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Future for Local Government

In April 2021, the Government announced an independent review of local government that would seek to identify how our system of local democracy and governance needs to evolve over the next 30 years. The Future for Local Government Panel was formed to lead the review and in June 2023, the Panel released its final report – the culmination of two years’ of talking to local government, looking at best practice and considering all the trade-offs.

June 2023: Future for Local Government final report – our analysis

We’ve analysed the Panel’s report to see whether LGNZ’s advocacy (based on member feedback) is reflected in their recommendations.  

We’re pleased to see 19 of our recommendations included in some form. Even better, 10 out of the 17 final recommendations match the recommendations that LGNZ made in our submission on the draft report. 

Read our analysis

February 2023: Future for Local Government draft report – our final submission

Following months of feedback from members, we shared our final submission on the Future for Local Government (FFLG) draft report. 

Our submission set out a series of clear, tangible recommendations that brought to life key principles and concepts from the draft report and reflected the feedback we heard from councils. 

Read the submission

This Report takes aim at Aotearoa's complex future challenges 

Over the next 30 years, New Zealand will change a great deal. These changes are likely to bring new challenges and opportunities to local governance. To be prepared to address these challenges, we need to reimagine the role councils play in the wellbeing of our communities, our society, and the future of Aotearoa. 

This report is an opportunity to reimagine our public service by putting the needs of communities at the heart of planning and delivery, and developing a local government system that's a) community focused, and b) built on strong relationships and partnerships.

 
An independent panel led the review 

The Future for Local Government Panel was formed to lead the review and prepared a report for the Local Government Minister.

Find out more about the Panel and who they are 

The Panel had a broad mandate to consider: 

  • The functions, roles, and structures of local government 
  • Relationships between local government, central government, iwi, Māori, businesses, communities and other organisations 
  • Necessary changes for local government to most effectively reflect and respond to their communities 
  • The embodiment of Te Tiriti o Waitangi 
  • Funding arrangements for local government 

Timeline of the Panel’s work:

  • Last September, the Panel presented an interim report to the Minister signalling the probable direction of the review and key next steps 
  • The Panel released their draft report on 28 October. This draft report and recommendations were issued for public consultation
  • In June of 2023, the Panel presented its final report to the Minister and Local Government New Zealand.


We listened to the sector and fed their views back to the Panel 

In early 2022, we ran workshops and engaged in kōrero with councils, gathering a broad range of perspectives. As a result, we developed our 'Vision for the Future' paper for the Panel.

It outlined the barriers that so far have stopped councils from achieving their vision and provided a series of recommendations for the Panel’s consideration about how these challenges might be addressed to make the sector’s vision a reality. 

Read our paper: Vision for the Future

A high-level overview of what councils want: 

  • To play a key role in community wellbeing and place-making 
  • For local government to genuinely give effect to the principles of Te Tiriti o Waitangi 
  • A broader and more diverse range of people actively participating to shape their communities 
  • A joined-up collaborative system that draws on the strengths of multiple partners and attracts capable and visionary leaders to enhance the mana of their communities 
  • A high trust relationship with central government that ensures they have the financial capacity to address the ever-changing needs of their communities. 


What’s in the Panel’s final report? 

The report has 17 recommendations, and takes a common-sense approach – especially to funding, system sustainability and other challenges facing councils. We know that having a strong local government is key to tackling these challenges, and have worked hard with councils and the Panel to ensure that councils’ voices are heard. We’re pleased to see that 10 out of the 17 recommendations match those that LGNZ made in our original submission on the draft report.

The recommendations pertain to five different themes, which are:

Increasing funding: we know that local government needs new approaches to funding to deliver for communities, so we strongly support the following critical recommendations in the report: that the government should invest significantly in local government – an amount roughly equivalent to the GST charged on rates – which is $1 billion. It should also pay rates on Crown land. 

System renewal: we’ve long been advocating for systemic change in local government, and we’re glad to see the Panel take aim at this. This includes fundamentally changing the local/central government relationship. We’ve also been really clear that we want better stewardship of local government, and the report proposes a well-supported independent agency to strengthen the health and fitness of the system. This will be critical to the long-term success of local government.

Strengthening local democracy and leadership: this includes councils developing participatory and deliberative democracy processes, a four-year electoral term, lowering the voting age to 16, lowering the threshold for the establishment of Māori wards, and enabling Te Tiriti-based appointments to councils.

Embedding local government's purpose and wellbeing focus: this includes recommendations like entrenching the purpose of local government to embed intergenerational wellbeing and local democracy at the heart of local government.

Growing authentic Te Tiriti-based partnerships: this includes explicitly recognising local government as a Te Tiriti partner, which we strongly support.

You can read our full analysis of the report using the link below.

Read our analysis