‘Unfunded mandates’: Local Government review recommends more support from central government

Marlborough mayor Nadine Taylor says councils have for “too long” been dealing with “unfunded mandates” handed down by central government.

But, under a new review of local government, that could finally change.

In what’s been described as a once-in-a-lifetime opportunity, the 132-page report – released on Tuesday – looked into the future of local government, setting out 17 key recommendations to strengthen local democracy.

Those recommendations included a new crown department to facilitate better co-operation between central and local government, a four-year electoral term, lowering the voting age to 16, the government putting more funding towards local government and charging rates to central government for crown properties.

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Taylor said more support from central government was “exactly what’s needed” for the council.

“We call it unfunded mandates. It’s when they come up with an idea in Wellington, and they set the rules, and they say, and ‘now council you deliver it’,” Taylor said.

“But there’s no funding for it, so ratepayers have to pick up the bill.”

A recent example was the proposed National Policy Statement for Indigenous Biodiversity, which looked to protect native, indigenous biodiversity. Under the proposal, every council would be required to map and publicly notify the location of all significant natural areas, or SNAs, in the district.

The council last year said there was a lack of resourcing and support measures from central government, and they would need to set up “mini-DOC departments” in order to implement what was proposed.

Deputy mayor David Croad agreed with Taylor.

“There’s this continual government legislative change that creates work and cost to councils, that is ultimately borne primarily on the ratepayer, and I don’t believe that has a good future,” Croad said.

“To look at alternative funding ways and mechanisms is really a key outtake for me.”

The report, which was first announced by then Local Government minister Nanaia Mahuta in April 2021, also looked at ways to increase representation around the council table.

It said the amount elected members get paid varied across the country. In 2022, the base salary of a councillor ranged from $19,580 in Kaikōura, to $100,278 in Christchurch. The panel undertaking the review recommended this be reviewed.

In Marlborough, the base salary for a councillor with no added responsibility for the current term was $40,250.

Croad welcomed this discussion, and said the council needed to be able to attract lots of different candidates to give the community a choice.

“People obviously complain about council’s being made up of old white men, and so on and so forth. Which isn’t the case for Marlborough’s council now,” Croad said.

“[But] in reality someone with a normal 9 to 5 job just simply couldn’t commit to the time that’s required for local government unless they are self-employed or semi retired.

“I’m not saying that I’m not paid well enough, some people might argue that, but just the mix of trying to be employed and be an elected member, and earn enough to put food on the table, some people just can’t get involved.”

He said he had a personal concern about lowering the voting age.

“The jury is out for me on that one. I get the idea of involving people at a younger age because it is their future and teaches them civics.

“But I think young people have got enough to think about already.”

Taylor thought the conversation around lowering the voting age needed to happen at a national level.

“The engagement I’ve had with youth in Marlborough, either through youth council, or out into the colleges … has showed me we have some really highly engaged young people in Marlborough,” she said.

The report also recommended councils go through the process of choosing a new council structure – proposing two models; a unitary authority and a combined network model.

“This process will give councils and their communities an opportunity to consider if current arrangements are meeting local needs,” the report said.

A unitary model – where one council had responsibility for all the local government roles and functions across an agreed region or sub-region – was already in place in Marlborough. However, the report said unitary models should still undertake a review.

Taylor said she was pleased to see unitary models recognised in the report.

“We’ve always said that it’s the ideal model for the rest of the country,” she said.