Good afternoon and thank you for the invitation to speak to you today. 

I have been asked to talk to you about a range of issues across both my major portfolio areas - Local Government and Regulatory Reform. 

It will come as no surprise to you that Auckland issues have been taking up much of my time.

The immediate priority with Auckland is to get arrangements in place in time for the 2010 local body elections. 

The new structure will comprise one Auckland Council with one mayor, twenty councillors and twenty to thirty local boards.
 
Auckland has suffered from decades of poor decision- making, factionalism and a general lack of vision and foresight. 

Ninety years ago Michael Joseph Savage campaigned for the Labour Party supporting a single Auckland council.  The idea is not new - but actually delivering it is.

The report back of the Royal Commission on Auckland Governance in March has been the catalyst for moving ahead on making Auckland the great city we all want it to be.

I want Auckland to aspire to be the best city in the world. 

This can (and will) happen if critical decisions are taken at a regional level. 
Critical decisions must be supported by region-wide governance arrangements that overcome the competing interests, parochialism and disunity that have plagued the region for too long.

I want to see the real potential of this great city unlocked.

We have great progress since the Royal Commission's report back in March. 

The Local Government (Tamaki Makaurau Reorganisation) Act was passed in May this year, establishing the Auckland Council and the Auckland Transition Agency (ATA). 

A second piece of legislation - the Local Government (Auckland Council) Act was passed a few weeks ago.
 
A third Bill will be introduced later this year, dealing with the governance structure, functions, roles and powers of councils and local boards.

Councillors will be elected solely by ward, rather than the combination of ward and at large that we first proposed. We listened to the views of Aucklanders, who indicated that having councillors elected at large might reduce voter participation. 

We believe ward councillors will also ensure better representation for the diverse communities in Auckland.

One position that will be elected at large is the Mayor of Auckland. The mayor's role is critical in making Auckland the world class city we want it to be.
 
The mayor will articulate and promote a vision for Auckland; provide the leadership to deliver that vision; lead the development of plans and policies for Council; and ensure there is effective engagement between the council and citizens of Auckland. 

The mayor will have the power to appoint the deputy mayor, appoint the chairperson of each committee, and establish and maintain an appropriately staffed Office of the Mayor within budget. 

The new Mayor of Auckland needs to be well supported, with the scope and power to achieve their objectives of developing and implementing the vision of a unified, prosperous and positive Auckland.

The local boards will be an important part of the new governance structure.  The Select Committee's recommendations resulted in substantial changes to their purpose and decision-making responsibilities. 

Local boards will now have greater decision-making powers and more effectively represent the needs and aspirations of their communities.  

Getting the balance right between the council and local boards was always the objective, and I am confident we have got it right now.

Another area of change reflected in the Local Government (Auckland Council) Act is the Auckland city boundaries.

Auckland has to start and finish somewhere, so decisions were never going to satisfy everyone.  After hearing a wide range of views, we decided that the northern boundary would include all the Rodney district, and we decided to follow as closely as practicable the existing southern boundary of the Auckland region.

The Local Government Commission will announce the final boundaries and the names and numbers of council wards and local boards by the 1st of March next year.

The third Auckland governance bill will complete the legislative framework and provide for the interim operation of the Auckland Council from November 2010.

I encourage you to get engaged with this legislation, once it is introduced and referred to select committee.

Reform of Auckland governance is part of a wider overhaul of local government that I am currently leading.

I am aiming to improve the transparency, accountability, and financial management of local government. 

Local government spending has risen faster than inflation in recent years and continues to do so.

We can't go on like this - the burden on businesses and ratepayers is far too high.

Decisions about council spending priorities are often being made without the support of the ratepayers who have to fund them.

As ratepayers have to bear the burden of councils' bad spending decisions, it is only fair that they have a greater say in council decision-making.

I want to emphasise that I'm not trying to stop local authorities from doing things, despite what some of my critics might suggest. 

It's about councils working in partnership with their citizens in authorising what is spent on their behalf.  It is, after all, ratepayers' money that is being spent.

Further work in this area will include options for simplifying long-term plans to reduce council costs and ensure ratepayers have access to material they can understand.

Officials are looking at mechanisms for ‘plain English' financial disclosure, and for developing valid comparisons between councils.

I am really committed to creating an environment where ratepayers and citizens can make better decisions about trade-offs. 

Pre-election financial updates are another option to enhance transparency and accountability. 

These could, for example, identify particular issues and options confronting each council before an election, and provide a record of the current council's performance.  

This information would provide a basis for voters to judge the performance of the current council, and encourage good debate about the choices available to voters.

Local government needs to be about enabling democratic local decision making, and action by and on behalf of communities.

I am determined to see the sector shift the emphasis of decision making from ‘on behalf of' citizens to ‘by citizens and ratepayers'.

Along with all the work underway in local government, I've got a lot happening in my regulatory reform portfolio. 

The Minister of Finance and I recently released the Government's first Statement on Regulation.

This ground breaking document  contains two key commitments:

- Firstly, to introduce new regulation only when the Government is satisfied that it is required, reasonable and robust

- Secondly, to review existing regulation to identify and remove requirements that are unnecessary, ineffective and excessively costly.

We know businesses are struggling to keep up with the many new rules and requirements they are forced to comply with on a daily basis, and that all New Zealanders are paying the price for that.

This Government is committed to addressing the high compliance costs strangling the efforts of business to create jobs and growth.

So work is underway to review the effectiveness of regulatory regimes such as the Building Act and Resource Management Act.

We will introduce an annual Regulatory Reform Bill to make it quicker and easier to remove or simplify unnecessary, ineffective or costly requirements in legislation.

And we have established an independent expert Regulatory Taskforce to investigate the case for a Regulatory Reform Bill.

We expect a culture from government agencies that recognises the importance of productivity in enhancing New Zealand's economic performance, respects the value of individual autonomy and responsibility, and does not see regulation as the first resort in problem solving.   

Agencies need to be continually looking for opportunities to make existing regulation more effective, easier to understand and less costly to comply with.

My colleagues and I are working to improve and simplify the process of obtaining building and resource consents.

There has already been good progress with Resource Management Act reforms. The Government recently passed the Resource Management (Simplifying & Streamlining) Amendment Act which reduces red tape for New Zealanders without compromising environmental protections. 

More changes are planned that will align various legislation, aquaculture issues, urban development and water allocation.

Before I finish I want to talk about a topic that I know is of particular interest to you - the Rates Rebate Scheme. 

The Scheme was put in place some years ago, to provide financial assistance to low income ratepayers who own their property. 

Holders of licence to occupy agreements are not included in the scheme, as they do not have an ownership interest in the land. 

I am aware that about 68 per cent of units in retirement villages are owned under licence to occupy agreements, and that the exclusion of these residents from access to a rates rebate is a contentious issue.

 I'm not here to announce an extension of the Scheme to holders of licence to occupy agreements, as this is not consistent with the purpose of the Scheme.  I have already conveyed this view to your Executive Director John Collyns.

Work and Income provides targeted assistance through the accommodation supplement to people struggling with the cost of living.  I would encourage people to contact  WINZ if they need help.

My priority is to maintain the value of the scheme, and ensure the Government can deliver its commitments under the scheme in these tough economic times.

So that's some of what I'm doing to keep myself busy.  I love being a Minister, and the challenges each day in the job presents. It's a real privilege to be able to get things done and make a difference for New Zealanders.

Thank you again for the invitation to join you here today.  I'm looking forward to hearing your comments and questions.