Wondering whether we should wander down the WALGA way

Otago Daily Times

10-06-2025

Local Government New Zealand is failing ratepayers, Russell Garbutt writes.
Recently I had the good fortune to have a long conversation with the deputy president of the West Australian Local Government Association.
I was astounded at the range of services that this independent, member-based, not-for-profit organisation offers, and during our discussion we compared it to Local Government New Zealand.
It is more than abundantly clear that the two organisations are like chalk and cheese.
A comparison between their two websites shows the clearly divergent directions both organisations have taken, and I'd suggest that if New Zealand started to follow the direction of West Australia, then the local government rates would be immediately reduced.
The members of LGNZ each pay a "subscription" based on their size and for this they basically get a pile of amorphous benefits. A glance down the LGNZ's reason for being includes these:
• Nga kaupapahere me te kokiritanga — policy and advocacy;
• Nga akoranga me te tautoko — learning and support;
• Nga taiopenga me te tuitui whatunga — events and networking.
Delving a little further, LGNZ:
• Identifies issues and advocate for members to build vibrant communities, policy expertise to unpack proposals, reforms, consultation and legal opinions;
• Says that when anyone from government wants to talk to local government, ministers, MPs, advisers, or influencers [read "lobbyists"] come to LGNZ, who then speak on behalf of councils;
• LGNZ organise regular sector, zone and network meetings;
• LGNZ provide templates for councils to make submissions and policy submissions.
I would contend that all of this is nothing other than a framework for talkfests, the production of word salads and another excuse for councillors to budget yet more travel and accommodation to attend yearly or quarterly bunfights.
In fact, some of these bunfights (generally called zone, sector or national conferences) are attended by those that don't actually qualify, but if the budgets for travel, accommodation and daily sustenance aren't spent, then they might be questioned next year so the money needs to be used.
In totality, LGNZ don't have a single real benefit under their current structure and reason for being.
LGNZ are nothing other than a drain on ratepayers and probably no wonder that several large councils such as Auckland, Christchurch, Kaipara, West Coast Regional, Grey District, Westland District and Western Bay of Plenty had all withdrawn their membership by March, 2025.
Most of these councils quoted failure to provide value for money as the reason for withdrawal from LGNZ.
Now contrast that with the West Australia Local Government Association.
All 139 West Australian local government entities are members, as well as other allied entities such as Fire Service organisations
A full suite of advocacy and advice services are provided as well as employee relations etc, as well as full access to the Preferred Supplier Programme and Procurement.
The last one is the big one.
WALGA — as a very big entity — negotiates the best deal it can get for all the things all councils "need" to do their job including goods, services and works, insurances, electrical energy, telecommunication, vehicles ... the list of areas of common supply is in the hundreds.
Last year WALGA delivered $A380 million ($NZ410m) of such contracts leading to direct and significant savings for ratepayers.
WALGA's bulk buying power also included things like "yellow machinery" and specialist vehicles.
Insurance alone is huge — the WALGA bulk buys through London, all insurance cover for all councils in Western Australia.
Looking at the Central Otago District Council and other councils, they are all complaining that the cost of insurance is one of the major drivers of rate increases — and yet the solution in their hands is not exercised.
The current rationale that councils around the Otago region — including CODC, Clutha, Gore and Waitaki — are using to set up yet another bureaucracy to handle water is bulk buying.
Imagine for a moment the buying power LGNZ would have it was operating a similar system for pipes and other water infrastructure?
But they are too busy talking.
• Russell Garbutt is a former deputy chairman of the Vincent Community Board.