Local Government and Infrastructure Matters

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In our December 2007 edition we urged local authorities to take the systemic view and improve efficiency and effectiveness in a way that avoids taking a ‘salami slice' approach to cost savings. The validity of the whole-of-organisation approach has been endorsed in a review of local government sustainable cost reduction practice we have recently undertaken.

We think New Zealand 's local authorities could benefit from reflecting on the tools their colleagues elsewhere in the OECD are using to control and reduce costs while simultaneously enhancing efficiency.

There is certainly a consensus among council CEOs, Mayors and key Government Ministers on the need for action. There is less agreement on the question of method, a problem that is compounded by the competing pressures of community and central government expectations and the global financial crisis.

In October 2009 PricewaterhouseCoopers Chairman John Shewan is of the view that the Government's expectations will have a major impact on local authorities for the foreseeable future. In an analysis of Budget 2009, presented to SOLGM in June, he looked ahead to 2010 and beyond and outlined a number of possible responses to Government expectations. His analysis is further developed in this month's Local Government and Infrastructure Matters