NZ Local Government Magazine 1408 by Contrafed Publishing

GOOD

NZ LOCAL GOVERNMENT MAGAZINE VOL 51 • AUGUST 2014 • $8.95

LOCAL GOVERNME

GOOD All that’s

LOCAL GOVERNMENT GOODreal & true LOCAL aboutGOOD

GOOD

OVERNMENT LOCAL LOCAL GOVERNMEN GOVERNMENT GOOD GOVERNANCE

LGNZ EXCELLENCE AWARDS

Lifting the game p12

15 projects worth celebrating p22

QUEENSTOWN’S ADAM FEELEY

WHO GETS WHAT?

Why measuring performance matters p18

Benefits, salaries & retention strategies p32

Building communities Fulton Hogan creates, connects and cares for communities; building the roads, ports, airports, infrastructure and property which bring people together. Contact us: Phone: 03 357 1400 Email: info@fultonhogan.com www.fultonhogan.com

IN THIS ISSUE NZ LOCAL GOVERNMENT MAGAZINE

P16

IN THIS ISSUE P22CONTENTS

P27

REGULARS

FEATURES

2 Editor’s Letter 4 In Brief 10 Innovations 11 Events 36 Next Steps 45 LGNZ

12 G OOD GOVERNANCE

Lifting the game 16 W HY RUN THE RISK?

The pressing need for audit committees 22 1 5 PROJECTS WORTH CELEBRATING

LGNZ EXCELLENCE Awards finalists

COLUMNISTS

27 P OWER TO THE PEOPLE

40 J eremy Elwood

On the Funny Stuff 41 P aula Bennett On Central Government 42 L inda O’Reilly On Legal Issues 43 J eremy Sole From the NZ Contractors’ Federation 44 L awrence Yule From LGNZ

Thames-Coromandel District Council is surfing a wave of community empowerment 30 F OUR MEN: FOUR MESSAGES

Who’s responsible for health & safety? 32 W HO GETS WHAT?

Benefits, salaries and retention strategies

MY VIEW 18 Q UEENSTOWN LAKES’ ADAM FEELEY ON THE COVER All that is GOOD real & true about local government. See page 2.

P18

Why measuring performance matters

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

EDITOR’S LETTER NZ LOCAL GOVERNMENT MAGAZINE

All that’s good, real & true about local government What’s good about local government? Plenty. Hence the provocative statement on the cover of this our first issue as the new owner, publisher and manager of Local Government Magazine. Independent publisher Contrafed Publishing has taken over the mantle of producing Local Government Magazine: a journal that can trace its roots back to the 1920s. In many ways, the local government sector has become a punch bag for the disaffected but I don’t buy into that story. Call me an idealist but I just don’t accept the idea that some 25,000 New Zealanders get out of bed and front up to work every day determined to make our country a worse place. So am I saying local authorities are perfect? Not at all. Show me a private sector organisation that is. Or a central government one. Or a not-for-profit. I share the view of many local government leaders that there are, indeed, plenty of things worth celebrating in the local government

PUBLISHER  Contrafed Publishing Co. Ltd, Suite 2.1, 93 Dominion Rd, Mount Eden, Auckland 1024 PO Box 112 357, Penrose, Auckland 1642 Phone: 09 636 5715, Fax: 09 636 5716  www.contrafed.co.nz

GENERAL MANAGER Kevin Lawrence DDI: 09 636 5710 Mobile: 021 512 800 kevin@contrafed.co.nz

EDITOR Ruth Le Pla Mobile: 021 266 3978 ruth@localgovernmentmag.co.nz

CONTRIBUTORS Paula Bennett, Jeremy Elwood, Linda O’Reilly, Peter Owens, Bruce Robertson, Jeremy Sole, Lawrence Yule

SALES CONSULTANT Peter Corcoran DDI: 07 825 7557 Mobile: 021 272 7227 peter@localgovernmentmag.co.nz

ADMINISTRATION/SUBSCRIPTIONS admin@contrafed.co.nz

sector and the majority of people have a genuine desire to improve

DDI: 09 636 5715

stuff that could do with being improved.

PRODUCTION

So, over the coming months and years we’ll be celebrating the

Design: Tracey Asher DDI: 09 636 5713

good stuff, while also getting real and being true about what could

design@contrafed.co.nz

be done better.

Printing: PMP MAXUM

There are so many people I’d like to thank for helping us get our first issue off the ground. For starters, there are clusters of warm-hearted people dotted around the country who endured early meetings with the new Local Government Magazine team as we asked about the complexities and nuances of their world. And there are the countless people who agreed to support us through being interviewed, sharing their ideas or placing advertising. I have an especially large thank you to the Contrafed Publishing board for having the foresight and insight to back the publication.

CONTRIBUTIONS WELCOME Please contact the editor before sending them in. Articles in Local Government Magazine are copyright and may not be reproduced in whole or in part without the permission of the publisher. DISCLAIMER Local Government Magazine is an independent publication owned and produced by Contrafed Publishing. The views expressed in the magazine are not necessarily those of any of its shareholding organisations.

For Local Government Magazine exists to help local government

The New Zealand Contractors’ Federation

professionals share their knowledge, insights, opinions, tools and

www.nzcontractors.co.nz

experiences. So please share your stories with us. And help us help

Roading New Zealand

local government leaders make New Zealand a better place.

www.roadingnz.org.nz The Aggregate & Quarry Association

Ruth Le Pla, Editor ruth@localgovernmentmag.co.nz

www.aqa.org.nz The New Zealand Heavy Haulage Association

www.hha.org.nz The Crane Association of New Zealand

My thanks to Peter Corcoran, our sales consultant, for so successfully telling our story to our raft of previous and new advertisers. Kevin Lawrence, our general manager, for appearing calm when circumstances could easily dictate a quite different demeanour. Tracey Asher, our designer, for withstanding my sometimes alarming ideas on layouts, fonts and colours with the forbearance of a true professional. Gill Prentice, our proofreader, who helps catch my mistakes. The indomitable Pam Gudmundsson for untangling subscriptions lists that would try the patience of a saint.

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www.cranes.org.nz Rural Contractors New Zealand

www.ruralcontractors.org.nz The Ready Mixed Concrete Association

www.nzrmca.org.nz ISSN 0028-8403

LOWER HATEA RIVER CROSSING WHANGAREI McConnell Dowell celebrates the outstanding leadership role local government plays within communities and the strong impact projects driven by local authorities have on community, infrastructure and economic development.

SUPREME AWARD - COMMERCIAL PROJECT OF THE YEAR Judges’ comment: “A tour de force of creative procurement, inspired design, and superbly managed construction.” To find out more please contact Rory Bishop, phone +64 9 573 5891; email rory.bishop@macdow.co.nz

www.mcconnelldowell.com New Zealand | Australia | Asia | Pacific Islands | Middle East

IN BRIEF

Message from the publisher Contrafed Publishing is proud of this our first issue of the newly-launched Local Government Magazine and we are pleased to add this title to our established stable of publications. Many of you will know us through our existing magazines – Contractor, Quarrying & Mining, EnergyNZ and Scrap & Demolition – some of which have won prestigious publishing industry awards. Local government is a dynamic, complex and fascinating sector that has an immediate day-to-day effect on the lives of all New Zealanders. At Contrafed Publishing, we look forward to further developing our relationship with the local government sector. We are dedicated to helping support local government, and celebrating

excellence and local government’s place in the New Zealand political and economic spectrum. We will take pride in presenting positive debate and useful commentary, and to highlighting and covering issues that are significant to the various constituencies in the sector. We also look forward to strong engagement with our readers and I am sure you will find the Local Government Magazine editorial team enthusiastic, objective and supportive of your contributions and views. Expect interesting content and debate as the magazine’s brand emerges into a new era of professionalism. Charlie Taylor, chair of the board, Contrafed Publishing Co Ltd

When mayors were stocky and mayoresses charming Local Government Magazine draws on a legacy dating back over 90 years. Today’s magazine grew out of Local Body Review, which in turn incorporated an even older publication Board and Council. When Robert Westgate, the first publisher of the first issue of Local Body Review, outlined his editorial policy back in 1965, he wrote of wanting to serve the best interests of the New Zealand local government sector. That hasn’t changed. In 1965, Westgate was describing Board and Council as, at over 40 years old, “the oldest special interest journal in New Zealand”. He wrote that the publication was “conceived and nurtured through its first years by men who early saw the need for local government to have its own voice and its own forum”. Again, the intention has changed very little. Many of the stories remain the same, too: Prime Minister “Mr Holyoake” called for co-operation between central and local government, Auckland fretted over regional growth, readers were told how complex local government is, and Minister of Local Government “Mr Seath”, described local government as “democracy in action”. The voice of the magazine, however, is markedly different. Articles in the 1965 issue included a profile of then Christchurch mayor George Manning who was described as a “stocky little man” who was “coy about his age” and whose wife had a natural charm that enabled her to “slip with ease from housewife to mayoress and helper of several women’s organisations”.

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Renee Murphy

New partnership Young IPWEA, a group for young public works professionals in Australasia, is teaming up with eNAMS, the association for emerging professionals and asset managers. Speaking at the Institute of Public Works Engineering Australasia (IPWEA) conference in Auckland recently, Young IPWEA New Zealand committee member Renee Murphy called for people to get involved in the new organisation. Murphy said eNAMS targets people with up to 10 years of industry experience and those interested in learning about the asset management industry. It is for “those who are young and those who are young at heart”. For more information on how to join the new organisation contact Renee Murphy: 06 833 5115. Mob: 027 436 1706. renee.murphy@opus.co.nz

GOOD PLAIN STUFF Big ups to Lyn Provost, Bruce Robertson, Tamar McKewen and countless others at the Office of the Auditor-General for their ability to cover off complex topics in good old plain English. You’re writing short sentences. You’re getting to the point fast. And you’re sticking to it. We know you’ve been doing this for some time now. The effort’s much appreciated.

HAVE YOUR SAY...

Who else produces reports in plain English? Let us know at Local Government Magazine. ruth@localgovernmentmag.co.nz

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IN BRIEF

Building pressure EMA Northern is asking political parties to include in their general election policies its proposals on local government consenting processes. David Lowe, the EMA’s general manager, advocacy and government relations, says his organisation is giving notice that “it will be a key issue that EMA will concentrate on in its advocacy efforts over the next while”. Should the parties be elected, the EMA is asking that these policies be implemented. According to Lowe, council consenting processes are “slow and unduly bureaucratic, and sometimes more concerned with being more protective of local authorities than facilitating the growth and development of their region”. He says there is huge disparity in processing of consents throughout New Zealand. Some do it well, others do not. “When EMA spoke to businesses about the issues they faced, frustration with council consent was the most common issue,” says Lowe. “The allegations businesses are making are that staff are so concerned with protecting themselves from liability – bullet-proofing the consent should problems arise later – that they have lost sight of the purpose which is to facilitate development in their regions.” He adds many businesses believe problems with leaky buildings have caused long-term damage to creating a successful organisation culture. “There is patch-protection amongst local government departments and their agencies, and businesses are being required to pay the

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cost and delays of addressing that.” He adds that fire regulations are complex and “do not have common sense applied in their application”. EMA Northern’s “manifesto”: a) Require all local authorities that issue building and resource consents to: (i) E stablish and publish a standard for total elapsed time between a consent application being submitted and being granted, with unreasonable standards being subject to judicial review. (ii) P ublicise their performance in meeting those standards. b) Legislate to require building and resource consent functions to be delivered by a co-located, single point-of-contact in each territory. c) Fully review the local authority fire regulations to ensure common sense and context is applied.

EXCELLENCE IN LOCAL ECONOMIC CONTRIBUTION

MartinJenkins congratulates finalists in the 2014 LGNZ EXCELLENCE Award for local economic contribution â&#x20AC;&#x201C; highlighting council innovation to support economic wellbeing.

Hauraki Rail Trail Hauraki District Council teamed up with Matamata-Piako and Thames-Coromandel districts to create a 77 km cycle trail that is exceeding all predictions of benefits to its communities.

Electronic consent process in Selwyn Selwyn District Council has built and rolled out a web-based building consent system with big improvements in speed and efficiency â&#x20AC;&#x201C; 97% of applications now come through the portal.

MartinJenkins has unsurpassed experience in developing and reviewing economic strategies, policies and programmes at the national, regional and local level. Find out how we can help lift performance in your region: martinjenkins.co.nz

100% Connected Wanganui District Council and its partners are connecting their community, with an imaginative programme to deliver broadband service to the city and remote rural areas, enabling people to grow their business.

IN BRIEF Around the councils WELLINGTON CITY COUNCIL and GREATER WELLINGTON REGIONAL COUNCIL are proposing to set up a new economic development agency for the Wellington region. The new agency, to be known as Wellington Regional Economic Development Agency (WREDA), would combine the two councils’ current economic development, tourism, venues and major event activities. The councils are now seeking public views on the proposal. Submissions close on 6 August. The councils are expected to decide in August / September this year whether or not to proceed. Wellington City Council Deputy Mayor Justin Lester says the stronger economic growth derived from the combined approach would help to expand the region’s rating base, reduce pressure on ratepayers and create investment in community facilities and services. AUCKLAND CITY is looking at finding savings of up to $486 million a year if it wants to hold rates at 2.5 percent as part of its new 10-year budget. Chief executive Stephen Town says the current long-term plan contains carry-over numbers from the legacy councils and projects an average rates rise of 4.9 percent for each of the remaining years until 2022. “To limit rates rises to between 2.5 to 3.5 percent, we need to be innovative and bold in looking at alternative revenue sources, reprioritising spending and finding cost savings to achieve our financial targets and take the pressure off households.”

Construction has started on CHRISTCHURCH CITY COUNCIL’S Halswell Library and Community Facility. The new community hub will incorporate a library, outdoor pool, meeting spaces and a customer service desk. Construction and fit-out is scheduled to be completed for a November 2015 opening. David Adamson, director council facilities and infrastructure rebuild, says the new facility will be the first of its kind in Christchurch to bring such a range of services together. HAWKE’S BAY REGIONAL COUNCIL has voted in favour of investing up to $80 million in the Ruataniwha Water Storage Scheme. The investment is subject to a number of conditions including farmers signing up to take at least 40 million cubic metres of water from the scheme, securing investors, gaining a workable environmental consent for the scheme, and a viable design and construction contract.

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QUEENSTOWN LAKES DISTRICT COUNCIL has approved the development of a convention centre in central Queenstown, subject to four conditions: • Securing the capital funding required to construct the facility, in addition to the $32.5 million proposed by way of council contribution; • Amending the long-term plan to incorporate proposed costs associated with the convention centre development; • Council considering alternative ratings models including options for an expanded CBD business zone and reduced residential contributions, and approving a final rating funding model; and • The council approving a preferred operating model. PALMERSTON NORTH CITY COUNCIL is now issuing strike notices to residents who repeatedly place plastic bags in their recycling. Council reserves the right to remove recycling bins after the third strike. The notice covers shopping bags, bread bags, plastic cling wrap, bubble wrap, frozen vegetable bags and cereal bags. WESTERN BAY OF PLENTY DISTRICT COUNCIL took out equal first place for improving performance through leadership excellence at the 2014 Public Sector Excellence Awards. The council scored the win for its management development programme for middle managers. Promoted by IPANZ and Gen-i, the annual Public Sector Excellence Awards recognise and reward outstanding performances and achievements in the New Zealand public sector. This year’s awards attracted 77 entries from 40 organisations.

SOUTHLAND DISTRICT COUNCIL has cut speed limits on over 50 bridges in an attempt to extend their lifespan. The move aims to save the council millions of dollars in replacement or repair costs. The limits apply to heavy motor vehicles such as forestry trucks. In some cases, weight limits are also being imposed. LG

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INNOVATIONS CHRISTCHURCH CITY COUNCIL has teamed up with lighting and solar energy solutions company SOLARBRIGHT to provide New Zealand’s first publiclyaccessible solar-powered charging table. Situated in Christchurch’s Re:START Mall, the table enables people to charge their mobile devices even during power cuts. The prototype table is being trialled in the mall’s forecourt. SolarBright managing director Nicola Martin says the company’s chief executive Pat Martin designed and developed the table over a period of about six months. SolarBright worked with local sheet metal fabricators ENI Engineering to make the prototype. Carolyn Ingles, the council’s urban design and regeneration manager, says the table will allow users to gather and sit, relax and use a range of devices such as tablets and phones while they charge using free solar energy.

For some time, Australian government employees have been enjoying the enhanced tax benefits of NOVATED leasing: a motor vehicle lease available to salaried employees. Now ORIX is pioneering its product in New Zealand: including for government workforces. No additional costs are borne by the employer and all vehicle costs are deducted automatically from the individual driver’s salary. This makes Novated leasing suitable for discretionary drivers, and for anyone within the organisation who would like to sacrifice a portion of their salary for the provision of a new, or near-new, vehicle. By running the lease through a pre-PAYE salary deduction, individuals who do not have access to the benefits of traditional company vehicles are able to take advantage of salary packaging for PAYE and GST deductions, as well as enjoy the procurement benefits offered by the lease provider. Novated leasing most often includes a fully-maintained management programme including budgeted fuel and insurance, making this a hassle-free ‘turnkey’ solution, and a very cost-effective way to run a personal vehicle.

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A new ‘governance gate’ introduced to kick-start the procurement process has saved at least $100,000 in tender evaluation time and costs over the past six months. It has also driven more consistent, transparent and robust purchasing decisions at TASMAN DISTRICT COUNCIL. Late last year, council up-skilled its procurement staff in clever buying techniques, prompting a review of tender processes. Tasman District Council now appoints all of the evaluation team well before the request for tender (RFT) is released, so that they fully understand the project and can tailor their evaluation to get what they want. Careful review of the specifications and drawings, and the tender documents gives confidence that the RFT is clear, consistent, 100 percent relevant to the project and free from errors. A risk review identifies the factors that will drive success on each project, and the relative importance of those factors against the tender box price. Through these process improvements, Tasman District Council has reduced errors in RFTs, and more clearly defined its procurement processes, resulting in fewer Notices to Tenderers, much easier and faster evaluations, as well as healthy competitive market pricing. Russell McGuigan, programme delivery manager at Tasman District Council, estimates that evaluation time has dropped by at least 20 percent. “There’s far greater consistency in our evaluations; and our debriefs with tenderers and tender evaluation team members are driving continuous enhancement of our RFTs.” LG

PHOTOS: OLLY COLEMAN olly.coleman@clear.net.nz

EVENTS

NZ Contractorsâ&#x20AC;&#x2122; Federation Annual Cocktails 1. The Hon Prime Minister John Key, Hon Dr Jonathan Coleman and Dave Connell, chairman, NZ Contractorsâ&#x20AC;&#x2122; Federation (NZCF). 2. Dave Connell, chairman, NZCF.

3. Paul Beutow, managing partner advisory Kensington Swan, Ben Lawlor, general manager infrastructure New Zealand, Hawkins Infrastructure and Woody Blakely, managing director, Blakely Construction. 4. Ruth Le Pla, editor, Local Government Magazine. 5. Andrew Spittall, chairman, Nelson Marlborough, NZCF. 6. Joe Edwards, construction manager, McConnell Dowell Constructors, and Peter Corcoran, sales consultant, Local Government Magazine. 7. The Hon Prime Minister John Key, NZCF CEO Jeremy Sole and Hon Dr Jonathan Coleman. 8. Leigh John, group technical sales manager, Hynds Pipe Systems.

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9. NZCF Southern regional manager Ollie Turner and Margo Connell, financial manager/director, Connell Contractors, Hamilton.

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

GOVERNANCE

Good Governance Lifting the game

A recent report from the Office of the Auditor-General once again highlights the need for strong governance by local authorities. Ruth Le Pla looks at what’s being done to improve standards.

or William Whittaker, governance is a team sport. While individual councillors are elected on separate political platforms they must fast figure out how to work well with colleagues and opponents of every political hue. “The quality of the outcome depends on the quality of the interactions between team members, the composition of the council, how well they behave and work together, and a common understanding of objectives,” he says. “And that understanding is critical.” Whittaker is chief executive of the Institute of Directors (IoD) in New Zealand. As such, he’s got an insider’s insight into the inner workings of

council chambers and boardrooms across the nation. So he’s well versed in the anomalous situation existing in councils: collectives of often passionate people who want to serve their community but who may bring little or no governance knowledge or training to the task. The need to lift governance standards has probably always been there, Whittaker says. “Unfortunately it often takes a crisis to remind people of their basic responsibilities. “Exactly the same as in business, local councils need to focus on shareholder return. And in this instance the shareholder is the ratepayer.”

AVOIDING GOVERNANCE POTHOLES South Wairarapa District Council mayor Adrienne Staples says attending a recent governance workshop has helped her focus on the bigger picture. Staples says ratepayers in the close-knit South Wairarapa District Council community often unintentionally blur the lines between governance and management. She sees it as one of the occupational hazards of being mayor of a small council. Local people can easily access elected members and expect their mayor to know exactly which bit of road is being sealed and why. “They think you’re the boss of council. But you’re not the boss of which person goes out to plant a tree or fix

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the street lights. Sometimes they find it difficult to understand that.” Staples says she tries to diplomatically steer ratepayers towards the council processes that are already in place to help them with their concerns. She acknowledges it can sometimes be hard to do. Staples took part in Applied Governance Essentials for Local Government – the first in a series of five governance workshops that LGNZ launched earlier this year under its KnowHow training arm. Developed in conjunction with the Institute of Directors, the workshops offer professional governance training to local authorities around the country.

Now in her fourth consecutive term as South Wairarapa District Council mayor, Staples says the course was very worthwhile. “It’s easy to get bogged down in the small stuff. Doing the course reminded me of the times you have to take yourself back up to the big picture. You need to look at governance and policy setting and what you want the place to be like. “That’s completely different to thinking about things like how many lights you want in a street.”

From left: William Whittaker and Malcolm Alexander: teaming up to lift governance expertise.

The “crisis” we’re talking about is Kaipara District Council’s Mangawhai community wastewater scheme. It’s the “woeful saga” documented in controller and auditor-general Lyn Provost’s summary report that found the council failed to attend to its fundamental legal and accountability obligations; and effectively lost control of a major infrastructure project. As Provost herself wrote in her November 2013 report, “some of the work done on behalf of the auditor-general has fallen short of the standards I expect”. Not surprisingly, the failings behind the Mangawhai wastewater scheme featured prominently in the auditor-general’s more recent report Local government: Results of the 2012/13 audits, which was presented to the House of Representatives in May this year. Whittaker says the Kaipara case “quite clearly indicated there is a need for stronger governance... Taxpayers don’t like to see their money wasted.” Last year the IoD teamed up with LGNZ to develop a series of governance workshops for local authorities. Launched earlier this year under the LGNZ KnowHow training arm, LGNZ chief executive Malcolm Alexander says the courses have been rolled out up and down the country. “They have been broadly well received by our membership,” he says. And the number of councils signed up so far is already in double figures. According to Whittaker, the two organisations are also collaborating on a number of other measures designed to improve the performance of boards. One of these, he says, may be a

process for councillors to evaluate their own performance. “That enables them to celebrate some successes, where they’re doing well, and it also identifies areas for improvement. If you do that in a regular fashion you can chart your progress towards certain goals.” Whittaker suggests an optimum cycle for such self-evaluation could be annually “and probably no more than every other year”. “There’s a need to synchronise that with the [local government] election cycle as it would be a fairly worthless exercise for a new council postelection because people have to settle in and understand their roles.” Whittaker says the IoD is also looking at offering councils collective membership via LGNZ. “We assume that a lot of those people who seek to be elected to councils want to develop some sort of governance career,” he says. “Therefore the deeper their knowledge, and the more current they are with governance and thought leadership, the better.”

“Governance is a team sport.” – William Whittaker, CE, Institute of Directors

“The key is that learning and knowledge are seen as positive and empowering and not a criticism that people don’t know what they’re doing.” – Malcolm Alexander, CE, LGNZ

“Councils are very expensive and complex businesses.” – Malcolm Alexander, CE, LGNZ

POSITIVE SUPPORT LGNZ’s Malcolm Alexander points out there’s a growing need for good governance across all institutions in New Zealand: in private sector organisations, trusts and local authorities alike. “Local government is part of that picture,” he says, “but it’s not as though we’re sticking out like a sore thumb.” He adds that local authorities are dealing with a complex set of services “and it’s getting more complex all the time”.

“Good governance is not a luxury: it’s a necessity.” – William Whittaker, CE, Institute of Directors

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

GOVERNANCE

“You could say local government is democracy in its purest and most perfect form. Or you could say it simply underlines or exemplifies the flaws which democracy can have.” – Adam Feeley, CE, Queenstown Lakes District Council

“It has been said that democracy is the worst form of government except for all those other forms that have been tried from time to time...” – Winston Churchill

HAVE YOUR SAY...

“Good principles of governance help a council negotiate the complexity in a better manner for better outcomes,” he says. He’s keen to make the point that there will always be a need for LGNZ to support elected members. “That’s the nature of the beast and the key is to make sure that learning and knowledge are seen as a positive and empowering thing and not a criticism that people don’t know what they’re doing.” He suggests that focusing on financial expertise may be beneficial. “That’s not because we’re electing people that don’t understand but because it comes back to that complexity,” he says. Alexander says understanding the choices and trade-offs necessary when doing budgets is “mission-critical” for any councillor to do their job well. “Councils are very expensive and complex businesses. They deal with hundreds of millions to billions of dollars, in some cases, around infrastructure. So making judgements about when infrastructure should be built or renewed, how we’re going to pay for that, what the appropriate mix is between pay-now under rates or defer under debt, or whether a PPP is the right way to go... These are all difficult and complex decisions.” Alexander points out that local authorities throughout the country are working collaboratively: whether it be on work streams for roading, water, bylaws or any other way in which they can cooperate to deliver better outcomes for their communities. “Where we can collaborate to deliver better value to our ratepayers,

What are the most effective ways for local authorities to lift governance standards? Share your experiences with Local Government Magazine. ruth@localgovernmentmag.co.nz

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elected members and council officers are on to it,” he says. “It’s to be applauded. It’s happening all over the place and in an increasing manner that’s beyond just ticking the box. These are deep conversations.” As Alexander puts it, at the end of the day governance is about delivering the best value the governance team can to the ratepayers of the district that elected them. “Seen in that light, governance should be about good practice, good process, innovation, transparency and understanding of roles. You are not elected to be the chief executive. You are elected to be the governor.”

Karen Thomas: everybody has had to step up a little bit.

STEPPING UP Meanwhile, Karen Thomas, chief executive of the Society of Local Government Managers (SOLGM), says governors and managers alike have had to “sharpen their pencil a bit” in recent times and re-examine the skills they bring to their job. “Everybody right across the board − whether it be local or central government, or the private sector − has had to step up a little bit.” This, she says, is one of the lasting impacts of the global financial crisis. She’s not keen to attribute more recent increased interest in local body governance issues to any one key driver. “Whether something’s happened and there’s a greater need or whether it’s just greater perception, I don’t know. But a lot of people are talking about the importance of governance at the moment and that’s a really good thing because after a while perception becomes reality.” She says the LGNZ / IoD partnership on governance training

is “fabulous”. “Because if the sector’s going to work really well, everybody’s got to be aware of their current skill set and how they can improve. And management will do best when working with really strong competent governors.” On a personal note, she adds she’s a member of the IoD and the series of governance workshops is on her list of things to do. Also speaking personally as a ratepayer, she says communities get the representatives they deserve. “You can’t have it both ways. You can’t ask for people with topquality skills or the inclination to spend time acquiring those skills and then say they should do this out of the goodness of their hearts, and we shouldn’t value it or pay for it. “So somehow we’ve got to get these streams of thought all working together. “Being an elected person on a council, being prepared to put your hand up to help lead the community − that’s a very brave thing to do. It’s not for everybody. We need people with the right kind of skills to do it and we need to be prepared to remunerate those people.” Ultimately, as Whittaker puts it, council and the chief executive

OPEN TO LEARNING When Southland District Council deputy mayor Paul Duffy recently got a chance to do a workshop on Understanding Te Ao Ma¯ori he jumped at it. Duffy, who chairs the council’s resource management committee, says he wanted to ensure he was up to speed with understanding wa¯hi tapu issues and kaitiakitanga from a resource management perspective. “We make a concerted effort to put good practice in place here and wanted to see if there was anything we could be doing better.” LGNZ delivers the Understanding Te Ao Ma¯ori workshop through its KnowHow training arm.

must work closely together with each understanding their own, and each other’s, roles and responsibilities. Both are accountable and the benefit of good governance is that it confers a comparative business

Duffy attended the workshop in Christchurch. “Council is currently going through district plan hearing,” he says, “so the resource management committee’s work has been to the fore lately.” Duffy notes that about a quarter of the 20 or so people on the workshop were staff members of another council who had migrated to New Zealand from countries including Britain, the US and the Netherlands. “For all of us, but particularly for them, it was very valuable to talk about what’s behind the treaty settlement and the history that led to that having to happen.”

advantage. It enables aspirational teams to get on top of their game. “Good governance is not a luxury: it’s a necessity,” he says. “And the ultimate beneficiaries are the people both councillors and officers are there to serve.” LG

INTRODUCING

OUR NEW PARTNERS Two new partners strengthening the expertise of our Wellington office. Sue Brown brings significant experience in financial markets, regulation and corporate law. She will drive our strategy on corporate, regulatory and government needs. Daniel Arapere brings a fresh approach and depth of experience in commercial property law to support local government entities. He will lead the growth of our Wellington property team. Read more about them at www.dlapf.com

DLA Phillips Fox is a member of DLA Piper Group, an alliance of independent legal practices.

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

GOVERNANCE

WHY RUN THE RISK?

The pressing need for audit committees Good governance is about being able to manage uncertainties and make well-founded investment decisions. So why would local authorities risk not having an audit committee that could help them do just that? Assistant auditor-general, local government Bruce Robertson puts the case for the committees.

ack in 2001, the business world was rocked by the Enron scandal. As you probably know, Enron Corporation was a large American energy company based in Houston, Texas. In the space of about a year it went from a supposedly rosy financial outlook and high share price to shame and bankruptcy. Enron was hiding huge debts, getting into questionable company ownership arrangements, and using “creative accounting” to mask how much trouble it was in, all while telling people that everything was fine. Enron’s massive fraud came to light, and the shockwaves were sizable – this was a big deal. Lots of money involved, lots of media coverage, and lots of disbelief at the audacity of Enron’s leaders. Although the leaders and decision-makers in Enron were responsible, others could, and should, have noticed and acted much sooner – including Enron’s auditors. The fallout included the eventual demise of the international accounting and auditing firm, Arthur Andersen. The carnage didn’t end there. The credibility of the checks and balances that are supposed to prevent this “The two main sort of behaviour took a big hit. The Sarbanes-Oxley Act 2002 was America’s attempt to set things right. advisory benefits Many other countries put in place or added regulation from operating over both companies and their auditors. When all this was happening, audit committees an effective audit weren’t a new idea. But the need for them, and for committee are a them to be independent and effective, got a huge boost. fresh perspective An independent and effective audit committee, supported by the other changes wrapped up in and a range of the Sarbanes-Oxley Act, could have acted early to experience and prevent much of what went wrong at Enron.

expertise.”

CHAMPIONING

P H OT

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O: CH

R IS T S

– Bruce Robertson

In America, companies must now have an audit committee. Here in New Zealand, audit committees aren’t mandatory, but it is expected that public sector organisations will consider whether or not they should have one. Since 2008, the Office of the Auditor-General has

been championing audit committees. In our published guide Audit committees in the public sector we said, “Effective audit committees can provide objective advice and insights into the public entity’s strategic and organisational risk management framework. In doing so, they can identify potential improvements to governance, risk management, and control practices.”

FOUR BENEFITS More recently, in our local government sector report, Local government: Results of the 2012/13 audits, we said, “… there are four main assurance benefits from operating an effective audit committee – increased scrutiny, efficient use of resources, increased focus on internal assurance, and increased focus on accountability. “The two main advisory benefits from operating an effective audit committee are a fresh perspective and a range of experience and expertise.” The report pulls together the results of our audits of all New Zealand local authorities for 2012/13. We do this every year to report trends to Parliament and provide insights to the local government sector. We ask questions like – How is the sector looking? What do local authorities need to know? Does our office have concerns about the sector? Who is getting it right? Who is getting it wrong?

to continuous improvement. Audit committees have different roles and different names – sometimes “audit committee”, sometimes “audit and risk committee”, sometimes “audit and assurance committee”. It could even be more than one committee, because there are quite separate ideas in play. Audit committees are also a useful way for a governing body to manage any gaps in the skills and knowledge of its members.

SHOW ME THE PROOF Your audit committee is a subset of your board (or whatever your governing body is called). The folks on the audit committee are there to keep an eye on the audit process and to hold management to account for responding to the auditor’s findings – a critical, questioning, “show me the proof” sort of eye. They take a hard look at how the information that will be audited gets generated, and it’s also their job to make sure that legal requirements are met. If information is going into the financial statements for the external auditor to consider, the audit committee should be asking its own questions of the business, with the aim of having great confidence that the information that will be audited is reliable and ready for an audit.

WEAKNESSES

NOT A BIG TICK

For this year’s report, we realised right from the get-go that we needed to talk about governance. I don’t need to tell you that local authorities are operating in a fiscally demanding and changing environment. Any weaknesses in governance, in this environment, expose local authorities to big risks. Good governance is about being able to manage uncertainties and make well-founded investment decisions. A well set up and well run audit committee can help highlight governance issues so a local authority can address them. It can give assurance that the most important aspects of the organisation’s operations are properly considered and looked after. The existence of an audit committee shows that a local authority is open to scrutiny and committed

Remember that auditors cannot and do not check everything. They check the systems and processes that underpin the reports and financial statements that are subject to audit. They also check selected transactions within those systems. So, an unmodified audit opinion is not a “big tick” for everything − it tells one part of a much bigger picture about a local authority’s performance. Your audit committee is best placed to ask the questions that aren’t part of the auditor’s job; to shine a light on the realities and risks of running an organisation; and to help the governing body get the full picture. So the question to ask is – can you risk not having an audit committee? LG

PLANNING ǀ DESIGN ǀ ECOLOGY ǀ GRAPHICS & MAPPING ǀ CULTURAL HERITAGE

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

MY VIEW

ADAM FEELEY Why measuring performance matters Less than two years into the job, chief executive Adam Feeley has made some big changes at Queenstown Lakes District Council. He tells Ruth Le Pla how he’s focusing on fewer measures and driving better performance.

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or a man who kicks off our talk saying he’s worried about offending other people, Adam Feeley is refreshingly forthright. He’s been chief executive (CE) of Queenstown Lakes District Council for less than two years. It’s his first role in local government and he readily admits he doesn’t have a point of comparison with other councils. That’s all true. But Feeley’s impressive career to date has criss-crossed the private sector and central government and he brings an energetic clarity and decisiveness to a role that can easily be derailed by detail. He’s best known for his three-year stint as CE and director of the Serious Fraud Office, boldly telling them when interviewed for that job that some of their performance measures were “nuts”. He gets quite animated about this kind of stuff, carrying a strong belief that an optimum, small number of wellplaced accountability measures will drive the right behaviour. Imagine his delight, then, when he inherited 150 different performance measures at Queenstown Lakes District Council – a number that he’s since cut back to 32. “I mean, we had a performance measure for our cemeteries... There was one that said either we would have no deaths, or not more than one, on our roads per year. That was seen as a proxy for ‘we’ve got good roads’. But I said we’re in party town. How the hell can the council influence hundreds of backpackers?... What a dumb measure.”

Feeley got a mixed response when he tried to pool ideas on performance measures with other council CEs in the Otago region. “I remember one person said it was a really good initiative but they’d got no interest in being involved with it. “I thought, isn’t that why you get out of bed in the morning – to justify your performance? “Interestingly,” he says, “the mayors provided good support for the idea. So we’ve proposed that by next financial year the Otago councils all have, maybe not 100 percent but, some of our performance measures in common.” Feeley doesn’t “even for a minute” think his council’s measures are now perfect. But at least there’s a better rationale behind each one. To make sure its planning processes are easy to understand, for instance, the council now measures who applies for resource consents. Red flags go up if too many homeowners need a lawyer to help them get a building consent for their garage: a sure sign that documents aren’t written in a layperson’s terms. Feeley bats away the idea there’s one performance measure to rule them all. “When you get 10 or 20 measures, you might be high on one and low on another but your true position will ultimately come out. And you know what? If you’re in the bottom of 20 performance measures, chances are that’s a fair assessment that you should be at the bottom.” Still, he reckons most ratepayers look at councils along simple lines. “If you ask most people how they rate their council they think, ‘My rates

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

MY VIEW “I have a huge appreciation for the breadth of challenges that smaller councils, in particular, have.”

“I imagine the best CEs in local government are extremely astute judges of character and managers of personality, and have a lot of wisdom about them. I don’t think I’m any of the above.”

“You can’t disengage quality of service levels from resources.”

“I’m well aware I’m not the most loved CE in some people’s minds. I can’t help but challenge the status quo.”

“There’s a complacency in some parts of local government. I’m not saying we don’t have a good story to tell but we cannot be vaguely complacent.”

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BEING ADAM FEELEY CE, Queenstown Lakes District Council October 2012 – Present CE & Director, Serious Fraud Office 2009 – 2012 CE, Eden Park Redevelopment Board 2007 – 2009 Prior roles include: • MD, Global Registries Ltd • Director, 175 East Ltd • Group Manager, Crown Minerals, Ministry of Economic Development (MED) • GM, Baycorp • Group Manager, Business Registries, MED

don’t go up or not by too much. The libraries or the pools are nice. The service is great.’ “Service is a huge one. But stormwater? Really? Do most ratepayers spend a lot of time thinking about stormwater?” He says he’s not sure what he’s proud of achieving so far at Queenstown Lakes District Council. “You can’t just walk into a local government CE role and [immediately] deliver something meaningful. “I could say things like we took $3 million off our operating costs in the first year. We had a zero percent rates increase this year and last year, and I think the public is pretty happy with the way the council’s performing. But that’s as much a result of political decisions as anything I’ve done.” Other less popular political decisions have seen him implementing some confronting bits of change management pretty much since the get-go. Council instructed him to tackle inefficiencies, performance and relationship issues, and that terrible term “right-sizing” cast its dark shadow over staff. Within a couple of months of taking up his new role, Feeley kicked off a review that has led to around a quarter

of staff being made redundant. “That was a lot of change to go through,” he says, “and to be honest we’re still going through it.” Feeley says he’s well aware he’s not the most loved CE in some people’s minds. “I can’t help but challenge the status quo. Certain kinds of people are good at managing change in an organisation. Certain kinds are good at managing in a steady state. I’m not a steady state kind of person.” In any case, he says, it’s not possible to have discussions about staff and resources in a vacuum. “The challenge with a council is that the projects change so much. They are, relatively speaking, quite volatile organisations. So resources will always be a moving target. “Plus you can’t disengage quality of service levels from resources. So if you’re okay with phones being answered within an hour, I can probably run a call centre with one person. If you want them answered within two seconds I probably need another 20 staff.” Along the way, Feeley says he’s been “amazed” to discover people who’ve been in a local government job all their life. That’s not necessarily a bad thing, he says.

“But we have people who religiously stop work at 10 o’clock, walk downstairs and have 15 minutes for a cup of tea because that’s what they’re entitled to.” All of which, he readily concedes, is perfectly legal. “But in most central government or private sector cultures, if you need a cup of tea you just go get one, whether it’s 9am, 10 or 11. If you want to grab someone and go out for a coffee, that’s fine as long as you don’t do it all the time. “If you work in a mine or a factory having breaks at a set time can make sense. But when you’re a professional, that culture of stopping for a quarter of an hour for morning tea, or whatever, is alien to me and to a lot of the new people who’ve come in to local government. It’s just

fundamentally habit.” That said, Feeley’s a firm believer that local government shouldn’t be beaten up. He says he has a “huge appreciation” for the breadth of challenge that smaller councils, in particular, have. “Fundamentally, Queenstown, Clutha or Gore or any of these small district councils have to do the same range of tasks that Auckland does. So Gore has to find talented roading engineers, water engineers and planners. There’s a finite number of them and it’s incredibly tough to do.” Even so, he tells me how he once made himself unpopular in a meeting by challenging the ‘we’ve got a great story to tell’ local government mantra. “I said I’d never worked in local

QUEENSTOWN IN 1

“It sounds like we’re some poor country

cousin whingeing about things but... Queenstown has to succeed for New Zealand’s sake.”

“It gets 2.5 million visitors every year.

Roughly speaking, that would mean Auckland, at pro rata, would have 150 million visitors a year.”

“ Our council is effectively responsible for 2.5 million people from whom we can’t collect any rates and who we have very

SOUNDBITES

“Our economy is growing at twice the national average.” “ It’s a very strange local economy. This impacts on the council quite significantly.”

government before but had been a ratepayer for decades and I’d always just been pissed off with my local council... They were bureaucratic. They threw all this cost at me that I didn’t understand.... There’s a complacency in some parts of local government.” Then he challenges me to walk outside and ask 10 people what they think of local government. “I wouldn’t bet that the majority think it’s good. That’s not to say local government doesn’t do lots of things well but it’s got to be far more willing to face up to the expectations of the local community,” he says. “And the weird thing is that, much more so than central government, we literally live among our community.” LG

“There’s a degree of smugness in

some circles in Queenstown about how good we are. I don’t share it.”

Queenstown is not given the 7 “support by NZ Inc that I think it deserves.”

8 9

“Its infrastructure is creaking badly.” “If you want to be a high-end international alpine destination you need to have a landscape, a streetscape, a style of building that people come and see and say, ‘This is something special’. Queenstown doesn’t look even vaguely like that.”

little influence over.”

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

LGNZ EXCELLENCE AWARDS FINALISTS

15 PROJECTS

WORTH CELEBRATING Local government performs a critical and often unsung role in our regions, towns and cities. The inaugural LGNZ EXCELLENCE Awards recognise and celebrate the outstanding leadership role that local government plays within communities.

ocal authorities drive projects that can have a strong, positive impact on community, infrastructure and economic development. In LGNZ’s first ever awards for excellence, smaller councils took out an impressive number of spots in the finals, showing the impact they can have with often limited resources.

Entries for this first year highlighted the excellent work occurring in our cities, towns and regions. Local authorities were invited to submit in four categories: the LGNZ Community Event of the Year; the Fulton Hogan EXCELLENCE Award for Community Impact; MartinJenkins EXCELLENCE Award for Local Economic Contribution;

LGNZ COMMUNITY EVENT OF THE YEAR AUCKLAND COUNCIL: THE DICK SMITH NRL AUCKLAND NINES Auckland Tourism Events and Economic Development (ATEED) wanted to create a signature anchor event for Auckland in launching the Dick Smith NRL Auckland Nines. The rugby league showcase attracted 45,000 people to Eden Park on each of the two days it took place, with strong partnerships between event promoters as well as private and public sector organisations. In a post-event survey, 94 percent of ticket holders said they would be keen to attend the next event, showing how much the community embraced the new competition. The event resulted in more than 68,000 visitor nights. About 16,000 Kiwis travelled to Auckland from elsewhere for the Nines and 6000 people visited from Australia to attend the games. A further one million people viewed the televised games in Australia. Well exceeding its own organisers’ expectations, the Dick Smith NRL Auckland Nines added $9.35 million to Auckland’s economy.

NAPIER CITY COUNCIL: TREMAINS ART DECO WEEKEND The glitzy glamour of the 1930s brought more than 35,000 people to the city of Napier for the Tremains Art Deco Weekend. The event was first held in 1989 as a two-day festival celebrating the city’s wealth of art deco architecture. It has since grown into a week-long “extravaganza of elegance” as attendees dress up in period attire with more than 200 events to enjoy including fashion shows, outdoor concerts, vintage car parades and Great Gatsby-themed picnics. Napier City Council supports the non-profit Art Deco Trust which organises the event in close partnership with the council and private sector sponsors from local businesses, community groups and national companies including real estate firm Tremains, Air New Zealand, TSB Bank and AMI Insurance. Thousands of hours of work go into the planning and implementation of the event with great efforts from a dedicated team of staff and community volunteers.

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and the Beca Infrastructure Project of the Year. The judges were BERL chief economist Dr Ganesh Nana, former Wellington Mayor Kerry Prendergast and the chair of New Zealand Council for Infrastructure Development John Rae. The winners were announced at the 2014 LGNZ conference in Nelson on July 21.

NEW PLYMOUTH DISTRICT COUNCIL: TSB BANK FESTIVAL OF LIGHTS Held over six weeks at Pukerua Park, this 60-year-old event attracts a high level of community and family engagement through its lighting displays and entertainment. The festival is an opportunity for the community to celebrate and come together and it provides a vehicle for local artists to perform on stage in front of live audiences. The event provides a safe, fun and barrier-free environment for family and friends over six weeks of summer. The TSB Bank Festival of Lights is supported by New Plymouth District Council as it greatly contributes to the council’s strategic intent to “offer an attractive living environment that compares favourably nationally and internationally”. With work starting in June ahead of the December launch, every year the TSB Bank Festival of Lights has opened on time, to the agreed level of quality, within budget, and gained a high level of customer satisfaction.

FULTON HOGAN EXCELLENCE AWARD FOR COMMUNITY IMPACT ENVIRONMENT CANTERBURY: CANTERBURY WATER MANAGEMENT STRATEGY Canterbury Water Management Strategy is the most significant joint project ever undertaken by the region’s local authorities and has transformed management of Canterbury’s water resource from adversarial to collaborative. The strategy is a pan-regional, multi-year project developed by the Canterbury Mayoral Forum to put management of water resources into the hands of the communities it serves. Introduced in 2009, the strategy was a regional response to unprecedented growth in the agricultural sector that created an unprecedented demand for water – pitting the different types of water users (from irrigators and recreational users to local iwi) against each other. The new water management strategy has in a short time transformed the previous locked adversarial approach to one of open acceptance and involvement, providing the community with a sense of control and ownership. Environment Canterbury led this project with Kaikoura, Hurunui, Waimakariri, Selwyn, Ashburton, Timaru, Waitaki, McKenzie and Waimate District Councils and Christchurch City Council.

HASTINGS DISTRICT COUNCIL: DEVELOPMENT OF WILLIAM NELSON PARK AND SKATEPARK A vacant inner city block purchased by Hastings District Council was transformed from a wasted urban space into a multi-use recreational park built to meet the needs of the city’s young people and wider community. It incorporates a 1700 square metre skate bowl and plaza and a 4300 square metre recreational park with children’s playground, grass area and public toilet. Previously, the lack of youth facilities in Hastings had led to public infrastructure being used for skateboarding and BMX activities, causing damage to council assets and land in public areas and creating a safety issue with conflicts between skaters and pedestrians on footpaths. After building the William Nelson Park and Skatepark, the council worked with Sports Hawkes Bay which provided coaching and mentoring services for the young users of the new, safe facility. The park attracted more than 12,000 users in the first five months since it opened in October 2013.

HOROWHENUA DISTRICT COUNCIL: COMMUNITY WELLBEING IN HOROWHENUA Without an overarching system for community organisations and social services to operate under, the Horowhenua district was experiencing duplication and gaps in services. In 2010, Horowhenua District Council established a Community Wellbeing Framework to enable the council and organisations including government agencies to focus their efforts in a coordinated manner. Since its establishment, the Community Wellbeing Structure has implemented a number of different projects, and advocated on behalf of the community to other agencies. Recent successes include the establishment of a Teen Parent Unit, an annual ‘Age on the Go’ expo, extension of the Social Sector Trials and improved accessibility for those with

disabilities. Coordinated efforts have achieved more than 200 objectives and initiatives for the benefit of the local community and a 57 percent reduction in youth apprehension rates. The Community Wellbeing initiative has given the community the mandate to direct Horowhenua strategies and activities in the community development arena. AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

LGNZ EXCELLENCE AWARDS FINALISTS KAWERAU DISTRICT COUNCIL: KAWERAU ADOPT A NATION – 2013 WORLD RAFTING CHAMPS Kawerau had been suffering a major hangover from the impact of industrial changes for over 10 years. In 2011 an event strategy was put in place to channel Kawerau District Council’s support into specific event areas. The vision of the strategy was to enhance the perception of Kawerau through the promotion of events which utilise the natural resources of the district, assist economic growth, attract a diverse range of participants and develop a strong sense of community. The strategy was implemented with the 2013 World Rafting Champs on Whitewater Kawerau. Local schools and the town supported the sporting event that would attract 70 rafting teams from 30 nations to their town to use one of the area’s best resources – its river. The local council leveraged the champs to get the town working together on intiatives that won the area positive national and international media coverage.

RANGITIKEI DISTRICT COUNCIL: PATH TO WELLBEING INITIATIVE The Rangitikei Path to Wellbeing programme aims to improve outcomes for local people by working in partnership with agencies responsible for local services. In 2009, Rangitikei District Council undertook to develop and support meaningful partnerships with other statutory, community and public agencies particularly in health, community safety and education with results-based accountability. The first Path to Wellbeing conference was held in April 2010 with 130 representatives from 80 organisations discussing health, safety, the economy, environment, education and quality of life. Projects coming out of the initiative included youth engagement, free swimming lessons for children, a health expo, forming an alliance of drug-free

businesses, improving networking between health and social welfare agencies in the district, implementing an anti-bullying campaign and supporting local heritage. Rangitikei District Council led the initiatives by providing administrative support and a modest expense account while external funding generated so far has topped $1 million.

WAIROA DISTRICT COUNCIL: THE RAUPANGA AMENITY AREA The Raupunga amenity block was known by locals and visitors alike for all the wrong reasons. It had been a hotbed of gang activity, crime and continual vandalism, fly dumping and graffiti. The council decided to upgrade the facility and held a series of community hui to discuss the outcomes residents hoped to see. Following the installation of the structure, tangata whenua and a local horticultural scheme accessed native plants and soil medium from their forests and initiated the complete landscaping of the entire reserve area. They then gathered rocks from their awa (Mohaka River) and utilised these as borders around the entire area. Finally, they engaged locally-based artists to paint murals on the concrete toilet unit, and the run-down and graffiti-prone amenity area was transformed into an attractive space for locals and visitors.

MARTINJENKINS EXCELLENCE AWARD FOR LOCAL ECONOMIC CONTRIBUTION HAURAKI DISTRICT COUNCIL: HAURAKI RAIL TRAIL The Hauraki Rail Trail is a grade 1 cycletrail that was constructed as part of the government’s New Zealand Cycle Trail / Nga Haerenga Great Rides project. As a grade 1 cycletrail it has a target market of young families and 60+ users. It is currently 77 kilometres with over one kilometre of bridges. It travels through stunning dairy farmland with the Coromandel and Kaimai Ranges as a backdrop and follows the beautiful Ohinemuri River through the Karangahake Gorge. Developed with Matamata-Piako and Thames-Coromandel District Councils, it was intended to be an infrastructure asset that communities could use to stimulate economic development. The impact generated has far exceeded the original financial models. The project team built the “great ride” well within the timeframes and tight budget to meet the high standards required of a grade 1 cycleway. Its economic potential is expected to continue to expand as local business communities continue to add more value-added aspects such as accommodation, cafés and side trips.

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SELWYN DISTRICT COUNCIL: ELECTRONIC BUILDING CONSENT PROCESS Selwyn District Council, in partnership with private sector Alpha Group, developed and implemented an end-to-end web-based building consent system to promote excellence and provide community and industry leadership as a territorial authority. Selwyn is a major player in the Canterbury rebuild and has experienced strong population growth in the past five years. The new building consent system was designed to cope with explosive levels of building activity and has exceeded service delivery expectations. It aimed to generate efficiencies, while integrating existing processes and systems. The council’s end-to-end web-based building consent system has resulted in 97 percent of all applications being received online and within timeframes, speeding up its regulatory and service delivery responsibilities. The ability for customers to apply for consents online led to time savings in travel to and from council offices. Inspectors have live access to the system and upon final inspection a code of compliance can be issued immediately on site.

WANGANUI DISTRICT COUNCIL: 100% CONNECTED Wanganui District Council began looking at broadband and digital issues in 2009 and identified that access to fast, affordable broadband was essential for creating a broadband economy. The council and the Wanganui Digital Leaders Forum set about ensuring the government’s fibre optic network was built in Wanganui’s urban area as soon as possible and that the rural area was able to connect to broadband so the digital divide was removed and visitors could connect to the outside world easily. It worked in partnership with a number of organisations and the community, creating a mixed infrastructure model that maximises connectivity in the district. The council’s innovative strategy has extended broadband beyond the urban area into remote and sparsely-settled hill country. It also provides unlimited access to wifi and shared computers for use at the Wanganui i-Site visitor centre and free wifi at the Wanganui Airport.

BECA INFRASTRUCTURE PROJECT OF THE YEAR KAPITI COAST DISTRICT COUNCIL: KAPITI WATER SUPPLY PROJECT This project was created to deliver a secure, reliable and sustainable water supply for the communities of Waikanae, Paraparaumu and Raumati for the next 100 years. The council committed a budget of $23 million for the project in its 2009 Long Term Plan. The project involved extensive consultation, demand modelling, hydrology and yield modelling, aquifer testing and groundwater modelling. It also required investigation into the aquatic and wetland ecologies, and any cultural impact. The council learned to engage with the wider community early and work with them to establish their values, which can then be used as the basis for multi-criteria analysis of options. The innovative River Recharge with Groundwater scheme largely uses existing infrastructure in a different way from what was originally intended. But the outcome is prudent in both financial and resilience terms. Overall, it is an innovative approach to water management and infrastructure investment providing a sustainable, goodquality drinking water supply to Kapiti Coast residents.

TAUPO DISTRICT COUNCIL: TAUPO WATER TREATMENT PLANT The Taupo water supply features very high peak demands of approximately 2.2 cubic metres/day per property. This is high in comparison to other New Zealand communities. A number of sites were considered before the Lake Terrace site was selected. The treatment plant building was constructed over two levels, with pumping,

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

COMMUNITY / THAMES-COROMANDEL LG N Z AWAR D S CONTI N U E D

chemical storage, power generation and chemical cleaning processes on the ground floor and amenities on the upper floor. The roof space and landscaping was designed as a collaborative effort between Taupo District Council’s urban designers and CH2M Beca’s architect, taking advantage of the views down the lake to Ruapehu, Tongariro and Ngauruhoe mountains. Seating, below-decklevel planting, artistic sculptures and a drinking water fountain have been included.

WHANGAREI DISTRICT COUNCIL: LOWER HATEA RIVER CROSSING This project involved the design and construction of 1.26 kilometres of new arterial road, a 265 metre long bridge across Whangarei’s Hatea River with a 25 metre long bascule (lifting) section for marine traffic, and construction of three new roundabouts. The Transfield Services / McConnell Dowell Joint Venture completed the $32 million project over a 20 month period. The road and bridges connect Whangarei’s eastern suburbs with the city’s commercial and industrial areas along Port Road, providing a critical road network link for the city. They allow traffic travelling in these areas to bypass the CBD, reducing congestion. The bridge incorporates Knight Architects’ traditional Maori fish hook design and has received national and international architectural attention. This was the largest contract that Whangarei District Council has ever tendered. Its team endeavoured to keep costs down, and strong engagement with the community was highlighted with 10,000 people turning out to attend the opening of the bridge. LG

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POWER TO THE PEOPLE

THAMES-COROMANDEL DISTRICT COUNCIL IS SURFING A WAVE OF COMMUNITY EMPOWERMENT.

any members of a small dairying community south of Thames were less than impressed when they heard of their council’s plan to spend $16 million on their water. Looking back, Thames-Coromandel District Council (TCDC) mayor Glenn Leach says the idea of billing 1100 ratepayers for $35,000 each was “nuts”. In the past, council may have put up an engineering solution then asked for ideas later when the rates bill was about to bite. This time, council staff went out and asked people upfront what they needed. In a series of BBQ meetings at the local Puriri Hall, a group of farmers and council

engineers designed a solution that TCDC says met everyone’s needs at only one-third the price. Coromandel is well known for its sandy bays, surfing, pohutukawa trees and strong views on protection of the environment. Right now TCDC says it is also demanding attention for its balance sheet. In recent times, Coromandel surprised many with two years of consecutive rates decreases. The Taxpayers Union recently noted TCDC had the lowest operational expenditure per rateable property in Waikato. Coromandel people also enjoyed the lowest total average rates and one of the lowest net debt per rateable unit ratios

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

COMMUNITY / THAMES-COROMANDEL

Council staff, community board members and people from the local Mercury Bay community dune planting at Buffalo Beach.

“Community empowerment... has to deliver financially too.”

“Community board chairs were welcomed around the council table.”

“It was a hell of a big change to staff but we weren’t crippled by personal grievances.”

“There were no cut-and-paste solutions out there.”

28 l www.localgovernmentmag.co.nz

in the Waikato in 2013. Mayor Glenn Leach, chief executive David Hammond and their team call their approach community empowerment. They go as far as saying it is redefining the term ‘council’ in New Zealand. Although much of the community empowerment model focuses on partnering with communities, Hammond says it has to deliver financially too. “It includes a complete review of how we budget, plan capital and position business cases in decision-making,” he says. “This is a contradiction to many who expect it to be a free-for-all of funding community wish lists.” TCDC says it began its move toward community empowerment at the 2010 elections. The community wanted a big change to how the council operated and voted at the ballot box to get it. Only one existing elected member survived the election. A new team led by mayor Leach set out to change the culture of the organisation and make community empowerment a reality. “I was on council from 198995 and at that time we had a very devolved system of boards, like Southland,” says mayor Leach. “The council had moved away from these roots of democracy and inclusiveness. Power had to be returned to the people. To do it we had to stay tough at the top because it was a fight to bring this change. “I take my hat off to our elected members who stayed united and

strong through some very lonely times. And a key part of starting that change was recruiting our chief executive,” he says. One of the main platforms of the new model was to boost up area offices and community boards. A set of 25 resolutions made in 2012 set up community empowerment. The tenet was that ‘Local manages local services: District manages district services’. District also

CHECKLIST FOR COMMUNITY EMPOWERMENT

3 3 3 3 3 3

Get elected members to commit to decentralising power.

Drive partnership behaviour as the norm, not the exception, for all services.

Appoint senior staff who can deliver the culture. Define local from district services. eturn budgets to boards to run R local services. Drive cost constraint. Resource area offices and elevate their management to senior level.

Bring boards into council meetings and workshops for integrated leadership.

retained a monitoring role. Community board chairs were welcomed around the council table and into workshops to become an integrated part of leading the district. “The naysayers told us we would be crippled by personal grievances, our services would collapse and communities would send rates skyhigh with wanting every project under the sun,” says mayor Leach. “It was a hell of a big change to staff but we weren’t crippled by personal grievances. The next year, in 2013, we had the highest ever public satisfaction with many of our main services, and average total rates dived to the lowest per property in the Waikato in 2013 as our costs came under control.” Activities like parks, airfields, harbours, libraries, social and local economic development went back to local community board leadership and budget control with a tier two senior manager leading a beefed-up staff team in each area for support.

Boards were in charge of funding for these activities and had the ability to use different revenue and funding methods if they needed to. Board work programmes and priorities are locally managed through a Community Board Plan. Hammond says the hardest part was turning what council was seeking into a workable operational mode. “We were doing something not done before in New Zealand to this extent, so there were no cut-and-paste solutions out there. “In honesty, we’re still working through some of the issues in 2014. We all know our public want change in local government − better customer service, more cost restraint, more involvement in decisions, real partnership with councils.” Hammond is confident community empowerment will become the norm for councils in the decade ahead. “Staff who embrace this way of working are strengthening their careers in our sector.” LG

PAST PROBLEMS • Communities wanted more say about decisions that affected them. • Ratepayers felt council had become too distant from its communities. • This was stymying the pace of local development. • Partnership with communities was not working well consistently across council. • Costs were not under the level of control that the new ThamesCoromandel District Council was looking for. • Communities disagreed that centralised leadership and service delivery was the best and most efficient way to grow the Coromandel.

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AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

HEALTH & SAFETY

FOUR MEN: FOUR MESSAGES Who’s responsible for health & safety?

Health and safety legislation is set to undergo its biggest change in decades. Delegates at the recent IPWEA Conference in Auckland heard four perspectives on what it could mean.

Don’t leave it all to us GORDON MACDONALD CE, WorkSafe New Zealand Health and safety in New Zealand is at a pivotal point as stepand culture-change, pending new legislation and the creation of WorkSafe NZ, form a conjunction of circumstances unlikely to ever occur again. WorkSafe is an independent regulatory agency set up to lead the health and safety effort across the country. But leading doesn’t mean doing everything. I’m issuing the rather plaintive cry ‘you can’t leave it all to me’. WorkSafe will lead the effort by facilitating, collaborating, partnering and forcing / cajoling. But the people who deliver health and safety initiatives within workplaces are the ones who make the difference. The new legislation will bring about change but the fundamental point remains: those who create the risk are responsible for controlling it. WorkSafe is charged with helping reduce workplace accidents and serious harms by at least 25 percent by 2020. In the future, we will be placing more emphasis on seeking remedial and preventative measures that stop harm occurring in the first place. We need to be a targeted and intelligence-led organisation. We can’t deal with all harms in all workplaces in the same way. In any regulatory organisation there’s always a tension between the discretion you give inspectors to take into account particular circumstances in the environment they’re observing versus the requirement to be consistent. The current bandwidth of inspector discretion needs to be narrowed. WorkSafe will not be working in heroic splendid isolation – which is a path to failure – but engaging and collaborating with other organisations. We all share responsibility for delivering a culture step-change. Within that, each organisation needs to define its own respective role. WorkSafe will work on awareness and engagement through producing a clear suite of accessible guidance so that, alongside reactive activities, we’re upping the risk literacy of NZ Inc and directing our field forces at the biggest targets of harm.

30 l www.localgovernmentmag.co.nz

Two issues LAWRENCE YULE President, LGNZ We wholly support the government’s workplace health and safety reforms, and while we think it’s the right way to go we also have two main concerns. Firstly, the proposal currently before parliament is effectively suggesting that elected members are to be treated in the same way as a board of directors. We believe elected members should be removed from having any duty of due diligence. The proposed changes do not sit with the prescribed roles of elected members and chief executives under the Local Government Act (LGA). Elected members are not like other company directors. They are not, and should not be, involved in operational management. Instead, our view is that the LGA should be amended to require elected members to make health and safety a consideration when appointing a chief executive. Secondly, under the Health & Safety Reform Bill all volunteers, contractors and subcontractors (and their employees), will be treated as workers who need to be consulted like any other. Councils and LGNZ think these proposed changes are entirely problematic. The changes will have a significant effect on local authorities’ operations and what potentially could occur in local communities. Local authorities engage vast numbers of volunteers – for everything from streamside planting, to setting trap lines, counting birds, and event management. These volunteers often work in semiremote locations. We believe the proposed changes to the law go too far. Current health and safety legislation is ‘fit for purpose’ with respect to volunteers. Apart from those two issues, LGNZ supports the Reform Bill.

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Focus on the behaviour COS BRUYN CEO, Downer NZ Suppliers alone cannot be expected to manage health and safety issues. We need clients, consultants and contractors to work together. There has to be a balance between having highly restrictive safety procedures and getting people to take responsibility for themselves and their workmates. There are literacy problems in many workforces. So prescriptive procedures are of no use if the people doing the work can’t read them, can’t understand them or don’t really understand the risk. We have to simplify things and make sure we communicate in ways that people understand. More importantly, we must ensure the people doing the work are involved in setting the procedures. I don’t think wrapping up our people in cotton wool will alone protect them from serious harm. It may save the odd scratched finger but we’ve got to get our staff focusing on, and thinking about, what they’re trying to do. And management at all levels needs to actually give a damn. I often ask my managers, supervisors or foremen how comfortable they would be if their daughter or son worked on their site. If they’re not comfortable with that idea, I tell them to get off their backside and go do something about it. Compliance is important but we have to push our workforce into a behaviour-based approach. The true test is getting our staff to do the right thing when no-one’s looking. If we can tick that box we’ve come a long way on safety issues.

Lead & engage JULIAN HUGHES Executive director, Business Leaders’ Health & Safety Forum Your professional life pales into insignificance when you think of a tragedy or someone you might have lost or who may have been injured. So think about health and safety in terms of the people you work with and how you would like to be remembered. Boiled down to its basics, safe work is characterised by the relationship between leadership and engagement. Strong leaders work out how to build an engaged workforce and supply chain, and create a culture where people are happy to talk about what it means to be safe. They’re happy to raise issues, and stop work if it’s unsafe and find solutions. They make the right decisions when they need to. Good safety leadership is underpinned by the concept of giving a damn. It centres on thinking about the people you engage, and caring for them and their whanau. It’s based on valuing their ability to do their work, contribute to your organisation and go home safely at the end of the day. Safety leadership is about what leaders think, say, do and measure. It’s about doing something: it’s active, visible and engaged. Over 180 chief executives from around the country are Forum members. Yet just three of them are from local government: Mary-Anne Macleod, from Bay of Plenty Regional Council; Kevin Lavery, from Wellington City Council; and Hamilton City Council’s Barry Harris. Perhaps there’s a challenge for more local government chief executives to join us. And if you’re not a chief executive or the leader of your organisation, think about how you could engage your leader in the conversation about safety. LG

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AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

REMUNERATION

$ $

WHO GETS WHAT? $

$ $ $ $ $ and retention strategies $ $Benefits, $ $ $salaries $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ FORECAST $ $ $BENEFITS $ $ $ $ salary increases $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

How does local government reward, retain and remunerate its people? Strategic Pay draws on data from 23,664 employees across 82 councils and council controlled organisations to reveal the latest trends.

Seventy-one percent of council staff receive one or more benefits on top of their salary. The table below shows the percentage of employees receiving each benefit.

The overall median increase in salaries is expected to be two percent in the coming year.

Forecast Salary Increase (%)

Benefit

Mar 13 Mar 14

KiwiSaver

58% 61%

Superannuation

22% 23%

Medical Insurance

Other Allowance

Telephone

1% 1%

Life Insurance

Use of Council Vehicle

Car Allowance

Clubs / Professional Fees 1%

Additional Leave

18%

Employee Category

LQ Median UQ Average

CEO 0.0%

2.0%

3.0%

2.0%

Senior Management 1.7%

2.4%

3.0%

2.1%

Middle Management/Specialist 1.7%

2.2%

3.0%

2.0%

General Staff 1.7%

2.2%

2.9%

2.0%

Overall* 1.6%

2.0%

2.5%

1.8%

* The ‘overall’ increases are not an average of increases for different staff categories, but are reported by participants as a separate figure.

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32 l www.localgovernmentmag.co.nz

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$ $ $ $ $ $ $ WORK / LIFE ACTUAL $salary$increases $ $ $balance $ $ $ $ &$wellness $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

THE METROPOLITAN FACTOR

The 10 councils in the Wellington metropolitan area pay 98 percent of the national average pay rate at all grade levels. The exception is for grades 4–9 where pay rates sit at 100 percent. In the Auckland area average salaries are at 105 percent relative to the national average. Pay in Auckland is higher across all levels except for grades 4–9 which are paid at 96 percent.

IT DEPENDS ON WHAT YOU DO

Salaries for people working in human resources continue to be higher than the national local government average. These are followed closely by salaries for people working in finance and engineering / technical and information technology roles. People working in both community services and customer services continue to be paid less than the national local government average.

Eighty-seven percent of participants offer some form of work / life balance benefit. The percentages in the table below are based on only the organisations that do offer work / life balance initiatives (for example, of the organisations that offer part-time work, 78 percent offer this benefit to employees in the general staff category). Flexible hours and working from home are the benefits most often available to management level employees. Part-time work and flexible hours are most commonly offered to employees in the general staff category. Job-share at the management level is unusual, although it is made available to general staff in 41 percent of organisations. Survey participants also reported that although they allow employees to work from home, in general these are not formal policies and the practice is used on an ad hoc basis at the manager’s discretion. Other work / life balance initiatives include leave without pay options and a compressed working week.

Actual Salary Increase (%)

Employee Category

% of Employees (in organisations offering work / life balance initiatives)

LQ Median UQ Average

Work / Life Balance Initiative

CEO 0.0%

1.8%

3.0%

2.0%

Senior Management 1.5%

2.0%

3.0%

2.2%

Middle Management/Specialist 1.1%

2.0%

3.0%

1.9%

Part-Time Work

78%

General Staff 1.2%

2.0%

2.7%

1.8%

Flexible Hours

Overall* 1.3%

2.0%

2.8%

1.9%

* The ‘overall’ increases are not an average of increases for different staff categories, but are reported by participants as a separate figure.

% of Orgs

Middle Management / Specialist

General Staff

13%

36%

78%

76%

47%

62%

72%

Working from Home 62%

37%

49%

41%

Senior Management

Job-share 41% 3%

5% 41%

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AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

$ REMUNERATION

$ $ $ $ $ $ $ $ $HOLDING $ $ $ ON $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $STAYING $ PUT $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 22 25 $ $ $ $ $ $ $ $ $ $ $ 53 $ $ $ $ $ $ $ $ $ $ $ $ 25$25 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 50 $ $ $ $ $ $ $ $ $ 27 26 $ $ $ $ $ $ $ $ 47 $ $ $ $ $ $ $ $ $ $ 0 $10 20 30 40 50 60 $ $ $ $ $ $ $ $ Seventy-six percent of survey participants say they use retention strategies. The following graph shows the percentage of those organisations using each strategy. The most common retention tool is a relocation allowance. However, only 22 percent of the 93 percent of participants using this approach felt that it was effective. Seventy-two percent of organisations also offer flexible work arrangements, with 21 percent of that number indicating this was useful. Organisations say additional holidays and mentoring processes are the most useful mechanisms for retaining employees, although a smaller percentage of organisations provide these benefits.

The number of years incumbents have been with their organisations is shown in the graph below, with comparisons to the private sector and the general market.

Private Sector

Relocation Allowance

93%

Flexible Working Arrangements

72%

Enhanced Management Training

33%

Additional Holidays

33%

Enhanced Training

28%

Accelerated Salary Progress

28%

Mentoring

General Market

19%

Enhanced Induction Process

19%

Enhanced Benefits

17%

Retention Bonus

Sign-on Bonus

Local Government

Other 9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Over 10 years 6 to 10 years

5 years and under

NEW BLOOD Sixty-four percent of organisations said they were busy recruiting, with 24 percent also recruiting but less than a year ago. The remaining 23 percent said they have no vacancies.

AGE Strategic Pay asked participants to provide the date of birth of each employee. Of those that shared this information, the average age of incumbents at the lower levels (where the annual median base salary is around $34,000) was 33 years. The average age of people at a senior level (grade 20 plus) was 53 years. LG

34 l www.localgovernmentmag.co.nz

LOCAL GOVERNMENT REPORT Strategic Pay produces a biannual Local Government Report based on a more than 90 percent participation rate of all New Zealand councils and council controlled organisations. The report breaks down remuneration by staff numbers, region and turnover, and examines local government policy and practices. This yearâ&#x20AC;&#x2122;s report also provides a section on HR policies and practices.

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NEXT STEPS LG MAGAZINE • What are the key issues for senior leaders in the local government sector right now? ANNEAR • Probably the single biggest challenge for everyone in the sector right now is to keep trying to improve the level of participation in local government. Whether it’s a council process, a Local Government Commission process, changes to legislation, new central government funding arrangements, or the triennial elections, we all have to encourage people to take part and have a say.

Janie Annear On joining the Local Government Commission Janie Annear is the newest member of a team at the pointy end of debate and decisions on local government structures and boundaries and how local authorities are represented. The former three-times Mayor of Timaru joins Basil Morrison and Anne Carter who have just been re-appointed for another one-year term as members of the Local Government Commission. Local Government Minister Paula Bennett, who announced this term’s line-up, says it’s essential the commission has the knowledge and expertise it needs during a time of considerable change in the local government environment. Basil Morrison, a long-time local government stalwart and a former Hauraki District Council Mayor, has chaired the commission since 2011. Carter, who is known for her strong knowledge of tikanga Ma¯ori, is an experienced former public servant with a focus on developing strategy and formulating policy. She has been a commissioner since 2011.

What specific learnings from your own past experience do you think will be valuable in your new role with the commission? When I became mayor of Timaru I learned very quickly to never underestimate the importance of reliable and good quality council services, be it basic ones such as dog control, parking meters, recycling and swimming pools, or more thorny issues such as the need to observe fairness in the setting of rates. As mayor I also never shied away from making the hard decisions where they were in the best long-term interest of the community.

What are you most looking forward to in this role? Continuing the commission’s approach of travelling to the regions to meet communities face to face. It allows us to gain some really useful insights and firsthand knowledge about what is working well and what isn’t working so well.

What are your observations so far of the commission’s work? The commission clearly places a high value on talking to a wide range of people and groups. This is really important because it allows the commission to hear a good variety of opinions about the best structures for a region. Although it is still early days for me in this new role, I have already seen the commission give careful thought to the ideas and submissions raised during public hearings into reorganisation proposals.

What lessons do you think we have all learnt from the creation of the Auckland ‘supercity’? Basil Morrison and Anne Carter have been re-appointed for another one-year term as members of the Local Government Commission.

36 l www.localgovernmentmag.co.nz

It wouldn’t be appropriate to comment on whether Auckland’s lessons are applicable to other local authorities, and its size and scale make any comparisons very difficult. However, Mai Chen’s recent book Transforming Auckland: The Creation of Auckland Council has sought to separate fact from fiction and is a useful contribution to the debate. LG

NEXT STEPS LG MAGAZINE • What qualities do you bring to your new role? EDWARDS • As a Cantabrian I understand the

Karleen Edwards On the challenging times ahead for Christchurch Newly-appointed Christchurch City Council chief executive Dr Karleen Edwards is quickly making her mark on strategic decisions affecting the city as it recovers and rebuilds following the 2010 and 2011 earthquakes. Previously chief executive of the Commission for Hospital Improvement in the Victorian Department of Health in Australia, she brings to her new role 28 years’ public sector experience in Australia and New Zealand. Born and raised in Christchurch, Edwards graduated from the Dunedin School of Medicine at Otago University with a Bachelor of Medicine and Surgery, specialising in mental health. She holds an MBA with distinction from the University of Canterbury and last year completed a Harvard University course on leading high-performing organisations. Edwards has worked as a psychiatrist for HealthLink South, and held senior management positions with the Health Funding Authority, the Southern Regional Health Authority and the Canterbury District Health Board. She moved to Australia in 2007 to take up the position of chief executive for Central Northern Adelaide Health Services. Two years later she became executive director mental health, drugs and regions with the Victorian Department of Health.

enormity of the devastation the 2010 and 2011 earthquakes caused at both an emotional and physical level. I also understand the huge challenges we’re facing post-earthquakes as the city rebuilds. I’m fortunate to have spent many years in the public sector and although the health industry is different, the same issues and challenges apply – albeit on a greater scale for Christchurch. I’ll take an holistic approach to how decisions are made and implemented at a strategic level, and ensure these decisions are communicated throughout all levels of an organisation in order to better address the needs of residents.

Have you decided on any particular reforms? My vision is based on increased collaboration and improved transparency. I want to position the council as the trusted accountable lead service provider driving the rebuild and recovery of Christchurch, while promoting the wellbeing of Christchurch’s residents. The council is undergoing significant organisational change to ensure it is fit for purpose to better overcome the challenges faced by the city post-earthquakes.

You’ve been quoted as wanting to promote a citizen-centric approach to local government in Christchurch. What does that mean in practice? Essentially, this means the council will redirect its focus to ensure that excellent customer service sits at the core of everything it does, both at a strategic and operational level. This will involve embedding a new culture within the council that is driven by greater transparency, partnerships, innovation and collaboration. This thinking will inspire a can-do attitude which is so important during this period of recovery and rebuild. These are challenging times but we are making progress. LG By Peter Owens. eastmedia@woosh.co.nz

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AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

NEXT STEPS What are the key issues that you face in your new role?

Steve Hill On bringing a military perspective to local government Steve Hill is one of a growing breed of district managers bringing experience from outside local government into the sector. Recently appointed as chief executive of the Clutha District Council, Hill spent 15 years in the Royal New Zealand Navy on first leaving school. Hill, who took up his new role at Clutha District Council in early June, was previously group manager customer services at Western Bay of Plenty District Council.

LG MAGAZINE • Why did you come to the Clutha District? HILL • First of all, it was a chance to step up to a senior position. Secondly, I had been in Tauranga a long time, having been brought up there and working there for 14 years. I knew I needed a change and consider that if you’re going to change you make it a big one. Like my wife, who is also Tauranga born and bred, I’m attracted to living and working in the South Island.

The biggest one is to be able to have input into Clutha’s 10-year longterm plan. I have had considerable experience in preparing a long-term plan and believe I have the skills to have real and relevant input. Clutha District Council is financially strong and in a good position to deliver a plan that will benefit the whole district. I have had considerable experience in the administration of the core functions of a council and this will continue to be my focus.

What influence has your 15 years in the navy had on you? The Royal New Zealand Navy has excellent leadership training and I’d like to think I benefited from this. It also gives great management training as one moves up in rank. LG By Peter Owens. eastmedia@woosh.co.nz

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NEXT STEPS

WAIKATO REGIONAL COUNCIL chief executive Vaughan Payne has revealed his new five-member executive leadership team. They take up their new roles on 25 August. Neville Williams is the new community and services director. Williams belongs to Hauraki iwi Ngāti Pūkenga ki Waiau. He comes to the regional council from Work and Income where he is currently the Waikato regional director. Mike Garrett has been reappointed as chief financial officer. Garrett joined the regional council in December 2008 having held a range of executive roles in local government, the dairy industry and the health sector. Clare Crickett is the new integrated catchment management director. She is currently the council’s deputy chief executive with group management responsibilities for communications, iwi relations, governance and legal. Acting group manager of policy and transport Tracey May is the new science and strategy director. Chris McLay has been reappointed as resource use director.

CHRISTCHURCH CITY COUNCIL has appointed Mike Gillooly as chief resilience officer, a new position created to lead city-wide resilience efforts to help prepare for, withstand and bounce back from catastrophic events and chronic stresses. Gillooly, who was previously the council’s land drainage operations manager, will work closely with Christchurch mayor Lianne Dalziel to oversee the development and implementation of a resilience plan for the city. Gillooly’s appointment is part of Christchurch’s participation in the 100 Resilient Cities Network, a position for which Christchurch applied and was selected from nearly 400 cities worldwide. Dalziel says Gillooly’s appointment shows resilience is a concept that transcends the role of infrastructure; it includes enabling communities to do things for themselves.

HAMILTON CITY COUNCIL chief executive Barry Harris has resigned with a leaving date of Friday 17 October. He has been at Hamilton City Council for three and a half years. Harris, who is on the boards of several organisations including AgResearch and DairyNZ, will focus on his directorship roles. Mayor Julie Hardaker says Harris has made an “invaluable” contribution to council, stemming from his years of experience in both local government and the private sector. AUCKLAND COUNCIL chief financial officer Andrew McKenzie has resigned to take up a role with Fletcher Building. He will remain at the council until 30 September to ensure a smooth transition for his successor. Auckland Council CE Stephen Town says, “Andrew has made an outstanding contribution to the successful establishment of the Auckland Council and Group and we wish him all the best in his new role.” LG

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AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

JEREMY ELWOOD / ON THE FUNNY STUFF COM E DIAN, ACTOR AN D WR ITE R. jeremy@jeremyelwood.com

Here’s to the councillors Hugs all round for the people who make a difference.

IT’S LIKE THE COSTUMES IN A MOVIE – IF YOU’RE PAYING ATTENTION TO THEM, CHANCES ARE THERE’S SOMETHING WRONG WITH THE SCRIPT.

hen I was asked to write a humorous column about local government, a quick non-scientific poll of my peers in the comedy industry confirmed what I suspected; the topic isn’t exactly a comedy gold mine. Ask most people what local government is, and does, and you’re likely to be met with a blank expression, and something mumbled about storm drains. Occasionally a mayor makes the front pages: I live in Auckland and much of my Canadian family live in Toronto so it’s become quite the regular thing in recent years. But otherwise, the men and women who run our towns and cities do a quiet, often thankless, job. It’s confusing enough at election time, when the screeds of names running for the plethora of regional, district and city councils, DHBs, water boards and the rest come through the letterbox. Even the most politicallyconscious, virulent letter-to-the-editor writer could be forgiven for throwing up their hands in surrender. The irony is that for most people, local government has more say over their day-today lives than central government ever will. The MPs in Wellington don’t collect your rubbish. The Prime Minister doesn’t make the local buses run on time. And the Beehive isn’t collecting your rates. Yet most people could probably name a number of MPs from the lowliest list backbencher to whichever David is leading the Labour Party this week, whilst the people who do the real work in your neighbourhood − your councillors − could pass you unnoticed at a party. For most of us, our interaction with councils

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is limited to paying our bills on time, registering our dog or − during a particularly rowdy postshow party in Blenheim − collecting a small pile of noise control complaints. Sure, we’re all happy to complain when things go wrong but when things are going smoothly we don’t even notice. It’s like the costumes in a movie – if you’re paying attention to them, chances are there’s something wrong with the script. I actually ran for Auckland Regional Council once, many years ago. I didn’t win a seat but it did give me an insight into the range and breadth of what councillors do, and the kind of people they have to be polite to on a weekly basis. I quickly found out that for every cause that might be even tangentially associated with local government there’s a special interest group who wants to know your stance on it. I got pamphlets, emails and phone calls from everyone from Grey Power to White Power and, I must say, it made me view councillors with a newfound respect, not least for their patience, and tolerance of poor grammar. It’s never easy to make a difference, and I salute those who try. So I’m telling my friends that the next time they catch public transport, walk through a park, visit a beach or put out their recycling, they should spare a thought for the people who help make those things possible. I say the next time they meet a councillor, give them a hug, or at the very least try and remember their name. After all, if it wasn’t for them, we’d all be mowing our own berms. Okay, that might not be the best example, but you get my point. LG

PAULA BENNETT / ON CENTRAL GOVERNMENT M I N ISTE R OF LOCAL G OVE R N M E NT

Better lives Central and local government must continue to work together.

A PEOPLE VOTE ON HOW THEY FEEL LOCAL INTERESTS ARE BEING ADDRESSED. CENTRAL AND LOCAL GOVERNMENT REPRESENTATIVES WANT THE SAME THINGS − BETTER LIVES FOR ALL NEW ZEALANDERS.

ll politics is local. That may be a US quote but successful politicians, be they central or local government, understand that people vote on how they feel local interests are being addressed. Central and local government representatives want the same things − better lives for all New Zealanders. While central government sets the national agenda through policy and allocation of resources with the annual budget, cabinet is keenly aware that it must take into account local perspectives and the implications of implementing national policy within many and varied distinct communities. I’ve been meeting mayors and council staff throughout the country in the past few months to better understand how the government’s policies are impacting in the regions. Conversations have included concerns about rates, roads, water, quake strengthening, amalgamation and alternative revenue bases − to name just a few. We already have many good examples of collaboration that we can build on. These include transport planning and funding systems, monitoring and reporting work by the Ministry for the Environment, crossgovernment work on special housing areas, and officials simply working together on the ground to solve practical problems. We also have mechanisms in place for regular contact between Local Government New Zealand, ministers and chief executives of government departments. The annual Central Government Local Government Forum is a great example of mayors and ministers getting

together to nut out the big issues. This facilitates an open and honest conversation between us, which is greatly appreciated. Underpinning any effective government is the electorate. In the interests of better democracy, both central and local government want to encourage greater voter turnout. Causes of low turnout are varied. Many eligible voters are not fully aware of the extent to which local government impacts on their lives. Research has shown that up to one-fifth of non-voters think their vote will make no difference to the way their local authority is run. We do have some positive examples of voter turnout that we can build on. Turnout was up in 17 local authorities at the last elections. In the Mackenzie and Westland Districts, for example, 64 percent of the local population voted. The Department of Internal Affairs is doing some work right now to identify ways to boost voter turnout, looking particularly at what worked well for those local authorities that improved turnout. We are also considering what role online voting might play in the future. Central and local government need to continue talking to each other and working together. There are particular challenges we face around infrastructure resilience, regional development, climate change, population movements and natural hazards. I have no doubt that, together, central and local government can address these challenges and continue to make New Zealand an ever better place to live. LG

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

LINDA O’REILLY / ON LEGAL ISSUES PARTN E R AT B ROOKFI E LDS LAWYE R S. oreilly@brookfields.co.nz

Sitting target Get set to scramble. The most significant amendments yet to the Local Government Act are just upon us.

N AT TIMES LOCAL GOVERNMENT HAS LOOKED LIKE A POSSUM CAUGHT IN THE HEADLIGHTS AS THE GOVERNMENT HAS FORGED AHEAD DETERMINED TO MAKE THE MOST OF ITS TERM OF OFFICE.

o matter what the outcome of the upcoming general election, the present National-led government will have made its mark on local government in New Zealand since it was first elected in 2008. At times local government has looked like a possum caught in the headlights as the government has forged ahead determined to make the most of its term of office. First was Rodney Hide’s 2010 amendment to the Local Government Act 2002 that defined core services (hey, local government really is about roads, rates and refuse!) and pared back the decision-making process, as well as improving transparency and introducing financial strategies. Then the 2012 amendment changed the purpose of local government, and the framework for reorganisation proposals. Along the way there were major reforms of the Resource Management Act 1991 and Building Act 2004. There was the creation of, and subsequent struggles with, our first ‘super city’ in Auckland, and the ongoing nightmare of re-building Christchurch. Current minister Paula Bennett has inherited a challenge that I suspect she will only nominally control. Local government is just too tempting a target for other ministers whose roles are more obviously focused on finance and economic development. At the time of me writing this column, the Local Government Act 2002 Amendment Bill (No.3) is awaiting its third reading in the form recommended by the Local Government and Environment Committee, and with the technical amendments introduced in the committee stage by Associate Minister Sam Lotu-Iiga. If it has been passed, local government will once more be scrambling to keep up with the most significant amendments to the Local Government Act yet. In 2002 the Act heralded a heady mix of consultative local government coupled

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with the power of general competence. But the most recent amendments ensure local authorities are kept on a short leash. The government might argue that leash is in the hands of the community. But it is apparent the power continues to lie with the ultimate lawmakers in parliament. This is not to say that the changes to the Local Government Act are poor: rather that they reflect an inherent distrust of the ability of local politicians to get things right without clear directives. The latest amendment is a weighty addition to the government’s Better Local Government initiative. It restructures the decision-making process, rolls out the Auckland local boards model for unitary authorities, encourages shared services and collaboration, introduces a new infrastructure strategy, and implements a major review of development contributions. Some changes will be welcomed. Others were probably necessary. The next few years in local government seem set to see increasing difficulties for smaller local authorities in complying with the performance standards imposed upon them. This is not to suggest that those standards are unreasonable. However, the climate is now set for reorganisation and it seems likely that more proposals will arise around the country over time. Certainly there is every sign that a Nationalled government would favour a degree of consolidation, if not necessarily on the scale of Auckland. Whether or not that comes to pass will depend, at least under the law as it stands, on the will of the communities involved – except, of course, that if a big fish tries to swallow you the law now favours the will of the ratepayers of that larger community. It will be interesting, indeed, to reflect on the face of local government by the time the next general election comes around. LG

JEREMY SOLE / FROM NZ CONTRACTORS’ FEDERATION CEO, NZ CONTRACTOR S’ FE DE RATION. jeremy@nzcontractors.co.nz

Ramping up engagement A proposed Contractors’ Federation / Roading NZ merger could benefit us all.

A THIS VOTE WILL RESULT IN A MORE EFFECTIVE ORGANISATION FOCUSED ON ITS CORE FUNCTIONS AND ACTIVITIES, INCLUDING LIAISON WITH CLIENTS, AND WILL REMOVE DUPLICATION AND WASTE.

lot of water has passed through the pipes since the last issue of Local Government Magazine hit the distribution channels and it’s refreshing to see such an important and influential publication back in production. Quite a lot has happened during the hiatus period, and the civil construction and maintenance supplier sector is in a better place than it has been for a long time. Contractors are getting busy and forward workloads are starting to look healthy. So, perhaps it’s time for the various parties to sit down and ramp up engagement to ensure work programmes and available supplier capacity are optimised to prevent another of those typical Kiwi boom and bust cycles. As a bonus to this sort of engagement we’re finding that − in those areas where the local industry has close relationships within itself and with its clients − there is a strong and collaborative atmosphere. There are high levels of trust and, we understand, highly competitive bidding. We don’t have an inside to that but we sense it in the willingness of many local authorities to pursue such collaborative environments. The healthier the local industry: the more intense the competition for work. Similarly, the proposed merger between the NZ Contractors’ Federation (NZCF) and Roading New Zealand has gained traction and momentum over the past 10 months. This collaborative development is eagerly sought-after and we’re hoping the members of both organisations will see fit to vote it through at our respective AGMs at conference in the first week of August. Safe passage of this vote will result in a more effective organisation focused on its core functions and activities, including liaison with clients, and will remove duplication and waste. Importantly, it will enable issues to

be worked out internally rather than in the public domain. We are heartened that the vast majority of issues we are concerned about are things on which our two organisations hold common views. These are things like development of regulations and codes of practice, ensuring legislation is appropriate, and developing capability and capacity within the supply industry. It also, of course, includes ensuring the new health and safety legislation is effective in our industry and is taken up so our people go home safe every day. Some parties have voiced concerns that the Roading NZ / NZCF merger has the potential for a few firms to dominate the new organisation. However, the joint merger committee has put a lot of work into this area, ensuring there is balanced representation. It is proposing some changes to the rules and membership structure that will create an even stronger representative spread of voting rights. Interestingly, the secondary proportional voting system in the federation’s rules has never been invoked. This demonstrates the industry has the willingness and ability to find consensus while also acknowledging, supporting and articulating a range of views. It is proposed that the Roading NZ technical committees will continue in the new regime as will the federation’s branch structure. This means that, as clients, our local authority colleagues will potentially see very little change as a result of the two organisations coming together except possibly a name change. We look forward to continuing our legacy and our part in the development of an effective, representative, transparent and collaborative environment for the benefit of our clients, ratepayers and New Zealand as a whole. LG

AUGUST 2014 LOCAL GOVERNMENT MAGAZINE

LAWRENCE YULE / FROM LGNZ PR ESI DE NT OF LOCAL G OVE R N M E NT N EW Z EALAN D (LG NZ). lawrence.yule@hdc.govt.nz

Awards, training & analysis LGNZ’s latest round of initiatives highlights the value of local government.

I OUR BUSINESS PLAN HAS A FURTHER SIGNIFICANT FOCUS ON LIFTING VALUE AND PERFORMANCE, AND LGNZ IS LEADING THE SECTOR BY LAUNCHING SEVERAL INITIATIVES THAT WILL HIGHLIGHT VALUE AND FURTHER STRENGTHEN LOCAL GOVERNMENT.

am pleased to be a regular contributor to the new Local Government Magazine. Good communication is vital for a strong, effective sector and I look forward to updating readers each month about activity Local Government New Zealand (LGNZ) is driving on behalf of our sector. Local government in New Zealand has a vision: local democracy powering community and national success. In all our work, we strive to create this outcome. Looking more widely, and in order to deliver successful communities and a strong nation, both now and into the future, local government needs to continue to demonstrate strong leadership. We have excellent work happening, in part evidenced through the many entries and finalists in the inaugural LGNZ EXCELLENCE Awards. Our business plan has a further significant focus on lifting value and performance, and LGNZ is leading the sector by launching several initiatives that will highlight value and further strengthen local government. In the interest of improving capability and excellence across local government we launched EquiP, the local government Centre of Excellence, in March. It delivers tailored services, best practice guidance, business solutions, governance and management support to councils, and will work directly with council staff and elected members to provide customised guidance and tools to drive better efficiency of action and effect. LGNZ has partnered with the Institute of Directors to deliver training tailored to local authorities to give grounding in core governance, leadership and strategic skills. The series of five workshops will offer professional governance training to local authorities around the country. We have just kicked off our inaugural Reputation Index that will paint a clear and accurate picture of how the public perceives the work local government does,

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and will allow our sector to see strengths and weaknesses and identify solutions to close the gap between expectations and delivery. In terms of assessing our current financial position, LGNZ recently commissioned independent analysts Grant Thornton to review local government finances. The report produced, Local Government: A Financial Snapshot, revealed that New Zealand’s councils are in a sound position overall. It shows that, in relation to their ability to service debt, all metropolitan and regional councils are sound; and the large majority of rural and provincial councils are all sound or very sound. But demographic and economic factors are changing at pace and we need to look to the future. To this end, the Local Government Funding Review, which we announced in April, aims to find a sustainable funding model for local government. Our focus is on making sure the sector is prepared for the future by developing a strategy and model that is sustainable for New Zealand communities. The local government sector plays a key active role in the lives of all New Zealanders, often behind the scenes at a functional level including providing services that support residents and businesses to go about their daily lives effectively. In this way, councils are the backbone of communities and businesses. Every day, 365 days a year, councils are taking away rubbish, building and maintaining roads, piping sewage and delivering many more services to communities and businesses. At a cost of little more than a café coffee each day for residents, local government offers a remarkable value proposition. LGNZ plays a key active role in supporting and further strengthening the local government sector, and I look forward to communicating the activities we’re doing to further lift the value provided by local government. LG

Creating Vibrant Communities and Economic Growth LGNZ has agreed with its members, all councils around New Zealand, seven strategic policy priorities where we are working to effect change to strengthen the outcomes that local government can deliver for its communities and the wider national economy. 1. Governance and performance excellence In order to deliver strong local government across New Zealand, we need to raise our standards of governance and performance amongst councils. While there are many strong performers, we need to lift the bar higher. In March 2014 LGNZ commenced new tailored governance training with the Institute of Directors and we launched EquiP, our Centre of Excellence. 2. A shared national approach to address regional development and growth across all of New Zealand New Zealand currently faces uneven economic growth with some regions growing faster than others and some regions attracting population and others losing population. Local and central government need to work together to develop regional centres into environments that offer opportunities in education, employment and business. 3. Developing a sustainable funding model for local government The sustainability of local government funding has become an increasingly important policy issue in the face of rapid demographic and economic change. In response LGNZ is undertaking a review of local government funding to identify funding options and alternatives that may complement councils’ current funding tools.

4. Leading effective infrastructure development and funding policies Water The sector is taking action with regard to water infrastructure through LGNZ’s 3 Waters Project. This will enable local government to establish a national picture on the current state of infrastructure and performance of potable water, wastewater and stormwater assets and services, and develop a robust framework for building on best practice. Transport We consider the Government needs to focus on the economic benefits and the strategic value of transport investment, particularly for roading, under the new Government Policy Statement. Building and housing LGNZ shares central government’s desire to facilitate growth and see affordable housing come to the market. The question of how accountability is allocated among all the parties involved in building and construction remains unresolved. The Building (Earthquake-prone Buildings) Amendment Bill outlines proposals to strengthen buildings that are considered to be at risk of performing poorly in earthquakes. We are advocating for and will work with central government on a risk-based approach.

5. Setting an agenda of regulatory reform and development of more effective policy-setting in areas impacting local government We need to reduce the regulatory and legislative burden on local government which imposes unnecessary and undue costs on local communities. To progress this we need a stronger relationship with central government policy setters to ensure that new initiatives are appropriate and able to be implemented, minimising costs to communities. 6. Sector-led policy on important environmental issues for effective management of natural capital There is a need to develop effective policies around the Resource Management Act and other legislation that encourages growth whilst maintaining our environment. LGNZ will continue to advocate for workable freshwater standards and its regional sector intends to take a substantial leadership role in an integrated national environmental monitoring and reporting regime. 7. Strengthening local democracy and the value of local government LGNZ proposes amending the Constitution Act to give local government a place in New Zealand’s democratic governance arrangements. We see a need to overhaul the voting system to improve voter turnout which may include online voting, a shorter voting period and possibly reintroduction of polling.

AUGUST 2014

Strengthening Sector Performance Equip, LGNZ’s Centre of Excellence, launched in March to deliver tailored services, best practice guidance, business solutions, governance and management support to strengthen the sector.

Left to right: Scott Necklen LGNZ Director Business Solutions Dr Steven Finlay EquiP Manager Business Solutions

EquiP works directly with council staff and elected members to provide customised guidance and tools to drive better efficiency of action and effect throughout local government activities.

EquiP developed and launched its Executive Recruitment Services in late 2013, delivering an end-to-end employment search and selection service, using specialist local government experience and knowledge.

Councils are multi-million dollar operations with substantial responsibilities to the communities they serve. LGNZ believes local government staff and elected members should run councils they are entrusted to operate with the governance skills, financial knowledge and risk management expertise of leading professionals.

The EquiP Executive Performance Programme was launched in 2013 working with mayors, chairs, and employment committees. It is designed to lift and assist management of executive performance by providing chief executives and senior management with practical guidance and tools to confidently deliver effective results for New Zealand communities.

EquiP services and advice, have been tasked to improve strength, capability and excellence across local government. The sector identified that in order to support and create economic growth and vibrant communities, it needed to have high standards of governance and performance – while there are many strong performers, the sector recognised the need to lift the bar higher. So far, LGNZ members around the country have showed real appetite to engage with EquiP.

EquiP’s Audit & Risk service provides both elected members and staff with peace of mind that the right people and processes are in place to effectively monitor and report on audit and risk. EquiP commissioned leading experts to produce the Local Government Audit & Risk Management Guide, which explains the duties and challenges of audit and risk committees in plain english. This guide is available from EquiP on request.

Who’s sharpening the tools of our sector?

Complementing the KnowHow workshops developed with the Institute of Directors on governance, EquiP has produced a Good Governance in Local Government guide that covers the principles of good governance including responsibility, accountability, fairness and transparency. Every councillor must understand their role in governance recognising that the aim as a council is to achieve the best outcomes for their community. This means making well-informed decisions, quality investments and wise use of resources. It is also available on request. Please visit www.lgnz.co.nz/ home/equip-and-knowhow/ for more information.

The aim of EquiP is to raise the bar of best practice in: • • • • •

governance; benchmarking and measuring sector performance; infrastructure strategy and asset management; human resources management; and employment relations.

< EquiP was created to work directly with council staff and elected members to provide customised guidance and tools. > 46

Understanding Infrastructure Management KnowHow’s Infrastructure Management workshop gives council staff and elected members the tools needed to make the right decisions on behalf of their community in one action-packed day with five highly informative sessions. Understanding the processes and requirements for effectively managing infrastructure is a high priority topic among council staff and elected members. When infrastructural assets are not looked after, failures can occur. The impact of these failures often goes well beyond the immediate loss of service to the community. The workshop focuses on the intricacies of infrastructure management to meet the likely 30 year infrastructure strategy requirements proposed in the Local Government Amendment Bill. The day starts with a session on the basic principles and the value of infrastructure management, moving through to examine where infrastructure management fits into the business of local authorities. The third session looks in more detail at the key elements of infrastructure management. Participants then learn about key asset life-cycle strategies before re-capping the day’s learnings. Infrastructure management plans are a key input into Long Term Plans. The community expects council staff and elected members to make decisions about infrastructural assets which are in the best interests of the community and which support demand and delivery of levels of service for the long term. Information arising from the process of infrastructure management is used throughout councils to inform high level planning, to develop strategies and tactics to deliver levels of service, and for day to day council management. This workshop looks at infrastructure management in detail, so participants gain a clear understanding of infrastructure and the information needed to make informed strategic decisions. For a list of dates and more information, please visit www.lgnz.co.nz/home/equip-and-knowhow/

Upcoming KnowHow workshops 19 Aug: RMA – How It Really Works / Napier The Resource Management Act (RMA) impacts a broad range of areas in local government. This intensive workshop takes apart and de-mystifies this complex and misunderstood Act. Topics include plan and plan changes, consents, monitoring, enforcement and the Environment Court.

24 & 25 Sep: Understanding Te Ao Māori / Palmerston North This workshop is an introduction to Te Ao Māori and will assist you to better understand the Māori culture in the context of the RMA, the Treaty of Waitangi, the Waitangi Tribunal, treaty settlement processes and contemporary issues for Māori and councils.

16 Oct: Chairing Meetings / Conflicts of Interest / Standing Orders / Wellington From meeting management techniques to Standing Orders, we’ll examine styles and approaches that help meetings run smoothly, generate decisions, translate the jargon, cover the protocol and discuss what makes an effective meeting and constructive participation.

Who’s training future local government leaders?

Infrastructure Management workshop facilitator Richard Kirby is the Director of Richard Kirby Consulting Ltd – providing strategic, management and engineering consulting services. Richard was a member of the INGENIUM Board and held the presidency for two years. He is a Chartered Professional Engineer (CPEng) and Fellow of the Institution of Professional Engineers New Zealand (FIPENZ).

Key areas of Infrastructure Management: • • • • • •

asset data and the use of this data; levels of service; financial management; forecasting growth and future demand for assets; the condition and performance of assets; and maintenance analysis.

AUGUST 2014

The Final Word Government Policy Statement – what does it mean for local government? Transport is one area where local government plays a significant role; one that can be largely undervalued. Local and regional roads make up around 88.4 percent of the country’s road length, with local government investing $1.23 billion in local roads in 2012/13. This included expenditure on new infrastructure, maintenance, renewal and operation.

In June, the Ministry of Transport released its draft Government Policy Statement (GPS), proposing $38.7 billion in spending for land transport over the next ten years, with $10.5 billion over the first three years (2015/16 – 2017/18), a nominal increase of $1 billion from the approximately $9.5 billion allocated over the first three year period under the 2012 GPS.

The national funding for local roads has been under fiscal pressure for some time and there is a risk investment in local road infrastructure could suffer. NZTA recently reviewed the FAR, and while some councils may face some unfavourable outcomes as a result of the new FARs, generally speaking, the changes were fairly well received across the sector.

LGNZ has been lobbying for greater recognition of the economic significance of our local and regional roads as funding available to maintain these has to a large extent been heavily constrained by the Roads of National Significance projects. This has had some positive reflection in this draft GPS with the recognition that regional networks are critical to New Zealand’s economic performance, an increase in funding for local road improvements and maintenance, and a cut in spending on new state highways.

However, while the split of road funding is of critical importance to each and every council, of more strategic importance is the size of the roading investment that the government provides.

Draft Government Policy Statement: • Retention of three key priorities form GPS 2012: economic growth and productivity, road safety and value-for-money • New incorporation of national objectives for the land transport system as a whole • Merging of some activity classes • New ‘regional improvements’ activity class to replace R-funds • Increase in maximum level of funding available across almost all activity classes • Includes the $375 million loan to the NZTA to enable motorway projects in the Auckland Transport Package to be brought forward by up to a decade – expected to have a neutral impact on the NLTF and unlikely to affect the delivery of projects in other parts of NZ • Costs of repairing the road network in the Christchurch rebuild will be split as per the cost-sharing agreement with Christchurch City Council • No extensions to the RONS programme proposed; concentration will be on existing projects currently under construction

< Sustainable investment in local roads will support economic development. >

A key change in the draft GPS is the creation of a new activity class called ‘regional improvements’ to provide certainty to regions that transport needs important to their areas will be met. Its focus will be on regional funding in non-urban areas that targets investment in regional route improvements that provide links to key freight or tourist routes. It also proposes increases in funding for a range of activities including road safety promotion, road policing, walking and cycling and also continues increases in public transport funding. All in all, there have not been any big surprises from this GPS; it more or less is a continuation from the 2012 GPS, though with some new additions such as the inclusion of national land transport objectives and the merging of some activity classes. While the funding ranges within each activity class have been outlined, the actual amounts to be spent will not be known until NZTA release their National Land Transport Programme 2015 – 2018 which is expected to be finalised and adopted by mid-2015. While the GPS moves through its consultation process, LGNZ welcomes recent government funding announcements of $212 million for regional road projects. However, we note that there are still deeper funding issues to address. Maintaining current levels of service on roads and delivering future economic benefits remains an issue, particularly for rural and provincial councils with smaller population bases but extensive roading networks.

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