In this edition:
AUCKLAND GOVERNANCE - NEW LEGISLATION
The Reorganisation Act - Auckland Transition Agency
The Auckland Council Bill - Auckland Council Governance Structure
May 2009
In 2007 the previous Government established a Royal Commission to address concerns about local governance arrangements in the Auckland region ("Commission").
The Commission released its report in March this year, which the Government largely accepted but with a few exceptions. Most notably, the Government accepted one unitary council for the Auckland region, to be known as "Auckland Council". It also broadly accepted that there be one entity for all water and waste operations in the region under Watercare Services Limited. However, it rejected the Commission's recommendation that the Auckland Council be supported by six local councils. Instead it favoured 20-30 local boards with limited powers. The Government's aim is to implement the new structure in time for the 2010 local body elections.
The Government is giving effect to its decision through a total of three Bills to give effect to its decision, with the first two introduced on 13 May 2009.
The first Bill, titled Local Government (Auckland Reorganisation) Bill, was passed into law under urgency on Saturday 16 May 2009, after a marathon session in Parliament. It is now known as the Local Government (Auckland Reorganisation) Act 2009 ("Reorganisation Act"). The Reorganisation Act's primary focus is establishing the Auckland Transition Agency (the body overseeing the transition).
The second Bill, titled Local Government (Auckland Council) Bill ("Auckland Council Bill"), has had its first reading in the House and will go to a Select Committee. The Auckland Council Bill establishes the new local government structure for Auckland, including setting up the new Auckland Council and making provision for the 20‑30 local boards. The Government has said that it aims to have the third and final Bill enacted by May 2010, although it has not been put before the House. It is not yet clear exactly what this third Bill will address but it is anticipated that it will tidy up any details necessary to implement the changes that are outstanding.
The Government's proposed timetable is:
- the Board of the Transition Agency to be appointed as soon as possible now that the Reorganisation Act has been passed;
- the enactment of the Auckland Council Bill by 24 September 2009;
- the third Bill to be introduced in October 2009;
- the appointment of an electoral officer by November 2009;
- the enactment of that third Bill by May 2010;
- local authority elections to be held in October 2010 (new Council members and Mayor elected);
- the establishment of the Auckland Council structure by 1 November 2010; and
- a new unified rating system developed from 2012.
The members of the Select Committee who will consider the Auckland Council Bill have not yet been selected. But the House was advised that it will have 11 members of Parliament chosen by five parties. The seat allocation for the Committee will be: National five; Labour three; and Act, the Green Party and the Maori Party one apiece.
The purpose of the Reorganisation Act is to begin the transitional process from the current seven territorial authorities (or local councils) and one regional council, to the new single authority to be known as Auckland Council. The Act provides for the dissolution of those existing bodies on 1 November 2010 after the local body elections scheduled for October 2010.
Auckland Transition Agency
The Act provides for the establishment of the new Auckland Transition Agency ("Transition Agency") until 31 October 2010 (the day immediately before the Auckland Council is established). The Transition Agency will be responsible for planning and managing Auckland's local government reorganisation. It will have a chairperson and between two and four other members to be appointed by the Minister of Local Government. Its membership is to be announced shortly.
Some of the Transaction Agency's key functions and duties are:
- planning and overseeing the reorganisation of Auckland's governance structure;
- advising the Minister of Local Government on such matters;
- reporting to the Minister of Local Government;
- providing information to the public and the employees of the existing local authorities;
- seconding existing local authority employees;
- appointing an electoral officer for Auckland who will oversee the Auckland local body elections under the new structure of the Auckland Council; and
- appointing an interim chief executive for the Auckland Council during the period up until 1 November 2010. The period of appointment may be extended although it must not be longer than 30 June 2012.
The Transition Agency is to appoint its own chief executive, whose responsibilities will include:
- implementing the decisions of the Transition Agency;
- advising the Transition Agency;
- maintaining systems to enable effective planning and reporting of the financial and service performance of the Transition Agency;
- employing the Transition Agency staff on its behalf; and
- establishing and maintaining an interest register in relation to the Transition Agency.
Existing local authorities during the transition period
Under the Reorganisation Act the existing local authorities must continue to perform their role as a local authority during the transitional period. However, any "significant" decisions by the local authorities or their council-controlled organisations must be reviewed by the Transition Agency. The Transition Agency also has a power of veto for "significant" decisions that it considers on reasonable grounds could significantly prejudice the reorganisation; significantly constrain the powers or capacities of the Auckland Council; or have a significant negative impact on the assets or liabilities transferred to the Auckland Council. "Significant" is widely defined. The powers over decisions includes decisions to adopt or amend a long-term community council plan, purchase or dispose of assets, enter into contracts for $5,000 or more and various decisions relating to council controlled organisations. These powers are intended to place safeguards and constraints on decision making by the existing local government authorities until they are dissolved in November 2010.
The existing local authorities must also cooperate with the Transition Agency and any other existing local authority to help facilitate the reorganisation of the Auckland region. As part of its co-operation with the Transition Agency, a local authority must comply with any reasonable request made by the Transition Agency, including any reasonable request for any information that is relevant for the reorganisation.
All existing employees of the existing local authorities become employees of the Auckland Council on 31 October 2010. However, alternative terms and conditions of employment can be agreed before 31 October 2010 that take effect after 1 November 2010.
The Auckland Council Bill was introduced into the House on 13 May 2009, and had its first reading under urgency. This Bill has been sent to a specially established Select Committee, which will hear public submissions. Submissions have not yet been called for, but the Select Committee is due to report back to the House by 4 September 2009.
The detail and mechanics of the change to Auckland's governance is implemented through this Bill, although a third Bill is also anticipated to complete this process.
Part 2 of the Bill establishes the Auckland Council. It does not come into force until 1 November 2010. However, the transitional provisions and certain amendments proposed to the recent Reorganisation Act which provide for integration of water services will come into force the day after the Auckland Council Bill receives Royal Assent.
Auckland Council - structure
The Auckland Council will have the powers of both a district or city council and of a regional council. The impact of this should be significant on the streamlining of decision making, policy and strategy formation for the Auckland region, especially under the Resource Management Act 1991.
The governing body of the Auckland Council will comprise of a Mayor (elected at large across the region) and 20 members (eight elected at large and 12 elected on the ward basis).
The Mayor has the power to appoint his or her deputy mayor.
Another of the Mayor's key tasks is to develop the draft long-term council community plan and draft annual plan, which would then be put to the Auckland Council for consideration. All those powers are to enable one leader to be responsible for producing a vision for the region.
The Auckland Council Bill also establishes the second tier of Auckland local governance, the new local boards. These are intended to be different to the existing community boards. The key roles of the local boards is to make decisions relating specifically to the relevant local board area and provide input on behalf of their area to regional decision-making. These local boards will focus on service levels, local facilities and funding. The Auckland Council may delegate further powers to the local boards (with certain exceptions) as it sees fit.
The local boards will operate as unincorporated bodies without the ability to acquire land, dispose of property, or hire or remove employees.
The number of members for each local board is to be determined by the Local Government Commission as are the boundaries of the local board areas. The Local Government Commission is an existing body created under the Local Government Act 2002, whose main role is to make decisions on the structure and representation requirements of local government in New Zealand. The Commission can make recommendations to the Minister of Local Government on any local government matters either on the Commission's own initiative or at the request of the Minister. The Commission has three members who are appointed by the Minister of Local Government, the current members are Sue Piper (Chair), Gwen Bull and Grant Kirby.
Transitional arrangements
The Local Government Commission will determine the boundaries of the Auckland region by 1 March 2010 (including moving some of the current Franklin District into the Waikato region). In making this decision on Auckland's boundary the Local Government Commission is not required to consult, but may choose to. This may have consequences for landowners who have property located in this "boundary" cross-over area.
The Local Government Commission is also tasked with determining the names and boundaries for the 12 wards of the new Auckland Council and the boundaries, names, number of elected members and the total number (between 20-30) of local boards. However the Local Government Commission is compelled to establish local boards for both Waiheke and Great Barrier Islands.
Watercare
Part four of the Auckland Council Bill inserts provisions into the current Reorganisation Act for the Transition Agency to oversee the integration of the region's numerous water and waste water entities within Watercare Services Limited. This was expected following the Government's decision.
Conclusion
If any of the aspects particularly covered by the Auckland Council Bill is of interest or concern to you, please contact us to discuss the possibility of making a submission to the Select Committee.
This publication is included in Russell McVeagh's website on the Internet: www.russellmcveagh.com
The publication is intended only to provide a brief summary of the subject covered. It does not constitute legal advice and should not be relied on as such without first obtaining specific professional advice based on your unique circumstances.
Russell McVeagh has New Zealand's longest established and most experienced environmental and resource management practice. We are here to work with you, and if you require any advice or further information on the matters dealt with in this publication please contact the partner/solicitor in the firm who normally advises you, or alternatively contact:
Derek Nolan
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