Making Local Government Work: Fixing the Democratic Void

Insights Newsletter
13 December, 2024

New Zealand's local government is facing a crisis of democracy, but international examples show a way forward. This is the key message from my report, Making Local Government Work, released by the New Zealand Initiative this week. 
 
There is a disconnect between what voters expect of local representatives, and what they can deliver. 
 
Most New Zealanders assume that the mayors and councillors they elect will have the power to implement their promised policies. The reality is different. While mayors can make appointments and establish committees, their actual authority is constrained. Meanwhile, unelected chief executives wield considerable power over council operations and the flow of information to elected members. 
 
The consequences are visible across the country. Carterton District Council attempted to silence a councillor for expressing views aligned with her election platform. Waitomo’s mayor faced a similar situation. In Gore, relationships deteriorated to the point where both mayor and chief executive faced resignation calls. Wellington City Council now has a Crown Observer following an impasse over its long-term plan. 
 
The dysfunction comes at a significant cost. Core infrastructure like water and roading have been neglected while nice to haves like Tākina have been pursued. Rates increased by 12% in the year to September 2024 with more big increases to come. The government is pushing for councils to return to basics. But its reforms will struggle without addressing the core problem: the subversion of democratic accountability by council administrators.  
 
International experience offers some models for reform. The German state of North Rhine-Westphalia (NRW) faced similar challenges with their British-inherited system. Their solution was to combine the roles of mayor and chief executive. Twenty-five years later, these reforms enjoy broad support. They have delivered clarity and accountability. My report recommends considering NRW’s approach. 
 
Alternatively, Auckland's successful mayoral office model could be extended to other councils. This model provides the mayor with staff advice and resource independent of the CEO. 
 
The report also recommends: 

  • Giving communities direct votes on major projects  
  • Reforming information access, codes of conduct, and conflict of interest rules that prevent elected representatives from effectively serving their constituents  
  • Giving elected representatives more power to oversee council bureaucracies. 

Every year that passes without reform adds to the dysfunction, wasteful spending, and frustrated democratic mandates that characterises local government in New Zealand.  
 
The question is not whether New Zealand's local government needs democratic reform – it is whether we have the political will to make it happen. 
 
Nick Clark’s research report, Making Local Government Work, was published on 10 December. 

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