Wellington ‘super-city’ options out for consultation

BUSINESSDESK: Wellington's regional council has issued a consultation document openly discussing the potential for substantial savings on operational spending and capital investment if the region's existing nine local governments work together more closely.

While the paper, issued by a review panel chaired by former prime minister Sir Geoffrey Palmer, stresses the form of Wellington's future regional government is less important than ensuring it does the job citizens require of it at lower cost than today, the paper draws heavily on the Auckland super-city amalgamation for comparisons.

In the preface, Sir Geoffrey is also critical of the fact that only one of the other local governments – Porirua City – has joined the WRC initiative, with the other seven local councils doing their own consultations on the future form of Wellington's local government.

"The situation … is one of clutter and confusion that will make public consultation difficult and coherence hard to achieve," he says in the preface to the 84-page document.

"But the panel is determined to push ahead because it is convinced the issues are of prime importance to the future of the people who live within the region."

Three key considerations were driving the discussion of Wellington's arrangements: formation of the Auckland super-city, a "pronounced economic decline in the Wellington region" with "serious social and economic implications" requiring urgent attention, and the government's local government reforms.

"There is a case for a better approach to local government in the Wellington region," the paper says.

"What is not yet apparent is what the options are, and what they mean for everyone. Does it mean major change or simply doing things better?"

The panel estimates that if the efficiencies gains expected of Auckland were translated to the Wellington region, operational savings of between $300 million and $600 million could be expected over 10 years, against current forecast spending over that period of $11.8 billion.

Likewise, savings in capital spending of $81 million to $99 million could be achieved over the same period, against the current forecast of $3.3 billion.

The paper also notes that just 1% of the region's current total annual revenues of $933 million a year at present come from council investments.

The combined financial strength of Wellington's local authorities also provide opportunities for more efficient borrowing, with the paper noting Auckland's amalgamation has given it sufficient size to tap global financial markets, the only New Zealand local government entity permitted to do so.