Local Government reform bill passes first reading

A Bill to implement the first steps of a significant reform programme for the local government sector passed its first reading in Parliament today.

Local Government Minister David Carter says the Government recognises that many councils are making hard decisions in the face of increasing cost pressures, but are constrained by the current legal framework.

“The Local Government Act 2002 Amendment Bill intends to refocus the purpose of local government, introduce financial prudence requirements for local authorities, strengthen council governance provisions and streamline council reorganisation procedures.”

Mr Carter told Parliament the Bill is the first phase of the Government’s Better Local Government reforms which will focus local authorities on operating more efficiently and effectively by doing things that only they can do.

“New Zealand’s 78 local authorities are an important part of the New Zealand economy.  They make up 4% of GDP, spend $7.5 billion per year of public money and manage $100 billion worth of public assets.

“While central government must play its part in creating an environment in which local government can better perform, local government has a vital role in helping build a more productive and competitive economy.

“The Local Government Act 2002 Amendment Bill is an important milestone in progressing the first phase of reform of New Zealand’s local government sector,” Mr Carter says.

The second phase of the Better Local Government reforms will include some non-statutory actions and a second reform bill proposed for 2013.