Local Government Minister Rodney Hide’s review of local councils could sever the relationship those councils have with their local tertiary institutions, warns TEU president Tom Ryan.

Mr Hide is proposing law changes that could divide council spending between core services, which councils could automatically spend money on, and “extras” that could require approval from ratepayers by way of referendum.

The Local Government Act 2001 give councils powers of general competence, allowing them to undertake almost any activity for local communities.  Mr Hide is concerned that those powers are too broad and wants to limit the scope of council powers.  He wants removal of the requirement for councils to be involved with “community outcomes” such as social, environmental and cultural “wellbeing”. The Cabinet has approved Mr Hide’s request for the Department of Internal Affairs to review the law.

Dr Ryan says this move poses dangers to the symbiotic relationship many councils have with their local tertiary education institutions.

“A classic example is the work the Gisborne and Wairoa District Councils are doing with Tairawhiti Polytechnic as part of the Tairawhiti Development Trust. The minister may not see it as core business, but many of the people of that district, who are experiencing its benefits do.  It’s right and proper that democratically elected councils should be allowed to work collaboratively with tertiary institutions if they choose to.  I’d hope that the review takes into account the benefits that come from this sort of ‘non-core’ cooperation,” said Dr Ryan.