Local Government Act 2002 becoming convoluted


As we approach the end of the third term of this Government, it is important to look back at how the legislation defining local government in New Zealand has changed. Since 2008, a number of changes have been made that significantly alter how local councils operate and the obligations that they are expected to meet. As many of these changes have flown under the radar many New Zealanders are not aware that they even happened.

To understand how the Local Government Act 2002 came to be in its current state, we need to look at prior legislation. One of these prior Acts of Parliament is the Local Government Act 1974, which among other things made provision for the establishment of District Councils, Regional Councils, Unitary Authorities,

Prior to the 2002 Act being passed by Parliament, the 1974 legislation was quite prescriptive in terms of what councils were permitted to do. The newer legislation gave councils the flexibility to choose activities and how they are undertaken, viewed as relating to general competence and applicable in equal terms to both regional councils and territorial authorities. Since then these changes have been amended by the Local Government Amendment Act, 2010. This was prompted by public perceptions that there were councils over reaching their prescribed mandate to spend money on activities and items that are not permitted in the Local Government Act.

One such case was Kaipara District Council which in the end was found to have not breached the Act, after a dispute over the Mangawhai waste water scheme. The Auditor General agreed to pay out $5.4 million in settling the dispute.

Another is Westland District Council, which has been found wanting over repairs to infrastructure damaged by flooding in 2016. W.D.C. have had a long, drawn out and at times messy public dispute with key council managers and the Chief Executive, which have led to some high profile resignations. Although it is not clear if the Act was breached, given that a cake decorating firm with no prior knowledge of waste water was involved in a multi-million dollar contract, I think it is safe to say something went wrong.

In acknowledging the 1974 Local Government Act and the 2002 Local Government Act, it is important to briefly acknowledge the 1989 Local Government Amendment Act. This Act acknowledged that the increasingly complex, convoluted and potentially dysfunctional L.G.A. 1974 needed a significant overhaul. To that end it dismantled or merged 850 separate bodies into 86. Of those 850 there had been 249 municipalities and the other 601 were catchment boards, drainage boards and harbour boards. The current configuration includes 13 regional councils and 73 territorial authorities (City and District Councils).

In 2012 there were changes made that repealed Sections 91 and 92, which pertain to the processes for identifying community outcomes and obligations to report against said community outcomes. This essentially meant councils were no longer obligated to indicate how they were progressing in terms of creating healthy integrated communities, compared with the outcomes identified in council planning papers. In the same year, the powers of the Minister were significantly increased (s257-259) so as to permit the appointment of a Crown Observer, Crown Manager, a Commision or even calling of general elections of a council in place of one thought to be incapable of performing its statutory obligations.

I fear that if too many more Amendment Acts are passed that the Local Government Act 2002 will be too convoluted to remain in existence, thereby becoming obsolete.

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