,120 --> 00:00:31,400 Speaker 1: Are they listening to you? Well? 11 00:00:31,440 --> 00:00:33,880 Speaker 2: This is a part of our plan to make sure 12 00:00:33,880 --> 00:00:36,160 Speaker 2: that councils do listen to the message that we're giving 13 00:00:36,159 --> 00:00:39,680 Speaker 2: it giving them by setting very clear benchmarking and by 14 00:00:39,760 --> 00:00:42,000 Speaker 2: changing the law as to what they should be focused on. 15 00:00:42,960 --> 00:00:46,440 Speaker 2: And so as ratepayers go to the election next year, 16 00:00:47,040 --> 00:00:50,440 Speaker 2: we will have published our first of the annual benchmarking 17 00:00:50,479 --> 00:00:54,680 Speaker 2: reports which will help help electors voters be able to 18 00:00:54,680 --> 00:00:58,560 Speaker 2: actually more clearly, in transparent apparently understand what their councilors 19 00:00:58,600 --> 00:01:01,880 Speaker 2: are spending their money on and whether it's being used effectively. 20 00:01:02,240 --> 00:01:06,000 Speaker 1: You've told them to reign it in before. Famously Luxe 21 00:01:06,000 --> 00:01:08,600 Speaker 1: and did it at the Convention Center in Wellington since then, 22 00:01:09,120 --> 00:01:11,679 Speaker 1: Wellington's still going ahead with the Golden Mile. In fact, 23 00:01:11,720 --> 00:01:13,280 Speaker 1: they put out a report last week's some they're going 24 00:01:13,319 --> 00:01:15,679 Speaker 1: to have to increase rates up to fifteen percent and 25 00:01:15,840 --> 00:01:16,880 Speaker 1: keep the Golden Mile. 26 00:01:18,360 --> 00:01:21,360 Speaker 2: Well. Look, I think you see different councils across different 27 00:01:21,400 --> 00:01:24,200 Speaker 2: parts of the country taking different approaches. I think here 28 00:01:24,240 --> 00:01:27,279 Speaker 2: in Wellington I've been very clear. I think for Golden 29 00:01:27,280 --> 00:01:30,040 Speaker 2: Mile is a nice to have rather than I must have, 30 00:01:30,760 --> 00:01:33,600 Speaker 2: and it's not something which the mayor should be continuing 31 00:01:33,640 --> 00:01:38,640 Speaker 2: to pursue. But ultimately not very accountable. Well some aren't, 32 00:01:38,720 --> 00:01:42,000 Speaker 2: and they are ultimately accountable to the voters next year 33 00:01:42,040 --> 00:01:45,839 Speaker 2: at the election, and in these benchmarking reports would help 34 00:01:46,080 --> 00:01:48,760 Speaker 2: help voters with being able to assess the performance of 35 00:01:48,800 --> 00:01:49,280 Speaker 2: their council. 36 00:01:49,720 --> 00:01:52,480 Speaker 1: This is a fundamental problem with local government, isn't it 37 00:01:52,560 --> 00:01:55,400 Speaker 1: that it's up to the people bug or all vote. 38 00:01:55,440 --> 00:01:57,840 Speaker 1: I think Wellington's turnout was forty five percent, which is 39 00:01:57,840 --> 00:02:02,640 Speaker 1: actually above average. And you have councils that are fighting 40 00:02:03,200 --> 00:02:06,520 Speaker 1: and amongst themselves and don't get stuff done. Is there 41 00:02:06,520 --> 00:02:09,680 Speaker 1: anything bigger you can do here? What about compulsory voting 42 00:02:09,680 --> 00:02:10,480 Speaker 1: for local government? 43 00:02:11,440 --> 00:02:15,000 Speaker 2: Well, we don't practice compulsory voting in New Zealand, whether 44 00:02:15,040 --> 00:02:18,280 Speaker 2: that's central or local government. Should we but what we well, no, 45 00:02:18,400 --> 00:02:20,480 Speaker 2: that's not something that we're looking at. But what we 46 00:02:20,520 --> 00:02:23,239 Speaker 2: are focused on as saying, you know, councils should be 47 00:02:23,240 --> 00:02:25,079 Speaker 2: focused on the basics. We're going to change the law 48 00:02:25,120 --> 00:02:26,760 Speaker 2: to remove the full well beings and to put in 49 00:02:26,760 --> 00:02:29,079 Speaker 2: place a definition which is very much focused on fixing 50 00:02:29,080 --> 00:02:31,720 Speaker 2: the roads and the pipes and those core services that 51 00:02:31,760 --> 00:02:35,040 Speaker 2: councils should be doing, and remove the excuses that councilors 52 00:02:35,160 --> 00:02:36,760 Speaker 2: use to go and spend money on a whole lot 53 00:02:36,760 --> 00:02:40,280 Speaker 2: of other things and then have clear benchmarking in place 54 00:02:40,919 --> 00:02:42,840 Speaker 2: so that we can actually measure that and man and 55 00:02:42,880 --> 00:02:44,880 Speaker 2: have much more transparent performance around that. 56 00:02:45,000 --> 00:02:47,960 Speaker 1: So if you let once this lauch at these amendments 57 00:02:48,000 --> 00:02:51,080 Speaker 1: are made, will Wellington Council be able to do the 58 00:02:51,120 --> 00:02:51,800 Speaker 1: Golden Mile? 59 00:02:53,520 --> 00:02:56,040 Speaker 2: Well, that's something that they can fund because they're a 60 00:02:56,080 --> 00:02:59,959 Speaker 2: road controlling authority. 61 00:02:57,760 --> 00:03:00,919 Speaker 1: Right ultimately, So is this all us a bluster. 62 00:03:00,720 --> 00:03:03,239 Speaker 2: Then no, not at all. This is I mean there's 63 00:03:03,240 --> 00:03:05,160 Speaker 2: a lot of things that councils go and spend money 64 00:03:05,200 --> 00:03:07,840 Speaker 2: on which they argue are within the four well beings. 65 00:03:08,639 --> 00:03:10,520 Speaker 2: They won't be able to use that excuse when they 66 00:03:10,520 --> 00:03:13,280 Speaker 2: go out to consult on their annual plans or their 67 00:03:13,320 --> 00:03:15,120 Speaker 2: long term plans as to why they want to spend 68 00:03:15,160 --> 00:03:18,760 Speaker 2: money on those activities. And as I said the benchmarking, 69 00:03:18,880 --> 00:03:22,040 Speaker 2: the first step is to use the information that's currently available, 70 00:03:22,040 --> 00:03:23,519 Speaker 2: put in one place, allow people to be able to 71 00:03:23,520 --> 00:03:27,360 Speaker 2: compare that information between councils. We're also going to change 72 00:03:27,360 --> 00:03:29,799 Speaker 2: the law to allow the Secretary of Local Government to 73 00:03:29,840 --> 00:03:32,120 Speaker 2: have to request further information such as how much is 74 00:03:32,120 --> 00:03:35,560 Speaker 2: spending on the contractors and consultants, and further reports will 75 00:03:35,640 --> 00:03:40,000 Speaker 2: highlight issues like that so that again local voters are 76 00:03:40,000 --> 00:03:44,520 Speaker 2: around the performance of their local council. 77 00:03:44,800 --> 00:03:48,160 Speaker 1: Minister. Two very quick last questions. Did you consider setting 78 00:03:48,160 --> 00:03:49,400 Speaker 1: a limit for rate rises? 79 00:03:51,240 --> 00:03:52,760 Speaker 2: That is one of the areas of work that we're 80 00:03:52,760 --> 00:03:55,040 Speaker 2: going to make cabinet decisions on in the early new year. 81 00:03:55,080 --> 00:03:58,400 Speaker 2: We're investigating around a rates pegging scheme similar to what's 82 00:03:58,440 --> 00:04:01,200 Speaker 2: done in New South Wales, so workers underway on that 83 00:04:01,200 --> 00:04:02,040 Speaker 2: particular issue. 84 00:04:02,360 --> 00:04:04,960 Speaker 1: Councils will say, well, actually, the problem is we don't 85 00:04:05,000 --> 00:04:09,560 Speaker 1: have believers to pull for funding for basics like infrastructure. 86 00:04:09,960 --> 00:04:13,040 Speaker 1: You know, they want the government GST issues sorted. There's 87 00:04:13,040 --> 00:04:16,200 Speaker 1: a whole bunch of government funding issues they want sorted first. 88 00:04:17,040 --> 00:04:18,919 Speaker 2: Well, the first thing that they needed to focus on 89 00:04:19,040 --> 00:04:22,760 Speaker 2: is actually focusing on the basics. That's number one. Secondly, 90 00:04:22,800 --> 00:04:25,760 Speaker 2: we have been working very hard this year to look 91 00:04:25,800 --> 00:04:29,800 Speaker 2: at how we can support councils around financing long life infrastructure. 92 00:04:30,240 --> 00:04:32,720 Speaker 2: There's two key changes that have been made local what 93 00:04:32,880 --> 00:04:35,240 Speaker 2: have done well. It actually allows councils to buy up 94 00:04:35,279 --> 00:04:37,440 Speaker 2: to five hundred percent against their water revenues, which is 95 00:04:37,440 --> 00:04:39,800 Speaker 2: about twice their normal debt level to you have to 96 00:04:39,800 --> 00:04:42,719 Speaker 2: invest in long life water infrastructure and spread those costs 97 00:04:42,760 --> 00:04:46,320 Speaker 2: over time. Secondly, high growth councils now have an increased 98 00:04:46,320 --> 00:04:49,799 Speaker 2: debt cap to three hundred and fifty percent for investing 99 00:04:49,839 --> 00:04:52,920 Speaker 2: in other infrastructure such as roads and unlocking housing. So 100 00:04:53,240 --> 00:04:55,880 Speaker 2: we've been focused on unlocking those financing tools so that 101 00:04:55,920 --> 00:04:59,680 Speaker 2: councils can invest in that long life infrastructure. But the 102 00:04:59,680 --> 00:05:02,520 Speaker 2: first messages focus on the basics and do it brilliantly. 103 00:05:03,120 --> 00:05:06,000 Speaker 1: Have you had any reports back from that Crown Observer 104 00:05:06,040 --> 00:05:06,840 Speaker 1: and Willington yet? 105 00:05:07,720 --> 00:05:10,120 Speaker 2: I had the first first report back came over the 106 00:05:10,120 --> 00:05:14,520 Speaker 2: weekend and ultimately the council's going through its process around 107 00:05:14,520 --> 00:05:17,040 Speaker 2: its annual plan. You've already highlighted some of the key 108 00:05:17,040 --> 00:05:20,719 Speaker 2: issues there, and that the observer is very much engaged 109 00:05:20,760 --> 00:05:21,960 Speaker 2: in all of those conversations. 110 00:05:22,000 --> 00:05:25,039 Speaker 1: What was the what was the report? Was it good, bad, ugly? 111 00:05:25,920 --> 00:05:28,799 Speaker 2: Well, I haven't fully engaged in terms of the detail 112 00:05:28,880 --> 00:05:30,839 Speaker 2: yet of what I would say, I've just received it 113 00:05:30,839 --> 00:05:33,880 Speaker 2: over the weekend. What it is focus from quickly looking 114 00:05:33,920 --> 00:05:36,720 Speaker 2: at it, it's very much focused at the process, making 115 00:05:36,760 --> 00:05:39,080 Speaker 2: sure the counselors are getting the information. I'd say the 116 00:05:39,120 --> 00:05:42,280 Speaker 2: observers very much engaged in all of those conversations and 117 00:05:42,360 --> 00:05:44,640 Speaker 2: looking at the detail. Ultimately, as I said when I 118 00:05:44,680 --> 00:05:48,120 Speaker 2: announced the Observer, the counselors are still responsible for those decisions, 119 00:05:48,720 --> 00:05:50,960 Speaker 2: and that comes back to this key point therese are 120 00:05:51,040 --> 00:05:55,400 Speaker 2: local democracy. Local democracy, it's about local voters making these decisions. 121 00:05:55,640 --> 00:05:58,040 Speaker 2: But we're about making sure the transparent information is there 122 00:05:58,040 --> 00:05:59,360 Speaker 2: for the public to make up their minds. 123 00:05:59,360 --> 00:06:01,440 Speaker 1: So I mean fom Government Minister, thanks for your time. 124 00:06:02,080 --> 00:06:05,279 Speaker 1: For more from Hither Duplessy Allen Drive, listen live to 125 00:06:05,360 --> 00:06:08,400 Speaker 1: news Talks it'd be from four pm weekdays, or follow 126 00:06:08,440 --> 00:06:10,200 Speaker 1: the podcast on iHeartRadio.