National and the Gutting of Local Democracy

Written By: - Date published: 7:57 pm, February 13th, 2024 - 16 comments
Categories: auckland supercity, community democracy, democracy under attack, democratic participation, local government, supercity - Tags:

We have remarkably little democracy left in New Zealand. 

Prior to 1989 we had hundreds of little borough councils, from Kaitaia to Glen Eden to Winton. We had County Councils from the Bay of Islands to Stewart Island. We had dozens of others called Town Districts. We had regional councils looking after large assets and running whole water catchments. You wanted a leak fixed or a road patched, you called up your council and a crew with a wheelbarrow came around and fixed it.

If you were a mayor of anything, you had power. Contractors quaked. Ceremonies commanded prestige that humbled mere MPs. There were only Town Clerks who did what the elected members voted on, not Chief Executives. There were no consultants, only people who held tools.

Then over the course of less than 10 years all of that was just scrapped in favour of a disempowered set of councillors who had power only when they met in committee. The Labour government of Lange severely reduced their number, and their scope of work. Labour did away with voter polls and surveys, and prior to the RMA did away with public consultation, and the right to appeal over forced mergers. 

The Auckland Regional Council was hardest hit. Representation based on parliamentary constituencies was abandoned in favour of region-wide polls. Council membership was reduced from 28 to 13 meaning one elected member for every 72,500 constituents. Guaranteed Maori representation was abolished. 

Then the next National government came along and stripped councils of the right to run their own power supply. 

Then came Prime Minister Shipley, who forced the sales of many council services that had been turned into trading businesses. The ARC was stripped of its asset control. Under her watch all of Wellington’s local authority water assets were merged into Capacity Infrastructure Ltd, which has now become Wellington Water and is frankly a wreck. Councils were forced to sell off most public housing when they used to be one of the major landlords and set ceilings on rents across society. Regional councils became gutless regulators, pushed around by central government when they stepped out of central government line.

Through the formation of Holding Companies in the early 1990s, Christchurch and Dunedin councils ensured that there was only the very remotest democratic accountability left against the huge public companies that ran much of those cities. 

Under Prime Minister Key, Auckland was in 2008 further gutted in a series of massive forced mergers. The entire region of what was then 1.3 million people was reduced to 20 councillors. Now with 1.7 million people, if you want to see your councillor you’re one of 85,000 trying to get an appointment. There would never again be an alternative power centre to Wellington.

Under the Ardern government it was proposed that all water assets – usually about a third of everything Councils own and operate – would be merged into regional groupings with no democratic control. Also under Ardern, Auckland finally relinquished any semblance of influence over one of New Zealand’s largest companies, Auckland International Airport. Council will shortly sell its port and with that goes control over the future of the waterfront. 

Also due to Ardern’s reforms, we no longer have any ability to elect local District Health Board members nor any published data on their performance. And school boards were stripped of their property management role; really just reduced to appointing a principal, complaining, and fundraising.

And it is now the turn of the Luxon government through Minister Simeon Brown  to advise Auckland Transport in a speech to the Committee for Auckland that it is functionally a subsidiary of NZTA. That is great for AT bureaucrats who have long since followed the path of greatest reward towards the highest subsidy. It is no good for any citizen trying to hold AT to account for anything. 

Luxon’s government will shortly remove the extra excise tax that was paying for specific transport projects. The Mayor of Auckland doesn’t have the money to replace that funding even if he were inclined to do so. 

Unlike our nearest neighbour Australia which has county, shire, city, state, and federal power centres, we now have just the one. Voters have pretty much given up on electing local officials here. We will be told how AT will be run, and it will be run by NZTA.

New Zealand is now one of the least-goverened, least accountable, most centralised political orders in the developed world. Successive governments both Labour and National have made it consistently worse. The only body that regulates the performance of councils is Internal Affairs, who in turn have no democratic input and answer solely to their Minister.

Worse, local government used to be a place where people were heard enough to make a real change. Now most have lost faith in their capacity, since Councils have influence over a very, very narrow range of activities. 

Don’t even try and look for some star of hope in this dark firmament. There is no reversing this.

16 comments on “National and the Gutting of Local Democracy ”

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  1. Cricklewood 1
    13 February 2024 at 8:36 pm

    Sadly this is right on point. It would be transformational if a political party pledged to vest power and funding in to local communties instead of relentless centralization.

  2. roblogic 2
    13 February 2024 at 11:56 pm

    NZ always comes out near the top of The Economist's global democracy poll, which says a lot about the dire state of democracy worldwide.

    I expect we will slide in the rankings as the current bunch of puppets and munters continue their reign of chaos.

    It is a shame that local government has consistently been so bad in NZ for decades. IMO low voter turnouts reflect a growing social decay, disaffection and despair gripping the working people, as the 1% demolishes our way of life

  3. Mike the Lefty 3
    14 February 2024 at 5:41 am

    Yes and National's proposals to replace the RMA don't sound very democratic either, if what I was listening to on RNZ nights yesterday is accurate.

    Sounds like they will be able to pick and choose which developments and projects go ahead first at ministerial whim.

    Anything to get back at those miserable, time-wasting greenies, you know.

  4. SPC 4
    14 February 2024 at 6:41 am

    Michael Basset 1989 and then Hide.

    The case against amalgamation.

    https://www.nzinitiative.org.nz/reports-and-media/media/media-release-16/

    Anything by Owen McShane on the optimum size of local government. The Shand Report.

  5. ianmac 5
    14 February 2024 at 9:22 am

    But this Government hates Centralisation. They are turning water control back to each council. Or was that just to oppose the previous governments plan?

    Ad your exposure of just how much we have lost from Local Government is eye opening. Never thought of its history that way. Thanks.

    • Obtrectator 5.1
      14 February 2024 at 2:21 pm

      They'll delegate/devolve anything which they fear that controlling in a responsible manner might lose them votes. We all know that the country's water woes really need governmental oversight, but this lot don't want a bar of being seen to impose the necessary expense. So it's gonna cost the ratepayers instead – but hey, they've got their piddling little tax cuts (or will, some day), so everything's rosy, right?

  6. tsmithfield 6
    14 February 2024 at 10:20 am

    Some councils deserve to be gutted. Wellington council for example. It is unforgivable that they have water leaks sprouting everywhere and they are spending millions upon millions on feel-good projects when their primary responsibility is to ensure reliable infrastructure.

    • Craig H 6.1
      15 February 2024 at 4:44 pm

      Councils are obliged to consult on draft annual and long term plans and then implement them. If people want money to be moved from feel-good projects to Wellington Water, they should stop requesting feel-good projects and stop voting for councillors who offer them.

      Also, Wellington Water is owned by 6 Councils, so it’s more complicated than just 1:1 spending.

  7. eE.Burke 7
    14 February 2024 at 11:20 am

    All those extra layers of government in Australia cost. A lot. Want to sell a house in Australia? The state government clips the ticket via "Stamp Duty". I sold a $900,000 house in Melbourne and the stamp duty was about $70,000.

    My local council would fine you for pruning a native tree in your garden. A permit to do so would incur a ~$300 fee including a site visit by the council who then photographed the entire garden. Thats if they would let you. Want to put an extension onto your house in Melbourne and the local council puts you through about a year of process which is billable at every stage and breathtakingly expensive.

    The State governments ride roughshod all over the local councils so its not like there is much local democracy in action.

    Dont forget, voting is compulsory at the national state and council levels.

    And those extra levels certainly dont make them more responsive, responsible or easier to deal with….

  8. Matt 8
    14 February 2024 at 11:40 am

    Is there any reason a community couldn't create their own 'council' and start to bring back some community spirit. They may not be able to do the big things like fix the pipes and the roads (they could lobby for it though). Some things they could do are encourage volunteer projects like planting days, community gardens, walks, fairs. It sounds a little old fashioned but they could also give out community awards. It just feels like the further power moves away the less involved people feel and it is better for everyone if people do feel empowered and listened to.

  9. Amakiwi 9
    15 February 2024 at 9:10 pm

    Donald Trump succeeds because he captures this outrage (see eE.Burke above). Mainstream parties worldwide can’t divest because they all have the same problem. Giving up control is tantamount to self-amputation. They are addicted to power.

    Will Maori be able to reverse the trend?

    • weka 9.1
      16 February 2024 at 8:08 am

      one of the great benefits of co-governance is that it gives the mainstream access to different ways of relating with power. Not a guarantee of course, but some hope.