NZ Local Government Perspectives 1801 by Contrafed Publishing

PERSPECTIVES 2018

NZ LOCAL GOVERNMENT MAGAZINE PERSPECTIVES 2018

NZ LOCAL GOVERNMENT MAGAZINE

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NZ LOCAL GOVERNMENT MAGAZINE

Letter from the editor

Ruth Le Pla

PERSPECTIVES 2018

FOREWORD

Minister of Local Government

The Hon Nanaia Mahuta

Local Government New Zealand (LGNZ)

Dave Cull, president

CENTRAL GOVERNMENT AGENCIES

Local Government Commission

Dr Suzanne Doig, chief executive

New Zealand Transport Agency (NZTA)

Fergus Gammie, chief executive

Office of the Auditor-General

Andrea Reeves, assistant auditor-general local government

Office of the Privacy Commissioner

John Edwards, privacy commissioner

ASSOCIATIONS

Aggregate and Quarry Association (AQA)

Roger Parton, chief executive

Association of Local Government Information Management (ALGIM)

Mike Manson, chief executive

Civil Contractors New Zealand (CCNZ)

Peter Silcock, chief executive

26 Connexis

Peter Benfell, chief executive

Environmental Defence Society (EDS)

Gary Taylor, chief executive

Infrastructure New Zealand

Stephen Selwood, chief executive

Local Government New Zealand (LGNZ)

Malcolm Alexander, chief executive

New Zealand Motor Caravan Association (NZMCA)

Bruce Lochore, chief executive

New Zealand Public Service Association (PSA)

Glenn Barclay, national secretary

Resource Management Law Association (RMLA)

James Gardner-Hopkins, president

Society of Local Government Managers (SOLGM)

Karen Thomas, chief executive

Waste Management Institute New Zealand (WasteMINZ)

Paul Evans, chief executive

Water New Zealand

John Pfahlert, chief executive

LAST WORD

Boffa Miskell

Kathleen Kinney, communications advisor

LOCAL GOVERNMENT PERSPECTIVES 2018

CONTENTS

NZ LOCAL GOVERNMENT MAGAZINE

PERSPECTIVES 2018

Agenda set for 2018 Welcome to the third issue of our publication Local Government Perspectives. We’re delighted to have the opportunity to showcase the thoughts of a large number of leaders, influencers and connectors across the local government sector. I am especially pleased that the newly-appointed Minister of Local Government, the Hon Nanaia Mahuta, agreed to signal in this publication some of her thoughts on the direction she will take in her role. Similarly, this is the first year that we have Dave Cull, as president of LGNZ, outlining his priorities in the publication. Also, for the first time, we have included the ‘voice’ of the Resource Management Law Association (RMLA) in a comprehensive sweep of an article by its newlyelected president James Gardner-Hopkins. From my perspective, ‘urgency’ and ‘co-creation’ are the two concepts that sum up 2017 and will form the centrepiece for conversations in 2018. The sense of urgency stems from the growing acknowledgement that the sector cannot continue on its current trajectory. There are not enough resources. Pulling facts at random from individual articles in this publication: Auckland alone faces a projected $6 billion-plus transport funding gap over the next 10 years. A forecast 49,000 more people are needed by 2025 to deliver on the planned $110 billion government investment in infrastructure. The Havelock North drinking water inquiry called for major reform in the water sector and that, again, raises concerns about just who will end up paying for what. This brings me to my second point about co-creation, ‘sharing the driving wheel’, call it what you will. The big brother / little brother relationship enshrined in central / local government politics stands firm, although there are increasing signs that the elder sibling is saying more clearly that it wants to talk. The annual Central Government Local Government Forum will be critical for ascertaining how much change can realistically be expected. Watch this space for if, and when, this talk turns into action. Importantly, there will be much to celebrate this year if the greater urgency from last year leads to wider acceptance within the sector of the need for disparate interest groups to work together. Throughout 2017, several organisations offered to ‘lead’ a number of the conversations – which sounds like code for ‘you’re not the boss of me’. This may have been merely a necessary evolutionary stage as the various parties strut their way into the virtual meeting room. It will be fascinating to see how this plays out in 2018. All in all, we’re set for an interesting time.

Ruth Le Pla, editor ruth@localgovernmentmag.co.nz @nzlgmagazine

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.localgovernmentmag.co.nz EDITOR Ruth Le Pla Mobile: 021 266 3978 ruth@localgovernmentmag.co.nz BUSINESS DEVELOPMENT Charles Fairbairn DDI: 09 636 5724 Mobile: 021 411 890 charles@contrafed.co.nz ADMINISTRATION/SUBSCRIPTIONS admin@contrafed.co.nz DDI: 09 636 5715 PRODUCTION Design: Jonathan Whittaker studio@contrafed.co.nz Printing: PMP MAXUM GENERAL MANAGER David Penny DDI: 09 636 5710 Mobile: 021 190 4078 david@contrafed.co.nz EDITORIAL MANAGER Alan Titchall DDI: 09 636 5712 Mobile: 027 405 0338 alan@contrafed.co.nz CONTRIBUTIONS WELCOME Articles in Local Government Perspectives are copyright and may not be reproduced in whole or in part without the permission of the publisher. DISCLAIMER Local Government Perspectives 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.

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LOCAL GOVERNMENT PERSPECTIVES 2018

LETTER FROM THE EDITOR

Photograph: Claire Hamilton_Oâ&#x20AC;&#x2122;Connell Street

The view from the top THE HON NANAIA MAHUTA, MINISTER FOR LOCAL GOVERNMENT

Infrastructure, funding, regional development and civic participation will be priorities for 2018, while the four wellbeings could be reinstated.

E NGA MANA, E NGA REO, TATOU KATOA – TENA KOUTOU. As the new Minister of Local Government this is an opportunity to foreshadow my approach to some complex and challenging issues facing the sector. The critical leadership required at this time means that central and local government must work together to deliver gains to the people we represent. As some readers may be aware, I was responsible for this portfolio in the fifth Labour government. Building a strong relationship that is open, founded on trust and committed to working through issues in a constructive manner will continue to characterise our next steps. While working together is a natural inclination for many, in a central and local government context it’s about partnership. One of the opportunities for engagement I am particularly looking forward to is this year’s annual Central Government and Local Government Forum, to be hosted by the Prime Minister. The Forum will allow both ministers and local body representatives to have an open discussion on how to work together on key issues affecting our communities. As Minister, my priorities include focusing on three waters infrastructure; funding and financing local government; developing our regions; and improving civic participation. I am also considering how to proceed in respect of the Local Government Act 2002 Amendment Bill 2016 that is currently before Parliament. I have asked officials for advice on how to incorporate the four wellbeings within that.

Infrastructure High-quality infrastructure is essential to a number of priorities important to the government. These include providing sufficient affordable housing; regional development; high-quality fresh water; managing the impacts of climate change; consumer protection; and maintaining Crown relationships with iwi Maori. These priorities focus on the need to respond effectively to current and urgent needs, and ensure that solutions are enduring and sustainable in the light of emerging issues and trends. We are also committed to achieving a zero-carbon economy

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FOREWORD

by 2050, and acknowledge that our transition to this economic platform will require a strong partnership between central and local government. I wish to acknowledge Local Government New Zealand’s (LGNZ) work on the three waters. I also recognise that the final report of the Government Inquiry into Havelock North Drinking Water has recommendations on how we collectively manage our water systems. My officials are leading government’s work on three waters infrastructure and I look forward to working closely with local government as we progress it this year.

Funding and financing of local government I am aware that some councils are facing challenges due to demographic change. This includes ageing or declining populations which effectively reduce rating bases, but also high

I am considering how to proceed in respect of the Local Government Act 2002 Amendment Bill 2016 that is currently before Parliament. levels of population growth and tourism putting pressure on resources. We are aware of the need to ensure there is capacity to be able to increase housing, so we can accommodate population growth. The sector is facing a few challenges and trying to find a way to address these issues while keeping services affordable for our communities. As you all know, we are committed to holding a public inquiry, “A decade after Shand” to investigate the drivers of local government costs and its revenue base. The government recognises the importance of these issues to the sustainability of local government and looks forward to working in partnership with the sector so we can effectively deliver on our communities’ expectations.

Developing our regions Building strong regions and primary industries is one of the government’s key priorities. We are committed to providing a $1 billion per annum Regional Development Fund to help revitalise provincial growth. This will cover significant new investment in regional rail, a significant tree planting programme and other large-scale capital projects. We are also committed to relocating some government functions into the regions. I intend to work closely with the Minister for Infrastructure and Regional Economic Development to support the implementation of these initiatives. This will help give a much-needed boost to the growth and viability of our regions, supporting stronger, more resilient regional economies. We also recognise that our government’s objective to explore the potential of housing partnerships with the sector will support a response to regional growth aspirations but also ensure better, more affordable, housing options.

Improving civic participation Technological change has altered the way people want to engage, particularly our younger people. This change has included the growth in diverse modes of community participation such as

social media, online petitions and citizen panels. My aim is to get more people participating as interested and engaged citizens. We need to think creatively about how to encourage our communities to participate. The use of new technologies, and adapting to the way communication is changing, will help us promote engagement and participation. I have noticed that many councils are already rising to the challenge and experimenting with new approaches. High civic participation reinforces a more connected community and society as a whole. We need to continue public education so the next generation is confident that by exercising their democratic right, democracy continues to work towards a greater good. Finally, I wish to acknowledge LGNZ and the Society of Local Government Managers (SOLGM) for their leadership in the sector. LGNZ’s Excellence Programme and SOLGM’s Leadership and Excellence Awards are a great opportunity to showcase talent, innovation and celebrate success in the local government sector. I wish you all a successful and productive year. I look forward to working with the local government sector in 2018 as we strive to support participatory democracy, leading to strong communities and prosperous regions. LGP

LOCAL GOVERNMENT PERSPECTIVES 2018

FOREWORD

Central and local government must share the driving wheel DAVE CULL, PRESIDENT, LOCAL GOVERNMENT NEW ZEALAND (LGNZ)

Infrastructure, water and housing will continue to pose challenges for the sector and will be among the top priorities for 2018. AFTER A BUSY AND PRODUCTIVE 2017, Local Government New Zealand (LGNZ) is well placed to maximise the opportunities this year will bring, and meet whatever challenges that may arise.

Climate change In late 2017 I had the privilege of attending the COP23 Climate Change Conference in Bonn, Germany, where it became even more apparent that the work started by local government last year on climate change is critical. These conferences demonstrate that when cities, regions, businesses, communities and all levels of government join forces, climate action is stronger and more effective. We have long advocated for such an essential joined-up approach to climate change, and we look forward to strengthening these partnerships in the coming years. Last year LGNZ launched a climate change project comprising a number of pieces of work focused on both adaptation and mitigation. This is a key piece of work that will help equip councils and their communities with the tools and information they need to act on climate change. I stress the word act. When even poor countries like Costa Rica and Fiji can mount a range of efforts to tackle the issue of climate change, New Zealand needs to urgently move into action. Local government must work hand in hand with central government to address the issues of climate change. The question is how. In my view, it cannot just be on the terms that the government decides. To achieve the reductions New Zealand needs, local government must be ‘sharing the driving wheel’. This will be a key goal for us in 2018.

Infrastructure and funding In the second half of 2017, LGNZ vice president Stuart Crosby and I, along with LGNZ’s management team, embarked on a nationwide tour of councils. During these visits, which will continue in the early part of this year, the issue of funding growth and renewal infrastructure has emerged as among the highest priorities for councils dealing with the pressures associated with booming populations and visitor numbers. Councils in fast growing areas face serious issues with funding the infrastructure needed to accommodate new residents, such as roads and essential drinking, waste- and

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FOREWORD

stormwater infrastructure. Relying primarily on property rates and the current development contributions regime to fund incredibly expensive new infrastructure for new residents is not sustainable or fair, and many councils are reaching their debt limits. The early messages from the new government indicate these concerns have been heard, and the government’s commitments to reviewing the drivers of local government costs and its revenue base are welcome. We are looking forward to working with the government on finding alternative funding methods, and will continue to highlight the infrastructure issues faced not just by growth councils but also those councils dealing with a range of other complex factors too.

CouncilMARK local government excellence programme Launched in 2016, the CouncilMARK excellence programme has proved to be a valuable contributor to the sector’s aims of showing and growing its performance. In its inaugural year we saw 18 councils independently assessed and most of these had reports outlining their performance published for their communities to consider. This year the programme will continue with a range of councils already signed up for its second year. We will continue to promote CouncilMARK as an important assessment tool for councils. Under the programme, councils are assessed over four key indicators, developed by LGNZ in conjunction with Cameron Partners. They are governance, leadership and strategy; transparency in financial decision-making; service delivery and asset management; and communications and community engagement. Many councils are already using the reports to guide their work, whether addressing areas for improvement or planning how to retain a high standard. As a sector there is much to do to raise awareness of the full breadth of work and the many roles local government plays. We also need to continue to grow our performance. CouncilMARK is designed to do this and I commend all the councils that have participated so far, and those that have committed to it. Completed council reports along with further information can be found at councilmark.co.nz. I urge the community to go online and read these for themselves. LGP

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LOCAL GOVERNMENT COMMISSION

Significant decisions bring greater clarity DR SUZANNE DOIG, CHIEF EXECUTIVE

Last year, the Local Government Commission focused on North Rodney, Waiheke, the West Coast, Wairarapa and Wellington. Northland and Auckland will be in the spotlight in 2018.

STATUTORY CRITERIA IN THE LOCAL GOVERNMENT ACT govern much of the Local Government Commission’s work programme, and its rate of progress. Coincidentally, a number of applications before us reached significant decision points towards the end of 2017. Hopefully this will have brought welcome resolution, or at least greater clarity, for the communities concerned. It also allows us to draw breath before moving on to the challenges 2018 will inevitably bring as we work with communities across the country to assist them in achieving efficient, costeffective and democratic local government arrangements.

Status quo for North Rodney and Waiheke At the end of November, the commission visited Warkworth and Waiheke to announce our preferred option decision for Auckland local government reorganisation. This arose out of an application by the Northern Action Group for a North Rodney Unitary Council separate from Auckland Council, and an alternative application from Our Waiheke for a Waiheke Unitary Council. The commission determined that the status quo was the preferred option with the result that the applications for North Rodney and Waiheke unitary councils will not proceed. This decision was taken after careful consideration of the applications before it, and examination and analysis of the evidence tested against the criteria set out in the Local Government Act. The commissioners found that neither a North Rodney Unitary Authority, nor a Waiheke Unitary Authority – combining the responsibilities of district and regional councils for their respective proposed areas – would meet the statutory legislative tests. In particular, neither would have the resources necessary to carry out those responsibilities, including a number relating to large sensitive marine environments. There were no other alternatives put forward that met the tests for a change to the current local government arrangements.

LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

Preferred option for West Coast The commission will continue to be involved on the West Coast in 2018 after announcing a preferred option decision for local government arrangements in the region. In early December we announced that option to be a transfer of responsibility for district plan preparation from the Buller, Grey and Westland district councils to the West Coast Regional Council – with the establishment of a joint committee of the four councils to develop and approve the new combined district plan. The commissioners also considered two other options: a unitary authority for the region combining all four councils into a single West Coast council; and the status quo. A unitary authority would have significant potential gains for the coast.

Fifty-eight councils are scheduled to complete statutory representation reviews and of those we expect a good number will come to us for adjudication, to be completed by April 2019. But the commission was not convinced, given the special nature of the region, that one council with an unfamiliar local board structure would be the best option at this time to enable democratic decision-making. Equally, given the acknowledged challenges facing the West Coast councils, neither was “no change’’ considered tenable as the option to best promote the purpose of local government into the future, and achieve improved economic performance. The commission will now begin work on preparing a draft proposal with input from West Coast councils, seek submissions on it and hold hearings. After considering

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submissions and feedback, it may then issue a final proposal for a combined West Coast District plan, identify another option, or decide not to proceed with any reorganisation option.

Wairarapa By now the outcome of the commission’s most recent final proposal, in the Wairarapa, will be public. Wairarapa electors voted on whether or not they supported or opposed a combined Wairarapa District Council in place of the South Wairarapa, Carterton, and Masterton district councils. This poll was due to close just after this edition went to press. If the Wairarapa public have voted for the proposal, the commission will be busy establishing a transition body early in 2018, and will work with it and the councils to assist a seamless move to a new council, with elections most likely to be held late this year. If the public has opposed the proposal, the reorganisation process comes to an end and the status quo prevails. Either way, having conducted a robust debate, it is the community that will have made the decision on its preferred arrangements – with the bonus of a heightened awareness and interest in its own local government. Throughout a long-running process in which the commission has enjoyed constructive relationships with the councils, community and local government leadership, the advantage of closer collaboration and shared services has been a consistent theme.

Wellington While the Wairarapa community was having its final say, the commission completed its work on the rest of the Wellington region. We have recommended Wellington’s five

urban councils take a fresh approach to dealing with crossboundary transport and planning issues. The area would benefit from these councils adopting the productive joint governance arrangements used in other parts of New Zealand. The commission’s recommendations are non-binding but require a formal response from councils in the first half of this year.

Northland and Auckland The commission also intends to use the same powers to make recommendations to councils in Northland and Auckland in 2018 following decisions to stick with the status quo in these areas. These recommendations would follow up on opportunities for improved efficiencies, performance and service delivery.

Busy time ahead The commission expects to be busy throughout this year assisting councils with their statutory representation reviews and in resolving appeals to that process. Fifty-eight councils are scheduled to complete reviews and of those we expect a good number will come to us for adjudication, to be completed by April 2019. The commission’s experience over the past two or three years and our anticipated programme in 2018 point towards extending the collaborative approach we have adopted in working with communities and councils. While we are governed by the Local Government Act which stipulates a prescriptive approach to reorganisation applications, we also have a broader role in promoting good local government. We look forward to continuing to collaborate with colleagues in the sector to this end. LGP

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LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

NEW ZEALAND TRANSPORT AGENCY (NZTA)

Setting plans for a decade ahead FERGUS GAMMIE, CHIEF EXECUTIVE

The new Government Policy Statement on land transport will be released in mid-2018, setting out the government’s priorities for expenditure from the National Land Transport Fund during the next 10 years. LAST JULY THE NZ TRANSPORT AGENCY unveiled its new strategy. At its core is our intention to work better in partnership with local government and new partners to develop a great transport system that helps people get the most out of life. An early demonstration of this in action was the unveiling, first in Queenstown and then in Auckland, of a unique Mobility as a Service (MaaS) app, Choice. MaaS uses digital technology to allow people to more easily plan travel by finding transport options at one source – their smart phone or tablet. MaaS is just one illustration of the transport industry’s digital future. Just as importantly, it is an example of a refreshed Transport Agency collaborating with others to trial new initiatives.

businesses and help people get the most out of their lives. Quite simply, we know local government understands its communities better than we do. Inside the Transport Agency, group and regional plans have been replaced by one agency-wide business plan. There are three drivers for the transformed Transport Agency: one connected transport system; people-centred services; and partnerships for prosperity. I believe our objective – “delivering great journeys that are easy, safe and connected to keep New Zealand moving” – fits with LGNZ’s policy statement to “power strong economies and build strong communities”.

2017 milestones Partnerships with councils In the south, we partnered with Otago Regional Council, Queenstown Lakes District Council and community stakeholders to help develop MaaS. Further north, we’ve worked with Auckland Transport on the local government side and with Auckland International Airport as a business partner. We are looking to the future. But we have not lost sight of today and the importance of working together to deliver a programme of maintenance and improvements to our state highway and local roads network that helps revitalise communities and safely connects people with jobs, schools, services and recreation. The Transport Agency and LGNZ have worked in partnership around specific projects. These include improving value for money from road maintenance expenditure, and building capability around managing the road network to a consistent standard using the One Network Road Classification (ONRC), delivered through the Road Efficiency Group (REG). Our future strategy focus is on partnerships for the co-design and delivery of even wider social, economic and environmental community outcomes; systems rather than networks; and people rather than vehicles. As our core planning and investment partner, local government is well placed to see transport through the eyes of communities. It is also well positioned to see how solutions can be delivered to improve a transport system that will support

LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

Our refreshed strategy and the development of MaaS aside, the Transport Agency celebrated significant events to improve the land transport system throughout 2017.

The Transport Agency continues to refine a new digital-based data harmonisation tool known as BIM (Building Information Modelling / Management). • Support from local government and others was an important factor in restoring road and rail links between Picton and Christchurch as part of the Kaikoura earthquake rebuild. That support will remain critical during 2018. • Opening Auckland’s Waterview tunnel produced improved travel times, added resilience to the city’s motorway network, and extended its walking and cycling network. Work started on extending Auckland’s motorway north from Puhoi to the Warkworth community. • The Rangiriri section of the Waikato Expressway opened in December. This was an important section because of our partnership with Waikato-Tainui, and the opening included a site recognising the Rangiriri battle fought during the New Zealand Land Wars.

CENTRAL GOVERNMENT AGENCIES

• New Zealand’s longest suspended cycle bridge was also opened in the Waikato. The Te Awa Bridge, south of Ngaruawahia, is part of the Te Awa Great River Ride stretching 70 kilometres along the Waikato River. • Together with our Greater Wellington Regional Council and Wellington City Council partners we are currently reviewing customer feedback on the “Let’s Get Wellington Moving” options. This initiative is part of the Wellington Northern Corridor programme of works. Further north, the Mackays to Peka Peka section of the corridor was opened, and construction started on the Peka Peka to Otaki stage. • The last two stages of the Western Corridor in Christchurch were opened, completing the first of the Christchurch Motorways projects. • Otago Regional Council – supported by the Transport Agency and Queenstown Lakes District Council – launched a subsidised bus service for greater Queenstown with a flat $2 fare across all zones. Two road improvements opened in Queenstown before Christmas to help with peak traffic during the holidays. Road safety remains an important part of the Transport Agency’s agenda. Much still needs to be done in terms of working with local road controlling authorities on how to fund and deliver this work, and expand the use of technologies to prevent fatal and serious injury crashes.

Government Policy Statement 2018 The new Government Policy Statement (GPS) on land transport will be released in mid-2018, an important document for both the Transport Agency and local government. The GPS sets out the government’s priorities for expenditure from the National Land Transport Fund during the next 10 years. It provides the framework for the Transport Agency to allocate funds between various activities such as local roads, public transport, state highways, road safety and policing. With all our programmes, we want to work alongside councils to achieve outcomes for your communities and economies.

Co-creation with local government Going forward, there are three categories in the co-creation

space where the Transport Agency and local government will keep working together closely: • Managing asset performance – Transport Agency / councils share costs through the National Land Transport Fund investment. • Working with major urban councils to give customers easy, safer and connected journeys through integrated operations – we share the same customers who either don’t, or need to, care about who owns or operates the transport system they use. • Working closely with councils facing significant growth pressures – they are likely to require us to play our role in helping with strategic system delivery solutions that improve customer experiences. Greater collaboration and cooperation is essential. We are on the cusp of a transport revolution driven in part by changes to the way vehicles are powered and vehicle ownership itself, and also by accelerating changes to digital technology. Our traditional ways of thinking and acting have to change too if we are to succeed. MaaS will be developed further for the benefit of our customers, and the Transport Agency continues to refine a new digital-based data harmonisation tool known as BIM (Building Information Modelling / Management). This is in line with one of our key objectives of one connected transport system, allowing local government, contractors and the Transport Agency to share at the same time exactly the same information about a section of road, no matter where people are. Bigger and broader technological change is coming. The Transport Agency cannot deliver this alone. Together, the Transport Agency and local government need to focus on whole-of-system performance and solutions where we can adopt collective approaches to solving risks and opportunities. We aim to give customers a seamless journey experience and access to the opportunities they need and expect. Meeting changing expectations is an exciting challenge and provides opportunities for councils and the Transport Agency – challenges we can resolve together through 2018 and beyond. The rewards are great. LGP

LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

OFFICE OF THE AUDITOR-GENERAL (OAG)

Seeing the opportunities in the challenges ANDREA REEVES, ASSISTANT AUDITOR-GENERAL LOCAL GOVERNMENT

Local authorities need to do more to gather information on their most important assets.

BEFORE CHRISTMAS EACH YEAR, I reflect on the year that has been. And I’ve realised that every year I come to the same conclusion – it was a challenging year for local government. Do I expect 2018 to be any different? No. But for most of us, that’s why we work in the job that we do – because we believe we can make a difference to those challenges. With every challenge there is opportunity. Local authorities are in the privileged position of being stewards of significant community assets, such as the infrastructure that delivers drinking water and that takes our wastewater away. In preparing for the 2018-28 long-term plans, local authorities have been thinking and talking about the level of service they will provide to their community. I’ve heard many examples of local authorities taking the opportunity to have conversations throughout 2017 with ratepayers, local businesses and others to ensure that the 2018-28 long-term plan will reflect the desire of their community now and for the future.

Investment in infrastructure information – an ongoing priority In 2017, as in previous years, we continued to share our concerns that local authorities might not be investing enough to maintain their existing infrastructure. This is based on our analysis of the accountability documents that we audit. However, we recognise that you can’t make any firm conclusions using financial numbers alone, and each local authority’s circumstances are unique. We have been encouraging each local authority to consider whether it is underinvesting in its assets and, if so, the likely effect of that underinvestment on service levels. To do this, local authorities need to have a comprehensive understanding of their critical assets and the cost of adequately maintaining them. In 2017, we published a report that looked at how five local authorities approached identifying and gathering information on their critical assets (see Getting the right information to effectively manage public assets: Lessons from local authorities).

LOCAL GOVERNMENT PERSPECTIVES 2018

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We found that those five local authorities were improving their ability to gather, record and retain asset information and making this available to those who need it. But more needed to be done to gather information about their most important assets. This is an issue that needs to be addressed, I suspect by most, if not all, local authorities as a priority. Elected members need this information to make deliberate decisions about how to manage the assets they govern. Only then do they have the opportunity to have meaningful conversations with their communities about how to fund the reinvestment in assets or the consequences of not doing so. Being plain about the realities is essential to create the right debate with stakeholders. Minimising issues and deferring decisions or difficult conversations serves no-one well in the long run. It can result in a decline in services, spikes in cost or assets failing.

We have been encouraging each local authority to consider whether it is underinvesting in its assets. Our work programme – water management The past year has included many water management issues, including the Havelock North drinking-water contamination and the flooding of Edgecumbe. And there is a lot of work under way on water management. For example, reports about the state of the marine environment and freshwater under the Environmental Reporting Act 2015 have been released, and a review of three waters services – drinking water, stormwater and wastewater – is underway. We’ve also decided to focus a significant portion of our resources on water management, starting in 2017/18. We are focusing on water management because of its vital importance to New Zealand’s economy and lifestyle, and New Zealanders’ growing concerns about the quality of our water resources and how they are managed.

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We are planning to look at water management activity in several organisations, focusing on drinking water, freshwater, stormwater, and the marine environment (see Introducing our work programme – Water management). We won’t duplicate any of the work that is currently under way. We have the opportunity to bring an independent view by looking across central and local government at the water management system as a whole. As with our previous work programme focus areas, we will produce a report at the end that pulls together our observations and recommendations.

Engaging effectively with your community During 2017, we published our report on all our work under the theme of investment and asset management. The report reinforced what is needed to make good decisions about investing in assets, and what needs to be done to manage assets well: • e ngage more effectively with people receiving the services; • take into account the whole life of assets; • work cooperatively with other entities; and • get better information about the condition of assets. Although the upcoming 2018-28 long-term plans present a

challenge in the time and resources they take to prepare, we hope all local authorities are taking the opportunity to use the long-term planning process to engage with their communities about the level of service that the local authority is intending to provide and how much ratepayers are prepared to pay for those services. The investment and asset management report poses questions for decision-makers to think about when considering whether to invest in assets (both new and existing assets) and how to manage assets. Some of these questions seem simple and obvious – but our work has shown that sometimes we need to point out the obvious. Every day I meet smart and talented people who are passionate about what they do for their local authority and they are doing great work. They are willing to share their knowledge, experience and any lessons learned from making mistakes along the way. There is a significant opportunity for all of us to connect and learn from each other. My team and I enjoy sharing what we see as good practice throughout the sector. We look forward to working with you and sharing more of those experiences in the next 12 months. LGP

CCNZ REPRESENTS NEW ZEALAND’S CIVIL and GENERAL CONTRACTING INDUSTRY We provide a forum for Councils to connect with their local contractors around issues such as procurement, health and safety, forward work planning and sustainability.

For contact details for your local CCNZ Branch go to www.nzcontractors.co.nz or

Phone 0800 692 376

LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

OFFICE OF THE PRIVACY COMMISSIONER

Where privacy, technology & individual behaviour meet JOHN EDWARDS, PRIVACY COMMISSIONER

Advising on data breaches, email intercepts and the unintended consequences of big data were all part of the office’s work in 2017. Expect more of the same, plus the launch of a privacy trust mark, in 2018.

DOES THE LOCAL COUNCIL TELL MY LANDLORD if noise control officers pay a visit to my flat? This is just one of the many privacy-related questions we get asked. This particular query and its answer is now part of our online AskUs tool. We launched AskUs in 2016 with more than 400 common privacy questions and we’ve been adding to these throughout the past year. There have been over 12,000 enquiries made to AskUs in that time, in addition to the 7000 public enquiries through our 0800 number and email. Through AskUs we’ve also learned things. One is that people really like recording each other with over 700 people having read our questions about CCTV and other recording devices. Public education is an important part of our work. But the other half of the equation is the work we do to help government and business use the Privacy Act as an enabling legislation – to find ways to achieve the goals of being more efficient and more cost effective for ratepayers and customers. Each year, we interact with local councils either by giving advice on policy developments or in dealing with complaints made to us. We have provided advice on electronic public registers, smart city sensors, smart meters and, a perennial issue, surveillance cameras – including a new brochure on drones and surveillance cameras which is now available from our office. In a recent case, a local body approached us requesting feedback on a proposal to equip parking wardens with body cameras. Among other things, the local council sought our authorisation to collect personal information in a way it thought would be a breach of a privacy principle. We advised the local council that its policy did not seek to breach a privacy principle, so it did not require our authorisation. This clarity gave the council the certainty it needed to implement its cameras. We welcome that kind of engagement with local government. After all, we’re here to help – and we don’t mean that in an ironic “I’m from the government and I’m here to help” way.

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CENTRAL GOVERNMENT AGENCIES

Big data redux It goes without saying that local councils handle a significant amount of often sensitive personal information – that’s because you have to. It comes part and parcel with what you as local councils do in fulfilling your functions and responsibilities. While local government is only one part of the personal information food chain or ecosystem, there’s an obvious allure across all levels of government (and business) for using big data sets to unlock cost savings. Big data has been called a type of modern day alchemy, turning data into information gold. Our role at the Office of the Privacy Commissioner is to represent for privacy so that the pitfalls are thought through and mitigated against. We know the smart use of data has the potential for positive impacts but it comes with attendant risks – to agencies and

Bad data can result in harm to individuals and the community. to individuals. The positive impacts for organisations include more efficient resource allocation, while the risks include incorporating biases and large-scale mistakes. Bad data can result in harm to individuals and the community. One example comes from the US City of Boston. The city was patching up about 20,000 potholes each year. To help allocate its resources more efficiently, it released a smart phone app to detect and report potholes. It did so by collecting accelerometer and GPS data as motorists travelled through Boston’s streets. But the city managers failed to consider one structural issue. People in lower income groups were less likely to have smartphones. This was particularly true of older residents with smartphone penetration as low as 16 percent in that age group. Poor neighbourhoods were therefore less likely to have their roads fixed and more affluent neighbourhoods, instead,

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received disproportionately more attention from the city’s road mending teams. When made aware of this issue, the city gave the app to all its municipal workers to use as they drove around to remedy this collection imbalance. But the lesson learned was clear. Data is only useful if it is not based on flawed assumptions and skewed information.

MSD individual client-level data report It was for these reasons, among others, that we welcomed the government’s decision to reverse a Ministry of Social Development (MSD) policy to collect individual client-level data from social service providers. The service providers were required to provide information about individual clients in order to receive funding. The information included clients’ names, number of children and the other social services they dealt with. We acknowledged projects like this had the potential to do a lot of good by measuring and improving the efficacy of social services. But if they were overly intrusive, they could undermine their own aims by creating situations where people opted to leave out key details or were dissuaded from accessing social services in the first place. An unintended consequence could be to deter people from seeking support or assistance, which could put them at further risk and make them “invisible” to government and policy makers – thus skewing the data collected. One of our main recommendations was for MSD to explore less privacy-invasive means of achieving the government’s social investment strategy. We pointed out that if you don’t get the privacy right, people will opt out of needed services if they feel their privacy is not respected. You can find our MSD individual client-level data report on our website.

Advisory opinions Advisory opinions are another tool we launched to give agencies greater certainty about our approach to the law. This is where agencies can seek our view on a legal issue: for instance, the privacy impact of a proposed process or service. We published one advisory opinion this year. We were asked by the New Zealand Fire Service about its proposal to publish the addresses of fire incidents on its website. The move was designed to reduce administrative burden from insurers seeking this information.

We decided that addresses of fire incidents could constitute personal information, and disclosing them on the website could be a breach of the Privacy Act. We suggested an alternative way of sharing this information without compromising individual privacy. Our advisory opinion is available on our website.

Email interception We’ve received at least one complaint about the Horowhenua District Council policy of intercepting emails between the public, and council members and staff. There’s been considerable media interest and our office was approached for comment. We’ve been in close contact with the Office of the Ombudsman in giving a view on whether the practice breaches the law.

Data breaches In the past financial year, 132 breaches were reported to our office, slightly down on the previous year’s total of 148. The main categories of breaches have consistently involved electronic or hard copy information being sent to the wrong recipient. In one case, a file was sent by accident because it had a very similar name to the file that should have been sent. The lesson from this breach was that underlying processes and procedures – such as file naming conventions – need to be built to reduce the likelihood of human error in sending personal information. Other common types of breaches were website vulnerabilities, the loss or theft of hard copy files or portable work devices, and employee browsing.

Privacy trust mark This year, we intend to launch a privacy trust mark to certify products and services that meet our privacy criteria. Privacy certification can play an important role in promoting privacypositive behaviours while trust, control and transparency are essential to the digital economy. Please stay in touch with our office for more news on this exciting project.

We’re here to help If you’re undertaking a project that involves the collection, use or sharing of personal information, feel free to contact our office. Our website offers all kinds of guidance and information, including our contact details. You can also put a question to AskUs at www.privacy.org.nz/ask. LGP

LOCAL GOVERNMENT PERSPECTIVES 2018

CENTRAL GOVERNMENT AGENCIES

We discover. We deliver. We care. Better people. Better places. Better communities.

Visit our new website citycare.co.nz

ASSOCIATIONS

AGGREGATE AND QUARRY ASSOCIATION (AQA)

Governments new and old present challenges ROGER PARTON, CHIEF EXECUTIVE

Health and safety concerns, and access to local resources remain paramount in a year of potential change for the quarrying and aggregates sector.

LIKE MANY OF YOU IN THE LOCAL GOVERNMENT SECTOR, those of us in the industry that provides the foundations of every built environment enter a new year with a lot of questions about what the new government will mean for us. I also wish to alert those of you who work for, or represent, councils to some of the realities and risks that councils now face under the Health and Safety at Work Act – passed by the previous government – if any quarries are sited on councilowned land. The new Labour-led government is now in place and the Aggregate and Quarry Association (AQA) is already putting in its bids to engage with ministers. Of course, the new administration is built around the Labour Party which is a centre-left party made up of a mix of idealists and pragmatists. It is a government committed to economic development, notably in the regions. With hundreds of quarries dotted from Te Hapua to Bluff providing the foundations for every road, new home, factory, school, office and hospital, we trust the quarrying industry is able to provide the rock and stone required to keep the country growing. We will look to the Labour pragmatists in the Cabinet such as David Parker, Stuart Nash and Damien O’Connor, not to mention NZ First’s Winston Peters, Ron Mark and Shane Jones, to ensure this occurs. Nash certainly impressed the quarry sector by being the only MP from any party to accept an invitation to attend last year’s QuarryNZ conference; he gave a supportive and wellreceived speech on the importance of the sector. It would be something of an understatement to say that the Green Party is not seen as supportive of the quarrying sector. That said, the AQA notes how one of its own core ambitions aligns with Green principles. We continue to fight for access to local resources, rather than being pushed further and further from urban centres. I cannot say that councils are entirely helpful in this area, despite the fact that local quarries reduce fuel emissions and traffic congestion. We trust any MP or local councillor,

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especially those committed to climate change, can see the benefits of continued access to urban / urban-fringe aggregate.

Growth puts pressure on boundaries A related issue that will present potential challenges for us is the Labour-led government’s wish to build 10,000 more houses, notably in Auckland. This is seeing the current urban / rural boundary coming under pressure. Much of Auckland’s remaining locally-produced aggregate is sourced from the rolling pastures to the north of the Bombay Hills. These are still zoned rural. If housing is allowed to spread into adjoining areas, you can imagine the difficulty in getting a quarry consent renewed, let alone a new one approved. The government, in concert with Auckland Council, needs to think very carefully about how it needs to balance its housing ambitions with retaining local sources of the very material that will allow new houses (and the connecting roads and infrastructure) to be built. On a wider front, the AQA would look to the new government for a share of the promised $1 billion annual spend in regional New Zealand. While it is not yet clear how this regional development fund is to be spent, it would be hard to overlook improved roads, bridges, new public buildings and rural broadband infrastructure, all of which will require increased volumes of aggregate. We would expect some support here from councils, given such infrastructure can only align with your own objectives to see your communities become better connected and served.

Health and safety Councils would also be well-served to take note of their own risks under the Health and Safety at Work Act 2015, passed under the previous National-led government. Under the new legislation, any PCBU – a Person Conducting a Business or Undertaking – can face fines of up to $600,000 and five years in jail for recklessly ignoring health and safety requirements. In the quarrying sector, this may potentially extend to

those who own the land on which quarries are sited or where extraction takes place. A number of councils own quarries (think Kiwi Point on Wellington’s Ngauranga Gorge) and / or permit river shingle extraction on public land alongside rivers. When I first raised these risks for councils in this column two years ago, I have to say even senior elected figures in LGNZ seemed unaware that quarries which their councils owned presented any potential risk. The previous year had seen a death in a limestone quarry collapse at Waikari in North Canterbury on land leased from the Hurunui District Council. This should have awoken many landowners, including councils, to the risks and liabilities they face as quarry site owners. Some quarry operators have been working with councils to remediate sites to reduce quarry walls to more acceptable slopes or fill in water pits. The liabilities extend much further and I strongly advise councils to take note.

Fifty years One way you might get up to speed with our sector is by attending our annual conference. In July this year, the AQA in conjunction with the Institute

of Quarrying NZ (our industry’s professional body) will mark 50 years since the first quarrying conference. Of course, quarrying has been an activity since the first European settlers arrived and needed stone for buildings and later roads. But we took quite a while to formalise ourselves. The capacious and well-appointed Claudelands event centre (owned by Hamilton City Council) has been booked for what promises to be a memorable event to mark 50 years since our industry came of age. If you are a potential attendee or visitor, mark July 18-20 in your calendar and look at the QuarryNZ website for registration details from April.

Possible merger The AQA itself is also facing potential change and a possible merger with other sector organisations. Whether we are part of a new organisation, merged with an existing body or maintained as we are, the quarrying industry will continue to provide New Zealand with the very foundations of continuing growth. We look forward to working with councils in achieving that growth for at least another half century – though let’s get through this year first. LGP

Tourism New Zealand’s new, global strategy is going to be an economic goldmine for this country’s regions. We can say that with absolute confidence because of the success of our own Off-the-Beaten-Track strategy over the past three years. Now, the NZMCA’s 47 Motorhome Friendly destinations are in prime position to cash in on the benefits of TNZ’s expanded strategy. Congratulations to those regions which have already shared our Off-the-Beaten-Track vision and taken action to ensure that their communities could benefit from the tourism boom.

For you, this is pay-off time! To find out how becoming Motorhome Friendly can benefit your community, call us today. NEW ZEALAND MOTOR CARAVAN ASSOCIATION INC Gillian Rutherford, MHF Towns Coordinator P 09 298 5466 ext 706

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LOCAL GOVERNMENT PERSPECTIVES 2018

ASSOCIATIONS

ASSOCIATION OF LOCAL GOVERNMENT INFORMATION MANAGEMENT (ALGIM)

Digital disruption continues unabated MIKE MANSON, CHIEF EXECUTIVE

Cybersecurity, digital transformation, open data, the cloud, artificial intelligence and machine learning: just some of the changes afoot in 2018.

THE ASSOCIATION OF LOCAL GOVERNMENT Information Management (ALGIM) has a vision to create a world-class ICT sector in local government. ALGIM celebrated an outstanding 2017 in which we continued to help local authorities understand opportunities, identify their implications, and learn and network from each other in the technology arena. The digital age is well and truly upon us. How we respond to the wave of digital disruption will be the deciding factor going forward as to maintaining both relevance and a customer focus.

The year in review To prepare for the future and to share innovations across local authorities, ALGIM showcased 115 speakers over the year. This included local government case studies from the UK, USA, Australia and New Zealand. The highlights included bringing to New Zealand the lead of the US Government Citizen Engagement Program Justin Herman from Washington DC, who has data responsibilities across 15,000 government agencies. Justin spoke about the impact of digital technologies and the approach he was taking in the US. Jos Creese, cited as one of the most influential ICT leaders in the UK, was invited by ALGIM to talk about digital transformation of public services. He spoke about using technology to create a whole new future for local government and citizens: in other words, reinventing local government, developing plans for smart places, changing the relationship with citizens and even democracy itself. ALGIM was proud to be involved in a Linked Data Project involving both central and local government agencies. This showcased how data could be brought together cost-effectively from multiple sources across multiple organisations with disparate systems. A speech on linked data given by ALGIM at a gathering of local authorities from eight countries in Canada, prompted

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the Canadian government to list linked data as a technology it would be closely watching, and it looks forward to learning more from New Zealand’s example. ALGIM also introduced the topic of blockchain at the ALGIM Annual Conference. This new technology will create a more secure environment in which to operate. The City of Toronto is currently conducting a blockchain pilot. ALGIM continues to work with the Department of Internal Affairs in providing domain name moderation for local government (.govt.nz) and has a seat on the AOG (All of Government) ICT Procurement Advisory Group. ALGIM’s skills in information management have been rewarded with an appointment to the Chair of the International Standards Committee (ISO) TC46 which is focused on records management.

Quad9 and DMARC will provide an added level of protection to every council. Looking forward As we look forward to 2018 we are very excited by the possibilities to make a difference in the local government sector. We are only scratching the surface of change and ALGIM has five major areas of focus that we believe will have significant impact on local government in the year ahead. Cybersecurity Last year we emphasised that cybersecurity would be the most important issue for ALGIM in 2017, and we believe this will continue to be so. However, there is hope that in 2018 all local authorities will implement Quad9 or, in other terms, change the DNS to 9.9.9.9 so that auto blocking of maliciouslycoded websites will occur.

The second must-do for all local government is to utilise DMARC (Domain-based Message Authentication, Reporting & Conformance), a system that allows a sender of an email to indicate that their messages are protected by certain authentication systems. DMARC then tells a receiver what to do if neither of those authentication methods passes – such as junk or reject the message. DMARC removes guesswork from the receiver’s handling of these failed messages, limiting or eliminating the user’s exposure to potentially fraudulent and harmful messages to greatly reduce the torrent of phishing emails being handled by councils. There is a global initiative to have everyone make these changes by February 28, 2018. Quad9 and DMARC will provide an added level of protection to every council. Digital transformation ALGIM predicts a move by local government in 2018 towards more robust digital transformation planning. Like climate change, this can no longer be ignored. Organisations owe it to their staff and customers to examine how digital technology can shape their workplace, how they engage with citizens, and how our cities, districts and regions can become ‘smart places’. ALGIM can play a role in assisting councils to identify initiatives that may influence how an organisation or community is reinvented. Technology is only the enabler; the end goal is about transforming to take advantage of this window of opportunity. Open data Open data will be an area of focus in 2018. This is very important to the New Zealand economy and is often called the “gold of the 21st century”. Former US president Barack Obama has highlighted that open data has the potential to deliver global

economic returns of US$5.5 trillion per annum. ALGIM will work hard to ensure that councils understand the benefits of making data available for citizens and communities to set up new businesses previously not possible. Greater movement to the cloud ALGIM believes the local government sector will increasingly move operations to the cloud in the year ahead. This will be driven by improved security, cost effectiveness compared to totally in-house infrastructure, ease of business continuity, and the increasing availability of options on the market. The prime candidate for consideration will be Microsoft 365 as a stepping stone. Artificial intelligence and machine learning In 2018 we will see some early adopters of artificial intelligence. This will be in the initial form of chatbots but may progress into the first digital employee within 12-18 months. Machine learning (or the ability for some degree of self-learning by the software) will also assist councils on projects such as data cleansing. This type of activity, which previously would have been a large cost to resource, has been made easier with new tools now available. We expect to see more in this area as affordable solutions reach the market. In summary, ALGIM is excited by the possibilities that the year ahead will bring. With every council in New Zealand a member of the association, we are able to share and collaborate on a national scale. Our linkages with local authorities across eight countries continue to strengthen and we will be representing New Zealand local government ICT at the next international gathering hosted by Australia in March 2018. We will continue to showcase innovation and provide thought leadership to all local authorities. Best wishes for the year ahead. LGP

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CIVIL CONTRACTORS NEW ZEALAND (CCNZ)

No shortage of challenges for 2018 PETER SILCOCK, CHIEF EXECUTIVE

Short-term thinking around procurement needs to be tackled. Plus, here are some practical measures for the year ahead.

LAST YEAR I USED THIS, my contribution to Local Government Perspectives, to call for progress on some key issues facing the industry. These followed some big events in 2016 such as water quality issues in Havelock North, the Kaikoura earthquakes and a growing housing shortage. I am pleased to say that we haven’t had events of that significance in 2017, although we are still rebuilding the Kaikoura road. The final report of the Havelock North Drinking Water Inquiry was published at the end of the year. The Labour / NZ First government is initiating a “refresh” of the Auckland Transport Alignment Project and housing shortages are still a major challenge. We are certainly not short of challenges for 2018. In the main, the country is still operating in a very reactive mode. The reality we are all facing is that filling the gap created by a long period of underinvestment in our infrastructure is not easy. This is especially true when, on top of that, we are trying to retrofit the higher level of resilience which is required to deal with the challenges that climate change and living in a very geologically active area are throwing at us. These challenges are, of course, not new. They are simply being brought into clearer focus by recent events. The greater our population, the more clustered we are around main centres. And the more reliant we are on transport and communication networks, the more vulnerable we are.

Short-term thinking The biggest challenge is not earthquakes, droughts, infrastructure or housing shortages: it is short-term thinking. The fact is that short electoral cycles don’t always provide the level of consistency and certainty of investment needed. And the media focuses more attention on rates rises than it does on the infrastructure needs of the community. When something goes badly wrong, like the contamination of Havelock North’s drinking water or bursting stop banks in Edgecumbe, everyone is keen to point the finger. But, we never seem to get to the root cause which is the lack of tools available to local government to fund infrastructure, the

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downward pressure on rates and the dwindling capability to manage infrastructure. While long-term plans have tried to stretch our horizons, we continue to see a massive underspend on both maintenance and asset replacement. The problem is that the plans are not being delivered. This is especially the case when it comes to our water assets.

Stop / Go The year 2018 is ripe with opportunity. Here is my simple Stop / Go list. STOP • Lowest cost procurement – instead, focus on value. • Underspending budgets. • Passing risk on to contractors. • Underinvesting in getting projects to market. • Dictating the use of commercial prequalification systems – instead let contractors know what information you need and let them develop or subscribe to a system of their choice. • Don’t load the risks on to your contractor. Good contractors simply price it in. Bad contractors… why would you want to work with them? GO • Adopt ConstructSafe competency testing as a requirement for your maintenance and capital works contractors. • Engage with the contracting community in your region. Understand their environment and make sure they know your infrastructure plans going out at least five years. • Have simple and clear Request for Tender (RFT) documents. • Use standard industry contract documents with minimal changes. NZTA is regarded as the country’s best public sector procurer. Its documents have fewer than five pages of special conditions. If you regularly have more than that, get a new lawyer.

Procurement

Resilient infrastructure

We know there are challenges around funding which are hard to resolve. The Labour / NZ First government seems to be interested in making something happen in that space, which is promising. But, let’s not ignore the fact that many councils have consistently underspent capital and maintenance budgets. Clearly, that is not a funding issue. There are big problems at the pointy end – getting work to the market on time, having effective procurement and managing contracts to deliver quality infrastructure. It is critical that the infrastructure we invest in today builds our resilience rather than adds to our risks. This requires councils to re-examine the drivers of our infrastructure development. They need to look at how the country’s physical and social environment, and community expectations and aspirations are changing. The definition of quality infrastructure is undergoing massive change and that impacts on where, and how, we build. Throughout 2017, Civil Contractors NZ (CCNZ) met with many clients concerned about contractor capability to deliver the $11 billion per year infrastructure work programme ahead. Our message has always been clear. Clients need to provide long-term pipelines of work and commit to quality infrastructure investment (rather than lowest price): and the industry will build the capability and capacity required.

CCNZ questions the capability and capacity of councils to manage the infrastructure investments they plan to make. In 2018 it would be great to see councils getting on with the job of creating more resilient infrastructure by looking at where the blockages are and making sure they have the capability and capacity to get projects to the start line in an effective and efficient way. There is no point in having a long-term plan if resources are not allocated to enable the plan to be acted on. Councils can also support the positive changes being made within the construction industry which will ultimately benefit councils as asset owners: • T he development of the Civil Trades Regime (an apprenticeship) for people working on the maintenance and construction of your infrastructure assets; • ConstructSafe – a system that gives you an assurance that the people working on your infrastructure have the competency to ensure their own and their workmates' health and safety; • T he development of an Infrastructure Careers Promotion Campaign to promote more people taking up opportunities to work and develop their skills in the civil construction industry. We would love to see councils get in behind these programmes. LGP

DID YOU KNOW?

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CONNEXIS

New range of initiatives target increased demand PETER BENFELL, CHIEF EXECUTIVE

Last year was a watershed year for the infrastructure sector, particularly when it came to Civil Trades certification.

THOUGH LAUNCHED IN DECEMBER 2015, 2017 was really the year the Civil Trades certification programme truly gathered momentum. After some tweaks to improve the flow of the certification process early in the year, we finished 2017 with well over 100 civil infrastructure workers fully certified and currently have more than 300 enrolled and working toward completion. Reaching that 100-person milestone and seeing the programme begin to flourish has been hugely gratifying for all those who have been involved in the planning, and launch, of Civil Trades. And, though I took up my position with Connexis only in September, I too have found it immensely rewarding on many levels. Now we, as an industry and a country, are finally able to formally acknowledge the incredible skills and experience of our workers across the civil infrastructure, water, telco and energy sectors. We can also see the flow-on effects in terms of the increased pride those people take in their work, and how their successes go on to inspire and mentor co-workers as they too complete certification. As that happens, our workers themselves will become our best recruitment tool; the best advertisement for the advantages of choosing a career in civil infrastructure. That is vital, because it is in that area that there is still much work to be done.

been more obvious than in the water sector. Water quality and availability – whether it’s the impact of climate change, the state of rivers and lakes, or the quality of drinking water in our homes – has never been more top-of-mind for Kiwis than it has been in the past 12 months, and with good reason. Incidents such as the Havelock North contamination in 2016 have at least had the positive side effect of forcing all areas of the water sector to work more closely together, and highlighted the crucial importance of having a highly-skilled, knowledgeable workforce.

Skilled workers in short supply

Future Training Concept

Demand for skilled workers is at an all-time high. A forecast additional 49,000 people are required by 2025 to deliver on the planned $110 billion government investment in infrastructure. To find those tens of thousands of workers, we must compete with other industries such as construction, which is also battling a skills shortage. So we must continue to ensure we are doing everything within our power to make civil infrastructure an attractive proposition with a clear, rewarding career path. The need for skilled workers to fill a shortfall has never

The WIG has instead adopted the Future Training Concept (FTC) model. To sum up, it means a greater focus on training delivered via e-learning, mixed with some attendance at block courses. This allows workers and employers greater flexibility and access to training. There has also been some suggestion of the need for a controlled operational environment in which trainees can demonstrate their skills, much as a trainee pilot might use a flight simulator.

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The need for skilled workers to fill a shortfall has never been more obvious than in the water sector. Fortunately, before that incident, Connexis’ Water Industry Group (WIG), made up of experts drawn from every area of the water sector, had identified the need to review and update its qualifications and unit standards to ensure it remained relevant to the industry’s evolving needs. To that end, June 2017 marked the final enrolments in the old qualifications, with studies to be completed by the end of 2018.

Apprenticeships Connexis currently has five programmes at various stages

of development. New Apprenticeship Programmes are being rolled out at the start of 2018. Ultimately, this means that the water sector is learning that it must keep pace with technology to ensure its workers are fully trained, in the most effective, efficient way. The key now will be making sure we have employers on board, understanding that they may need to adjust their idea of what training is and how essential it is. They must budget for it every year and allow workers to complete their online assessments in work time, just as they would have had they been attending a block course.

Risk profiles The other key change in water, will be the proposed tying of industry certification to the risk profile of a treatment plant. This will ensure workers have the precise skills and experience specific to their current place of work. I expect that to be a game changer for the industry, and something that should help guarantee the safety of our water quality in the future. While Civil Trades certification is at the very core of addressing the skills shortage across all the sectors we service, we have other ammunition in the arsenal as well. Our New Zealand Apprenticeship programmes now have a clear pathway into Civil Trades, which will hopefully satisfy the understandable desire of today’s youth to be able to see opportunities for advancement through a career from the outset.

Transition to Work pre-employment programme Last year, also saw the launch of the Transition to Work preemployment programme, which provides workers for big new contracts requiring large-scale employment. The basic premise of the programme is to take people with no industry experience and put them through two weeks of training, equipping them with the skills they need to be work-ready and of value to employers. Each programme is set up to meet a pre-agreed requirement for a specific contract

(usually 10 to 20 people) and is facilitated by Connexis. All this means our focus in the civil infrastructure space for 2018 is engagement. That’s engagement with our employers and employees, making sure they are all familiar with what Civil Trades offers them and the industry. It’s engagement with our stakeholders in government departments to make sure they too are committed to Civil Trades and ensuring this is reflected in contract tenders. And, of course, it’s engagement with the wider community to ensure all jobseekers – whether they’re studying or fresh out of school, or considering a change of career, or a way out of unemployment – know about the diversity of careers available in civil infrastructure and what it can offer them in terms of a path to success.

Roadshows with CCNZ We’ll be hitting the road with Civil Contractors New Zealand (CCNZ) in 2018 with a series of roadshows promoting our industry and the career pathways available to all of those jobseeker groups. We’ll also be continuing with other initiatives such as the annual Girls with Hi-Vis open days, driven by Ultimit – Women in Infrastructure. The event aims to address the gender imbalance in infrastructure by offering women a hands-on experience of the different jobs and aspects of an industry they may not have ever previously considered. And we will again be holding Annual Connection, scheduled for Christchurch in October, the yearly public showcase offering our workers in the electrical supply and telco sectors the opportunity to compete and demonstrate their skills. Again, it represents a chance for those considering, or not overly familiar with, the industry to see just what our people are capable of, and what a career in infrastructure is like. All of this means it’s an incredibly exciting time for the industry and I am thrilled to be a part of it. There are plenty of challenges on the road ahead, but also plenty of plans in place so that we may continue to evolve and grow as we meet those challenges. LGP

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ENVIRONMENTAL DEFENCE SOCIETY (EDS)

2018 will be a big year for the environment GARY TAYLOR, CHIEF EXECUTIVE

Big changes in environmental management are coming fast. Business as usual is not on offer anymore. WHO WOULD HAVE THOUGHT THAT A NATIONAL ELECTION result in 2017 would turn on environmental issues? But that’s arguably what happened. In my long years as an environmental advocate I’ve never seen the like. Undoubtedly the real biggie was freshwater, but climate change and our natural heritage followed close behind. As a consequence we’ve got a government that looks very progressive on environmental issues if it keeps its promises, and that will have big implications for the local government sector.

Carbon zero by 2050 is a big ask, and given that 50 percent of our emissions are from agriculture, it implies shifting land use towards lower emission models. This will prove disruptive for the sector and farmers will need to show real leadership. The rest of us – including local government – will need to help farmers with the transition. Finding an equitable path forward won’t be easy especially when you add in the changes required for freshwater management. Business as usual is not on offer anymore.

Freshwater

Cities

In 2017 we saw freshwater race up the priority list of public concerns. The National-led government responded, but at a key stage fumbled on the criteria for swimmability. It fixed that but only after the Land and Water Forum demanded to see actual drafts of the revised National Policy Statement (NPS). The 2017 version has been promulgated and regional councils are now on a timeline to give effect to it. During 2018 we can expect another iteration of the NPS with mandatory land use consenting for intensification clipped onto the limits-making framework, as well as further refinement and expansion of the bottom lines. Freshwater implementation is the big challenge for regional councils in 2018. As even a well-resourced council like Horizons has found, this is difficult stuff. It requires some big changes to land use in rural New Zealand and some substantial infrastructure investments for cities. Public pressure to improve degraded water quality won’t abate and other policy areas will compound the need for change.

Around 85 percent of us live in cities and Auckland is now home to nearly 1.5 million people. Last year saw a lot of orange cones in the city as major road and rail works progressed. Immigration numbers continued at record high levels and finding homes for Aucklanders proved unachievable.

Climate change One of those compounding policy areas is climate change. National was slow to embrace the need for commitments that bite but the new government is setting up a statutory Climate Commission. That is a very good approach. The commission will prepare a carbon budget to ensure we are on track to meet our international commitments. It will monitor and report, and governments will be held to account. It really, really needs cross-Parliament support: National needs to get with the script so the commission will endure across successive Parliaments.

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Change will disrupt the status quo in unprecedented ways. This year will see a major home-building effort get underway led by central government. That will put pressure on the construction sector. It will also see debate re-engaged around urban limits, with the new Housing Minister expressing a desire to get rid of them. That’s a very bad idea and is the one policy commitment by the Labour-led government that really needs a rethink. We can also expect much more emphasis on public transport. Light rail projects are proposed for Auckland, and rail freight and regional connectivity will get a big, but as yet undefined, boost. And, who knows, the appallingly stupid decision by KiwiRail to buy new diesel rather than electric trains may be revisited in the light of our new emission reduction targets.

Biodiversity Last year saw the Predator Free New Zealand campaign gain further momentum. Philanthropic funders are well into this space and we need the new government to raise the level of investment in pest and weed management.

Progress was also made with the collaborative National Policy Statement on Biodiversity which should be ready by the end of 2018. That will give councils clear direction on how to ensure New Zealand’s unique biodiversity is maintained and protected. We can also expect to see a significant boost in Department of Conservation (DoC) funding and a recommitment to its statutory advocacy function. That will help. So too, potentially, will the billion trees project. The Environmental Defence Society (EDS) has been working with Air New Zealand and Motu to conceive a new incentive package that recognises that planting native trees has multiple benefits: carbon sequestration, emissions reduction from land use change, habitat creation, soil management and landscape enhancement. We need to ensure both permanent and plantation native trees make up the vast majority of the billion to be planted.

industry is notoriously litigious and I predict real fireworks as pressure builds for transparency and honesty from the sector. I predict an inquiry will reveal serious issues with fisheries management.

Resource management The National-led government passed a suite of changes to our environmental laws last year. Some of them gave new, extraordinary powers of intervention to ministers. It will be interesting to see how new ministers view those powers, most of which they opposed, now they’re in office. A repeal of many of National’s amendments can be expected. Additional changes might see some regional council functions handed over to the Environmental Protection Agency (EPA) and a reinstatement of a wider role for the Environment Court.

The question is: what’s to come after that?

It’s time for a fundamental review of the entire resource management system. It’s time to stop tinkering. EDS will In 2017, the High Court confirmed that regional councils have continue to work with partners to promote that outcome. legal responsibilities for managing the impacts of fishing on We have a major project underway due for completion at the biodiversity. Our marine environment often comes at the end end of 2018 that will inform that debate. of the funding queue, but that’s about to change. The world has changed since the late 1980s which saw the More resources for DoC, splitting the Ministry of Primary creation of the resource management system we still have Industries and burgeoning public awareness about the negative today. It’s high time for a first-principles rethink. As an integral impacts of inshore trawling and dredging, along with sediment part of the system, local government needs to be actively discharge from the land, all herald big changes for the sector. engaged in such conversations. quarter page horizontal 64x180mm They might even match those occurring for the primary sector on land. Speed This year will also likely see a Commission of Inquiry into The world is speeding up. Change will disrupt the status quo fisheries management. EDS is releasing a major report in in unprecedented ways: 2018 is going to be a big year for the February that reinforces the need for a review. The fishing environment. LGP

Fishing

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INFRASTRUCTURE NEW ZEALAND

Infrastructure system at a turning point STEPHEN SELWOOD, CHIEF EXECUTIVE

The old ways of planning, funding and delivering core services are no longer working and something has got to give.

THE NEED FOR CHANGE IS EVIDENT not only in Auckland, where infrastructure deficiencies have contributed to a housing crisis, but around New Zealand. Hospitals, schools, water services, roads and rail across the country are all under immense pressure. Business as usual is not an option. To appreciate how out of step New Zealand’s infrastructure delivery system is with national demands, one only has to look back on 2017. What are the major infrastructure milestones of the year? There’s one that stands out. The opening of Auckland’s long-awaited Waterview Connection has been a revelation. It has delivered very large reliability, resilience and travel time savings across the region. But what’s next? The Central Rail Link is not due to open until 2023, assuming all goes well. Light rail to the airport is still more aspiration than reality. The East West link has been cancelled, road pricing is still some way off while Auckland faces a $6 billion-plus transport funding gap over the next 10 years. Meanwhile the population is expected to grow between 300,000 to 400,000 over the same period. Across the rest of the country there has been some good progress in Canterbury. The Russley Road upgrade is now open and the justice precinct complete. The convention centre and metro sports facility are now underway. This is excellent, but it’s also six and a half years since the February earthquake and a decade on from the announcement of the Russley Road upgrade as a Road of National Significance. The one area where we did see rapid activity this year was in response to the Kaikoura earthquake. A fantastic effort across our key transport agencies and the local community helped keep the upper South Island afloat long enough for accelerated works to reopen the rail line. A massive programme was underway to reopen SH1 for last Christmas. However, the fact is this was only possible under emergency. In a normal state of affairs, rebuilding SH1 and the rail line in a coastal area of national significance would be practically impossible. Looking forward, it’s difficult to see how we can address

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the infrastructure backlog and meet resilience and growth challenges without a paradigm shift in how we plan, govern and fund infrastructure. Here are Infrastructure New Zealand’s recommendations to government on the top 10 actions that are critical to achieving this step change.

Establish an independent NZ Infrastructure Commission Could one of the causes of failing infrastructure stem from that fact that no one body is responsible for it? Treasury, the Ministry of Business Innovation and Employment, the Office of the Auditor-General and a vast array of departments, agencies and organisations across central and local government, and the private sector look after parts of it, but nobody has oversight as to whether the system is working as a whole. We need a New Zealand Infrastructure Commission (NZIC) to monitor, report and act, where directed by government, to address New Zealand’s long-term infrastructure needs.

It’s difficult to see how we can address the infrastructure backlog and meet resilience and growth challenges without a paradigm shift in how we plan, govern and fund infrastructure.

Direct the NZIC to lead a national review of resilience of New Zealand’s strategic networks Flooding, power and energy supply disruption, long-term road closures, contaminated water and the apparent frequency of 'one in 100-year events' are all symptoms that our nationally and regionally significant networks are not as resilient as they should be. The NZIC should be charged with undertaking a national review and leading ongoing industry oversight of the resilience of our infrastructure system.

Instruct the NZIC to establish a procurement centre of excellence to lead best practice in capital project delivery A dedicated procurement centre of excellence, working in partnership with public agencies, is needed to lift procurement. Avoiding cost blow-outs, identifying efficiencies, and improving project coordination and delivery would all be major benefits.

Identify and commit to a long-term investment pipeline and invest in industry training and capacity building While immigration will need to fill yawning capacity gaps in the short term, industry and government must prioritise investment in training, technology and capability across the construction sector. A long-term project pipeline and smart procurement practices would incentivise the industry to invest in the people, skills and technology needed to lift productivity.

Enable scale development of housing and infrastructure Focusing the KiwiBuild programme to the south of Auckland in the form of a satellite 'innovation city' connected by rapid rail to Manukau, Southdown, Penrose, Newmarket and the city would make better use of limited resources. Rezoning land and partnering with existing land owners, or buying them out if needed, would create an opportunity to create value and fund supporting infrastructure. This could be a model for other growth centres.

Accelerate legislation to enable Urban Development Authorities (UDAs) to aggregate land and capture value to pay for the infrastructure UDAs provide the opportunity to aggregate land through partnership or purchase, where needed. NZ Super, ACC, iwi and other domestic and international funds are all looking to invest but the opportunities are extremely limited. Wellfunctioning UDAs could unlock this potential and facilitate master-planning and urban development at scale.

Provide opportunities for private investment in infrastructure and release capital through asset recycling Taxpayers should not have to fund the bulk of the investment. Taxes are best used to address market failure, seed fund development and incentivise the market to deliver. Publicprivate partnerships and partial or full sale of existing assets can enable private sector capability to be brought to bear and release public capital to be recycled into desperately-needed water and transport infrastructure.

Introduce road pricing and roll out water pricing nationwide Road pricing could dramatically increase efficiency of our road networks, raise funds for new investment and incentivise public transport use, and walking and cycling. The sooner we ask users rather than taxpayers to pay, the smarter our investment decisions will be and the better use we will make of our existing infrastructure.

Top: Auckland Central Rail Link is due to open in 2023. Above: Auckland's Waterview Connection.

Corporatise water service delivery The evidence shows that councils across the country, especially in rural areas, are struggling to maintain their water infrastructure networks. Corporatisation of water services would enable significant efficiencies through economies of scale, staff specialisation, standardisation and, if introduced with volumetric charging, a direct link between revenue and investment.

Reform New Zealandâ&#x20AC;&#x2122;s antiquated planning laws and local government structures and funding The Resource Management Act, the Local Government Act, and the Land Transport Management Act provide the legal framework for infrastructure planning, funding and delivery but between them represent 1358 pages of conflicting processes and complexity. Administering this system are 78 councils, all of them with inadequate resources and funding needed do their job properly. A first-principles, evidence-based review of our planning laws and the purpose, structure and funding of local government in New Zealand is fundamental to meeting existing challenges and releasing the potential of the regions for the future. LGP

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LOCAL GOVERNMENT NEW ZEALAND (LGNZ)

2017 in review and policy priorities for 2018 MALCOLM ALEXANDER, CHIEF EXECUTIVE

Key highlights from a year of change.

LAST YEAR SAW LGNZ LAUNCH TWO MAJOR PROJECTS across climate change and water, a new president and vice president elected to lead the sector, and work begin on advocating for the policy changes we need with the new government. Across our policy priorities, refined at the start of the year to five key areas, there have been a number of positive steps taken which will help us progress our work to improve outcomes for our communities and New Zealand. Infrastructure – Ensuring infrastructure and associated funding mechanisms are in place to allow for growth and maintenance across housing, building, transport, broadband, and tourism-related, three waters and flood control infrastructure. This has been a key area of focus for local government for several years and in 2017 was again confirmed as the highest priority for councils. Whether experiencing significant growth or facing other challenges, like booming tourism or a limited ratepayer base faced with expensive renewals, finding alternative ways of funding infrastructure is increasingly urgent. In 2017 we saw a number of initiatives introduced which responded to our concerns, including the establishment of the $100 million Tourism Infrastructure Fund and the establishment of Crown Infrastructure Partners to co-invest up to $600 million alongside local councils and private investors for housing developments. But it is not enough and more needs to be done. A long-term, sustainable funding line for infrastructure remains a goal for local government. We have welcomed the creation of the new government’s Tax Working Group, and the commitment to reviewing the drivers of local government costs and its revenue base. Risk and resilience – Understanding and addressing risks from natural hazards and other events – both for infrastructure and to support resilience in the economy and our communities. Events like the Kaikoura earthquake and the Edgecumbe flooding further put the spotlight on the need to improve readiness for hazardous events to reduce community and

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economic risks. Given the substantial risks New Zealand faces, including from climate change, a more strategic and comprehensive approach across the country is needed. In our communication with the new government we have reiterated the need for climate change adaptation and mitigation work to be considered in tandem, and that local and central government need to develop a joint response to the risks, challenges and opportunities of climate change. LGNZ’s proposed Local Government Risk Agency (LGRA) remains, in our view, critical for increasing local capacity and developing a consistent standard of risk management. We held positive talks with the previous government on supporting the LGRA, and this has been has been flagged as an outstanding issue with the new government. Environmental – Leading and championing policy and working alongside central government, iwi and stakeholders to deal with the increasing impact of environmental issues including climate change, the quality and quantity of New Zealand’s freshwater resources, and biodiversity.

A long-term, sustainable funding line for infrastructure remains a goal for local government. Climate change and water are among the top priorities for local government. The climate change and Water 2050 projects launched in 2017 are key pieces of work that will make significant contributions to how councils and communities respond to the challenges posed by these connected issues, particularly to our infrastructure. The climate change project comprises a number of pieces of work focused on both adaptation and mitigation. A primary aim of the project is to create a firm policy and legal base to support councils in their work. In 2018 this will include a report on local government infrastructure and assets at risk from impacts of sea level rise, and quantification of replacement value, and a review of the state, value and management of river control, flood protection and drainage schemes managed by regional authorities.

1. Creative New Zealand Excellence Award Best Creative Place. Winner: Napier City Council – City Vision: Small City, Big Idea. 2. C horus Excellence Award For Best Practice In Infrastructure Management. Winner: Waikato District Council – Waikato District Alliance. 3. A ir New Zealand Excellence Award For Environmental Impact. Winner: Palmerston North City Council – Green Corridors Palmerston North.

2 The Water 2050 project is designed to highlight the important role councils play in water management and protection, and advocate for policy change to improve their ability to do this effectively and improve the outcomes for our communities and the country. It has a focus on allocation, quality, infrastructure, cost and funding, and governance. It aims to create a coherent framework that: 1. Recognises the interlinked nature of all aspects of the water value chain; 2. L eads to integration of policy across allocation, quality, infrastructure, cost and funding, and governance, in particular reconciling the setting of standards with the cost of achieving those standards; and 3. Identifies a suitable governance framework for water policy. Social – Working alongside central government and iwi to address social issues and needs in our communities, including an ageing population, housing supply and quality, and community safety. Housing, always a key issue for local government, is becoming a concern for many councils across the country, whether they be metro, provincial or rural councils, and will be the subject of a new piece of work in 2018. The lack of affordable and social housing, and the overall poor quality of rental housing, is having a growing impact in our communities.

3 Another key issue affecting many rural and regional councils has been a loss of community policing and reduction in police availability for less serious crime and safety issues. In response to these concerns the previous government committed in 2017 to increasing police resourcing for rural and provincial New Zealand by 140 officers. The promise of this new resource was welcomed by rural councils. Economic – Developing a range of policy levers to address and fund economic development and growth across all of New Zealand. LGNZ is working with its member councils to develop a better understanding of the state of local government economic development services so we can ensure these services deliver strong value to local regions and communities. As councils are starting to see stronger growth, economic development presents new challenges, and the key concern for many councils now is ensuring any growth is sustainable and ongoing. Work on this will progress in 2018. In late 2017 LGNZ and Wellington City Council hosted the second New Zealand China Mayoral Forum, following the inaugural event in Xiamen in 2015. This brought together 12 Chinese mayors and vice mayors from large and mid-sized cities and over 30 New Zealand mayors and chairs for trade and cultural discussions. Education, tourism and primary industries were the key discussion topics. LGP

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NEW ZEALAND MOTOR CARAVAN ASSOCIATION (NZMCA)

Redoubling efforts and investment in 2018 BRUCE LOCHORE, CHIEF EXECUTIVE

An off-the-beaten-track strategy will continue to benefit all New Zealand.

IT HAS TAKEN A WHILE (more than three years to be exact) but a significant highlight of last year for the New Zealand Motor Caravan Association (NZMCA) – and a pointer to our focus for 2018 – has been the uptake by Tourism New Zealand of our offthe-beaten-track strategy. All I can say is, "about time". It was way back in 2014 that we formally launched our promotion of the many attractions and activities that areas away from the usual tourism hotspots could offer visitors. In the time since, the NZMCA has invested more than $1.3 million and committed significant resources to encourage our members – and other motorhome tourists – to get off the beaten track in their travels.

Motorhome Friendly Towns A key focus has been promoting our Motorhome Friendly Towns scheme, which has grown to include 47 towns in the sorts of areas that will benefit the most from Tourism New Zealand’s (TNZ’s) initiative. The NZMCA has also promoted events in the regions and worked closely with the Department of Conservation to promote its lesser-known campsites, as part of the association’s active support of New Zealand’s tourism 2025 project. Our reasons for doing so were twofold. Firstly, at a time when tourism in this country is enjoying an unprecedented boom, we believe it is vital that the benefits are not confined to the handful of traditional tourist destinations. We believe, rather, that councils and communities throughout provincial and rural New Zealand should receive a fairer share of the economic benefits on offer. So far, there has been very little ‘trickle down’ to those areas from the record number of international visitors coming here. Secondly, recognising that domestic tourism is still the industry’s major earner, we have looked to encourage motorhome tourists to spread their spending to rural and provincial destinations. Here, the ultimate goal is to create an ‘off-the-beaten-track’ tourist network with the infrastructure to provide an authentic taste of the real New Zealand to international visitors. Now that TNZ has come on board with a plan to promote

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more of our country’s off-the-beaten-track destinations internationally – allied with the previous government’s increased investment in infrastructure to support tourism – that goal is a step closer. But we’re not there yet. At this stage there is still a lot of work to be done to ensure that the reality of what we’re able to offer, in terms of service and amenities, meets the expectations of international visitors. Unless we’re able to deliver to their expectations we run the risk of undermining the good work we have already done.

The NZMCA has invested more than $1.3 million and committed significant resources to encourage our members – and other motorhome tourists – to get off the beaten track in their travels.

Off the beaten track So, with that in mind, in 2018 we are redoubling our efforts and investment in our promotion of New Zealand tourism’s lesser lights that you’re unlikely to see featured in big-budget media campaigns, but which (in our view) have much to offer NZMCA members and international motorhome tourists. Again, the key drivers of our promotion will be the Motorhome Friendly Towns scheme and our growing summer events calendar. Both highlight, at no cost to the councils and communities involved, local events and attractions which we know appeal to our members and international visitors alike. Having said all that, while the growth in tourism can be a great thing for everyone, it can’t be a free for all. More and more over the past few years we have come to understand that there’s a social licence that goes beyond the economic

benefits (attractive as they may be) that tourism offers. This level of understanding has come through engaging with – and listening to – the legitimate complaints of the communities that the association deals with throughout the country. For us though, it’s not just about identifying the problems but playing our part in seeking workable solutions.

One of the best examples of that over the past 12 months was our role in raising the bar on the Certified Self-Containment standard. The NZMCA financed a review of the standard and then worked with industry stakeholders to reach a consensus on the way forward. The amendments to the Standard – which received 100 percent support from the industry and government parties involved in the review – mean that Certified Self-Containment (CSC) documentation will only be issued to vehicles that have a toilet that is able to be used inside the vehicle, even with the bed made up. As a result, the poorly-equipped people movers and the like, which have been slipping through a loophole in the requirements, will no longer qualify as CSC. That’s going to be good news for councils and communities that have been telling us that this has been the single most concerning issue around freedom camping. Communities have made it clear that they welcome responsible freedom campers in suitably self-contained vehicles. However, the consistent message we’ve been getting from communities big and small is that travellers freedom camping in non-selfcontained vehicles is simply not acceptable to them. This is our way of maintaining the credibility of the Standard, so that communities can have the comfort of knowing that if a vehicle is CSC the occupants will truly be able to contain their waste and not simply dump it in a way that damages the environment.

Guidance Our solutions-based approach is also reflected in our close partnership with Local Government New Zealand (LGNZ) which earlier this year took another significant step forward with the release of robust guidance for local authorities seeking to accommodate increased tourism numbers while relieving pressure on public infrastructure. The guidance focuses on clarifying how local authorities can use their exemption powers under the Camping Grounds Regulations and provides councils with another practical tool to ensure that at a time when New Zealand’s tourism industry is thriving like never before communities nationwide are able to share in the benefits.

Standards More recently, we were pleased to be invited to attend a key stakeholder meeting convened by LGNZ at which attendees discussed alternative options for the industry and local government to work together and improve the management of freedom camping nationwide.

PHOTO COURTESY OF JUDITH BISHOP.

Certified Self-Containment

Top: Encouraging motorhomers to get off the beaten track – to destinations like Little Pipiriki on the Whanganui River Road – is a key part of the New Zealand Motor Caravan Association’s strategy to share the benefits of tourism with rural and provincial communities. Above: Ashburton Lakes.

As a result, the NZMCA will be part of a new LGNZ-led Working Group tasked with providing updated guidance and good practice examples to local authorities nationwide. The group will also advocate to government for the reinstatement of an administering authority to regulate the Self-Containment Standard NZS 5465:2001. At present, there is no such body and it is expected that such a governmental regulatory authority would oversee the use and interpretation of the Standard and help the industry maintain a credible scheme as more and more vehicles become Certified Self-Contained.

Rubbish disposal Another area where we are working hard to investigate sustainable solutions is around travellers’ rubbish disposal. Currently we are heading a combined industry group – which includes the motorhome rental industry, manufacturers, importers and local dealerships – to investigate purchasing and installing solar-powered bins alongside every public dump station in New Zealand. We see this as another positive way in which we can assist councils and communities to maximise the benefits that tourism offers all of New Zealand. LGP

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NEW ZEALAND PUBLIC SERVICE ASSOCIATION (PSA)

An agenda for change GLENN BARCLAY, NATIONAL SECRETARY

Expect to see more calls for a living wage, local government reform that includes the four wellbeings, and better Maori representation. IN ITS BRIEF TIME IN OFFICE the new Labour-led government has shown an appetite for change. What does that mean for the local government sector – for the people who work in local government and for the people who depend on the essential services they deliver? The Public Service Association (PSA) has a comprehensive agenda for change in local government that we’ll be taking to the new government. We’ll be advocating for policies that support the delivery of quality public and community services, delivered by workers who are valued and recognised through decent pay and conditions. As with all governments, we’ll be arguing that the most effective policy and legislative reform is achieved through inclusive, democratic and transparent policy development processes. The PSA welcomes signals that fair pay and working conditions will be a priority for this government. Already we’ve seen the rescinding of the last government’s Employment (Pay Equity and Equal Pay) Bill that would have placed barriers in the way of women achieving equal pay. Closing the gender pay gap is a strategic goal for the PSA across our five sectors. In our local government sector we’ve initiated research into the impact of gender discrimination on the wages of people working as library assistants, and we’ll be investigating this further in the coming year.

Living wage The coalition partners have also announced minimum wage increases and the payment of the living wage ($20.20 per hour) to core public service workers. The PSA welcomes this for our members in the public service and is active in trying to achieve the same for our members who work in local government. Last year the living wage movement of unions, churches and community organisations was successful in campaigning for the introduction of the living wage at a number of regional authorities across the country. Auckland Council, Christchurch and Wellington city councils, and the Wellington Regional Council voted last year to pay the living wage to their employees. Wellington City Council also agreed to pay the living wage to workers in Council Controlled

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Organisations, and to some workers in contracted services. Other councils have debated whether the current emphasis in section 10(1)(b) of the Local Government Act (LGA) (2002) on providing services “in a way that is most cost-effective for households and businesses” prevents them from paying the living wage. We hope that the new government will remove this putative impediment early on by making clear its intention to repeal this provision as part of the re-shaping of the purpose of local government. The payment of a living wage will make a significant difference to the lives of these workers and their families, and provides recognition of the important work that they do. The PSA urges all local authority employers to pay the living wage as a minimum to their direct employees and contracted workers. Increases in the minimum wage agreed to by the new government may well put pressure on local authorities to get ahead of the game as employers and move to the living wage.

Quality public services As well as decent pay and working conditions, we are pleased to see the renewed emphasis from this government on investment in quality public services. One of the most important election issues for our members last year was housing. We contributed to the Auckland Mayoral Taskforce on Housing at the beginning of last year and went on to produce a book, Ten Progressive Perspectives on Housing, which argued for a ‘great leap forward’ in the way that we think about housing supply, ownership and management in New Zealand. We’re very happy that the new government has committed to state investment in the supply of affordable housing and we’ll continue to advocate that local government also plays an active role in the provision of affordable, quality housing. We’ll be asking the government to consider providing low (or no) interest loans to councils to support them to expand their social housing provision. We would also like to see the extension of the government’s income-related rent subsidy to local authorities.

Local government reform Local government has a key role to play in the social, economic, cultural and environmental wellbeing of our communities; a lynch-pin of our local government policy is the restoration of these four wellbeings into the Local Government Act. We were disappointed with the previous government’s amendments to the Act and opposed its most recent reform proposals. We’d like the new Local Government Minister to sit down with key stakeholders and look at local government reform with fresh eyes. If we’re part of this conversation we’d like local government reform to reassert the principles of local democracy and the constitutional independence of local government. Council workers and elected officials offer a wealth of expertise and local knowledge that needs to be recognised and properly valued by central government. As well as the restoration of the four wellbeings in the LGA, we’d want to see a reiteration of the importance of public ownership and control of essential services. We’d also like to see a review of funding arrangements to allow local authorities to meet the changing needs of a growing population.

Maori representation The new government must show leadership to improve

Maori representation and participation in local government. Maori are highly under-represented in local government, and current legislative frameworks do not facilitate either greater representation, or models of co-governance that reflect our Treaty of Waitangi commitments. At the PSA local government delegates conference in August last year, PSA members voted unanimously in support of a PSA policy that calls for genuinely bicultural models of governance in local government. We need to learn from Andrew Judd’s experience in New Plymouth and put mechanisms in place that support our communities to be inclusive, courageous and open-minded. We’d like amendments to the LGA that strengthen Treaty of Waitangi-based governance approaches and a review of the mechanism in the Local Electoral Act (2001) that allows for a general plebiscite to overturn a council recommendation to establish a Maori ward. At the PSA we’re excited about the potential for change offered by the new government. The attention shown to regional development can go hand-in-hand with the strengthening of local communities. So many of our essential services are delivered by local government; we all benefit when these services are strong and when the people delivering them are valued through decent working conditions. LGP

The Current State of Environmental Enforcement Understanding how to effectively defend or enforce an action under the RMA is critical for any resource management practitioner and according to Karenza de Silva, an environmental lawyer specialising in enforcement, and Antoinette Besier, Director of Tasman Law, “with the rising demands on our resources, enforcement of the RMA is becoming increasingly topical.” Although there is a broad spectrum of both formal and informal enforcement options available under the RMA, ranging from verbal warnings and monitoring visits to enforcement orders and prosecutions, research by the Environmental Defence Society (EDS) released earlier this year found that agencies tasked with environmental enforcement are chronically under-resourced and struggle with ensuring compliance. This makes allocation of agency resources and prioritising investigations increasingly tricky. This resource dilemma highlights the

importance of identifying and understanding the enforcement mechanisms used by enforcing bodies and how agencies manage the necessarily finite amount of enforcement actions undertaken. Karenza de Silva and Antoinette Besier plan to discuss the timely topic of enforcement at the upcoming Thomson Reuters Environmental Law Conference on 20 March 2018 at the Stamford Plaza in Auckland. They also plan to discuss enforcement trends, traps and pitfalls of practising in this area and share practical guidance for representing clients in enforcement actions. The Environmental Law Conference, chaired by the Hon Peter Salmon CNZM QC, addresses a number of other critical topics including changes in freshwater policy, solutions for accelerating urban development and the new Government’s environmental policies. Principal Environment Judge Laurie Newhook will also speak at the event on

ENVIRONMENTAL LAW CONFERENCE The Law in Practice

20 MARCH 2018 STAMFORD PLAZA, AUCKLAND

improving access to justice through alternative dispute resolution procedures and Environment Judge John Hassan will discuss procedural requirements of alternative adjudicatory forums. For more information, including the full programme, visit thomsonreuters.co.nz/events

THOMSONREUTERS.CO.NZ/EVENTS

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RESOURCE MANAGEMENT LAW ASSOCIATION (RMLA)

Times of change JAMES GARDNER-HOPKINS, PRESIDENT

The Resource Legislation Amendment Act and national policy statement amendments in 2017 have set in motion changes that will have far-reaching impacts into 2018 and beyond. LAST YEAR FINALLY SAW THE PASSING into law of the Resource Legislation Amendment Act 2017 (RLAA). While a shadow of its former self, it is still the most significant resource management reform package in the 25 or so years of the life of the Resource Management Act 1991 (RMA). It follows the continuing fall-out from the Supreme Court decision in New Zealand King Salmon in 2014, which declared the New Zealand Coastal Policy Statement 2010 (NZCPS) allpowerful by putting it ahead of Part 2 of the RMA (its purpose and principles) when making decisions on plan changes. In that case, the Supreme Court rejected the ability of decision makers to resort directly to Part 2 and apply what was called an “overall broad judgment” in making a decision on a plan weighing the competing aspects of section 5 and Part 2 (ie, development and protection). A war currently rages in respect of whether that same approach should apply to resource consents, which would cut out access to Part 2 in deciding consents applications unless the relevant plans were invalid, uncertain or incomplete in some way. Hopefully, the Court of Appeal will soon provide some much needed guidance following its hearing (on November 22-23, 2017) of the R J Davidson appeal. I should declare at this point that I may shoulder some responsibility for the outcomes on these matters, having been Counsel in both the King Salmon and Davidson proceedings. Whatever the outcome, all users of the resource management system will welcome greater certainty and understanding about the framework under which planning and consenting decisions are to be made.

National Planning Standards Putting those vexed issues to one side, the RLAA introduces the powerful tool of National Planning Standards; new “collaborative” and “streamlined” plan making procedures; and significant changes to consenting notification and other processes (particularly in respect of residential activities). Many of the changes only took effect on October 18, 2017, so implementation issues and best practice approaches have

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yet to emerge. While many of the initiatives were roundly criticised as unnecessary or inappropriate, resource users and managers (ie, councils) are looking to take advantage of the new options and processes available to them. For example, new Minister for the Environment, David Parker, is currently considering a request to use the streamlined plan process for the Tauriko West Urban Limit Change in the Bay of Plenty. Anecdotally, other councils are also considering the process for significant matters facing their districts or regions. The collaborative process has also been mooted, for example, for addressing coastal hazard issues.

National Policy Statements We also now have the 2017 amendments to the National Policy Statement on Freshwater Management 2014, and obligations under the National Policy Statement on Urban Development Capacity 2016 starting to kick into effect. It is unclear what the new government’s priorities are for additional national policy instruments, but further national policy statements and national environmental standards can be expected to be advanced in 2018. Perhaps the National Policy Statement on Indigenous Biodiversity will be dusted off the shelves to see the light of day again.

Ruataniwha & Whanganui River Last year also saw a number of significant decisions in the environmental space. The Supreme Court hammered the final nail into the coffin of the Ruataniwha dam, while the Environmental Protection Agency has given hope to TransTasman Resources in granting (in a somewhat controversial split decision) marine consents for offshore mining in the South Taranaki Bight. This decision, unsurprisingly, is subject to appeals (seven) scheduled for hearing in the High Court in April 2018. The High Court’s guidance on information requirements, the precautionary approach, adaptive management and other matters in the context of a marine consent application are long overdue.

Another notable outcome in 2017 was the Whanganui River gaining legal personhood under the Whanganui River Claims Settlement Act 2017. It joins Te Urewera, the former National Park, which was also granted legal personhood when Tuhoe settled with the Crown in 2014.

Marine and Coastal Area Act Last year also saw the filing of numerous claims for customary marine title and protected customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011 (MACA). MACA required applications to be made within six years of it coming into force, ie, by April 3, 2017. By last count, 195 applications were made. They are now working their way through the MACA process in the High Court.

Maori issues In terms of Maori issues, 2018 will probably also see the first Mana Whakahono a Rohe (MWR) or Iwi Participation Agreements entered into between councils and iwi and / or hapu. MWRs were a controversial feature of the RLAA, although many people thought they just reflected current or expected good practice. In any event, where an MWR is agreed, greater certainty will be given to councils, applicants, submitters and the relevant iwi and / or hapu as to how resource management issues affecting that iwi and / or hapu should be approached. Debate will no doubt also rage in 2018 (if not beyond) as to whether the RMA needs to be replaced by entirely new legislation. The seeds for that were sown some time ago, but the concept has gained increasing traction including through the work of the Productivity Commission and Local Government New Zealand. The Resource Management Law Association welcomes discussion on the topic, and its 2018 conference “Reform or Transform” will provide a key platform to continue that conversation.

Auckland Also looking ahead in 2018, there has been some visionary thinking by Greater Auckland on reviving and building our rail networks, supported by Labour’s recent announcement of its intention to introduce fuel tax legislation; by Auckland Council in terms of weatherproofing future urban developments; and by Infrastructure New Zealand in terms of its Innovation City proposal, which may offer a viable solution to the current housing crisis. Decisive leadership from the new government is already providing greater certainty and is putting sustainable development and environmental equity back on the agenda. And, early in 2018, finding the best solution for hosting the America’s Cup in 2021 will be on the agenda too. That is expected to require special legislation, as was passed for the Rugby World Cup as well as for the first hosting of the America’s Cup in 1990. LGP

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SOCIETY OF LOCAL GOVERNMENT MANAGERS (SOLGM)

Global and local KAREN THOMAS, CHIEF EXECUTIVE

Global trends in local government and eight predictions on what the new government will mean for local authorities. I RECENTLY TRAVELLED WITH SOLGM sector improvement principal advisor Richard Mabon to the US for ICMA’s Annual Conference and to the UK for the annual SOLACE Summit. While in the UK, we also visited 13 local authorities, two Crown Entities and a think tank. We observed three broad trends that are ‘worrying’ local government overseas: Climate change • Issues around adaptation and reducing impacts eg, Houston floods from an extreme storm event. Demographic change • Pressure on housing availability from a growing population. • Social unrest from increasing (and sometimes unwelcomed) diversity. Technological change • Increases in worklessness from automation resulting in greater efforts to retrain populations and attract new employers into communities. Councils are mitigating the above three trends through: • Building leadership capability in senior managers • Building trust between councils and communities • Building collaborative relationships between themselves and with central government, the private sector (through privatepublic partnerships) and the voluntary sector (co-design, co-production). The final ‘take home’ message is the importance of ‘owning’ your revenue as councils currently do in New Zealand. The UK austerity story is one that our local government needs to learn well, as dependence on central government delivery transfers left UK councils exposed when the central government changed its investment focus.

Looking forward Here are eight predictions on what our country's new government will mean for local government:

The return of the “wellbeings” to the purpose of local government This is probably the most talked about expectation. Labour and the Greens have agreed that the government will develop a comprehensive set of social, environmental and economic indicators. Given the reference to the UN’s 17 Sustainable Development Goals, we can see these forming the basis of something for local government (though

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that’s pure speculation) for the period to 2030 – the “wellbeings” might well be the framework. Other areas worth a mention are outlined below.

Participation – will increase when trust increases One of the first things we’ve learned about the new Minister of Local Government, the Hon Nanaia Mahuta, is that she is supportive of initiatives to increase participation, engagement and voting. It is also one of the priorities signalled in the Labour-Greens agreement, that the two will “work to strengthen New Zealand democracy by increasing public participation, openness and transparency around official information”. We will see the Minister taking an interest in the initiatives that local authorities are taking to engage with their communities. And we don’t think it would be much of a surprise to see a focus on how local authorities are engaging with Maori. The Mana Whakahono agreements under the RMA will probably be one of the few things out of the last RMA Amendments that survives this term of Parliament. There are plenty of examples from overseas local governments of how activities to build trust between councils and citizens have resulted in increased levels of participation, but ‘building trust’ has not been a specific focus in New Zealand. Rather than reinvent the wheel, we should look to existing examples of success. LGNZ and SOLGM had been in discussions with the outgoing government on restarting the trial of online voting and looking at other initiatives for modernising the voting experience. It’s clear from research that online voting will not increase participation rates in local elections, but it’s hard to say that online voting will not be the mechanism of choice at some point in the future.

Climate change – coming ready or not This appears to be one of the areas for action within the first 100 days, and a priority overall of all three parties that make up this government. The 100 days plan includes a commitment to begin setting up a Climate Change Commission. The three parties have committed to putting a climate change assessment on all new legislation. This means that when a bill is introduced, all MPs, and the public, will get to learn the likely implications of the legislation on New Zealand’s greenhouse gas emissions and / or New Zealand’s ability to meet its international greenhouse gas reduction target.

It will also detail any relationship between the legislation and the Climate Change Response Act. It looks like something akin to the regulatory impact statement we see in other legislation but we wait to see how this works in practice. While mitigation actions are important, local government will continue to deal with the impacts of an increasing number of extreme storm events and will need to encourage communities to develop the resilience to get through these events.

Transport – as a servant of the people It is really encouraging to see that the new Minister of Transport, the Hon Phil Twyford, is also Minister of Housing and Urban Development, and Minister for Auckland issues. This appears to signal the government wants to ‘walk the talk’ about aligning transport and land use planning, and just possibly, a government that views the road network as the servant of the community. As Auckland Council so compellingly puts it – "they need to build two new roads a week to accommodate growth". If we are going to see a portfolio combination like this, we wonder if the notion of the mandatory spatial plan might be picked up again, owned and driven at the local level instead of resting with a central agency. This is indeed possible with the emphasis that NZ First has placed on ‘the regions’.

Water, water everywhere and not a drop to drink Freshwater Hon David Parker, who possibly has the most ministerial experience of the whole government, is Minister for the Environment. In that capacity he takes responsibility for two large areas. The first is management of the freshwater resource. The government has undertaken to hold a Clean Water Summit as part of its first 100 days. Labour’s goal is to restore rivers and lakes to a ‘truly’ swimmable state within a generation. The National Policy Statement will stop water quality getting worse straight away. Water quality will begin improving within five years. Urban (Three) Waters The first news on this front is that the ‘Better Local Services legislation’ is not likely to be reinstituted when Parliament gets started again. On the whole, SOLGM views that as a good thing. There were some bits that would have strengthened a local authority’s hand when dealing with CCOs and we will look to pick those up independently. On the other hand, the three waters review will very much remain live and we’ve already heard that Minister Mahuta is very interested in this. The second phase of the Havelock North inquiry might also shape the thinking here too.

RMA reform The second of Minister Parker’s weighty areas of responsibility is RMA reform. The manifesto comments that the Act has been amended many times since passage in 1991, and that there is a need to stocktake whether the Act is still fit for purpose. There’s a commitment to undo what the policy refers to as National’s ‘objectionable’ amendments (interesting choice of words). That appears to include the section 360D powers, powers to standardise plan formats and definitions, limits on notification and public participation, and appeal. In addition there is a steer towards the greater / enhanced community participation in the RMA processes – including decision-making. There’s a commitment to broadening access to

the Environmental Legal Access Fund. Likewise, a commitment to ensure local government engages effectively with iwi – and some commitment to best practice in this area.

Funding – what’s mine is mine, what’s yours is yours The agreement with NZ First includes holding a new inquiry into local government rates. This is referred to in the agreement as Shand plus 10 (Son of Shand?). David Shand’s 2006-07 inquiry looked at drivers of local authority spending, use of rating tools, affordability etc. It made a large number of recommendations, and no action was taken. Overseas lessons (including those from Switzerland) indicate that when local government ‘owns’ its revenue streams communities can retain more control over what gets done and when. UK councils are only now learning the importance of locally-raised money, including the requirement to consult with communities over the use of that money. The agreement with NZ First also includes regional economic development and a commitment that it will be one billion dollars (we believe that to be in total). The agreement with the Greens signals some reorientation of the Land Transport Fund towards sustainable transport – including passenger transport, walking and cycling projects. Communities will be looking to councils to enable investment that reflects their local aspirations rather than blanket ‘one size fits all’ programmes.

Summing up This is a new government, and the change in priorities is quite noticeable. The 100 days programme is relatively light on stuff that has direct impact for / on the sector – it has the Climate Change Commission, KiwiBuild and that’s about it. But starting from about the end of February, we will see change cranking through the system.

Some key themes Concepts such as ‘community’ and ‘wellbeing’ will become part of the lexicon of government again, and not just as in the context of central government finding a rationale to shed functions or responsibilities or put its hand in the community’s pockets. The left views strong community as part of a functioning democracy and society and not just a safety net • Investment in the regional economies – this regional development fund will give some regional projects a financial shot in the arm. I’m not convinced this will be a universal experience across New Zealand • A focus on the macro environmental issues – climate change in particular though there is a focus on mitigation and I’m not sure that adaptation hasn’t stayed ‘the poor cousin’ • An emphasis on participation and engagement – both in terms of changes to legislation and the promotion of good practice. We can see a real interest in how the sector engages with Maori • A winding back of powers to intervene in local government – eg, section 360D of the RMA, and we think that the powers to intervene under the LGA may also get a tweaking (though probably more the circumstances in which these can be used than the powers themselves) • Paradoxically, we think we will see more direction from the centre – again the environment policy signals more NPS not less. We suspect ministers will retain tight control of the regional development fund, and the sustainability indicators. LGP

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WASTE MANAGEMENT INSTITUTE NEW ZEALAND (WASTEMINZ)

Tyre stewardship fund & less waste to landfill PAUL EVANS, CHIEF EXECUTIVE

New government signals higher priority for waste and recycling issues. AS WE LOOK FORWARD TO 2018, there is an air of excitement and positivity amongst local government waste and recycling professionals. This optimism is in large part driven by the inclusion of key waste and recycling issues in coalition agreement documents associated with the formation of the new government. These are issues which have been on councils’ agendas for quite some time, but they haven’t been viewed as a priority for central government. Could 2018 be the year where this changes? Many appear confident it will be.

of-life tyres a priority product and so this approach was never adopted. The recent coalition agreement has once again thrust tyres to the forefront, much to the delight of many in local government. However, the optimism is cautious. The coalition agreement simply talks about the establishment of a tyre stewardship fund, rather than a comprehensive, world-class stewardship scheme. In light of this, local government must work closely with the new government to ensure a balanced, effective and economically-viable scheme is established rather than simply the development of a token fund.

End-of-life tyres In what was something of a surprise, Labour and New Zealand First’s coalition agreement specifically identified the establishment of a tyre stewardship fund. End-of-life tyres have for a long time been a problematic waste stream. Some four million passenger tyres and one million truck tyres reach their end of life in New Zealand each year. Only a tiny proportion of these are recycled, resulting in over 50,000 tonnes of tyre waste annually. Often, local government has been forced to pick up the bill for associated illegal dumping and the clean-up of abandoned tyre stockpiles. In 2011, there was a concerted push for an industry-driven solution to end-of-life tyres, which enlisted support from a broad range of key stakeholders. A consensus-driven approach was taken, with a working group which represented the full spectrum of tyre manufacturers, distributors, consumers and recyclers. The group was tasked with ensuring proposed stewardship options were both economically viable and acceptable to the market at large. This project had many facets, including: • Investigating the regulatory requirements for priority product declaration under the Waste Minimisation Act 2008; • Full financial modelling of preferred stewardship options; and • Cost-benefit analysis of differing stewardship models versus the status quo. The core outcome of this project was a ready-to-go model for a self-funded stewardship scheme. This world best practice scheme could create new recovery opportunities, and support ongoing research and development and end-use options. Sadly, the government at the time chose not to declare end-

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Reducing waste to landfill Perhaps less surprising was the Labour and Green coalition agreement including a commitment to minimising waste to landfill with significant reductions in all waste classes by 2020. Such a target is near and dear to the hearts of many territorial authority waste and recycling officers. The Waste Minimisation Act 2008 very clearly puts responsibility on territorial authorities to promote effective and

The establishment of mandatory product stewardship schemes under the auspices of the Waste Minimisation Act 2008 is seen as vital. efficient waste management and minimisation within their districts. However, it is fair to say that many territorial authorities have felt their ability to fulfil this responsibility has been hampered by a lack of central government focus and support. So, once again, there is cautious optimism with respect to government attention in this area. Of course, achieving significant reductions by 2020 will be a challenge, given it’s just two years away. So how might this be achieved? At a recent meeting of local government waste and recycling officers, there was significant discussion on the following elements. • That the Waste Disposal Levy should be extended to all types

of landfill. Currently, the levy of $10 per tonne only applies to municipal landfills, meaning around 70 percent of waste attracts no levy at all, and as such, there is no price signal to minimise waste. • That more work needs to be done to understand the regional and industry-specific impacts of potentially increasing the levy from its current rate of $10 per tonne. Whilst it is recognised that increasing the waste levy will likely result in a reduction in waste disposal, some councils want greater clarity around where the costs and benefits may sit for their communities. • That better waste and recycling data needs to be collected and shared to ensure we can effectively understand the impacts of policy and programme implementation at a national level. • That a robust investment strategy is required, to ensure that any additional funds generated by the waste levy will be directed towards impactful programmes and infrastructure.

Product stewardship While the only specific mention of product stewardship in the coalition agreement was the establishment of a tyre stewardship fund, it is fair to say that investigating further product stewardship opportunities remains a key priority for the local government sector. More particularly, the establishment of mandatory product stewardship schemes under the auspices of the Waste Minimisation Act 2008 is seen as vital by many. These schemes serve to improve the management of these waste streams while

also shifting the responsibility and cost from councils to the producers and consumers of these products. There are a range of waste streams which territorial authorities have identified for further consideration, and these are largely in line with the Ministry for the Environment’s 2014 discussion document, Priority waste streams for product stewardship intervention. These waste streams include: • Beverage containers (via a container deposit style scheme); • Electrical and electronic waste; and • Agrichemicals and farm plastics.

Will local government be successful? Many could look at this increased governmental focus and consider it a job done. However, councils must remember the government has many items on its agenda, so it’s easy for specific initiatives to get lost. This is further compounded by the fact that the Hon David Parker, as Minister for the Environment, will have an incredibly high workload given he is also Attorney-General, Minister for Economic Development, Minister for Trade and Export Growth and Associate Minister of Finance. So to be successful in the coming year(s), the local government sector must not squander the opportunities presented to it. It must be pragmatic and advocate on the basis of a strong evidence base, and importantly, it must speak as a coherent and consistent single voice. Together we won’t be ignored. LGP

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WATER NEW ZEALAND

Water issues will again dominate council agendas JOHN PFAHLERT, CHIEF EXECUTIVE

Robust decisions made in 2018 will shape the water sector for decades to come. THE HAVELOCK NORTH DRINKING WATER INQUIRY was a key emphasis for the water sector in 2017. The preparation of agreed industry submissions and attendance at the inquiry in Hastings occupied a great deal of both staff and board time at Water New Zealand. When the inquiry report was released in December, we were pleased to see many of our submissions reflected in the 51 recommendations. The government is now signalling that we are likely to see major reform in the sector and this is something we at Water New Zealand welcome. It is clear that unless there are significant changes to the way drinking water is regulated, there is a serious risk of another contamination outbreak on the scale of Havelock North. In particular, we support the inquiry recommendation that the government create an establishment unit to oversee the creation of a new drinking water regulator and that all public water supplies have mandatory treatment of drinking water, including the use of a residual disinfectant. The report accurately identified the lack of competence and training in the sector â&#x20AC;&#x201C; something that the industry has known about for some time. It has called for a mandatory training and qualification regime to be established for all operators, supervisors and managers working in the sector. This is an initiative Water New Zealand is already acting on. See more on this further down. The inquiry included recommendations in relation to the aggregation of water suppliers. Given that it has observed this would lead to improved compliance, competence and accountability, Water New Zealand is urging the government to urgently investigate this recommendation. Reflecting the need to ensure industry is well informed about whatâ&#x20AC;&#x2122;s expected of it post the inquiry reporting, Water New Zealand has recruited additional expertise in water quality, and will be providing a more coherent industry advisory service around water treatment and water safety plan development starting in 2018.

Direct charges for water Changing subject, I have detected an increased focus this year within the sector to treat ratepayers as customers. Watercare chief executive Raveen Jaduram spoke on the subject at our 2017

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annual conference in Hamilton, noting that the customer should be at the heart of all that water suppliers do. Last year, Water New Zealand undertook a major public opinion survey of attitudes toward water. Presented at the conference, this report marks the start of a work plan for Water New Zealand on trying to understand what customers really want from the industry. For example, the survey suggests 60 percent of the ratepaying public want to be charged directly for the water they use, rather than having water service charges buried in their rates bill. That result was a surprise, as water metering always seems to be a focal point for opposition within communities.

Industry training via blended learning The board of Water New Zealand has asked the staff to take a greater leadership role in the organisation around industry training. New qualifications start to be delivered in 2018, and there is a strong industry desire to move away from the traditional block courses offered to the sector towards a world of blended learning.

It has become glaringly apparent through the Havelock North inquiry that the sector needs much better systems to train staff and demonstrate their competence to do the job being asked of them. This involves the ability to do distance / e-learning and more on-job training. This will require Water New Zealand to be more directly involved with Connexis going forward, and in the arrangement of training delivery.

Water industry certification Last year we also started work on establishing a system of industry certification for operators, supervisors and managers involved in water and wastewater treatment. It has become glaringly apparent through the Havelock North Inquiry that the sector needs much better systems to train staff and demonstrate

1. The Havelock North Drinking Water Inquiry was a key emphasis for the water sector in 2017. 2. Watercare chief executive Raveen Jaduram noted that the customer should be at the heart of all that water suppliers do.

their competence to do the job being asked of them. This is a really significant change for the sector that will probably take two to three years to implement. It involves defining a body of knowledge that staff need to be able to demonstrate, arranging a system of competency assessment, and ultimately a system of continuing professional development to maintain that competence.

Metadata standards

Three waters review

Sector workforce capability strategy

Last year the Department of Internal Affairs started work on a three waters review. The focus of the review on financial incentives, asset management practices, and compliance and monitoring appears to miss an opportunity to address more fundamental issues facing the water sector. This review was started by the last administration, so perhaps there will be an appetite by the new government for a more ambitious work programme. For example, issues that might be examined in more detail include whether the time is right to establish an economic regulator for the sector, or perhaps ask the question whether the existing industry structure in terms of the number of entities is actually capable of delivering safe drinking water to all communities. We know the financial and technical capability issues faced by many small councils. At some stage the government needs to address that issue.

Another big issue facing the industry is development of a sector workforce capability strategy. A large cohort of older workers is due to retire in the next 15 years and we need a strategy to deal with workforce planning. Too often the people who work in the sector just â&#x20AC;&#x153;end upâ&#x20AC;? working in the water business, rather than us attracting them as part of a deliberate plan. We need to recruit, train and retain staff better in the years ahead.

Water New Zealand has a wide variety of projects underway. Of significance is the rollout of the metadata standards developed over the past two years. An industry working group has been established to oversee this task and I anticipate good progress in 2018. This speaks to our strategy of getting councils to operate in a more consistent manner.

New government Finally, we all need to be aware that we have a new government. With the Green Party in government for the first time (with Labour and NZ First) there are likely to be considerable changes in emphasis around its desire to afford greater protection for freshwater resources. That will undoubtedly be reflected in government policy via the Ministry for the Environment. While the water tax is currently off the table for farmers, I suspect there are plenty of other ideas under consideration for ways to improve water quality. LGP

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LAST WORD

Tweeting truth to power KATHLEEN KINNEY, COMMUNICATIONS ADVISOR, BOFFA MISKELL

PHOTO COURTESY OF CLAIRE HAMILTON/BOFFA MISKELL.

Shared spaces, special interests and the online conversations shaping our cities and towns.

WHETHER IT’S SHAMING MOTORISTS who park in cycle lanes and across sidewalks, pointing out the design flaws in less-thanwelcoming town centres, or singing the praises of shared spaces on a sunny day, you’ll find it being discussed every day in 280 characters or less, accompanied by a photo. Twitter has been embraced by individuals and groups keen to get their as-it-happens take on the world across to like-minded individuals and now, to civic groups and governmental agencies. Speaking truth to power? That’s so 20th century. Now it’s tweeting truth to power – and ‘power’ is often obliged to engage in response. Ludo Campbell-Reid, the Urban Design Champion for Auckland sees social media as a boon. “It’s helping connect citizens to their government. It keeps me in touch with the community I serve, and I’m able to share ideas with people from Auckland to Toronto to London to Barcelona.” Campbell-Reid’s Twitter feed is a significant voice in the on-going conversation among urbanist groups like Greater Auckland, Bike Auckland, Women in Urbanism, Auckland Council and Auckland Transport and dozens more. From mutual highfiving when it’s good, to snarky critiques of shortcomings, these groups and individuals perform a daily dissection on the city’s roads, shared spaces, and infrastructure projects. Matt Lowrie of GreaterAuckland.com (formerly Transport Blog) says that Auckland is a perfect microcosm for this kind of engagement between people and government. He puts it down to a few, perfectly aligned factors. “The CBD and surrounding areas are going through tremendous growth and some really important infrastructure decisions and projects are happening, so there’s a lot to talk about. “Established groups and individuals who’ve been involved in the conversation around urban design and neighbourhood growth for years are now leveraging social media very effectively.

Boffa Miskell's design transformed O'Connell Street from an unattractive, traffic-oriented space into a popular destination for businesses and pedestrians.

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LAST WORD

“Then, with the creation of the Super City, there’s now a more consolidated government collective, so it’s easy to focus the message.” Being the target of that focused and unfiltered messaging can be daunting. In early December, after weeks of vociferous kerfuffle on Twitter and caustic long-form pieces on The Spinoff blog, Auckland Transport pushed the pause button on a planned cycleway for Richmond Road in West Lynn. But there are positive examples, too. “When engagement works, it works really well,” says Matt Lowrie. He gives O’Connell Street in Auckland as a prime example of the positive influence on-line debate can bring to bear. “O’Connell Street is a fantastic result, and it’s different to what was initially proposed for that street upgrade. But we debated the points; we said ‘no, we could do it better, and here’s why’ and the plan changed. “I think it’s the best-designed street in Auckland. It’s a shared space that works, and it looks great. It shows what can happen when advocates of good design come together.” It used to be that ‘special interest groups’ had dues-paying members with a clear agenda. They were business owners, or manufacturers’ associations, or labour unions. They had the networking ability and the financial resources to make things happen. The lone individual could do little more than write a Letter to the Editor of the local paper and hope for the best. Blogs and social media open up the commentary. The cycling enthusiasts can claim the public’s ear as effectively as the government agencies. The likes of Campbell-Reid and Lowrie see this as a good thing. “When segments of the community are left out of the discussion, the resulting place or design or outcome is usually poorer, because it’s not catering for those disenfranchised groups,” says Lowrie. “The invisible bureaucrats of the past are now outed and held accountable,” says Campbell-Reid “They are forced to do better. The outcomes are changing, people are engaged in what’s happening in the city around them and that’s such a positive result.” But isn’t all this social media stuff just ‘an Auckland thing’? Definitely not. Check out a December 7 post on GreaterAuckland.com: “Greetings from Greater Tauranga. We are a newly formed group that aims to have an active voice in transport and land use planning for our city….” LGP

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THE SWISS WAY Why New Zealand needs more, yes more, councils p16

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Can councils help breathe new life into

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Councils’ urgent need for new recipes p16

OPENING CITYCARE WATER A contractor’s view p28

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LOVE FESTIVALS HATE WASTE Lessons on litter p30 AGE-FRIENDLY COMMUNITIES Six councils’ solutions p33 TECHNICAL BRIEFINGS Auckland’s Central Interceptor p42

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PLACEMAKING IN NEW YORK Community gardens in the Bronx p28

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Upcoming development opportunities from SOLGM – the national membership organisation for local government professionals. SOLGM offers sector-specific development opportunities designed exclusively for New Zealand councils. The 45 South Branch 2018 Retreat is an inspiring, collegial and fun filled event – 28-30 January in Wanaka. In February, entries close for our awards, exchanges, scholarships and Australasian Management Challenge. Recipients and winners will be announced at the Gala Dinner – 12 April in Auckland. The themes for this year’s JLT Risk Management Forum are natural hazards, climate change, risk transfer and the relationship between regulation and risk – 15-16 February in Wellington.

Drs. Susan & Peter Glaser are back in New Zealand to deliver Collaborative Leadership: Hardwiring Teamwork and Innovation – 19 February in Wellington. The Project Management workshop is based around Frank Aldridge’s years of experience working with councils on real projects – 27-28 February in Hamilton and 14-15 June in Palmerston North. The Contract Management workshop covers negotiating, monitoring and managing effective contracts with suppliers – 6-7 March in Wellington and 15-16 November in Wellington. Attend the Professional Administrators Forum to make an impact at your Council while balancing your busy life and achieving what matters to you – 23 March in Christchurch.

Visit SOLGM.org.nz to learn more about these development opportunities to advance your career.