Councils at risk of losing profitable assets

The Local Government Bill is a threat to profitable Council owned assets as it gives strong powers to the Local Government Minister to interfere with the business of Councils and encourage asset sales, the Green Party said today.

"Councils around New Zealand own a range of well performing assets from ports to bus companies. As well as often being significant infrastructure, the profits from these assets reduce councils' reliance on rates and help to fund the local services that communities want," Green Party local government spokesperson Eugenie Sage said.

"The Government is this week trying to pass two bills, one which seeks to force the sale of our energy companies and the second which would enable Government to pressure councils to sell off or sell down council owned assets," said Ms Sage.

"The Mixed Ownership Model Bill has its second reading and the Local Government Act 2002 Amendment Bill will be introduced this week. It gives the Minister power to interfere with the running of local government when the Minister decides that a council does not demonstrate 'prudent management' of its finances.

"The ministerial powers in the Local Government Bill to appoint Crown Managers, Review Teams and Commissioners and to call and postpone elections need to be pulled back to stop Wellington interfering with and dominating local decision making.

Information provided by the Green Party shows that last year Auckland City Council's shares in Auckland International Airport contributed $22.7 million to Auckland City Council while Orion provided $25 million to Christchurch City Council.

"Local Government Minister, David Carter has said publicly that he is supportive of local asset sales and wants more ability to interfere with Councils' decision making.

"Government Ministers are pressuring Christchurch City Council to sell assets and will do the same for the rest of the country if they get the powers to do so.

"Encouraging asset sales is short sighted as any funds raised would run out after a few years," she said.

Well performing Local Government assets