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5 In the market for global insights Vol 22 No 33 | August 26, 2024
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Local govt milking rural NZ dry POLITICS
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Governance
OUNCILS are being called on to follow central government’s lead and rein in spending after double-digit average rate rises this year by regional, district and city councils. The average rate rise this year by New Zealand’s 11 regional councils was 16.20%, the third successive double-digit rate increase in a row. A survey by the Taxpayers Union has calculated the average increase for the 61 city and district councils was 14.18%. Local Government Minister Simeon Brown said most New Zealanders and central government are prioritising the musthaves over the nice-to-haves, and local government should be adopting a similar approach. “For the government, this means funding essential services and critical infrastructure,” he said. “I expect local councils to adopt a similar approach, going line by line through their expenditure to ensure they are focused on core business.” Last week Brown announced the government is refocusing the purpose provisions in the Local Government Act, investigating the introduction of performance benchmarks for fundamental
council roles and reviewing transparency and accountability rules. It is also considering options such as cappng the amount councils can spend on what he called “nice-to-have pet projects”. Previously it had announced changes that allowed councils to fund debt for infrastructure and the removal of references in the Act requiring councils to enhance the social, economic, environmental and cultural wellbeing in their communities. Doug Leeder, the chair of Bay of Plenty Regional Council and Local Government NZ’s regional head, said nothing has changed in local government in 35 years – since reform in 1989 – and it is due for a relook. “The local government sector in terms of its structure hasn’t changed since 1989 but we need to ask is that realistic in an everchanging world?” Such a discussion should be based on an unbiased, honest account of what amalgamation or reconfiguration would look like, with costings and the likely impact on ratepayers, and detail functions that are best handled at national, regional or local level. “That’s the core of what, in my view, needs to happen.” Federated Farmers board member and local government spokesperson Sandra Faulkner Continued page 5
Sheep & beef’s turn in Ahuwhenua spotlight Entries are open for the Ahuwhenua Trophy and this year the focus is on sheep & beef farmers. The trophy has been presented to the top Māori farmer for the past 89 years and since 2012 it has also included the Young Māori Farmer award. Chloe Butcher-Herries was the recipient last time the sheep & beef sector took centre stage. For more information visit www.ahuwhenuatrophy.maori.nz Photo: Alphapix
Where business is blooming
S FOECT CU OR S
Neal Wallace
Peter Rensen’s flower-growing operation in South Auckland is thriving on innovation and diversification.
HORTICULTURE 22-25 Researchers say NZ can reach its freshwater goals, but the social cost might be too high.
Nestlé challenges claims NZ dairy farms have the lowest carbon footprint in the world.
Outgoing Rural Support Trust chair has been guiding the organisation since inception.
NEWS 7
NEWS 9
PEOPLE 20