National dialogue on local governance: overview and discussion Presentation to the Taupo strategic planners network by Peter McKinlay Research associate, Institute for Governance and Policy Studies Executive Director, McKinlay Douglas Ltd

What’s the dialogue? A research informed regionally-based series of discussions about local governance and the place of local government. Based around a series of six ‘regional hosts’ with others joining in as they choose. A long term strategic focus. A sharp distinction between government and governance.

Why the dialogue? Concern at the poor quality of public debate as demonstrated, for example, by recent amalgamation initiatives. Determination to improve the knowledge base of international experience and its relevance. Commitment to raising awareness of and capability to address long-term trends affecting communities.

How the public thinks about local government?

How local government thinks about the public?

Let’s turn this into a discussion The following slides will cover a number of the different themes coming through the dialogue. They range from the changing nature of governance, to the role of local government, to how different governance tools can shape communities. Let’s discuss them as we go

Local governance is not just local government local governance is about who shapes the local decisions which affect the futures of communities. It may or may not include local or central government. The emergence of non-traditional participants in governance – energy and community trusts, community banking. The implications of the productivity commission report on more effective social services.

Some of the major trends/shifts Demographic change. The impact of technology on employment – the age of job free growth? Globalisation. Fiscal austerity.

Rethinking local government The difference between ‘provision’ and ‘production’. Centres of excellence, strategic commissioning, co-design and co- production. Does anyone know a Council which complies with section 17 A?

Scale, scope and subsidiarity Amalgamation necessarily implies that the same scale and scope suits every local government activity. Think subsidiarity - decisions are taken at the lowest level which encompasses the impact. This could range from supra-regional to neighbourhood or street level.

From ‘top down’ to ‘bottom up’ Our local government legislation and much of our practice reflect a top down approach. In today’s world that’s increasingly dysfunctional. Governments (central and local) need the knowledge, networks and support communities can provide. The future role of local government may be first and foremost enabling and facilitating community governance, supported by a shift to place making and place-based management.

Understand governance and the performance characteristics of different structures ‘fit for purpose’ governance means choosing structures - working arrangements – that best fit the characteristics of the activity. CCOs as an example. Generally councils and commercial directors seriously underestimate the significant differences between listed companies, SOEs and CCOs. The community is the loser.

Some reflections from the dialogue so far Few councils have the resource or capability for longer term strategic thinking. At the same time most councils recognise this as a serious and growing risk. Much Council activity is shaped (and distorted) by a dysfunctional legislative framework, and an over emphasis on compliance.

Some aspirations Facilitating real participatory democracy as opposed to token projects. Developing best practice networks amongst New Zealand local government and more widely – Europe and North America. Bringing the ‘long-term’ into decision-making coupled with greater collaboration across sectors.

A possible outcome? Under discussion at the moment with some councils is creating a cost-effective way of starting to fill the strategic thinking gap. One possibility is a council backed equivalent (albeit on a much smaller scale) of the better UK local government focused think tanks. Question: who should take the lead?