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IS IT A FORM OF CORRUPT PRACTICE FOR LOCAL GOVT NZ TO GET CORPORATE SPONSORSHIP FROM THOSE SAME PRIVATE SNOUTS LINING UP FOR PPP/WATER PRIVATISATION CONTRACTS?

25 July 2010
BACKGROUNDER:

Compiled by Penny Bright.
WPG Media Spokesperson, Judicially recognised ‘Public Watchdog’ on Metrowater, water and Auckland regional governance matters, “Anti-corruption campaigner” and Auckland Mayoral Candidate:

Whose interests are Local Government NZ representing?

Elected Councillors, the rate-paying public – or big business interests who will financially benefit from the legislative changes proposed in the Local Government Act 2002 Amendment Bill?

Are there serious corrupt ‘conflicts of interest’ happening here? READ ON!

Water privatisation covers both the operation and management, as well as ownership of the water services assets. The income stream will flow from publicly-owned pipes to the private sector.

Legislative changes proposed by this Local Government Act 2002 Amendment Bill will make it easier for multinational water companies such as United Water to effectively gain control of water services in New Zealand. (United Water is 100% owned by Veolia Water – the world’s largest multinational water company).

The key sections in the Local Government Act 2002 Amendment Bill which will make it easier for multinational water companies to make private profit for their shareholders, from our publicly-owned and paid for pipes and water services infrastructure – are sections 31 and 32.

(They are printed in full – so you can read them for yourself.)

s 31 SUMMARISED AS PER BILLS DIGEST LOCAL GOVERNMENT ACT 2002 AMENDMENT BILL:

” s. 31 a local government organisation may enter into contracts for the provision of water services for a period of up to 35 years instead of 15 years; ”

s 31 FULL TEXT AS PER LOCAL GOVERNMENT ACT 2002 AMENDMENT BILL:

“31 New section 136 substituted

Section 136 is repealed and the following section substituted:

“136 Contracts relating to provision of water services

“(1) Despite section 130(2), a local government organisation may enter into contracts for any aspect of the operation of all or part of a water service for a term not longer than 35 years.

“(2) If a local government organisation enters into a contract under subsection (1), it must—

“(a) continue to be responsible for providing the water services; and

“(b) retain control over the following matters:

“(i) the pricing of water services; and

“(ii) the development of policy related to the delivery of water services.

“(3) This section does not limit contracts in relation to water services that are entered into solely between local government organisations.”

s 32 SUMMARISED AS PER BILLS DIGEST LOCAL GOVERNMENT ACT 2002 AMENDMENT BILL

s.3 2 ‘where a local government organisation enters into a joint arrangement for the provision of water services it must continue to be responsible for providing the water services:

“However, the local government organisation no longer has to retain control over the management of the water services or ownership of all of the infrastructure associated with the water services throughout the joint arrangement.”

[Bills Digest Local Government Act 2002 Amendment Bill]

s 32 FULL TEXT AS PER LOCAL GOVERNMENT ACT 2002 AMENDMENT BILL:

32 Joint local government arrangements and joint arrangements with other entities

(1) Section 137(2)(a) is amended by omitting ““15”” and substituting ““35””.

(2) Section 137(3)(b) is amended by omitting ““; and””.

(3) Section 137(3)(c) is repealed.

(4) Section 137(4) is repealed and the following subsection substituted:

“(4) If a local government organisation enters into a joint arrangement under subsection (2)(a), it must—

“(a) continue to be responsible for providing the water services; and

“(b) retain control over the following matters:

“(i) the pricing of water services; and

“(ii) the development of policy related to water services; and

“(c) after the end of the joint arrangement, retain ownership of all the infrastructure associated with
the water service, whether or not the infrastructure was—

“(i) provided by the local government organisation at the beginning of

the joint arrangement;

“(ii) developed or purchased during the joint arrangement.”

Mike Reid: Manager for Governance, Local Government New Zealand, stated in the NZ Herald, 19 June 2010:

“Amendments to the Local Government Act.

Local Government New Zealand has no concerns about these changes.

The legislation removes the requirement that councils must control the management of the service for the period of the contract but this makes sense – otherwise why would you bother contracting out?

LGNZ always believed 15 years was too short to be viable for private companies and is comfortable with
35 years.”
___________________________________________________________________________________
“Water access at core of dispute” http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10652878

Local Government New Zealand (LGNZ), are described by Catherine Masters, author of this above-mentioned article, as ‘the organisation that represents the interests of local councils.’

Not according to my research.

(NOTES ARE AT THE END OF THIS POST)

(WHO EXACTLY ARE ‘LOCAL GOVERNMENT NZ’ (LGNZ), AND WHAT IS THEIR ROLE? SEE NOTE 1 )

(WHAT ARE THE GOALS AND ACTIVITIES OF LGNZ? SEE NOTE 2 )

(WHAT IS THE ORGANISATIONAL STRUCTURE OF (LGNZ)? SEE NOTE 3 )

On what lawful, ‘open, transparent and democratically-accountable’ basis, can Mike Reid, Manager for Governance, Local Government New Zealand, claim that support for s 31 and s32 of the Local Government Act 2002 Amendment Bill, represents the view of the 85 District, City and Regional Councils throughout New Zealand?

“Local Government New Zealand has no concerns about these changes. The legislation removes the requirement that councils must control the management of the service for the period of the contract but this makes sense – otherwise why would you bother contracting out?

LGNZ always believed 15 years was too short to be viable for private companies and is comfortable with
35 years.”

The governing body of Local Government New Zealand is their National Council, made up of 15 Mayors and Chairs from District, City and Regional Councils:

(WHO ARE THE MEMBERS OF THE NATIONAL COUNCIL – THE GOVERNING BODY OF LGNZ? SEE NOTE 4)

(WHAT ARE THE POWERS OF THE NATIONAL COUNCIL OF LGNZ? SEE NOTE 5)

“Local Government New Zealand presents a consensus view and is the only organisation that can speak on behalf of all councils in New Zealand.”

However – the organisational mechanism by which the ‘consensus’ view of all councils in New Zealand is formulated, is rather mysterious, and I have been unable to locate this process anywhere on the website of Local Government NZ.

According to LGNZ, on 15 May 2010, Mike Reid sent out a ‘Memorandum’ to Mayors, Chairs – cc’ed to Chief Executives, on the Local Government Act (LGA) 2002 Amendment Bill.

“……………………

Much of the Bill is technical and deals with changes to financial policies and the content of Schedule 10.

Local Government New Zealand will be working with the Society of Local Government Managers (SOLGM) as we did when contributing to the Local Government Commission’s review of the LGA in 2008.

That means that SOLGM will take the lead on the technical issues and we will generally focus on the high level policy issues. To assist councils develop their own submissions we have prepared this critique of the Bill.
Submissions should be made to the Clerk, Environment and Local Government Select Committee, Parliament.
Mike Reid ”

“The key recommendation to Councils regarding water privatisation was:

“31 – 32
New S.136, water contracts
Extends the period by which councils can enter into contracts with private sector to 35 years. Something that LGNZ sought in 2002.
No immediate financial implications
Support”

(MEMORANDUM TO COUNCILS ON THE LGA 2002 AMENDMENT BILL: SEE NOTE 6)

So! Rather than seeking the views of elected representatives of District, City or Regional Councils – Mike Reid sends out a ‘critique’ from LGNZ giving his pro-water privatisation view, but using the ‘we’ word, without specifying who exactly the ‘we’ from LGNZ actually was.

How is effectively telling elected representatives what to think about an issue – the same as finding out from them what THEY think?

There is no evidence that I have found which shows if, or how the views of elected representatives of District, City or Regional Councils were sought before this pro-water privatisation ‘critique’ was drawn up by whoever from LGNZ, let alone the views of the citizens and ratepayers from each Council area.

WHERE WAS THE ENDORSEMENT, OR AUTHORISATION OF THIS LGNZ ‘CRITQUE’ SUPPORTING WATER PRIVATISATION, FROM LGNZ’S KEY GOVERNANCE BODY – THE NATIONAL COUNCIL?

I have searched LGNZ’s website, in a vain attempt to find minutes of ANY LGNZ National Council meeting, but found none.

How ‘open, transparent and democratically accountable’ is THAT?

Is this not a case of the ‘tail wagging the dog’ when unelected beaurocrats are playing a governance role, and effectively usurping what should be the role of elected representatives?

Where do citizens and ratepayers get any say in this ‘process’ regarding water services – the most essential of all public services, vital for public health, sanitation and life itself?

LGNZ, on their own website, clearly spell out the GOVERNANCE role of elected representatives:

http://www.lgnz.co.nz/lg-sector/role/Governance.html

” Governance, in a council sense, is providing leadership for the good of the community. It is about balancing views, resources and needs and making decisions that are best for the community.

It is not about implementing decisions – that is the responsibility of council management and staff.

The governing body in each local authority is the council, also known as the ‘committee of the whole’.

Councils have two major governance roles: a law-making an regulatory role being the governing body for the council organisation. The key governance responsibilities of councils are to: connect with the community set policies monitor and review the performance of the organisations

Structures and Functions Council structures ……

Responsibility for council functions Councillors are responsible for making policy decisions on matters such as:the services the council will provide the level of rates it will charge the bylaws it will make.

Councils have a chief executive and other staff to provide advice and implement these decisions. ”

So why are LGNZ effectively not ‘practising what they preach’ regarding ‘governance’?

WHERE IN THE LGNZ ORGANISATIONAL ‘FLOW CHART’ DOES IT MAKE PROVISION FOR WORKING WITH THE SOCIETY OF LOCAL GOVERNMENT MANAGERS (SOLGM), PARTICULARLY IN LOBBYING FOR LEGISLATIVE CHANGE?

WHO ARE SOLGM?

(WHO ARE THE SOCIETY OF LOCAL GOVERNMENT MANAGERS (SOLGM)? SEE NOTE 7)

“NZ Society of Local Government Managers (SOLGM) is the professional organisation for local government management in New Zealand. SOLGM represents and supports its members, local government managers and staff through professional development and networking opportunities, membership support services, good practice resources and advocacy work.

“IE: The ‘professional’ organisation for Council CEOs and staff.

(WHAT IS THE (FULL) STATUTORY ROLE OF A COUNCIL CHIEF EXECUTIVE UNDER THE LGA 2002? SEE NOTE 8)

“42 Chief executive

(2) A chief executive appointed under subsection (1) is responsible to his or her local authority for— (a) implementing the decisions of the local authority; and

(f) providing leadership for the staff of the local authority; and”

So, where does a ‘professional’ organisation, like SOLGM, get its lawful authority to effectively play a ‘governance’ role – when the statutory duties of Council CEOs so clearly define that is NOT their role?

WHOSE INTERESTS ARE LGNZ AND SOLGM REALLY REPRESENTING?

‘Pay the piper – call the tune?’

BOTH LGNZ AND SOLGM RECEIVE CORPORATE SPONSORSHIP FROM COMPANIES WHO STAND TO FINANCIALLY BENEFIT FROM THESE PROPOSED LEGISLATIVE CHANGES!

Did YOU know that both LGNZ and SOLGM receive corporate sponsorship from major companies who stand to significantly financially benefit from these proposed changes outlined in s 31 and s 32 of the local Government Act 2002 Amendment Bill?

(CORPORATE SPONSORS OF LGNZ SEE NOTE 9)

LGNZ has their Conference coming in July.
http://www.conference.co.nz/index.cfm/LGNZ10/Sponsors
“Sponsors

Local Government New Zealand wishes to acknowledge the valuable contribution made by our sponsors:

GOLD SPONSORS:

Conference Dinner Fulton Hogan

Invited Speaker Civic Assurance

Invited Speaker NZ Post

Welcome Reception Simpson Grierson

Infrastructure Workshop Price Waterhouse Coopers

SILVER SPONSORS:

Catering Meridian Energy

Economic Development Workshop Berl Economics

Coffee Stand and Networking Space gen-i

BRONZE SPONSORS

Conference Handbook Transpower

Conference Registration Brochure Tax Team

Conference Satchels MWH

SUPPORTING SPONSORS Konica Minolta
_____________________________________________________________________________________

(CORPORATE SPONSORS OF SOLGM SEE NOTE10)

SOLGM HAS A ‘FAMILY OF SPONSORS’

http://www.solgm.org.nz/site/About_SOLGM/Sponsors.aspx”>www.solgm.org.nz/site/About_SOLGM/Sponsors.aspx

“Our Family of Sponsors

SOLGM would like to thank its Family of Sponsors for their continued support in helping us achieve our goals and provide member activities. These organisations are key players in local government and their sponsorship shows their commitment to help us and the sector advance its goals for New Zealand communities.

“PRINCIPAL SPONSORS:

Civic Assurance

MWH

Simpson Grierson

SUPPORTING SPONSORS:

Audit NZ (????????????? What on EARTH are they doing here???? My emphasis Penny Bright)
_________________________________________________
About Audit New Zealand

New Zealand’s Controller and Auditor-General (the Auditor-General) is an independent statutory Officer of Parliament.

The primary role of the Auditor-General is to ensure that public money is being used properly and effectively. Audit New Zealand is the larger of two business units serving the Auditor-General. The other business unit is called the Office of the Auditor-General (OAG).

Audit New Zealand has a unique position as a business unit of the Controller and Auditor-General (the Auditor-General).

The OAG is responsible for carrying out performance audits and inquiries in the public sector. It makes sure that public entities are abiding by the rules and following best practice.

At Audit New Zealand, we look at the financial statements of the same public entities, as well as handle special assignments in the areas of governance, risk, and contract and project management.

Like our international CA firm colleagues, we’re set up to run as a professional services firm; we have our own management structure and systems and we also improve their work collaboratively with the OAG.

The Auditor-General allocates most audits of public entities to Audit New Zealand, and then uses competitive tendering for the audits of some of the more commercial entities.

Audit New Zealand also provides specialist assurance services to public entities in the areas of assurance over governance, risk, and contract and project management. These services are contestable.
Our main client sectors are:

* central government – government departments;
* Crown entities, State-owned enterprises;
* local government – local authorities and their subsidiaries;
* health – hospitals and district health boards; and
* tertiary – universities, polytechnics and wānanga (Māori-focused tertiary).

Our client base also includes:

* energy companies;
* airport companies;
* licensing trusts;
* port companies;
* schools; and
* community trusts.

Our vision

Vision graphicEverything we do, our strategies and our initiatives, are governed by our vision to add value, assure excellence, and audit New Zealand.

It is our job to be a role model for the New Zealand public sector and we take that obligation seriously.
Our values

We also have some values that are important to us and that we use to describe the behaviour we expect from ourselves:

• Independence – We work for the Auditor-General, who is independent from government and accountable to Parliament.
• Integrity – We model the behaviours and standards we expect from our clients and leaders.
• Professionalism – We apply our skills to the very best of our ability.
• Authoritative – Everybody we deal with can expect that we speak with the authority of the Auditor-General.
• Respect – We treat others the way they would like to be treated.
• Openness – We are constructive and welcoming of other people’s opinions.
_____________________________________________________________________________________

Datamail

Deloitte

JLT

ACTIVITY SPONSORS:

NZ Post

Opus

_____________________________________________________________________________________

HOW IS THIS NOT A CLEAR CONFLICT OF INTEREST, WHEN LGNZ AND SOLGM ARE ARGUABLY FINANCIALLY INDEBTED TO THESE CORPORATE SPONSORS WHO HAVE A CLEAR FINANCIAL INTEREST IN THESE LEGISLATIVE CHANGES?

KEY CORPORATE SPONSORS OF LGNZ AND SOLGM ARE ALSO MEMBERS OF THE NZ COUNCIL FOR INFRASTRUCTURE DEVELOPMENT (NZCID) – THE ORGANISATION
WHICH REPRESENTS THE BIG SNOUTS LINING UP TO FINANCIALLY BENEFIT FROM THESE PROPOSED LEGISLATIVE CHANGES TO OPEN UP CONTRACTING OUT AND PPPS:

http://www.nzcid.org.nz/ourmembers.html

These NZCID members who are also sponsors of LGNZ and/or SOLGM are:

Deloitte
Fulton Hogan
MWH
Opus International Consultants
Price Waterhouse Coopers
Simpson Grierson
Transpower NZ

SOLGM AND LGNZ – BOTH SUPPORTING THIS PRO-CORPORATE WATER PRIVATISATION POSITION ARE INVITED TO PARTICIPATE IN THE PROCESS OF DRAFTING LEGISLATION:

“SOLGM SPECIAL MEMBER UPDATE, November 2009
Transparency, Accountability and Financial
Management Review (TAFM) Announcements

SOLGM and LGNZ have been invited to participate in the process of drafting legislation, subject to our observing confidentiality. As with the policy development process, members of the Financial Management and Strategic Planning Working Parties will be involved in this to the extent that time allows. Our participation is, of course, without prejudice to any representations we might make during the Select Committee process.”

Where is the ‘open, transparent and democratically accountability’?

ANOTHER CLEAR CONFLICT OF INTEREST?

POLICY ANALYSTS WHO PRODUCE ‘REGULATORY IMPACT STATEMENTS’ TO ADVISE CABINET – CONSULT WITH PRO-CORPORATE LOBBY GROUPS AND TREAT THEM AS IF THEY ARE ‘INDEPENDENT THIRD PARTIES’?

“REMOVING BARRIERS TO WATER INFRASTRUCTURE DEVELOPMENT IN THE LOCAL GOVERNMENT ACT 2002 – REGULATORY IMPACT STATEMENT

* Removing Barriers to Water Infrastructure Development in the Local Government Act 2002
* (Regulatory Impact Statement) – April 2010 (.pdf) 98k

Consultation

55. The Treasury, Ministry of Health, Ministry for the Environment, Ministry of Economic
Development, Local Government New Zealand, the Society of Local Government
Managers, Ingenium (Association of Local Government Engineering New Zealand),
and the New Zealand Council for Infrastructure Development have been consulted in
the preparation of previous drafts of the Regulatory Impact Statement and associated
paper.

HOW IS THIS HAPPENING IN NEW ZEALAND – SUPPOSED TO BE THE ‘LEAST CORRUPT COUNTRY IN THE WORLD’?

I WILL BE SENDING THIS INFORMATION TO THE CONTACTS I MADE AT THE AUSTRALIAN PUBLIC SERVICE ANTI-CORRUPTION CONFERENCE LAST YEAR, OVER 300 TRANSPARENCY INTERNATIONAL CONTACTS AND ASKING FOR THEIR COMMENTS AND CONSIDERED OPINIONS.

SURELY IT IS HIGH TIME FOR AN NZ INDEPENDENT COMMISSION AGAINST CORRUPTION?

Penny Bright
Media Spokesperson
Water Pressure Group
Judicially recognised ‘Public Watchdog’ on Metrowater, water and Auckland regional governance matters.
“Anti-corruption campaigner”

Auckland Mayoral Candidate

Ph (09) 846 9824

021 211 4 127
http://watepressure.wordpress.com

NOTE 1) WHO EXACTLY ARE ‘LOCAL GOVERNMENT NZ’ (LGNZ), AND WHAT IS THEIR ROLE?

According to the website of Local Government New Zealand, this is their stated role:
http://www.lgnz.co.nz/about-us/

“Local Government New Zealand is:

* the national voice of local government
* the champion of best practice in the sector.

We represent the diversity and local democracy of local government, the metropolitan areas, the district, the rural communities, and the regions.

We believe that local democracy is about:

* having the right mix of people, elected locally, to best represent each community
* ensuring services are provided to the community in the best way possible
* taking a collective approach to community needs
* creating a sense of local identity and place.

Our mission is: “Effective local governance across New Zealand”

Local government exists to provide for the well-being of communities. For these communities to flourish they need:

* sustained economic development and new jobs
* a healthy and safe environment
* social cohesiveness
* a vibrant and developing culture and identity
* a stable political and economic climate.

Local government has a profound role to play in securing these outcomes for New Zealand communities.”

http://www.lgnz.co.nz/about-us/work-programme/LGNZWorkProg2010.pdf

Sector Vision
Good local governance across New Zealand.
Local Government New Zealand (LGNZ) is succeeding when councils understand and respond to the needs of their communities, and have the powers, skills and resources to do so.

Organisational Vision
The national voice of local government.
Our members are the bodies corporate that constitute the regional and district councils across New Zealand. LGNZ is the peak body of local government in New Zealand, and only LGNZ has the mandate to comprehensively represent the
interests of elected members, managers and staff of councils across New Zealand.

NOTE 2) WHAT ARE THE GOALS AND ACTIVITIES OF LGNZ?

Goals and Key Activities
To secure national policies and legislation that supports effective local governance, Local Government New Zealand:

* lobbies and advocates on behalf of member councils
* seeks to work collaboratively and in partnership with central government to achieve our objectives
* continuously identifies policy or legislative issues that need to be addressed
* develops a clearly stated local government manifesto that spells out the key policy and legislative
changes that local government needs to secure
* undertakes policy analysis and research to support our advocacy on behalf of the sector
* maintains a highly visible and credible profile as the national voice of local government.

To provide support for and services to local authorities to enhance local governance Local Government New Zealand:

* develops a range of services to provide support to member councils, either in its own right or in
partnership with others
* develops and operates a range of governance support and governance training programmes
* champions best practice and continuous improvement across local government and seeks partnerships
to identify and promote best practice in local government
* supports the Local Government Industry Training Organisation (LGITO)
* provides opportunities for the sector to share information and experience
* acts as a vehicle for collaboration where member councils see a need
* undertakes research, as required, to support this activity.

NOTE 3) WHAT IS THE ORGANISATIONAL STRUCTURE OF LOCAL GOVERNMENT
NEW ZEALAND (LGNZ)?

National Council

Eugene Bowen
Chief Executive

Senior Management Team

Chief Executive’s Team

Mike Reid
Manager Governance
Geoff Swainson
Manager Development & Infrastructure
Irene Clarke
Manager Environment & Regulation
Fiona Mayo
Manager Communications
Jan Horan
PA to CE & President/Office Manager

Mariska Wouters
Senior Policy Analyst,
Social Development

Nasi Jenkin
Senior Policy Analyst
Development & Infrastructure

Kate Barker
Senior Policy Analyst,
Environment & Regulation
Communications Advisor
Vickie Paterson
Human Resources

Simon King
Policy Analyst,
Development & Infrastructure,
Environment & Regulation
Frances Sullivan
Senior Policy Analyst,
Environment & Regulation
Stephanie Rodgers
Communications Assistant (Temporary)
Sandra Scrimshaw
Professional Development Coordinator & AGM Coordinator

Chrissy MacDonald
Personal Assistant,
Governance

Carla Krejcisz
Personal Assistant,
Development & Infrastructure
Natasha Bava
Personal Assistant,
Environment & Regulation
Jan Rivers
Information Centre Manager
Liz Quaye
Receptionist
Ann Tankman
Information Centre Assistant

NOTE 4) WHO ARE THE MEMBERS OF THE NATIONAL COUNCIL – THE GOVERNING BODY OF LGNZ?

National Council

Our National Council, who are the elected leadership of Local Government New Zealand, prepare a workplan and annual report that outlines priorities and projects in any given year. They will choose projects according to criteria, including: the number of councils affected by the issue, the magnitude of the issue, the priority and timing of that issue or its potential impact.

The current members of the Local Government New Zealand National Council are:

* Lawrence Yule, President of Local Government New Zealand – Mayor, Hastings District Council
* Kerry Prendergast, Vice-President – Mayor, Wellington City Council
* Mark Farnsworth, Zone 1 – Chair, Northland Regional Council
* Dianne Hale, Zone 1 – Councillor, North Shore City Council
* Philippa Barriball, Zone 2 – Mayor, Thames Coromandel District Council
* Ian McKelvie, Zone 3 – Mayor, Manawatu District Council
* Adrienne Staples, Zone 4 – Mayor, South Wairarapa District Council
* Bede O’Malley, Zone 5 – Mayor, Ashburton District Council
* Frana Cardno, Zone 6 – Mayor, Southland District Council
* Stephen Cairns, Regional Sector Group – Chair, Otago Regional Council
* John Cronin, Regional Sector Group – Chair, Environment Bay of Plenty
* John Forbes, Rural Sector Group – Mayor, Opotiki District Council
* Peter Tennent, Provincial Sector Group – Mayor, New Plymouth District Council
* Peter Chin, Metro Sector Group – Mayor, Dunedin City Council
* Len Brown, Metro Sector Group – Mayor, Manukau City Council

Local Government New Zealand presents a consensus view and is the only organisation that can speak on behalf of all councils in New Zealand.

NOTE 5) WHAT ARE THE POWERS OF THE NATIONAL COUNCIL OF LGNZ?

E18. The National Council has and may exercise the sole control, discretion and management of Local Government New Zealand subject only to any limitations imposed by these Rules or directions given by the Annual General Meeting or any Special General Meeting.

NOTE 6 )MEMORANDUM TO COUNCILS ON THE LGA 2002 AMENDMENT BILL

Local Government New Zealand is working with the Society of Local Government Managers (SOLGM) on it’s approach to a submissions to this Bill. Submissions close on Friday 18 June.
The memorandum has been produced as advice to Councils in considering their own submissions on the Bill. Much of the Bill is technical in nature and the years since the LGA Act was passed provide an opportunity to review it’s operation. There are elements which LGNZ endoreses such as the simplification of reporting requirements. However other parts of the Bill provide potential hazards of interpretation about scope if they remain as they are at present.
Author: Mike Reid
Subjects: Legislation, Parliament, Submissions, LG Law

Item Information 0
Memorandum to Councils on LGA 2002 Amendment Bill 15 May 2010.pdf 113.48 KB

31 – 32
New S.136, water contracts
Extends the period by which councils can enter into contracts with private sector to 35 years. Something that LGNZ sought in 2002.
No immediate financial implications
Support

NOTE 7 ) WHO ARE THE SOCIETY OF LOCAL GOVERNMENT MANAGERS (SOLGM)?

Introducing SOLGM

Professional organisation for local government management
NZ Society of Local Government Managers (SOLGM) is the professional organisation for local government management in New Zealand. SOLGM represents and supports its members, local government managers and staff through professional development and networking opportunities, membership support services, good practice resources and advocacy work.

SOLGM is here to help you and your council achieve your goals by providing you the practical resources you need. We also advocate on your behalf on issues that impact on local government management.

SOLGM works collaboratively with New Zealand councils and their managers and staff who voluntarily offer their time, experience and knowledge as we develop our programmes and services. We work alongside sector organisations to provide strategic inputs on policies and issues that affect local government management.

We also have a family of sponsors who support us in achieving our goals and providing member activities.
SOLGM Activities
SOLGM Membership

SOLGM is the professional organisation for local government managers and staff. SOLGM supports the professional development of its members through information, discounts on courses and Annual Conference, networking opportunities and exclusive professional development programmes such as Overseas Manager Exchage and Attendance Awards.
SOLGM Opus Business School

SOLGM delivers training that are specific to local government. These are especially designed for the local government sector with significant input from practitioners and experts. The SOLGM Opus Business School offers the following:

• Professional training
• Annual forums
• Personal development courses
• Topical workshops
• Academic and professional training

Good Practice Toolkits

SOLGM puts together resources that provide local government employees a guidance for good/leading practices in areas such as:

• LTCCP Preparation
• Rating
• Electoral management
• Risk management and legal compliance
• Policy development and implementation

SOLGM provides informed comment and advice on local government issues from a managerial perspective. The key areas we work in are the following:

Legal compliance and risk management
Financial management
Strategic management
Elections management

Annual Activities

• SOLGM Annual Conference – the annual event for local government managers to come together

• New Zealand Post Group Local Government Excellence Awards – the only excellence awards for local government

• LGMA Management Challenge – professional development programme aimed at building skills of managers and emerging managers in local government

Our Vision

To be the leading influence for local government managers and staff to advance the sustainability of our communities

Our Aims

Leadership

• We aim to take the lead in identifying and advocating on the big issues facing communities and local government management.
• We aim to influence Central Government policy development and implementation of major issues.

Growing Capabilities

• We aim to develop and support good practice capabilities and knowledge among managers and staff.
• We aim to develop and support the leadership and management capabilities of managers and staff.
• We aim to create opportunities for managers and staff to network, learn and exchange ideas.

© SOLGM 2009

NOTE 8) WHAT IS THE STATUTORY ROLE OF A COUNCIL CHIEF EXECUTIVE UNDER THE LGA 2002?

Local Government Act 2002
42 Chief executive

(1) A local authority must, in accordance with clauses 33 and 34 of Schedule 7, appoint a chief
executive.

(2) A chief executive appointed under subsection (1) is responsible to his or her local authority for—

(a) implementing the decisions of the local authority; and

(b) providing advice to members of the local authority and to its community boards, if any; and

(c) ensuring that all responsibilities, duties, and powers delegated to him or her or to any person
employed by the local authority, or imposed or conferred by an Act, regulation, or bylaw, are
properly performed or exercised; and

(d) ensuring the effective and efficient management of the activities of the local authority; and

(e) maintaining systems to enable effective planning and accurate reporting of the financial and
service performance of the local authority; and

(f) providing leadership for the staff of the local authority; and

(g) employing, on behalf of the local authority, the staff of the local authority; and

(h) negotiating the terms of employment of the staff of the local authority.

(3) A chief executive appointed under subsection (1) is responsible to his or her local authority for
ensuring, so far as is practicable, that the management structure of the local authority—

(a) reflects and reinforces the separation of regulatory responsibilities and decision-making
processes from other responsibilities and decision-making processes; and

(b) is capable of delivering adequate advice to the local authority to facilitate the explicit resolution
of conflicting objectives.

(4) For the purposes of any other Act, a chief executive appointed under this section is the principal
administrative officer of the local authority.

Compare: 1974 No 66 ss 119C, 119D

NOTE 9) CORPORATE SPONSORS OF LGNZ

http://www.conference.co.nz/index.cfm/LGNZ10/Sponsors

Sponsors

Local Government New Zealand wishes to acknowledge the valuable contribution made by our sponsors:

Gold Sponsors

Conference Dinner

Invited Speaker

Invited Speaker

Welcome Reception

Infrastructure Workshop

Fulton Hogan is a diversified contracting company active in New Zealand, Australia & the Pacific Basin. Constituent divisions represent a broad range of products & services in the roading, quarrying & civil construction sector, & hold strong positions in their respective markets. Areas of expertise include:

– Road construction & surfacing

– Quarrying, production of metal & specialist aggregates

– Highway maintenance for local & national Government

– Production of asphalt, bituminous products & emulsion

– Land for residential sections

– Civil construction

– Airport runway construction & surfacing

– Facilities maintenance

– Waste collection & landfill operations

David Faulkner
Managing Director
t: +64 3 357 1400
e: david.faulkner@fh.co.nz
a: Fulton Hogan, PO Box 39185, Harewood, Christchurch, New Zealand
core business

– Contracting & civil engineering service provider

– Transport & waste

subsidiaries

– Canterbury Hardfill Ltd

– Cooper Waste Ltd

– EnviroCare Ltd

– EnviroWaste Services Ltd

– FRH Group Pty Ltd (Australia)

– Fulton Hogan Land Development Ltd

– Waikato Regional Landfills Ltd

– West Meadows Ltd

– Yellow Rubbish Company Ltd

_____________________________________________________________________________________

PricewaterhouseCoopers has a specialised and experienced advisory practice dedicated to the development of infrastructure through the provision of:

– Governance advice;

– Infrastructure financing, including PFI/PPP;

– Strategic planning;

– Public policy advice;

– Assurance and reviews;

– Taxation advice;

– Transaction advice and valuations;

– Performance improvement;

– Climate change and sustainability advice.

Industry sectors that the firm operates successfully within include:

– Central and Local Government;

– Water and wastewater utilities;

– Energy companies;

– Telecommunications companies;

– Transport and Roading sector entities;

– Port companies, including both air and sea.

The organisation is able to supplement this experience with the firm’s worldwide knowledge base accumulated across 150 countries, providing instant access to leading infrastructure approaches and solutions.

Download PwC Local Government & Infrastructure Services Profile here>

On-line visit: http://www.pwc.com
Contact:

Craig Rice
Partner
Tel: (09) 355 8641
Email: craig.rice@nz.pwc.com

David Walker
Director
Tel: (09) 355 8033
Email: david.a.walker@nz.pwc.com

Silver Sponsors

Catering

Economic Development Workshop
Coffee Stand and Networking Space

Bronze Sponsors
Conference Handbook

Conference Registration Brochure

Conference Satchels

Supporting Sponsors

http://www.gen-i.co.nz/Pages/Gen-iHomePage.aspx

http://www.civicassurance.co.nz/

Welcome to the Civic Assurance website

Local government insurance provider, Civic Assurance, is New Zealand’s specialist provider of insurance, mutual funding and risk financing for local government and public sector organisations.

Owned by New Zealand local authorities, Civic Assurance is the one-stop shop for cost-effective protection of community-owned assets.

• AM Best claims paying ability rating: ‘A’ (excellent)

• Underwriting Member of the Insurance Council of New Zealand

Civic Assurance is also the promoter of SuperEasy KiwiSaver , a product tailored for staff of local government but open to all New Zealand residents under age 65.

http://www.berl.co.nz/977a1.page

http://www.berl.co.nz/925a1.page
(Clients)

BERL Services

BERL’s professional staff provide analysis across a wide range of fields to the public and private sectors including:BERL Monthly Monitor Cover

* Regional development
* Industry and resource economics
* Economic forecasting
* Public policy analysis
* Social policy analysis
* Business and organisational strategies

Products

Aside from contract research work, BERL has two main products available to clients. These are:

* BERL Forecasts and Monthly Monitor
* BERL Regional Profiles and Indicators

Regional Development

* Monitoring current and historical trends in regional economies
* Projections of future economic trends at the regional level
* Assessing the impacts of developments on regional and national economies
* Regional economic development strategies.

Industry and Resource Economics

* Analysis of the economics of particular industries, and their effects on the wider economy
* Analysis within an economic framework of the management of the environment and natural
resources.

Economic Forecasting

* Monitoring current and historical trends and providing short and medium term forecasts of New
Zealand and international economies
* Assessing the impact of macroeconomic trends on industries and business.

Public Policy Analysis

* Research into underlying economics, and analysis of options, for design and implementation of
policies
* Analysis of the impact of policy proposals on industries, households and the economy as a whole
* Evaluation of the effectiveness and efficiency of the application of policies.

Social Policy Analysis

* Research into income distribution, and interactions with other aspects of social policy (eg health)
* Labour market analysis
* Quantitative analysis of social conditions and living standards of particular groups and communities.

Business and Organisational Strategies

* Design of development strategies for business and industries
* Product demand analysis and forecasting
* Analysis of the nature and impact of innovation within business and industries.

View a sample of our projects and clients we have worked with.

http://www.taxteam.co.nz/Portals/0/docs/December%2009%20newsletter.pdf

For any enquiries relating to sponsorship please contact:

Fiona Mayo
Communications Manager
Local Government New Zealand
T: +64 4 924 1202
E: Fiona.mayo@lgnz.co.nz

NOTE 10) CORPORATE SPONSORS OF SOLGM

http://www.solgm.org.nz/site/About_SOLGM/Sponsors.aspx
Our Family of Sponsors

SOLGM would like to thank its Family of Sponsors for their continued support in helping us achieve our goals and provide member activities. These organisations are key players in local government and their sponsorship shows their commitment to help us and the sector advance its goals for New Zealand communities.
Principal Sponsors

MWH resized building.jpg

MWH New Zealand is one of the country�s leading multi-disciplinary consultancies, specialising in planning designing, building and managing infrastructure and natural resource projects. Our team of 750 staff in 18 offices nationwide includes engineers, planners, scientists, project managers, technologists, surveyors and landscape designers.

We help infrastructure owners to plan, design, develop and manage their transport, water, wastewater, energy, building and industrial assets and systems. We�re also widely recognised for our expertise in planning, environmental science, sustainable development, risk management and management consulting. We have particular strengths in:

Asset Management

Business Solutions

Civil and Structural Engineering

Energy Generation

Environmental Science and Management

Geoscience and Geotechnical Services

Mechanical, Electrical and Building Services

Programme Management

Roads and Highways

Statutory and Strategic Planning

Solid Waste

Stormwater

Surveying

Transport Planning

Wastewater

Water Resources

Water Supply

MWH is focused on building a better world, a commitment that affects how we operate as a global company, how we work with our clients and how we live and interact with our communities. As infrastructure and environment experts we have a unique ability to help people and organisations adapt to climate change and other emerging global issues.
visit

http://www.mwhglobal.co.nz
contact

Andrew Caseley
Director New Zealand
Phone: (03) 343 8756
Tower 2, Deans Park
7 Deans Avenue
PO Box 13 052
Christchurch

Simpson Grierson’s leading infrastructure lawyers are, and have been, at the forefront of the most complex and significant infrastructure transactions and major projects in New Zealand. Our specialists have the industry and sector knowledge, and the scope of practice, to deliver comprehensive advice on every aspect of infrastructure. Our client partnering approach ensures we will deliver on your business goals.
Web: http://www.simpsongrierson.com

Supporting Sponsors

Deloitte logo

JLT logo

Deloitte’s Corporate Finance team has specialist expertise in the areas of utilities and infrastructure.
The firm has experience in roading, infrastructure and PPP initiatives in New Zealand and has been extensively involved in the evaluation and delivery of utility projects throughout the Australasian region. Our people have been engaged in some of the largest infrastructure investments in the region over the last 10 years. These assignments have included:

– Transit New Zealand PPP and Toll road initiatives for new roading projects in New Zealand.

– Advising Auckland City Council on the financial feasibility of the Eastern Transport Corridor project.

– Financial advisor to Transit New Zealand for the ALPURT B2 toll road project.

Deloitte also has extensive experience in structured financing and has advised on developments in different regulatory, tax and legislative regimes throughout the Australasian region.
Visit http://www.deloitte.co.nz
contact

Paul Callow
Partner, Corporate Finance

PO Box 1990
Wellington

Direct: +64 (4) 470 3635
Mobile: +64 (21) 680 053
pcallow@deloitte.co.nz
core business

– Professional services
– Planning, management consultancy and financial expertise
– Water, energy, transport & communications

Activity Sponsors

SOLGM would like to thank the following organisations who support some of SOLGM’s key activities.

Opus Logo

Opus International Consultants is a leading, multi-disciplinary professional services provider of infrastructure design, architecture design and asset management. We primarily work in the areas of transportation asset design and management, building design, water and wastewater and other infrastructure assets.

The company has over 2300 specialist staff operating from offices throughout Australia, Canada, New Zealand and the United Kingdom. It was publicly listed on the New Zealand Stock Exchange in October 2007.

Opus is well known and respected in the markets it operates in.

Winner of the 2007 Supreme Exporter Award, the company expanded from its New Zealand base to establish a presence in the UK and Australia, and more recently in Canada, where it is enjoying considerable success particularly in Transportation Asset Management.

Opus has built its successful business on a framework of sustainable business Values: Strong Client Relationships, Excellent Service Delivery, Respect for and the Sharing of Knowledge, the Development of its Staff, Urgency through Empowerment, and the Sharing and Enjoyment of Success. These Values reflect the way Opus works with its clients and underpins the culture of the organisation.

In the words of Opus’ Chief Executive, Dr Kevin Thompson –

“We take pride in our achievements, the business we have built and the close working relationships we have achieved with our clients and contractors. As we look forward, we seek to extend our client base, be the provider of choice, and grow our position in the international market place by working locally with our local clients.”
Visit http://www.opus.co.nz
Contact Ed Rafferty
General Manager Business Development
T: +64 4 471 7822
E: ed.rafferty@opus.co.nz
A: Level 9, Majestic Blding, 100 Willis Street, Wellington
PO Box 12343, Wellington, New Zealand

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July 26, 2010 - Posted by | Auckland Mayoral campaign, Fighting corruption in NZ, Fighting water privatisation in NZ, Stop the $uper City

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