All Episodes

October 23, 2024 16 mins

Last week, we reported on the issues at Wellington City Council after councillors voted against selling airport shares, forcing a rethink of the council’s long term plan.

The Coalition Government labelled the council a ‘shambles’, and threatened to send in a Crown Observer.

Well, they’ve now delivered on that threat, with Local Government Minister Simeon Brown confirming that appointment will be coming.

The move puts more pressure on Mayor Tory Whanau and her councillors to sort out their issues – but it has also sparked debate around if the bar is too low for the Government to intervene.

Today on The Front Page, Jim Palmer, a consultant who chaired the Review into the Future for Local Government, is with us to discuss the issues at our council tables.

Follow The Front Page on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.

You can read more about this and other stories in the New Zealand Herald, online at nzherald.co.nz, or tune in to news bulletins across the NZME network.

Host: Chelsea Daniels
Sound Engineer: Paddy Fox
Producer: Ethan Sills

See omnystudio.com/listener for privacy information.

Mark as Played
Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
Kiota.

Speaker 2 (00:05):
I'm Chelsea Daniels and this is the Front Page, a
daily podcast.

Speaker 3 (00:10):
Presented by The New Zealand Herald.

Speaker 2 (00:17):
Last week we reported on the issues at Wellington City Council.
After councilors voted against selling airport shares, forcing a rethink
of the council's long term plan. The Coalition government labeled
the council a shambles and threatened to send in a
Crown Observer. Well they've now delivered on that threat, with

(00:39):
Local Government Minister Simeon Brown confirming that appointment.

Speaker 3 (00:43):
Will be coming. The move puts more.

Speaker 2 (00:47):
Pressure on Meyortry far Now and to counselors to sort
out their issues, but it has also sparked debate around
if the bar is too low for the government to intervene.
Today on the Front Page, Jim Palmer, a consultant who
chaired the Review into the Future for Local Government, is
with us to discuss the issues at our council tables. Jim,

(01:16):
what was your reaction to the news about a Crown
observer coming to Wellington City Council.

Speaker 4 (01:22):
Yeah, it's been an issue that has obviously challenged the
Minister and those in Wellington for the last couple of
three weeks, and perhaps it wasn't a surprise that ultimately
an observer is to be appointed. While the circumstances of
Wellington perhaps will benefit from an observer from the review
that we undertook a couple of years ago, this is

(01:43):
probably symptomatic of some of the issues that we're seeing
in local government and they're more likely to recur over
time given the significant challenges the sector's facing.

Speaker 3 (01:53):
What kind of challenges did you predict in that review?

Speaker 4 (01:56):
Well, over the next thirty years, they're going to be
not only significant funding pressures, there's infrastructure challenges. We've got
economic and geopolitical impacts that we're uncertain how to play out.
Extreme weather events are coming, We've got persistent inequity, low
social cohesion, and things like climate change. All of those

(02:18):
things play out locally and they are very demanding and
put extreme pressures on local communities, on local government, and
currently in the review panels view the current systems just
not set up to be able to handle those challenges.
So the types of issues that we're seeing in Wellington
are likely to recur more frequently.

Speaker 2 (02:38):
What sort of precedent is there for a Crown observer
to be appointed? It's not a common occurrence, is it.
But it's not really that rare either.

Speaker 4 (02:47):
Well, the Minister had a number of options available to
him intervening should he choose to do so, and the
Crown observer is one to my knowledge, there's been one
previously in Westland that there have been other Crown managers appointed,
recently in Laodore for flooding, previously in christ Church City
over building control, and more publicized have been the commissioner

(03:10):
appointments at Todong, e Ken and Kuypra. So there has
been precedent for intervention at times, and obviously the Minister,
based on the advice he's received, believed that a threshold
had been met for that type of intervention. An observer
is probably the lightest touch intervention that probably could have
been decided upon.

Speaker 5 (03:34):
It is my view that we accept this and work
constructively with whoever is appointed. The Minister has fairly pointed
out instances where councilors have walked down meetings, refused to
go and have also publicly criticized each other and council staff.
The council will have to pay for this unexpected cost.

Speaker 2 (03:54):
One criticism that's emerged from some academics and commentators is
that the bar for an observer might be a bit
too low, particularly at the moment when a lot of
councils have financial issues.

Speaker 3 (04:05):
What do you make of that viewpoint.

Speaker 4 (04:07):
I'm not quite sure the advice the Minister has received
and that'll be released in due course, no doubt, but
which will probably have traversed that very question. You've certainly
got to let democracy take its course, and that's not
always smooth, and there is the three year annual performance
review that the councilors and mayors go through which the

(04:27):
community passes a verdict on how well they've performed. But
in the meantime, you know, sometimes some councils do need help.
And in the case of Wellington, yeah, they've got some
significant financial challenges that are trying to work their way through,
and they've got a council that has probably struggled to
consistently deliver the leadership. The fact that they're just down

(04:48):
the road from Parliament and quite public and visible, and
they've had a couple of other issues that recur in
the media have added to that pressure. So it's perhaps
not unsurprising that the Minister has decided, but it's whether
that creates a bar, I'm not so sure. I think
every situation will need close, separate consideration, and I don't
think there's necessarily a bar that can be easily articulated

(05:12):
to say this is the point where an observer or
greater intervention is required and we are not. So it's
a judgment call, and ultimately the minister has the responsibility
to make that.

Speaker 2 (05:23):
So you reckon that this could happen a bit more
often than in the past, I suppose. Do you think
other councils are worried taking in Viicago, for example, where
Mayor Nobby Clark has twice been censured by his own
counsel over comments is made in public. Does that meet
the threshold of concern or does Wellington have the kind
of misfortune of, like you said, being in capital city,

(05:44):
being a little bit closer to central government.

Speaker 4 (05:47):
I'm not wanting to comment on the particulars of Invercago,
and probably no, there are mechanisms to address that, and clearly,
if there had been sufficient concern about that, then there
may have been next already taken. So clearly in that
case there has been no intervention, and they're from a
national perspective obviously, wasn't considered to meet a threshold if

(06:09):
there is such a threshold, So yeah, each case is
going to require its own consideration, and a large part
of it is how the actual elected members tackle the challenges.
There are challenges of plenty coming for local government and
we've seen that with large rate increases signaled in ltps
and they will be there for years to come, along

(06:30):
with debt ceilings which are making investment and infrastructure challenging
and in some cases unaffordable or communities, and that's where
the funding model needs a total reset. So those type
of issues are recurring and until there is some systemic
change then it sounds a little gloomy to say, but

(06:51):
I would suggest that these type of issues are going
to be on the front pages of papers more and
more frequently.

Speaker 2 (06:57):
Do you think the public takes into account how important
local councils are.

Speaker 4 (07:02):
I think generally people love living in the communities that
they reside and really enjoy the amenity and the services
that they have on hand, but many take those for
granted absolutely. You know, local government touches individuals every day
in multiple ways. From the minute you get up and
blush the loo and brush your teeth through to drive

(07:23):
and being in parks and pools and libraries, and the
fabulous facilities and activities that are supported that support a
community to make communities great. All of those things generally
are led or supported by local government and so they
have a far greater impact on people's day to day
lives than perhaps many appreciate.

Speaker 2 (07:53):
The local election numbers compared to national election turnout numbers
are significant different as well, so maybe people should be
reflecting on the importance of their local councils a little
bit more. And during the election campaign a National Party
spokesperson actually told stuff local government has an important role
to play, but too often councils are an after thought

(08:15):
for central government. Would you agree with that statement? Should
central government work more with local councils.

Speaker 4 (08:22):
Our review undoubtedly recommended that there needs to be far
stronger partnership, genuine partnership, and it's not the command and
control style that successive governments. And I'm not just this government,
but many governments take a paternalistic view of local government
and there is great opportunity for central and local government

(08:43):
to be working together. I talked with one mayor in
a region and they're talking about youth unemployment, and they
said that there were ninety different agencies being funded to
address youth unemployment and they range from central government agencies,
local government NGO and other organizations, all trying to do
the right thing, but a lack of focus. If they'd

(09:06):
come together and said okay, here are the three or
four agencies that could be delivering this and delivering it
far more effectively, we could get far greater value for
money out of that. Also, the way in which government
and local government are prepared to partner with community, community organizations,
community groups. This huge amount of volunteering and goodwill in
a community, if it's engendered in the right way, there

(09:29):
is great grassroots opportunities to deliver far better value as well.
So the opportunity is immense, but it does require a
fundamental reset of the relationship between central government and local government.
Particularly in the first.

Speaker 2 (09:42):
Instance, the government dared revoke three waters, which many local
councils weren't a fan of. But in other areas the
government has actually been a bit more firm with councils.
Councils that want to keep their multi wards now have
to hold a referendum on that, and Prime Minister Chris
va Luxe has had strong words for counsels at a

(10:03):
conference in August, telling them to rain in the spending.

Speaker 6 (10:08):
Rate Payers expect local government to do the basics, pick
up the rubbish, fix the pipes, fill in the potholes,
and more generally, maintain the local assets quickly, carefully and
cost effectively. What they don't expect to pay for is
a laundry list of distractions and experiments that are plaguing
council balance sheets across the country.

Speaker 2 (10:28):
Is this the right message and we're talking about that
relationship that government should be fostering and sending if it
does want to work constructively with councils.

Speaker 4 (10:38):
Yeah, building a strong, genuine partnership requires trust and confidence
in each other, and that takes some time. It takes
people to be in the room and get together and
understand the different perspectives. Certainly understand the government has three
years in a series of priorities that it wishes to
pursue and doesn't want to be distracted by things which

(10:59):
don't necessary very early aligned with its priorities. I think
that's been understood by local government. But to go to
the fundamental reset, then there does need to be a
change in the way and which central government and local
government relate to each other and work together. We identified
significant opportunities to be able to reimagine the way and

(11:19):
which central government and local government work together and with respect.
I don't see those actions being taken to the extent
needed to create the change that will benefit ultimately the
communities that both government and local government are there to serve.

Speaker 3 (11:35):
Yeah, nobody really likes to be told what to do.

Speaker 2 (11:38):
It's like having a big brother and them saying no,
you're doing it wrong, do it this way, and not
really having a constructive conversation about it.

Speaker 3 (11:47):
Hey.

Speaker 4 (11:47):
Absolutely, and it's not just this government. Successive governments have
taken that approach, which is difficult to respond to, and
local government traditionally has been an easy course to whip
in has been and sometimes local government, to be honest,
doesn't help itself and provides plenty of opportunities and dead
rats to be held up and examined. And what happens

(12:10):
with one many get card with the same brush, and
so you know, the unfortunate reflection on the whole sector
that perhaps isn't always warrant.

Speaker 1 (12:23):
Every new government that comes into office talks about building
strong relations with local government, but successive National and Labor
governments have a buttered call from local government for new
funding tools like ending GST on rates, pain rates on
crown property and if anything, successive governments have added costs
to local government. The end of the day, central government

(12:44):
has not been willing to hand over new funding tools
that would take the pressure off Ugland Council and all
the councils around the country.

Speaker 2 (12:56):
You chaired the Future for Local Government review which was
announced by the Labor government. In terms of those seventeen
recommendations that the review made, how do you think they're
going Has any been acted upon?

Speaker 4 (13:12):
Certainly, Local Government New Zealand, the body who represents the
interests of local councils, certainly did a good job in
analyzing the report and thinking about recommendations that wanted to
support the government. To be honest, there's only a handful
of recommendations that are in one way or another being considered.

(13:33):
The issue of funding generally no funding, although the government
might consider some bespoke funding arrangements such as congestion charging
or bid tax or the like, minor concessions. We did
talk about the opportunity for city and regional deals, which
has been picked up by the government, although to be honest,

(13:55):
rather slowly. It's going to take some years for those
to emerge in be bedded, and there is a consideration
of electoral change changing the electoral cycle. There are some
aspects of the review that are being picked up and
being indirectly given attention to, given that the Minister didn't
accept the report's recommendation, so there is change. Our panel

(14:19):
was off the view though that to make the level
of change that was required, it actually required a systematic
implementation of all of the recommendations. You just couldn't cherry
pick one or two.

Speaker 2 (14:30):
Are there any of those recommendations that you just want
to see happen if you could click your fingers and
have it happen tomorrow.

Speaker 3 (14:38):
What do you think needs to happen.

Speaker 4 (14:40):
Well, there's a as I say, there were seventeen that
we thought were pretty important. In those nothing happens until
there is a fundamental reset of the relationship between central
and local government. Funding is a particular concern and underpins
many of the challenges the sector face. Increasing the governance
capacity and capability of local government as in a important thing.

(15:00):
Investing in training and development for elected members and ensuring
that they've got the right people to support it. Local government,
you know, there needs to be a reconsideration whether the
way in which local government is currently structured is sustainable
and is going to be able to deliver to the future.
So they are some other things, but there are many others,
including the importance of a strong t tendity relationship with

(15:23):
ee HAPU. That was a key issue that we identified
as well. So there are many issues that our panel
traverse that we believe there needed to be significant change
initiated otherwise. You know, in my view, in five to
ten years time, people will look back at our report
as these issues continue to present significant challenges and there

(15:44):
might be a lost opportunity that sits amongst that.

Speaker 3 (15:47):
Thanks for joining us, Jim. That said, for this episode
of The Front Page.

Speaker 2 (15:57):
You can read more about today's stories and extensive coverage
at enzed Herald.

Speaker 3 (16:01):
Dot co dot z.

Speaker 2 (16:03):
The Front Page is produced by Ethan Siles with sound
engineer Patty Fox. I'm Chelsea Daniels. Subscribe to the Front
Page on iHeartRadio or wherever you get your podcasts, and
tune in tomorrow for

Speaker 3 (16:15):
Another look behind the headlines.
Advertise With Us

Popular Podcasts

Dateline NBC

Dateline NBC

Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com

24/7 News: The Latest

24/7 News: The Latest

The latest news in 4 minutes updated every hour, every day.

Therapy Gecko

Therapy Gecko

An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.

Music, radio and podcasts, all free. Listen online or download the iHeart App.

Connect

© 2025 iHeartMedia, Inc.