Latest news with #OliverHartwich
NZ Herald
10-07-2025
- Politics
- NZ Herald
The case for abolishing regional councils in NZ
Inspired by the Swiss system pushed by New Zealand Initiative executive director Oliver Hartwich, Prime Minister Christopher Luxon says his vision for local government is about greater devolution to local communities. But, as Bishop and his Undersecretary Simon Court have recognised, that is not where the logic of his Government's policy programme leads. The whole direction of its resource-management reforms is about streamlining and often centralising decision-making. Bishop regularly cites New Zealand councils having established more than a thousand different types of zones, each with their own technical rules that everyone in the infrastructure and commercial and residential property sectors has to discover, understand and comply with. He argues this makes a lot of work for resource management lawyers but adds to the cost and complexity of getting any individual project built. Japan, Bishop points out, with a similar size and geography as New Zealand but a population 25 times bigger, has just 13 zones that its local authorities can choose from – six for residential, three for commercial, three for industrial and one for central business districts. In Bishop and Court's telling, having, say, 20 different types of zones in New Zealand would provide ample choice for local councils to reflect local characters across their territories, ensure the construction industry could more easily and cheaply comply with the rules, and force resource management lawyers to find more productive areas of the law to focus on. What role would then be left for regional councils that either the central Government or city and district councils couldn't do, at least no worse than the status quo? The Government's critics argue that getting rid of them would weaken local democracy, but regional councillors usually find themselves unable to genuinely reflect local views anyway, for fear of judicial review. So constrained are they by their council officers that a regional council chairperson is even less a genuine community leader than a city or district mayor. Their roading, civil defence and emergency management functions could easily be split between central Government, for big projects and disasters, and city and district councils, for smaller ones. As the interest in city deals has demonstrated – not least the two-year quest by my friend and client Auckland Mayor Wayne Brown for a single agreed transport plan between central Government and Auckland Council – the major projects that local people most care about can often only be done as a partnership between the two. Why keep up the charade that the entity with the bigger budget doesn't call the shots anyway? Major projects like Auckland's City Rail Link can obviously only go ahead when central Government agrees, but that is often true even of things like two-lane bridges in places like Northland, as so crudely revealed in byelections. Abolishing regional councils and devolving some of their functions into city and district councils raises the question of whether the smaller ones could cope. That in turn raises fears of mergers that, in some cases, risk sounding more like city and district councils being taken over by the unpopular regional ones. Aucklanders' anger at their big so-called Super City, which combined smaller city and district councils with the old Auckland Regional Council, might recommend Bishop and Court tread carefully. But that anger is mainly driven by fury at the so-called Council-Controlled Organisations (CCOs), deliberately set up by then Local Government Minister Rodney Hide to be independent of the democratic process, the way central Government's State-Owned Enterprises (SOEs) are meant to be. The problem is that CCOs and SOEs only make sense when the plan is to turn old, inefficient government departments into something that can make a profit and then be sold. Democratic oversight is removed to allow the new CCO or SOE to focus on profit, a new commercial discipline that also helps set their price. But when there is no intention ever to sell a CCO or SOE, we end up with the worst of both worlds: entities that are neither democratically nor commercially accountable. Better to sell the ones with no public purpose, and bring the functions of the rest under democratic control, as Brown has finally achieved, at least to some extent, with Auckland Transport. If that reform succeeds, it will be even more difficult to find an Aucklander urging a return to the old system. How bad would it really be if, say, the Far North, Whangārei and Kaipara councils were merged and also took over any remaining responsibilities of the unloved Northland Regional Council? Would anyone notice, other than the bureaucrats and politicians involved? Yet abolishing regional councils does not necessarily demand mergers of city and district councils. Depending on how much of their existing functions were centralised, including roading, emergency management and monitoring water and land quality, a case could be made for splitting some of them up, as Hartwich and Luxon might prefer. If Bishop and Court's vision of a small number of zone-types comes true, then even the smallest district council would be able to decide how to paint their local zoning map. In Auckland, the 21 community boards were meant to ensure local communities still had a voice when the Super City was set up. They have failed largely because they have so few responsibilities and powers that they struggle to attract credible candidates. But if community boards were empowered to decide how their local areas would be zoned from Bishop and Court's streamlined menu, then perhaps they would start to matter. That could encourage voters and potential candidates to take them more seriously. In some areas at least, Hartwich and Luxon's vision of localism might end up sitting happily alongside Bishop and Court's vision of a streamlined, workable and efficient resource-consenting system.
Scoop
29-05-2025
- Business
- Scoop
The New Zealand Initiative Supports Resource Management Reform Package As Important Interim Step
Press Release – The New Zealand Initiative The reforms include proposed amendments to a suite of existing national direction instruments and several new instruments across three key areas: infrastructure and development, primary sector regulation, and freshwater management. The Government's announcement of sweeping reforms to national direction under the Resource Management Act represents an important interim step toward fixing New Zealand's broken planning system. The reforms include proposed amendments to a suite of existing national direction instruments and several new instruments across three key areas: infrastructure and development, primary sector regulation, and freshwater management. 'We applaud Ministers for stripping out unnecessary consenting hurdles and bringing forward an NPS on infrastructure to speed up investment and housing supply,' says Dr Oliver Hartwich, Executive Director of The New Zealand Initiative. 'But without similarly bold action to lower barriers in the grocery sector, New Zealanders risk missing out on the opportunity to open up the retail grocery sector to competition.' The reforms tackle multiple fronts simultaneously – from enabling granny flats and papakāinga housing to removing barriers for primary sector development and streamlining infrastructure projects. New national policy statements for infrastructure and renewable energy generation signal that the Government recognises infrastructure as vital to prosperity. 'We particularly welcome the focus on removing unnecessary consent requirements that have added cost and delay without meaningful environmental benefit,' Dr Hartwich said. The Government's commitment to removing certain types of land from the National Policy Statement on Highly Productive Land reflects common-sense priorities. 'These changes represent a philosophical shift from discretionary control to enabling development,' Dr Hartwich said. 'The new National Policy Statement for Infrastructure sends a clear message that infrastructure is critical to our prosperity, not an inconvenience to be managed.' However, The New Zealand Initiative believes the Government can do more. The organisation's recently released proposal on Fast-Track Supermarket Entry and Expansion would perfectly align with the suite of reforms the Government has put forward. 'By integrating our Fast-Track Supermarket Entry and Expansion framework into this package, Ministers would remove planning, consenting and investment barriers all at once,' the Initiative's Chief Economist Dr Eric Crampton added. 'That single, coordinated pathway would finally allow well-capitalised new entrants to open a network of supermarkets well in advance of the final phase of resource management reforms being implemented.' The proposal would enable the market to discover what is possible in grocery retail by removing regulatory bottlenecks that have historically protected incumbents from new competition. 'Nothing we do now under the existing RMA framework will ever be truly sufficient, given the fundamental structural problems with the current regime,' Dr Hartwich said. 'But the Government is making meaningful progress while we wait for Phase Three's complete overhaul – and our supermarket framework shows how they could go further.' The organisation noted that the reforms align with evidence-based approaches to urban development and economic growth, including enabling mixed-use development and reducing barriers to productive land use. 'These reforms demonstrate that good policy can advance environmental outcomes and economic development simultaneously,' Dr Hartwich said. 'The question was never environment versus economy – it was about creating systems that work for New Zealand families and businesses.'
Scoop
29-05-2025
- Business
- Scoop
The New Zealand Initiative Supports Resource Management Reform Package As Important Interim Step
Press Release – The New Zealand Initiative The reforms include proposed amendments to a suite of existing national direction instruments and several new instruments across three key areas: infrastructure and development, primary sector regulation, and freshwater management. The Government's announcement of sweeping reforms to national direction under the Resource Management Act represents an important interim step toward fixing New Zealand's broken planning system. The reforms include proposed amendments to a suite of existing national direction instruments and several new instruments across three key areas: infrastructure and development, primary sector regulation, and freshwater management. 'We applaud Ministers for stripping out unnecessary consenting hurdles and bringing forward an NPS on infrastructure to speed up investment and housing supply,' says Dr Oliver Hartwich, Executive Director of The New Zealand Initiative. 'But without similarly bold action to lower barriers in the grocery sector, New Zealanders risk missing out on the opportunity to open up the retail grocery sector to competition.' The reforms tackle multiple fronts simultaneously – from enabling granny flats and papakāinga housing to removing barriers for primary sector development and streamlining infrastructure projects. New national policy statements for infrastructure and renewable energy generation signal that the Government recognises infrastructure as vital to prosperity. 'We particularly welcome the focus on removing unnecessary consent requirements that have added cost and delay without meaningful environmental benefit,' Dr Hartwich said. The Government's commitment to removing certain types of land from the National Policy Statement on Highly Productive Land reflects common-sense priorities. 'These changes represent a philosophical shift from discretionary control to enabling development,' Dr Hartwich said. 'The new National Policy Statement for Infrastructure sends a clear message that infrastructure is critical to our prosperity, not an inconvenience to be managed.' However, The New Zealand Initiative believes the Government can do more. The organisation's recently released proposal on Fast-Track Supermarket Entry and Expansion would perfectly align with the suite of reforms the Government has put forward. 'By integrating our Fast-Track Supermarket Entry and Expansion framework into this package, Ministers would remove planning, consenting and investment barriers all at once,' the Initiative's Chief Economist Dr Eric Crampton added. 'That single, coordinated pathway would finally allow well-capitalised new entrants to open a network of supermarkets well in advance of the final phase of resource management reforms being implemented.' The proposal would enable the market to discover what is possible in grocery retail by removing regulatory bottlenecks that have historically protected incumbents from new competition. 'Nothing we do now under the existing RMA framework will ever be truly sufficient, given the fundamental structural problems with the current regime,' Dr Hartwich said. 'But the Government is making meaningful progress while we wait for Phase Three's complete overhaul – and our supermarket framework shows how they could go further.' The organisation noted that the reforms align with evidence-based approaches to urban development and economic growth, including enabling mixed-use development and reducing barriers to productive land use. 'These reforms demonstrate that good policy can advance environmental outcomes and economic development simultaneously,' Dr Hartwich said. 'The question was never environment versus economy – it was about creating systems that work for New Zealand families and businesses.'
Scoop
29-05-2025
- Business
- Scoop
The New Zealand Initiative Supports Resource Management Reform Package As Important Interim Step
The Government's announcement of sweeping reforms to national direction under the Resource Management Act represents an important interim step toward fixing New Zealand's broken planning system. The reforms include proposed amendments to a suite of existing national direction instruments and several new instruments across three key areas: infrastructure and development, primary sector regulation, and freshwater management. "We applaud Ministers for stripping out unnecessary consenting hurdles and bringing forward an NPS on infrastructure to speed up investment and housing supply," says Dr Oliver Hartwich, Executive Director of The New Zealand Initiative. "But without similarly bold action to lower barriers in the grocery sector, New Zealanders risk missing out on the opportunity to open up the retail grocery sector to competition." The reforms tackle multiple fronts simultaneously – from enabling granny flats and papakāinga housing to removing barriers for primary sector development and streamlining infrastructure projects. New national policy statements for infrastructure and renewable energy generation signal that the Government recognises infrastructure as vital to prosperity. "We particularly welcome the focus on removing unnecessary consent requirements that have added cost and delay without meaningful environmental benefit," Dr Hartwich said. The Government's commitment to removing certain types of land from the National Policy Statement on Highly Productive Land reflects common-sense priorities. "These changes represent a philosophical shift from discretionary control to enabling development," Dr Hartwich said. "The new National Policy Statement for Infrastructure sends a clear message that infrastructure is critical to our prosperity, not an inconvenience to be managed." However, The New Zealand Initiative believes the Government can do more. The organisation's recently released proposal on Fast-Track Supermarket Entry and Expansion would perfectly align with the suite of reforms the Government has put forward. "By integrating our Fast-Track Supermarket Entry and Expansion framework into this package, Ministers would remove planning, consenting and investment barriers all at once," the Initiative's Chief Economist Dr Eric Crampton added. "That single, coordinated pathway would finally allow well-capitalised new entrants to open a network of supermarkets well in advance of the final phase of resource management reforms being implemented." The proposal would enable the market to discover what is possible in grocery retail by removing regulatory bottlenecks that have historically protected incumbents from new competition. "Nothing we do now under the existing RMA framework will ever be truly sufficient, given the fundamental structural problems with the current regime," Dr Hartwich said. "But the Government is making meaningful progress while we wait for Phase Three's complete overhaul – and our supermarket framework shows how they could go further." The organisation noted that the reforms align with evidence-based approaches to urban development and economic growth, including enabling mixed-use development and reducing barriers to productive land use. "These reforms demonstrate that good policy can advance environmental outcomes and economic development simultaneously," Dr Hartwich said. "The question was never environment versus economy – it was about creating systems that work for New Zealand families and businesses."
NZ Herald
27-05-2025
- Business
- NZ Herald
Budget 2025: Agriculture needs protection and investment
This is particularly the case when prebudget announcements have been used to generate interest and soften the blows. Memories return of pre-birthday decisions of whether the 'surprise' present would be a new school bag or boots. As a student, before loans were the norm, travelling home by train or bus for Easter was evaluated for affordability against staying in hostels. Now we see media coverage of decisions having to be made about which bill to pay, and what that means about feeding the children. Fixed income means making choices. It is a zero-sum game. The Green Party has offered its alternative budget. Analysis by The New Zealand Initiative's Dr Oliver Hartwich has revealed that the utopian vision for a different country 'is based on ludicrous assumptions and bad economics'. Dr Hartwich explains that the cornerstone of the Green revenue plan, a wealth tax raising $72.5 billion over four years, is optimistic. Germany, France and Sweden abandoned similar taxes because of capital flight, tax avoidance and administrative nightmares. The Opposition has also indicated that it would have made a different decision in order to keep the pay equity promise. When asked how, the answer was 'we'll have to find it'. This is less convincing than the leader's statement that they can't possibly yet say how any funding will be achieved. In launching her Budget, Finance Minister Hon Nicola Willis stated that without the savings from the pay-equity promise, 'new initiatives would need to be funded from extra taxes or more borrowing, both of which would put New Zealand's economic recovery at risk'. In contrast, the saved money will be used to stimulate the business that will, at least in theory, enable productivity gains and increased income for everybody in New Zealand. Dr Jacqueline Rowarth says there's not a lot in the budget for agriculture this year. Of note is that the primary sector, which is responsible for the bulk of the new money coming into the country from exports, was not given its own Budget package. Like other businesses, claims can be made on depreciation, which is important for capital items such as tractors. But the $4.95 billion over the next four years announced by Agriculture Minister Hon Todd McClay is continued baseline funding for the Ministry for Primary Industries (MPI). It is not new money. Its continuation is important in supporting the sector to lift on-farm productivity and profitability, strengthen rural communities, and drive higher returns at the farm and forest gate. The intention of past investment is being achieved. Stats NZ data published mid-May show that, yet again, agriculture, forestry, and fishing led the gains. Value-added output rose 7.4% and labour productivity rose 9.8%. Multi-factor productivity, which includes labour and capital productivity (ie hours worked per unit of output, and capital inputs such as land, machinery and equipment), increased by 8.3%. Stats NZ defines productivity as a 'measure of how efficiently capital and labour are used within the economy to produce outputs of goods and services. A higher productivity rate means a nation can either produce a higher level of goods and services with the same level of inputs or produce the same level of goods and services with a lower level of inputs'. Over the last economic cycle (2008-2024), agriculture has achieved 2.4% multifactor productivity gains a year (forestry, fishing and 'services to agriculture' achieved 0.2%). In considerable contrast, accommodation and food services achieved 0.9%. In the last year, output in the accommodation and food services sector fell 3.8%, and labour productivity fell 9.1%. More work for fewer gains. Tourism, holidays and eating out will not get New Zealand out of debt. But agriculture has continued to support the economy. According to Stats NZ, last month, the value of exports from New Zealand was greater than that of imports. Exports were driven by the value of meat and milk products – the sustainable pasture-based protein that New Zealand farmers produce so well. The agricultural powerhouse needs protection and investment for the future to ensure that it can continue to do what New Zealand needs. Doubling the value of the export economy is the Government's goal because it will benefit all New Zealanders through increased investment in health, education and infrastructure. With guidance and policy adjustments, it will also stimulate wage and salary growth equitably.
