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Speaker 1: So we've got to report into fifty eight councils long

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Speaker 1: term planning. From the Order to General, councils we read

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Speaker 1: have made a significant achievement meeting their requirements on time

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Speaker 1: and uncertain circumstances. This led to the AG to suggest

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Speaker 1: the central government might like to do something similar to

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Speaker 1: be the Order to General. Andrew McConnell's with it is Andrew,

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Speaker 1: very good morning to you.

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Speaker 2: Good morning makeel.

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Speaker 1: Can I suggest the reason that the councils might have

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Speaker 1: done something half decent is because central government tends their

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Speaker 1: views and policies tend to be a little bit starker

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Speaker 1: than a local council. Is that fair or not?

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Speaker 2: I think that councils have done a really good job

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Speaker 2: for a couple of reasons. First, they've done this since

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Speaker 2: around two thousand and so, so they do understand what

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Speaker 2: they need to be looking at in the first instance.

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Speaker 2: And also we provide a level of assurance over this

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Speaker 2: which does help them, does help them arrive at a

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Speaker 2: strong document.

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Speaker 1: But and what's the purpose of this this plan is well, this.

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Speaker 2: Pantem is really about how how councils strike rates. Fundamentally,

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Speaker 2: are the councils are given a whole range of powers

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Speaker 2: by by the state to levy rates, to use those

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Speaker 2: rates to meet public services in the regions. And these

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Speaker 2: plans really are for councils to be able to plan forward,

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Speaker 2: invest in their infrastructure and really show the public how

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Speaker 2: their rates money is going to be used, which is

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Speaker 2: why we are in the business of assuring them.

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Speaker 1: And but I go back to the central government. I

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Speaker 1: mean what's happening at the roads and infrastructure at the

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Speaker 1: moment is a very good example. I think what they're

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Speaker 1: trying to do this current government, no politics involved, but

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Speaker 1: what this current government is trying to do round infrastructure

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Speaker 1: roads is completely different from the last government. So how

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Speaker 1: do your long term plan when you know it's going

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Speaker 1: to change, whereas you're not going to see the same

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Speaker 1: level of change at local level.

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Speaker 2: Well, what we're what we're really doing is raising the

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Speaker 2: question of how much does central government understand about infrastructure costs. Now,

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Speaker 2: these are long term assets, there are varying ages, they

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Speaker 2: are varying degrees of condition, and most government agencies have

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Speaker 2: some form of infrastructure they are relying on. So where

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Speaker 2: we think that question needs some serious consideration.

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Speaker 1: And can you long term plan more easily if you

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Speaker 1: run things like most councils do on a cost plus

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Speaker 1: accounting basis, where you just start putting up the rates

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Speaker 1: twelve thirteen, fourteen, fifteen percent because someone else will pay,

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Speaker 1: and you can't do that at central government.

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Speaker 2: Well, the shows that councils out as they do, they're

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Speaker 2: just a few leaders really to control their revenue so

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Speaker 2: that they can really address the expenditure that have got

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Speaker 2: going forward. So there's rates, there's some other revenue, there's debts,

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Speaker 2: there's cutting services and making savings or if you're fortunate enough,

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Speaker 2: you're but at your sales, and then there's the government.

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Speaker 2: So really we think there's a conversation there around how

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Speaker 2: councils will go on in this space. It is getting

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Speaker 2: much more difficult with councils in terms of long term

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Speaker 2: sustainability because of the age of their infrastructure exactly.

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Speaker 1: Andrew, good to talk to you, appreciate it. Have a

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Speaker 1: good weekend. Andrew McConnell, Deputy Order to General with us

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Speaker 1: this morning. For more from the Mic Asking Breakfast, listen

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Speaker 1: live to News Talks at b from six am weekdays,

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Speaker 1: or follow the podcast on iHeartRadio.