Finance Minister Nicola Willis addresses HB audience

I had the opportunity to watch Finance Minister Willis  ‘in action’ this past week as she fronted up at a HB Chamber of Commerce/Regional Recovery Agency function to explain her budget and her Government’s direction.

She delivered a well-rehearsed presentation that covered all the expected political bases. To paraphrase: we inherited unsustainable budgets, we’re shifting  government employees to the frontline (or the private sector), our tax relief is not puny, we love roads, the answer to NZ being a low productivity economy is more and easier foreign investment and smarter kids.

No applause lines, but a few nodding heads.

I noted two ironies as I reflected at the end on what she had said … or hadn’t said.

First, although Willis’ introduction included mention that she is Associate Climate Minister, she never uttered the word ‘climate’, despite all the cues the last few days have provided and her recounting of visiting HB on the heels of Gabrielle.

Second, the Finance Minister did her best to establish to the audience that the Government’s tax relief was indeed significant, even in cases where it amounted to a handful of dollars.

I couldn’t help but wonder how that came across to a roomful of HB residents – including a major and a couple dozen councillors – who are about to be socked with 20% rate increases, with sizable additional increases in the following two years.

The irony: what central government proudly giveth, local government painfully taketh away.

Of course we can’t expect local officials to point out this inequity … they must still politely smile and grab whatever crumbs, like Recovery Minister Mitchell’s  $100k to the Mayoral Relief Fund.

The Finance Minister may believe that she’s gotten the Government’s fiscal house in order, but – true or not – that’s only half the story. She’s clearly a smart lady … she must know that.

Local government financing is fundamentally broken (and in HB’s case, not helped by our insistence on paying for the burden of five councils). This a problem that needs to be fixed from the top down, because that’s where the money is and the rules of the game are set.

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3 Comments

  1. The five councils comment is very accurate – I have never understood why a region with about 300,000 people (I don’t know actual figures but figure that’s not far off) needs 5 different councils with duplicated services, departments etc. Maybe it’s time for that filthy word “amalgamation” to raise its ugly head again? I can hear the screams already and I haven’t posted this yet – so lets hear it for “amalgamation”!!!

    1. Hear hear! Twenty years ago I admit to being against the Amalamation of ALL the Bays “local authorities”. Into One “Unitary Authority”.
      However, since serving a stint on NCC. I now recognise the common sense in Not duplicating services, likes of HDC purchasing a costly mechanical grave digger!
      That could of been shared with NCC.
      And of course the different building codes! Road speeds ……etc etc endless..duplications …..
      Hawkes Bay, with ALL its 5 councils! Is without any doubt the biggest “over governed” little provice in the country. Costing mega $$$$$$$$$$$$$$$$$ for council talk fests and all going their OWN separate ways!
      With hard times now upon us.
      And in the interests of Not squandering ratepayers hard earned monies…..in this day and age, parochialism NEEDs throwing out the window!
      For that I sincerely believe it’s high time, recognizing democracy and all that, that NOW is the time ALL CITIZENS were afforded a “citizens binding referendum” on the issue.
      End of

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