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What will the ageing population look like?

3/10/2017

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​I’ve been writing about the ageing population a lot lately, in terms of:
  • more people being on fixed incomes and therefore being unable to cope with rates rises to fund infrastructure
  • slower response times at traffic intersections
  • lots of one person households, all requiring infrastructure services.

While all of these factors are valid points to include in infrastructure strategies, it paints a rather drab picture of what it will be like when we inevitably become part of that group of ‘65 years and older’ … even though we probably won’t feel much different on the inside than we did in our thirties, forties and fifties. (I’m speculating, and hoping, here!)

I recently went along to a presentation on longevity, presented by Geoff Pearman of Partners in Change and hosted by Nelson City Council. Geoff made some really interesting points of particular relevance to councils and economic development agencies.
 
Reimagining the shape of our lives
Now that we are living longer, we have the opportunity to reimagine what a life course might look like. When three score years and 10 was the normal life span, it made sense to spend 20 years learning, 40 years working hard and 10 years putting our feet up.

Now that we are likely to live 20 years longer, the structure of a life could look quite different. It might involve a gap year in our thirties, or a stint at university in our forties to prepare for a new career that we continue to enjoy into our seventies.

A chance to rebalance the role of paid work in your life
New Zealand doesn’t have a retirement age. That means there’s no requirement to leave work at 65. But (at least at this stage) that’s the point at which you get a weekly cash injection, perhaps freeing you to work less hours, or choose a job you like more but pays less, or a job which allows you to take time off for an extended period of travel … in summary, being 65 and over could be an opportunity to rebalance the role of paid work in your life.

At this stage, 25% of people over 65 are still engaged in paid work in New Zealand.

Self-employment becomes less risky
Moving into self-employment also becomes an increasingly viable option. It will feel a lot safer to take this sort of risk when you know there’ll be no week with absolutely no money coming your way! Earnings through self-employment for people 65 years and older are predicted to increase significantly in New Zealand, generating $1.7 billion in 2031 and rising to $2.6 billion by 2051.

A challenge for councils — losing experienced engineers, planners and project managers
People with regular super coming into their bank account have more choices than others about whether to work or not. This is a challenge for councils who have a large number of older staff with specialist knowledge, including engineers, planners and project managers.

They are more likely to stay, and to pass on their specialist knowledge to younger staff, if they feel valued. Several negative stereotypes need to be addressed in order for older people to feel good about their work and their workplace, and therefore continue to contribute their knowledge, skills and judgment (which get better with age).

Negative stereotypes about older people
Myth 1: People become less productive as they become older. This isn’t true. Productivity is directly related to levels of engagement, not age.

Myth 2: Older people will cost more in sick leave. The laggards in this regard are actually people aged between 30 and 45 — they are the greatest beneficiaries of paid sick leave.

Myth 3: Older people will struggle to adapt to new technology because they’re not digital natives. Geoff pointed out that we have been adapting to new technology throughout our lives. However, employers may need to think about how new technology is ‘unpacked’ for older people who may prefer 1:1 learning, rather than a group situation.
 
Councils are competing for young people
Councils and economic development agencies throughout New Zealand are competing with each other to attract more young people. It may be smarter for councils and other employers to spend a larger proportion of time and energy engaging and retaining older workers.

The Long Game
Thanks to Nelson City Council for hosting a series of events designed to inspire a community conversation about what an ageing demographic means for the region and for each of us individually. Interviews and speakers' presentations are available here.

  • Please feel welcome to share this article with anyone you know of a 'certain age' ... I hope it encourages us all to think positively and creatively about what we might do in future.
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Waikato Plan promotes collaboration

25/3/2017

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I lived in Hamilton for six years (four at university and two working as a journalist at the Hamilton Press) and I loved my time there. At first I missed the sea (after growing up near Waihi Beach), but I came to appreciate the Waikato River, the Hamilton Gardens and how easy it was to get around on a bike (no hills and much less wind than Waihi!)

The Waikato is rapidly growing in response to Auckland's population pressures and its proximity to that market place. A plan to set the region's course over the next 30 years has recently been released, and is open for submissions until 10 April. 

Draft Waikato Plan
The Draft Waikato Plan is a collaboration between local government, Iwi/Maori, central government, the private and community sectors and the Waikato people. 

On first glance, it looks like it should create significant efficiencies for councillors and staff in each of the participating councils, and save a lot of time for Iwi, central government agencies and other stakeholders who won't need to make submissions on similar issues in a whole lot of different plans.

Priorities and actions
The Waikato Plan includes these priorities and actions.

Priority 1: Planning for population change
1. Collaborate on a regional development strategy.
2. Identify the regional priorities for service and technical infrastructure.
3. Identify how central government services can be provided to match community need.

Priority 2: Connecting our communities through targeted investment
4. Advocate on behalf of regional transport priorities.
5. Integrate Auckland and Waikato transport networks.
6. Encourage development of a nationally significant cycling and walking experience.
7. Establish a freight and logistics action group.

Priority 3: Partnering with Iwi/Māori
8. Work collaboratively to develop and encourage enduring partnerships that enable Iwi/Māori aspirations to be achieved.

Priority 4: Addressing water allocation and quality

9. Develop the Waikato as a Waters Centre of Excellence.

Priority 5: Advancing regional and economic development
10. Assist in implementing the Waikato Economic Development Strategy (Waikato Means Business).

Implementation
A Waikato Plan Leadership Group will be responsible for overseeing implementation of the 10 actions listed above. The Group will consist of representatives from:
  • local government (5)
  • Iwi (6)
  • the business/community (4)
  • NZ Transport Authority (1)
  • the Waikato District Health Board (1).

Two people will represent the following group of public sector agencies: the Ministry of Business, Innovation and Employment, the National Infrastructure Unit, the Ministry of Social Development, Te Puni Kōkiri, the Ministry of Education and any other public sector agencies.

An Independent Chair will either be appointed from the business/community members or as a separate appointment outside of any committee membership.
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Waikato Regional Council will be the administration agency for the initial three-year implementation period. The implementation advice arrangements, contracts and budget administration will be run through Waikato Local Authority Shared Services Ltd, which is a council-controlled organisation. 

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Should councils invest time and money in Facebook?

9/12/2016

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At first glance, councils and Facebook may not seem like a happy mix. That was certainly the view of the Taxpayers' Union, which recently criticised councils for their spending on Facebook and Linkedin advertising.

So, is Facebook something to leave to family and friends, and small businesses? I don’t think so. There are lots of council topics that are very appealing to people.

Appealing topics 
  • Libraries can talk about new books, DVDs and CDs now available on their shelves, and offer reviews. They can also reflect the role libraries now have as community hubs including promotion of events and workshops being held in libraries, and the computer and other training sessions librarians now offer.

  • Festivals/events being run or sponsored by a council are a natural fit for Facebook. This can include posts about upcoming acts with links for buying tickets, text and video interviews with the people who will be performing, and (even easier) video of previous performances.

  • Environment – upcoming planting days, updates on restoration projects, and consultation on policy issues are all of interest.

Interesting examples
Here are some great examples of council Facebook pages from around the country.

  • Auckland
The most recent posts on Auckland Council’s page are about this morning's Solomon Islands earthquake and the tsunami risk for New Zealand, a video of kids in a playground that has 1,100 views, and information about an upcoming Christmas in the Park event.

Auckland Council spends the most on social media advertising, at $187,870.

  • Waikato
The Waikato Civil Defence Management Group was a finalist in the 2016 LGNZ Excellence Awards for its civil defence social media strategy.

The Local Government Magazine (September 2016) reported they “developed a unique and humorous approach that delivered education and entertainment as well as official warnings and significantly increased its social media presence.”

At the time of the award the following for its Facebook page had grown from 800 to 13,400. It now has 18,858 fans! Here’s a link to this page - https://www.facebook.com/WaikatoCivilDefence/

  • Southland
Environment Southland was also a finalist in the 2016 LGNZ Excellence Awards for its innovative approach to engaging its community in developing a new water and land plan. This process included two live Facebook Q&A sessions.
 
There are lots of videos on the Southland Facebook page profiling the 2016 Southland Community Environment Awards nominees. The most prominent one has 1,700 views, and many of the others have between 2000 and 5000 views.

Here’s a link to the videos section of the Southland page: https://www.facebook.com/pg/environmentsouthland/videos
 
Types of posts that work well on Facebook
Some of the things that appeal to people on Facebook are:
  • visual content with short text
  • video
  • an informal tone, remembering that your post will be turning up in a newsfeed alongside posts from their family and friends.

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​Do you have a favourite council Facebook page?
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Please share a link to it in the comments below.
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Reading just became more fun in the Waikato

22/11/2016

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When Max first came into our lives in January 2014 I wanted to read all about dogs. While I didn't read this book aloud to him, I loved hearing that Waikato District Council has recently launched a 'Dogs in Libraries' programme. 

Children can practise reading to a dog, who isn't going to be too critical about a few missed words! I'm sure the dogs will love this experience too. Whenever I'm talking on the phone Max turns up beside me - he seems to like listening in!

Even though it's funny, there is serious intent behind this programme.


"It’s been shown to increase a child’s relaxation while reading because it’s a lot less intimidating than reading to people and it allows children to proceed at their own pace,” says Animal Control Team Leader Megan May.

It is also likely to help children who are not familiar with dogs to be more relaxed when encountering them in public places.
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How will councils adapt to the five big trends?

16/11/2016

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The five big trends could increase inequality here
We’ve been hearing a lot about inequality lately, as the fuel behind the referendum outcome in Britain and the election results in America. So it’s alarming to realise that many of the trends outlined in the LGNZ paper 'The 2050 challenge: future proofing our communities' have significant potential to increase inequality in New Zealand.
 
The LGNZ paper identifies more urbanisation, changing demographics and employment, automation and climate change as the five big issues we are likely to be tackling over the next 30 years.

Trend 1 - urbanisation
Large cities will expand and populations in many regional centres and rural areas will contract.
 
Trend 2 - changing demographics
In just over 30 years, four out of every 10 people will be at least 65 years old - including almost everyone who is reading this article! If most of us stay in our existing homes there is likely to be even more pressure on housing.
 
As well as being older, there will also be a much higher proportion of Maori, Asian and Pasifika people in New Zealand.

Trend 3 - more flexible employment arrangements
Our communities are increasingly moving away from ‘9 to 5’ permanent employment. One third of New Zealand’s working population now work in jobs that are not salaried full time employment

For half of these people, this is a great outcome because it offers them freedom and flexibility. For the other half it’s just a big dose of uncertainty and financial stress.

Trend 4 – automation of existing jobs
Parents are even less likely to understand what their children do at work than is currently the case. Automation of up to 46 percent of existing jobs has been predicted by some, meaning people will need different skills in order to find work.

The impact of these changes is likely to be felt much more severely by people in lower-skilled, lower-paid jobs. It will also have an uneven impact across the country, depending on the industries which become the most automated.

Trend 5 - climate change
Individuals and communities will be differently affected by climate change, particularly sea-level rise, changes in rainfall, and the occurrence of natural disasters.

Council responses to these trends
What roles will local government have in addressing these uneven impacts, and helping people to adapt to the new reality?
 
Councils have a clear mandate to be involved in planning and infrastructure provision related to urbanisation, as well as adaption to climate change. They will need to decide whether communities as a whole contribute to managing these impacts or whether a direct user pays approach should apply.
 
It is less clear what role councils could have in helping people to adapt to more flexible working conditions and automation of existing jobs. It may be that the main role for councils will be as a strong voice to central government on the impacts of the changing work environment on their communities.
 
As demographics change, there’s even more risk that the interests of the 40% of people over 65 years’ old will carry more weight around council tables than the concerns of younger people. After all, older people have more time to make submissions, attend meetings, and will be a significant proportion of the home-owning ratepayers of an area.
 
The LGNZ paper notes that conventional consultation models are unlikely to capture representative input and new engagement strategies are needed.
 
I imagine social media will become increasingly important and provides an opportunity for councils to be more connected to people whose concerns would not otherwise be represented.

What do you think?
  • How will councils engage differently with their communities over the next 30 years?
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How do we decide where to live?

20/10/2016

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Friends are considering moving from Brisbane to New Zealand, and are weighing up Wellington and Christchurch as their future home. While it’s easy enough to look at job opportunities, house prices and weather reports from afar, there’s still a need to go to a place and ‘sniff the air’ to really know if it’s a place where you feel you can thrive.

Everyone has their own subjective response to a place, but a recent study by KPMG identifies seven principles cities can follow to be more appealing to people, specifically young wealth creators. KPMG describes these as ‘magnet cities’ and includes Christchurch as one of its success stories.

1. Magnet cities attract young wealth creators
This involves choosing an authentic point of attraction. Cities that successfully target particular groups of wealth creators do so because there is a logical link to the city.

One of the niches Christchurch is developing following the earthquakes is to foster expertise in construction methods, and natural hazards. This is one example of diversification of the city’s economy to become a centre for specific research, technical and professional services.

2. Magnet cities undergo constant physical renewal
KPMG notes that many young professionals favour housing in urban cores, or in neighbourhoods that are linked to the urban core by quick and easy public transport. The design and sustainability features of housing is as important as its location – many prefer to live in mixed use neighbourhoods.

Christchurch’s city centre is to be condensed to 40 hectares, with the aim of attracting new residential use as well as businesses.

3. Magnet cities have a definable city identity
Without a clear city identity it is difficult for future residents to clearly understand what a city stands for and whether they are attracted to it.

4. Magnet cities are connected to other cities
If a city is going to attract a new generation of residents, the city must be easy to get in and out of. In particular, young wealth creators who move into a city are likely to travel back and forth more frequently to other places or cities for work and to visit family and friends.

5. Magnet cities cultivate new ideas
All of the case study cities leveraged their academic institutions to bring change to their cities.

Here are some of the actions being taken by Christchurch:
  • The Health Innovation Hub will include an academic facility to support the development and commercialisation of medical-related research and development.
  • An innovation precinct is being developed to make it easier for companies to collaborate, and is being backed by Google.
  • A new Agrihub has been established to grow the city’s strengths in agricultural technology.

6. Magnet cities are fundraisers

The city councils have played an active role in providing capital and attracting private investment, research grants and public funds. Often the city’s existing assets have been used to attract further investment to transform the city.

7. Magnet cities have strong leaders
The mayors of the cities studied by KPMG all had to cope with criticism and hostility when introducing a new vision for a city and making the necessary changes. They have been relatively inflexible about changes to the future vision for their city once it was agreed, but extremely flexible about the steps they took and who they involved to get there.

More detail
​For more detail, please see KPMG's Magnet Cities document. The Christchurch Case Study is on pages 88 – 121.
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Good planning is key to high quality cities

7/9/2016

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Introduction
Opus Senior Planner David Jackson has worked in central and local government, as well as consultancy.  He has a strong interest in urban planning and design, neighbourhood and centres development planning, as well as how to develop longer term plans that work and are useful.

In this article he shares his thoughts on the potential for more joined up planning in New Zealand.


Celebrated cities
Melbourne, Curitiba, Vancouver and Singapore are all densely populated cities which are celebrated for their high quality urban environments. Something these cities all have in common is long term, consistent implementation of solutions to their challenges.

The requirement for New Zealand councils to develop thirty year infrastructure strategies and the Proposed National Policy Statement on Urban Development Capacity are promising first steps in enabling New Zealand cities to plan the creation of higher quality urban environments here,. However, lack of an integrated approach to this long term planning is a risk.

Upcoming challenges
Many of the issues identified in the 2015 NZ Thirty Year Infrastructure Plan will also need to be addressed at a local level:
  • Aging infrastructure
  • Aging population
  • Changing shape of where New Zealanders live (some areas growing, others declining)
  • Changing technology
  • Climate change.

All of these are good things to be considering, but whether they get translated into infrastructure plans will come back to the range of disciplines addressing them. For example, our large ageing population is a medium term issue, but we don’t want to permanently plan our cities around this somewhat temporary demographic issue.

One solution could be to think about adaptive uses such as making it easy to live in half the home and convert the other half for renting out and getting some income from that. Or temporary granny flats, which can be taken away once it’s no longer needed on a property.

I do worry that, notwithstanding the above list of issues, many thirty year infrastructure strategies will just be about roads, sewers, drains and the like.  While they are important, and indeed critical, you cannot plan properly for them without considering the land uses that will drive the demand on infrastructure.  It seems obvious to me that you cannot work out your infrastructure needs without considering the activities on the surrounding land.  But this does not seem to be universally accepted – much asset management planning gets done in isolation from other planning or strategic visioning.

Legislative backing is needed
A lack of non-partisan buy in to a strategic direction can hold us back. This, and a three year election cycle, has led to a lot of unpicking of projects and longer term plans.

Another challenge has been that the Local Government Act and the Resource Management Act don’t talk to each other very well. There is still a lack of clarity on how everything relates.

Most councils have interesting strategies gathering dust on shelves. This ends up devaluing public input, which can be given enthusiastically with an expectation that it will make a difference. However, if strategies aren’t mandatory they tend to be ignored over the longer term.

This is an argument for urban development legislation. Medium to long term strategies that address neighbourhood development and sustainability need legislative backing. We should focus on refreshing these strategies over time rather than reinventing them on a regular basis.

Higher density living increases the need for quality urban environmentsThe thirty year infrastructure strategies are only required to address one angle of longer term planning. Likewise, the Proposed National Policy Statement on Urban Development Capacity focuses on providing more housing, but not on the experience of living in these places.

We also need to think about the quality of the urban environments. The higher the density of housing, the more quality matters. For example, if there’s no outside yard, local parks become more important.

Integrate infrastructure, zone rules and project fundingCouncils have a choice when developing their infrastructure strategies. They can be basic, only focusing on the roads and pipes we need. Or they can become the starting point for a long term growth plan/spatial plan. This would be just as useful for areas experiencing depopulation as for growth areas, for example to make decisions on abandoning a certain area of the town.

An urban development plan could bring together statutory plans with zone rules, infrastructure and the funding for actions.

Only Auckland currently has a mandatory requirement to do a spatial plan (required as part of the development of the Unitary Plan). Dunedin has developed a spatial plan which is not too over the top, but addresses growth, hazards, neighbourhood centres and a range of other issues.  I see it as a good example of a very useful plan – useful in the sense of providing the platform for their new district plan, and for a bunch of actions that get funded through the Long Term and Annual Plans.

Examples of high quality cities
These cities didn’t just accept the problems they faced, but instead did something about it.

Melbourne has a development plan, and the council has paid a lot of attention to urban design. The city has great transit, with just one card needed to go on all transport, making it easy to move around.  The combination of good accessibility, design flair and vibrancy means that Melbourne has to be up there as a world class city.

Curitiba, in Brazil, solved its transport woes, which were significant in the 1950s and 60s. Its mayor (who incidentally, or perhaps significantly, was a planner) led a plan to create an integrated transit-based city. It was so successful that Curitiba’s council now has a whole department for hosting all the people from around the world who come to learn how to achieve similar outcomes.  It is interesting to reflect on the different paths Curitiba and Auckland took over the last 50 years, with vastly different results.

Vancouver has incorporated the concept of ‘gentle density’ in its spatial plan. I love this term, as it’s not threatening, and it works at various levels:
  • garage conversions to a bedsit or a loft
  • basement conversions which are just about invisible
  • laneways for access, allowing a second house on a section
  • combining two or three sections for terraced/joined up housing of up to three storeys that fits the environment, creating housing for quite a few more people.

​Portland created something different as a result of being steadfast in their approach rather than chopping and changing.

​Singapore
 doesn’t have many natural features, but has invested in design to create great public spaces and art, and gardens. It also has brilliant transit and free events.  Paradoxically, for a place that depends on fossil fuels for its very survival, it is very green in many respects.  
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How to ensure a successful hearing process – “set, bind, engage!”

8/8/2016

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Introduction
David McMahon is an accredited Independent Hearing Commissioner and resource management consultant at RMG with particular expertise in statutory planning and process. He has been a Commissioner since 2001, and has worked on a large number of plan change, resource consent and designation hearings in Wellington, the lower North Island and across the South Island.

In this article (the final one of a three part series), David identifies areas for improvement in how councils work with commissioners, and some of the challenges commissioners face.

In part one David discusses the increasing trend for councils to use independent commissioners, and in part two he discusses the decision making process.

What can council officers do to help independent hearing commissioners, to ensure a smooth hearing and decision making process?

The most important things are early engagement and separation of functions.
The sooner the Commissioner or panel is engaged, the sooner they can establish the pre-hearing process and timetable to be followed; for example pre-hearing meetings, expert conferencing/caucusing and further information requests.

Providing sufficient time for those actions to occur, whilst potentially delaying the commencement of the hearing, can usefully serve to narrow the issues in contention and therefore shorten the actual hearing duration or even in some (albeit limited) cases can completely resolve issues without the need for a hearing. The written directions to parties that a Commissioner can provide once appointed can readily assist in providing the scope and space for such conferencing/resolutions.

Although it is difficult for smaller councils without the luxury of large planning teams, it’s also essential that wherever possible a council maintains a separation between their administrative and reporting functions when dealing with hearing commissioners and panels.

Quite often the reporting officer is handling administrative arrangements, including commissioner liaison, and this is not appropriate. A reporting officer is no different from a submitter or an applicant. It is not okay for the hearing panel to be liaising directly and individually with any individual party to the proceedings, whether submitter, applicant or reporting officer because there’s the risk of influence, or a perception of influence.

What are some of the challenges independent hearing commissioners face?
  • Timeframes
The statutory time frames for limited notified and fully notified consents mean that if a large proportion of the time is used up in processing, it constrains the time available for deliberations and decision-making. In this respect, pre-circulation of evidence (including the section 42A report) has been the biggest game changer due to the impact on timeframes. This is particularly so for resource consent hearings, whereas plan hearings have fewer time constraints.

Accommodating pre-circulation requirements into the time frames set down for limited and fully notified resource consent hearings is now mandatory but it does put pressure on all parties. Expert witnesses, whilst conscious of meeting the expectations of commissioners and working in the spirit of the code of practice, understandably have an eye on the ticking clock which means that they will still need to produce a brief of evidence following conferencing and have it circulated as per the due dates.  Commissioners need to be cognisant of these tensions and pressures when setting their own timeframes. The quid pro quo for experts is that if they are successful in narrowing the issues during conferencing this will reduce the scope and length of their evidence.

There is more opportunity for resolution of issues through a prehearing process for plan reviews and plan changes because the time frames are more liberal. So, whilst prehearing discussions enable a narrowing of the issues to be considered at the hearing, this can only effectively be done for plan changes and plans, unless in the case of resource consents the applicant agrees to put the application process on hold to accommodate pre-hearing conferencing. Otherwise, there isn’t much time for talking and everyone becomes locked into pre-circulation of evidence.

Early engagement is critical for this to be successful. For example, I have been engaged to assist with the decision making on a plan change at Tasman District Council. I have known this for 18 months, which means I can make sure I have the time available to do it, and I can be across all aspects of the process as soon as the official delegation has been made by the Council. This usually occurs prior to notification.

Once submissions close, I issue directions through a minute. This goes out to all parties involved in the hearing. It provides certainty about the process and gives a likely timeframe. In the minute, I outline the key issues raised in submissions and indicate I want parties to get together to resolve as much as possible before the hearing.
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  • Role separation
Working with councillors who are less experienced as hearing panel members can be challenging if they are finding it difficult to separate their roles as a hearing commissioner and as a councillor. In addition, some panel members are less willing to be advised on processes governing deliberations and outcomes. Fortunately, this is a rare occurrence.  Overall, and as discussed in Article 1 of this series, I firmly believe mixed panels are a good idea.

  • Out of scope submissions
Sometimes submitters raise matters that are not relevant to the proceedings. I don’t enjoy having to explain to the submitter that the issue is ‘out of scope’ or outside the RMA jurisdiction. I do allow some latitude for submitters to address such issues but it’s usually on the basis that they are best advised to use their speaking time more effectively on matters that I can control as opposed to matters that are outside my jurisdiction.

  • Categorisation of submissions
As discussed in Article 2, I like to take an issues approach to deliberations, which can be assisted or impeded by the way submission points are categorised, and reported on in the section 42A report. In this respect, having reporting officers group a whole range of submission points in a ‘general’ category in the section 42A report is not helpful.

  • Voluminous material
One of the noticeable trends under the RMA is the massive amount of written material produced by its statutory instruments and associated processes. This is very prevalent in RMA hearings, particularly with the amount of pre-circulated material that is produced and needs to be read prior to the hearing commencement. While this essentially shortens the hearing process, it places a huge demand on panel members to read the material beforehand and to assimilate the content.

Concluding comment
This is the final in this series of articles on decision making under the RMA. I’ve enjoyed contributing to it and hope it has been of interest to all participants in RMA hearings.  Hopefully it has stimulated some discussion even if you don’t agree with all that has been canvased.

Finally, I would like to thank Debra Bradley for initiating this series and getting me motivated to contribute under her editorial tutelage. Her grasp of these matters is impressive and I would commend her services to councils throughout the country.
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How decisions are made – a commissioner's perspective

29/6/2016

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In part three (the final one of a three part series), David identifies areas for improvement in how councils work with commissioners, and some of the challenges commissioners face. 
Introduction
David McMahon is an accredited Independent Hearing Commissioner and resource management consultant at RMG with particular expertise in statutory planning and process. He has been a Commissioner since 2001, and has worked on a large number of plan change, resource consent and designation hearings in Wellington, the lower North Island and across the South Island.

In this article (which is part two of a three part series), David discusses the decision making process.

In part one David discusses the increasing trend for councils to use independent commissioners, and in part three he identifies areas for improvement in how councils work with commissioners, and some of the challenges commissioners face.

In part three (the final one of a three part series), David identifies areas for improvement in how councils work with commissioners, and some of the challenges commissioners face. 

What happens during the decision making process?
  • After the hearing
As a general rule, we don’t close the hearing on the day the submitters or applicant/proponent finish speaking. We usually adjourn the hearing for two reasons.

Firstly, we often do a follow up site and locality visit. In many instances there are particular properties or places we want to visit a second time based on material we have heard during the course of the hearing; usually from submitters.

Secondly, an adjournment provides an ideal opportunity to collate the information in front of the Panel to ascertain whether there are any material gaps that should be plugged by one or more of the parties. Nine times out of ten I have usually flagged these information requirements to the parties during the hearing but the immediate post-hearing point is an ideal time to perform this form of 'stock take'.

Actually there is a third reason for an adjournment; that is to give either (or both) the Reporting Officer and the Applicant some time to prepare their respective ‘closings’. For the Reporting Officer this is usually giving them adequate time to reflect on what they have heard (from the applicant and submitters) during the course of the hearing and to reduce that to a written update to their section 42A report. For the applicant this is an opportunity to provide their traditional right of reply in writing.   

I usually minute the above process so everyone knows what is expected and the timeframe involved. Normally we reconvene at another time to hear those ‘closings’, but sometimes it’s possible to just consider the papers without reconvening.

  • Making the decision
Where I am acting as the Chair, I have a role to educate the hearing panel, and ensure all views are considered. At the commencement of deliberations, I go around the room to see where everyone sits on the matter we are deciding – whether a plan change or a resource consent – what they are happy with and what bugs them, and we get those things up on the whiteboard. Once people see their issues listed, they feel less obliged to keep bringing up the same points.

These things are not necessarily taught in the commissioner training – but they are what I can offer.

Councillors are generally receptive to working through how we make a decision first, before arriving at the actual decision. We look at the issues and the context before reaching a decision.

Sometimes councillors want to jump immediately to a decision; that is inevitable and what they are often used to in LGA forums. But my role is to promote a logical decision making process and ensure we have addressed all issues that are relevant to arriving at a decision. This is important as the reasons for the decision need to be clearly stated in the formal determination.
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I use two whiteboards to structure the decision making process. One for the decision outline and one to develop each section in that outline. The first is the broad structure of the decision and helps provide context for the decision-making process. The second represents the ‘skeleton’ of the write up of each section (topic or issue) of the decision. At each stage in the process the notes on the boards are photographed and this informs the creation of a decision report covering:

Part 1 – Introduction – background and proposal
Part 2 – Issue definition and a summary of what we heard
Part 3 – Evaluation – what we make of what we heard
Part 4 – Statutory considerations
Part 5 – Recommendations.

  • Decision writing
Independent commissioners (ICs) bring decision writing skills to a Panel. ICs can either write their own decisions or delegate to a decision writer, or use a combination of both.  I employ both methods depending on the complexity of the matter being considered. However, on complex proceedings, working with a hearings adviser can be more efficient than the panel creating this decision report. It’s ideal for the hearing adviser to attend the hearing, to hear the submissions first hand. Writing up can be done remotely, but it is more difficult.

Even though councils no longer have to make decisions on individual points on district and regional plan matters, I still use a table to record individual decisions on every submission and further submission point to make sure everything is covered. I encourage councils to adopt this table approach in the submission summary and in the section 42A report (usually as an appendix) as it allows the decision to focus on the issues in contention rather than become a prolonged narrative on submitter points.

  • Issues approach
I like to take an issues approach. This decision report example relating to the delisting of a heritage building in Wellington (Plan Change 81) covered 11 issues. The decision report clearly states how evidence was weighed and balanced. It’s clear why the decision was made. It also notes why a different decision could arise at appeal stage if other evidence which was tabled (but not tested) was considered in a different forum.

What is the role of local knowledge in the decision making process?

Local knowledge is both useful and a hindrance.

In a hearing, you can only know what you’re told in the written/verbal material placed in front of you at the hearing (a bit like a jury). Commissioners are there to hear, to weigh and to balance the evidence. Whilst a Panel Member’s technical knowledge may assist them in testing certain evidence, it is not appropriate for Panel Members to substitute their own knowledge for the absence of evidence.

Local knowledge can also be very useful, for example being able to advise the other Panel Members that a council has decided to address heritage issues through Long Term Plan funding and non-regulatory education rather than through the district plan.  Local knowledge of the good spots for a decent coffee is also critical.

What is your process for reaching a decision when the independent commissioners on a Panel don’t agree?

I try and break down the issue – is it limited to a particular component of the decision or is it the total decision?

I also attempt to isolate the reasons for the disagreement – are they valid; are they RMA related; and are they capable of being addressed through the addition or deletion of a particular provision (on a plan matter) or conditions (in the case of a resource consent)?
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Really, it’s a case of exploring all possible solutions to the disagreement, and if there’s still no consensus then accepting that a dissenting or alternate view/decision may be the outcome. In this case it’s important that Panels either have an uneven number of members, or if it is an even number, that the Chair has a casting vote.

Will use of independent commissioners increase decision making consistency across New Zealand?

I hope so. It can’t help but increase awareness of how best practice is evolving around the country. In this sense I really hope this series of articles generates some interest in the use of ICs around the traps and in particular the use of Mixed Panels, and also helps share some of my thoughts with other Commissioners.

What do you like most about working as an independent hearing commissioner?

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Achieving an efficient and effective outcome is immensely satisfying, as is having opportunities to train others.
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I also enjoy meeting a diverse range of people with a variety of skills, and travelling to places like Ohakune in summer when it is very quiet (out of the ski season), and Alexandra in the middle of a very cold hoar frost. Every hearing is different.
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Independent commissioners are coming to a town near you!

20/6/2016

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Introduction
David McMahon is an accredited Independent Hearing Commissioner and resource management consultant at RMG with particular expertise in statutory planning and process. He has been a Commissioner since 2001, and has worked on a large number of plan change, resource consent and designation hearings in Wellington, the lower North Island and across the South Island.

In this article (which is part one of a three part series), David discusses the increasing trend for councils to use independent commissioners.

In part two David talks about the decision making process, and in part three he identifies areas for improvement in how councils work with commissioners, and some of the challenges commissioners face.

Have you noticed a trend towards councils using independent hearing panels more often?

Yes. This is definitely a trend, which began in earnest around 2005 when the Making Good Decisions course commenced and independent commissioners needed to be officially accredited. It has been ramping up ever since, following law changes in 2009 requiring a proportion of all hearing panels to be accredited, and in 2013, requiring accredited Chairs of hearing panels.
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In particular, I’ve noticed a trend to use independent commissioners in a mixed panel arrangement, made up of some councillors with one or two independent commissioners.  This reflects the need for panels to be made up of accredited commissioners and Chairs, as not all councillors are accredited.

Another reason for this trend is general pressure on councillors to focus on other Council responsibilities under the LGA and portfolios. It can be difficult for councillors to commit significant amounts of time to long hearings.

Are hearings becoming longer?

As a general rule yes. There has been a noticeable increase in the complexity of hearings, which require a diverse range of technical knowledge. This has particularly been the case with regional consent applications (and joint regional/district hearings such as quarry/landfill applications) where scientific evidence often predominates. Also, now that second generation district plans are being developed, with resource consent hearings we are returning to the situation of having to consider the relative weightings of provisions in existing and proposed plans.
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Small hearing reports are a thing of the past. There is often a requirement for multiple technical assessments by reporting officers and applicants. For example, in addition to the typical traffic, noise, and landscape assessments, the rise of the geotechnical assessment has occurred since the Christchurch earthquakes. So there is more technical information for panels to absorb.

The counterbalance to this – and a recent trend since the 2013 amendment – is the increase in pre-circulation of hearing reports and expert evidence. Avoiding the need to have evidence read verbatim at hearings is helping to keep hearings to manageable lengths.

Even though hearings are longer and more complex, there are fewer resource consent hearings because the vast majority of resource consent applications are non-notified following legislation changes to speed up resource consent processes.

This change means there is more reason for people to get involved in plan hearings, which means these hearings are likely to be longer, and involve more people.

In what circumstances are councils most likely to use an independent hearing panel?

Independent commissioners (ICs) are used in both resource consent and District/Regional Plan hearings. However, in my experience, ICs are most likely to be involved in resource consent applications, either exclusively or as part of a panel.

Councils use independent hearing panels where the council is the applicant, for example, applications related to a roading designation, a community centre or a waste water treatment plant. They are also used for resource consents where there is potential for conflict due to lobbying of councillors, or if councillors know the applicant.

Another factor leading to the use of ICs – and a more recent trend under the RMA – is that both applicants and submitters can now request independent decision makers on resource consent applications.

In what circumstances do you think it is better for councillors to hear submissions and make decisions?

It’s good for councillors to be involved at a plan making level.  That’s because if they get the policy right, the “right” decisions will be made on resource consent applications.

However, mixed panels of independent commissioners and councillors are even better, and are now the accepted norm. Mixed panels can be very effective because they combine councillors’ local knowledge and governance role with the technical expertise and legislative know-how of the independent commissioners.
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Queenstown District Council is using a pool of commissioners in the decision making process for its Proposed District Plan. The same Chair is involved in all the hearings, alongside one councillor per hearing and two other commissioners (from the pool). Kapiti Coast District Council is using a mixed panel of two ICs, two councillors and one Iwi commissioner for its Proposed District Plan hearings.

Next year the Wellington Regional Council’s Proposed Natural Resources Plan hearings will be heard by a panel of three independent commissioners.

How do councils find out about the independent commissioners available to assist them?
There are a variety of ways to select independent hearing commissioners. There is a centralised list on the Ministry for the Environment’s Making Good Decisions web page.

Many councils are now either calling for nominations from independent commissioners for their register of accredited decision makers (usually for resource consent hearings) or requesting specific registrations for plan reviews (from which either a pool or a panel is constituted).

Word of mouth plays an important part too.

Commissioners can also advise on the best mix of skills and personnel for a particular hearing panel. When I am asked to be a commissioner on a hearing panel I ask who I will be sitting with. I take into account skills and personalities, and whether it will be a strong team. I’m a generalist who understands process and policy. Technical experts are often needed, and involvement of a councillor with local knowledge can also be important.
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It is a great privilege when councils approach me and ask who I would recommend including on the panel, giving me the opportunity to choose a strong team.
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Nearly half of New Zealand businesses have difficult-to-fill vacancies

7/4/2016

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Councils rely on a wide range of skilled labour to function, so the Productivity Commission's issues paper on new models of tertiary education has important implications for the local government sector. The trends in employment and education will also affect communities around New Zealand. The full paper is available here and initial submissions are due by 4 May 2016. Here's a summary of some key points.

There is a need for an increasingly educated workforceTechnological advances could make a large proportion of existing jobs obsolescent in the coming decades.

Based on current expectations of technological trends, the jobs most at risk are those with lower wages and requiring low levels of educational attainment. Analysis suggests 46% of New Zealand’s workforce faces a high risk of computerisation, which is similar to estimations for the United States.

Historically, routine and manual jobs (which tend to be low-wage and low-skilled, and which a computer can more readily undertake) are more at risk of decline than non-routine or interpersonal roles that require contextual judgement and emotional input.

This skills-biased technological change may mean that a large proportion of working adults will need to upskill and, in some cases, gain new qualifications to stay employed – including those who already hold qualifications. This proportion of students re-entering tertiary education could therefore be much larger in the future.

Nearly half of New Zealand businesses have difficult-to-fill vacanciesA 2013 survey of businesses reported 41% with difficult-to-fill vacancies. Half of those businesses identified applicants lacking the necessary “qualifications or skills” as a reason. Other common explanations included applicants lacking the desired attitude, motivation or personality; that they lacked work experience; and that there were not enough applicants (Statistics New Zealand, 2013).

New Zealand’s economy has a growing services sector and shrinking goods-producing and primary sectors. This trend increases the importance of skills development, the availability of skills in the labour market, and their effective use by employers. This is because performance improvement in the services sector relies on the acquisition, manipulation and application of information – and this is strongly influenced by worker skills.

How might tertiary education be delivered in future?Technological change is improving quality and reducing costs in tertiary education in many countries, and has further potential to do so. For example, computer programmes are increasingly able to personalise content or customise learning based on individualised assessments and some argue that massive online open courses (MOOCs) offer the potential to radically increase the output of education without compromising quality.

The Ministry of Education and the Tertiary Education Commission consider there are a number of implications of MOOCs in New Zealand:
  • the potential to unbundle learning and accreditation; for example, allowing students to undertake courses for free, while paying for assessment and accreditation
  • the potential for New Zealand institutions to extend their brand and reach a large international audience, including through offering MOOCs as a “taster” to attract paying students, or offering courses that would otherwise be too niche to be viable
  • an opportunity to experiment with innovative teaching approaches
  • the opportunity for institutions to reduce costs
  • the ability for students to easily access learning in an area of their choosing
  • opportunities to better support continuing education and professional education for employers and employees.

A particular challenge for online delivery of education is that while it has the potential to improve productivity and improve access for students, there is also good evidence that establishing positive peer and student-teacher relationships are important elements of success for some population groups who experience worse tertiary education outcomes than other groups.

Impact on international student numbers
International education is one of New Zealand’s largest exports. In 2014, more than 54,000 international students were enrolled at tertiary providers.

Commentators have identified a number of risks that New Zealand providers face in serving the international student market, including:
  • the rapid rise in the availability and quality of education in the home countries of international students could make domestic study more attractive
  • successful online distance education models may reduce the desirability of travelling for education.

Issues paper

The full ‘New Models of Tertiary Education’ issues paper is available here.
It considers five major trends:
  • demographic change
  • new technology
  • changing labour demand
  • increasing costs of tertiary education
  • internationalisation (global markets for education).

​Initial submissions on the issues paper are due by 4 May 2016.  The submissions will help shape the nature and focus of the Productivity Commission's inquiry.

Anyone can make a submission. It may be in written, electronic or audio format. A submission can range from a short letter on a single issue to a more substantial document covering many issues. Supporting facts, figures, data, examples and documentation should be provided, where possible.

Submissions may be lodged at www.productivity.govt.nz or emailed to info@productivity.govt.nz. Word or searchable PDF format is preferred. Submissions may also be posted, but an electronic copy should be emailed as well, if possible.

​Next steps
  • The Productivity Commission will release a draft report in September 2016.
  • Submissions on that report will be due in November 2016.
  • A final report will be provided to the Government by 28 February 2017.
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How councils are helping their communities prepare for a digital future

28/3/2016

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Like many local authorities, Tasman District Council has prepared a Digital Enablement Plan as part of its application to the Government for extended broadband internet access and mobile coverage. One of the aims is to make it possible for people to enjoy visiting or living in the beauty of remote locations while continuing to make a living.
Better broadband and mobile access is critical to making it easier for people to move away from the big centres to rural locations, by ensuring people can continue to telecommute, or find new ways to sell services and products via the Internet.
Tasman's Digital Enablement Plan includes examples of the many ways councils can actively enhance the community’s use of digital infrastructure for social and economic benefits, including:
  • co-ordinating projects involving many different parties including the chamber of commerce, polytechnic, economic development agency, marae, schools and training providers
  • providing dedicated staff time at local libraries to assist people to use digital devices
  • support for programmes that promote innovation and entrepreneurship, which is critical to a successful digital culture
  • facilitating the roll out of ultra-fast broadband to remote areas by assigning a planner as a point of contact for infrastructure providers.

The Government’s guide to developing a digital enhancement plan is available here.
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New Zealand's regional populations

8/11/2015

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It's no wonder New Zealand has significant infrastructure challenges, when its population is so sparse in many regions. The Thirty Year New Zealand Infrastructure Plan 2015 includes the following statistics:
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2013 population as percentage of national total
Northland - 4%
Auckland - 34%
Waikato - 10%
Bay of Plenty - 6%
Gisborne - 1%
Hawkes Bay - 4%
Taranaki - 3%
Manawatu-Wanganui - 5%
Wellington - 11%
Tasman - 1%
Nelson - 1%
Marlborough - 1%
West Coast - 1%
Canterbury - 13%
Otago - 5%
Southland - 2%

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Transport trends - what NZ transport may look like by 2045

23/10/2015

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​Here are the Government's predictions for the transport sector, as outlined in the Thirty Year New Zealand Infrastructure Plan 2015.
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  • Gradual improvements in the fuel efficiency of cars slowly erode the effectiveness and fairness of Fuel Excise Duty as a means of collecting revenue from transport users.

  • Advances in technology enable road users to be charged based on how far they travel, where they travel and when they travel.

  • Increased automation in the vehicle fleet lowers the road toll.

  • Transport's percentage share of greenhouse gas emissions per capita falls as more vehicles are powered by electricity and hydrogen. (Check out the cover story of NZ Business magazine, September 2015, for news on exciting developments for electric vehicles.)

  • Most of our international freight is moved through a few large ports. Larger ships dominate the movement of New Zealand's exports and imports.

  • A large proportion of the aircraft used for specialised activities in New Zealand are likely to be operated remotely.
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Housing affordability - potential solutions

7/8/2015

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Housing affordability is a frequent topic on the news these days. The New Zealand Productivity Commission has produced an indepth report on the topic, which is available at http://www.productivity.govt.nz/sites/default/files/using-land-draft-report.pdf

Ten themes covered in the report:​

Theme 1 – consultation with the wider community on district plans, and the need for clearer communication on planning issues
Community consultation can and should influence the outcome of planning decisions, but how this is done needs to be carefully considered to ensure that the needs of the entire community, including the needs of future generations, are being met.

Existing homeowners are more active politically and have a disproportionate influence on local political processes, including local body elections and consultation processes. These existing residents may not wish to bear the costs of growth (such as congestion and increased Council spending on infrastructure).

One option to address the disproportionate influence of existing homeowners is the promotion of more sophisticated consultation and engagement processes that work hard to gain feedback beyond existing property owners and interest groups. The report states that while some councils go to considerable lengths to garner public interest and involvement in the development of city plans, this approach is not widespread.

In addition, the Commission heard that the public can find it hard to access current planning processes, with complex planning documents identified as a major barrier to engagement.

Theme 2 – household sizes/housing types
The number of dwellings required to house the population of New Zealand’s growing cities will increase more quickly than the population rate because of demographic trends towards smaller households. For this reason, making sure a choice of housing types is available at different prices, to cater for a range of income levels, is critically important.

However, in New Zealand, the average size of new dwellings has increased by more than 50% since 1989, and more than half of the new builds in New Zealand in 2014 were valued in the upper quartile of all housing stock, driven by the high price of land.

Theme 3 – efficiency of larger scale developments
Larger building firms are able to generate scale efficiency from building large numbers of houses on adjacent sites and by purchasing infrastructure and construction materials at a greater scale.

Currently the building industry in New Zealand is characterised by small firms that build just one or two houses a year. And the greenfield and brownfield land holdings are very fragmented, inhibiting large scale developments.

The Commission considers that there is a place for an urban development authority (UDA), or multiple UDAs, in New Zealand to lead and coordinate residential development at scale in both greenfield and brownfield settings.

Theme 4 – spatial plans
Many of the local authorities within the scope of the Commission’s inquiry into housing affordability have tried to overcome problems with the legislative system by developing non-statutory spatial plans. These spatial plans act as linchpins for other statutory plans and local authority strategies.

Spatial plans as they currently operate lack regulatory force and need to be translated into district plans and other regulatory instruments. A number of local authorities have expressed frustration at the statutory consultation and analytical requirements involved in translating spatial plans into RMA regulatory plans.

Speeding up the translation of spatial planning processes into land use regulation, without compromising analytical rigour or consultation, is likely to require the development of a new legislative avenue for larger or faster-growing cities. This could combine infrastructure strategies, longer-term transport planning and longer-term thinking about the growth of the city with the development of land use rules.

Theme 5 – recommended changes to district plans
The Commission has identified a number of regulations where the costs of district plan rules appear to outweigh the likely benefits. These have the effect of reducing the density of urban land use and increasing the cost of housing. The Commission recommends that urban territorial authorities:
  • remove balcony / private open space requirements for apartments from their District Plans;
  • review minimum apartment size rules in their District Plans, with a view to removing them (once the Ministry of Business, Innovation and Employment has completed planned work on updating Building Code rules and guidance related to air quality, lighting, acoustics and access in multi-unit dwellings);
  • remove District Plan minimum parking requirements and make more use of techniques for managing traffic demand;
  • lift current building height limits where it cannot be demonstrated that the benefits outweigh the costs; and
  • undertake robust cost-benefit analyses before considering the introduction of building height limits.

Theme 6 – managing ageing infrastructure assets

Effectively managing ageing assets and funding the renewal of infrastructure are likely to be major challenges for councils in the coming years. The potential gains from unlocking spare capacity within existing infrastructure networks and using infrastructure more efficiently can be substantial. The Commission noted that Wellington City Council’s approach to asset management is a good example of this.

Theme 7 – staged provision of infrastructure

Staged construction techniques that lower the upfront costs and allow services to be scaled up as demand increases can help to overcome the difficulties of investing in infrastructure to support future growth. The Commission noted that the staged construction approach that Selwyn District Council uses is a good example of this.

Theme 8 – councils’ approach to debt

Debt is an important source of finance for urban infrastructure in high-growth areas. However, recent legislative changes have introduced a debt-servicing benchmark. The effect of this benchmark may deter a council’s appetite to take on prudent levels of debt.

Theme 9 – role of central government

Compared to other countries, central government has relatively little involvement in planning matters (including a lack of national guidance). The Commission is seeking views on the merits of the following potential measures:
  • a National Policy Statement relating to the provision of adequate land for housing; and
  • expanding existing powers in the RMA to enable Ministers to direct changes to District Plans and Regional Policy Statements that provide insufficient development capacity to meet population growth.

​Theme 10 – rating system

Two options to incentivise landowners to release and develop land:
  • The Commission considers setting general rates on the basis of land value, rather than capital value, has potential benefits because it encourages land to flow to its highest value use, including more and denser housing.  
  • Not exempting Core Crown land from general rates (including land used for health and education purposes) would provide Crown agencies with the same incentives as private owners have to use land or release it to those who will develop it. 
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Five global megatrends

14/6/2015

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Information source:
This information is from the 2015 publication ‘Building New Zealand’s Future’ by PwC (PricewaterhouseCoopers) New Zealand. To read the complete document please go to http://www.pwc.co.nz/annual-review/

1. Demographic and social change
New Zealand’s population is set to reach five million by 2031, including two million in Auckland.

Projections suggest that the number of people identifying as Asian will have risen to 800,000 by 2026 – just short of a Maori population of around 811,000. New Zealand’s Pasifika population is also set to increase, and will reach 480,000 by 2026.

In New Zealand the average age is set to reach 46 years old, with 25 percent of the population aged 65 or older by 2051. The number of people aged 85 years and older is projected to increase from 67,000 in 2009 to 144,000 in 2031, then more than double to about 330,000 by 2061.

2. Shift in global economic power
As the global centre of power and wealth moves away from Europe and North America and into Asia, New Zealand is set to benefit from a closer proximity and strengthening relationship with China. The actions of the New Zealand Government and business community to further develop relationships with China, and the rest of Asia, will be critical to our economy’s future success.

3. Rapid urbanisation
New Zealand is one of the most urbanised countries in the world. More than 70 percent of the population lives in the 16 main urban areas and around 33 percent in the Auckland urban region alone.

By 2032 Auckland is forecast to increase its share of national population growth from around 55 percent to over 70 percent.

In the next 25 years Auckland city will grow to account for 38 percent of the total population. Half of New Zealand’s regions will lose population in the same period.

4. Climate change and resource scarcity
At current rates of consumption we may have just half a century’s worth of oil and gas left. Globally we look set to miss the carbon target to keep temperature rises to 2 degrees Celsius by 2034.

These two linked factors could lead to either of two extreme outcomes: a policy shock, with a global agreement that severely penalises carbon emissions; or a climate or resource shock, where a natural event causes massive environmental and economic change.

5. Technological breakthroughs
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Smartphone ownership has jumped significantly in New Zealand between 2011 and 2014. Ownership of smartphones by people aged between 15 and 65 was 13 percent in 2011 and 64 percent in 2014.
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Upcoming challenges for our stormwater, wastewater and water supply systems

6/3/2015

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Seventy councils recently contributed to a survey to improve understanding of New Zealand's stormwater, wastewater and water supply systems.  Councils can use the results of this survey (called the National Information Survey) to assess how their approach compares to other councils facing similar circumstances, to learn what others are doing and to identify any opportunities for improvements.
Local Government New Zealand (LGNZ) identified three main challenges facing a number of councils:

1. Investing to replace and renew existing assets (which have a replacement value of $35.7 billion).

2. Investing to meet rising standards and increasing expectations (eg Drinking Water Standards, and compliance with wastewater and stormwater discharge consent conditions).

3. Providing end users with the right incentives to use water infrastructure and services efficiently (most councils use rates to charge for three waters services).
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Issue 1 – Replacing and renewing existing assets
The wastewater network has the highest replacement value at around $15.8 billion, followed by drinking water assets at $11.3 billion and stormwater at $8.6 billion.

Approximately one quarter of New Zealand’s assets in the water, wastewater and stormwater sectors are more than 50 years old and it’s likely that between 10-20 per cent requires renewal.

In addition to only being able to spread the costs over a small population, rural councils face higher renewal costs per property connection (more than twice the cost compared to metro council areas) for water infrastructure.

Issue 2 - Investing to meet rising standards and increasing expectations
These include the Drinking Water Standards, the National Policy Statement for Freshwater Management (as expressed through changes to water take and discharge consent conditions), and increased public expectations to be protected from stormwater flooding during storm events, which are becoming more intense and more frequent.

Issue 3 - Providing end users with the right incentives to use water infrastructure and services efficiently
Most councils do not incentivise water customers to save water through prices, as revenue to manage water primarily comes from rates. However, Tauranga observed a 30 per cent fall in peak demand for water following the introduction of water meters and volumetric charging. A similar reduction in demand was observed in Carterton when it introduced similar schemes. The savings generated by Tauranga’s metering and charging system have been estimated at around $4.7 million per year over a 30 year period of analysis.
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The LGNZ paper identifies that metering will provide benefits for councils that have one or more of the following conditions:
  • Increasing demand
  • Limited knowledge of network performance (information from metering can assist with targeted programmes, such as leak reduction initiatives)
  • Scarce water supply
  • High treatment costs.
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This information was sourced from the LGNZ publication ‘Exploring the issues facing New Zealand’s water, wastewater and storm water sector’. LGNZ is publishing a follow up paper in early 2015 which will evaluate options to address these issues.
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Looking into the future of water supply, wastewater and stormwater services

6/3/2015

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The Government's Thirty Year New Zealand Infrastructure Strategy makes the following predictions for three waters management by 2045:
  • Proliferation of micro-treatment plants to service small communities, suburbs and individual houses.
  • Purification and recycling of water is standard practice.
  • Alternative energy will fuel larger plants.
  • Range of intelligent robotics undertaking underground inspections and work.
  • Granular and detailed user charges accurately reflecting composition and volume of use.
  • Consumers have an appreciation for water conservation and environmental protection.
  • Large-scale water operators service multiple catchments and regions beyond traditional local authority boundaries.
  • Effective allocation models ensuring water is allocated to its highest value use.
  • Long-term programme being implemented to ensure resilience against inundation and more intense rainfall patterns.
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Do you agree with these predictions? What are the implications for local government, as the managers of all these services?

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New Zealand’s population trends – implications for councils

12/2/2015

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In common with many other countries around the world, New Zealand is seeing more people being born, moving into, and living, in cities, along with fewer people living in many rural and regional areas.

There are two broad stories around New Zealand today: one is a story of an increasing population, relatively strong economic growth and, as a result, strong demand for more and better infrastructure and services. The other is a story of rural and regional communities that continue to be vital parts of our national economy and identity, but that do not have the numbers of people they used to.
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The information in this article has been sourced from Local Government Funding Review – A discussion paper, published in February 2015. Local Government New Zealand is seeking comment and feedback on the discussion paper. Feedback should be sent to fundingreview@lgnz.co.nz by 27 March 2015.
Growing areas
Auckland is the obvious example of a council experiencing rapid growth, and is likely to be home to more than two million people by 2030.
Other parts of New Zealand are also growing, but mostly in urban areas. Currently 67 per cent of the country’s population lives within the Auckland, Canterbury, Wellington and Waikato regions. Queenstown-Lakes, Selwyn, Western Bay of Plenty, Kapiti Coast, Waimakariri, Waikato, Tauranga, Hamilton, Christchurch and Wellington are predicted to have above average population growth.
Shrinking populations
Thirty-two territorial authorities can expect an absolute decline in their populations between now and 2031. For areas where the population is projected to decline, the challenge is right-sizing the infrastructure and services to fit the current and future population, while finding innovative ways to continue to thrive economically, environmentally, socially and culturally.
Another challenge is that in many cases, areas with declining populations also have a higher than average proportion of elderly people. These areas also tend to have low household incomes.
Higher per person costs for infrastructure
Small rural areas with spread out populations also tend to face higher per-person costs for infrastructure, as fewer people can be served by each part of the network.
A comparison of Clutha District Council with Wellington City Council highlights the diversity of community resources and funding requirements. Clutha is a rural local authority with a population of roughly 17,500, and a large roading network covering nearly 6,400 square kilometres. It spends roughly $14 million, or nearly 44 per cent of its expenditure, on roading and transport. Further, it spends significantly less than the sector average on culture, recreation and sport and economic development.
Wellington City Council also spends $14 million for roading. However, this amount represents just over ten per cent of its budget, which is also close to the amount it spends on recreation and sport.
Tourism
It’s often smaller, more remote places that get an influx of tourists, and new user-pays methods are emerging locally to fund visitor infrastructure:
  • Hot Water Beach uses revenue from paid car parking to support a fund to manage tourism infrastructure development in that area.
  • Capital expenditure for Whitianga Boat Ramp facilities are being paid for by boat ramp fees which will then be used to pay for other harbour/boating facilities.
  • A visitor levy scheme is already in place for Stewart Island, and the rationale for that legislation (providing facilities and amenities to visitors).
    ​
Rates Postponement scheme
Another interesting option to reduce the rates burden on residents is the Western Bay of Plenty District Council’s rates postponement scheme. This gives home-owners aged 65 and over the opportunity to stop paying rates for the rest of their lives.
The aim is to give these ratepayers a choice of paying their rates now or later. Under the scheme, people have the option to postpone payment of all, or a portion of their rates, for a fixed or indefinite period. This is subject to the full cost of postponement being met by the ratepayer (ie interest charges and administrative costs) and Council being satisfied that the risk of loss in any case is minimal.

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    Debra Bradley

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