Media release: Local power to local people
Wellington (2 October 2013): If the developed world is looking to put more power in the hands of people at a local government level, why is New Zealand headed in the other direction?
According to the Organisation for Economic Co-operation and Development (OECD), 30 per cent of member state public spending is controlled by local government on average, but in New Zealand that figure stands at 11 per cent.
“That means that 89 per cent of the money spent on roads, schools, health and community development at a local level is dictated from Wellington,” said Dr Oliver Hartwich, executive director of The New Zealand Initiative.
“The only counties in the OECD with less local government spending are Greece and Ireland – hardly the benchmarks of good governance.”
Dr Hartwich will also discuss how New Zealand’s local government landscape fits in a worldwide context when he presents his paper, A Global Perspective on Localism at the event.
The paper’s key findings show:
- Local government is better able to respond to the needs of local communities, and is an essential element to a healthy democracy.
- Free market economists have two major fears: government intervention and monopolies. Central government is both.
- Local governments function as competitors to each other. Citizens are free to move from city to city and can choose to live in the location that suits them best.
- Just as consumers can shop for the best deal, citizens should be free to choose the public services they want to consume.
“It may seem paradoxical, but taking an international, comparative view of localism brings its benefits into stark relief,” says Malcolm Alexander, chief executive of LGNZ.
“The concept of localism is one which supports a devolved model of government that is focused on the delivery of better services to citizens, stronger democracy and ensuring the right incentives for balanced economic growth are in place – we look forward to debating this.”
The fully-booked panel discussion will be held at 6pm on 2 October at the City Gallery in Wellington.
It will be preceded by a press conference, to be held in Wellington on the same day, at which Dr Hartwich and Malcolm Alexander will be available to answer questions on localism, and the advantages it offers New Zealand.
Press Conference
Time: 10.00am arrival for a 10.15am start
Date: Wednesday 2 October, 2013
Venue: Local Government New Zealand Level 6, Civic Assurance Building 114 – 118 Lambton Quay Wellington
(Teleconference via 0800 084 464, Enter pin number: 875177#)
RSVP: to Megan Bartrum, on 04 924 1211 or megan.bartrum@lgnz.co.nz
About the New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute, which is supported by a membership organisation that counts some of the country’s leading visionaries, business leaders and political thinkers among its ranks.
Our members are committed to developing policies to make New Zealand a better country for all its citizens. We believe all New Zealanders deserve a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
The New Zealand Initiative pursues this goal by producing research reports and hosting high level conferences and events. For more information visit www.nzinitiative.org.nz.
About LGNZ and local government in New Zealand
Local Government New Zealand (LGNZ) is the peak body representing New Zealand's 78 local, regional and unitary authorities. LGNZ advocates for local democracy, develops local government policy, and promotes best practice and excellence in leadership, governance and service delivery. Through its work strengthening sector capability, LGNZ contributes to the economic success and vibrancy of communities and the nation.
The local government sector plays an important role. In addition to giving citizens a say in how their communities are run, councils own a broad range of community assets worth more than $120 billion. These include 90 per cent of New Zealand's road network, the bulk of the country's water and waste water networks, and libraries, recreation and community facilities. Council expenditure is approximately $8.5 billion, representing approximately 4 per cent of Gross Domestic Product and 11 per cent of all public expenditure. For more information visit www.lgnz.co.nz.