Turkeys never vote for an early Christmas is an old adage, but applicable when it comes to discussions about structural reform.
It certainly applies in the case of the lack of progress on local government reform.
The current structure was introduced in 1989, and there have been few changes since. The previous government held a review, but its finding were rejected by the current administration.
The issues remain, and a Farmers Weekly investigation into the cost of local government, raises significant questions about they system’s sustainability.
Few question the need for public bodies to look after footpaths, roads, water services, rubbish collection, environment and air, but the costs are becoming excessive.
On top of that there is a suite of “nice to have” projects – covered sports stadiums, conference centres and refurbished town halls – the budget for which tend to blow out.
Regional councils have had three successive average annual rate increases, of 11.50%, 12.40% and 16.20%. Their revenue has doubled in just five years and staff numbers increased by more than 1000 in five years.
Add to that an average rate rise this year of 14.18% for the 61 city and district councils, and ratepayers are understandably tiring of being treated like a cash register.
Ratepayers need some fundamental questions answered: what is the role of local government? Do we need central, regional and district governance layers? How do we cater for large metropolitan and small rural communities? Is land value the best basis on which to determine rates?
Certainly the role of councils has become blurred as central government passes on expectations, responsibility and regulations.
As we reveal, councils have softened what is still a brutal rate rise for the current year by tapping into reserves, borrowing more – temporary measures that merely delay the inevitable.
Calls for the government to share more funding and to share GST come with fishhooks.
It could give central government more say in council affairs, and sharing more GST will see big councils like Auckland commandeer a greater share, while small councils like Waimate or Whakatane still face comparable costs.
Unfortunately, the question of the sustainability of the current local government structure is not being widely discussed – well, not until recently. That was when Southland District Council mayor Rob Scott floated replacing his district council and Gore’s, plus Invercargill City Council and Environment Southland with two unitary authorities.
He estimated it could save a combined population of 100,000 people $10 million a year.
Carterton mayor Ron Mark has previously said he hopes to be his council’s last mayor, an indication he is willing to look at structural change to save ratepayer money.
But these appear to be the exceptions.
In talking to people for our investigation, the adage about a turkey not voting for an early Christmas was raised several times.
The implication is that there is an abundance of self-interest in retaining the status quo.
Federated Farmers is entering the debate by floating alternatives, but ultimately economics will dictate what happens.
Unless councils start listening to ratepayers and align their spending with realistic income, Christmas may come earlier than some turkeys had hoped.
