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Local Government Minister Simeon Brown advocates for localism in Parliamentary debates but overrules Aucklanders from his Beehive office

Public Policy / analysis
Local Government Minister Simeon Brown advocates for localism in Parliamentary debates but overrules Aucklanders from his Beehive office
Transport and Local Government Minister Simeon Brown in Parliament
Transport and Local Government Minister Simeon Brown in Parliament

Local Government Minister Simeon Brown has been a passionate advocate for localism and devolution in Parliament this week. 

“Councils know what is needed for their communities and should not be forced or mandated to take a one-size-fits-all approach,” he said during a debate on Tuesday night

These are core National Party principles which form the basis of Prime Minister Christopher Luxon’s belief about how the Government should work. 

He likely enjoyed hearing Brown say: “This is about providing flexibility to councils, not just simply telling them what to do or mandating them, like the former Government did”. 

These comments were made during the third and final reading of the bill repealing Labour’s water reform and kicking responsibility for water management back to local councils. 

Brown argued that “many aspects” of the previous Government’s reforms were “top down and not driven by local communities and local councils who best know their communities”. 

While he made these localist statements in the debating chamber, back in his Beehive office he was attempting to strong-arm a city council into obeying his edicts.

Brown, and his coalition partners, have decided to repeal the Auckland Regional Fuel Tax and are demanding that any leftover money be spent on Central Government priorities. 

Mayoral resistance 

Auckland Mayor Wayne Brown is unhappy about having a key revenue stream scuppered in the middle of developing the council’s Long Term Plan. 

In retaliation, the mayor has told Auckland Transport to halt all work on anything that was funded from the fuel tax while the council works out how to proceed. 

This included asking for advice on “deferring, cancelling, or rescoping” the Eastern Busway, a pet project for Simeon Brown which is popular in his Pakuranga electorate.

“Auckland Transport must not assume that RFT funding will simply be replaced by higher council rates or debt,” the mayor wrote in a letter to Auckland Transport.

This prompted a response from Minister Brown who said he would write into law which projects the remaining fuel tax money must be spent on. 

In a statement he said: “In repealing the Auckland Regional Fuel Tax, we’ll be legislating to ensure that any remaining funds are spent on these priorities.”

Mayor Brown said now that there was not enough money for all planned projects, it was for Aucklanders to decide which ones to build and which ones to scrap.

“Aucklanders need to have a greater say over the region’s transport programme. We are the only council in the country that cannot set its own transport plan, and that is just ridiculous”. 

Localism, when it suits

Chris Hipkins, leader of the Labour Party, said the minister was being hypocritical. 

“Simeon Brown seems to be saying that he’s all for localism unless the local decision making is something that he doesn't agree with and then he’s just going to legislate over the top of it”. 

“That isn’t localism,” he said. 

Simeon Brown said he had a “positive relationship” with Mayor Brown and had spoken with him about where the remaining fuel tax money should be spent.

“We're going to legislate to ensure that those funds are available and required to be utilised for those projects,” he said. 

He did not answer a question about whether the mayor supported those selected projects. 

Matt Lowry, author of urbanist blog Greater Auckland, said the regional fuel tax only collected about $150 million per year but unlocked $4.3 billion in total funding over a decade. 

Congestion charging, which has been pitched as a possible replacement for the fuel tax, was designed to change when people travelled, rather than to earn revenue. 

“More importantly, even if today the government passed legislation to enable it, it will still take a number of years for the system to be designed and start to be rolled out — and in the meantime, that still leaves Auckland with a giant funding gap,” he wrote. 

A Ministry of Transport briefing to Minister Brown said ambitions for transport investment had outgrown the country’s capacity to fund and deliver it. 

Debt-funded Crown contributions to land transport funding had increased over the past two decades, as user charges had fallen behind these “investment ambitions”.

The ministry said a new approach to paying for land transport, such as value capture, congestion charging, toll roads, and using private funding to lower overall costs, was needed.

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70 Comments

He is right. Stuff needs to happen in Auckland. Wayne Brown cannot seem to push these guys like AT into doing anything sensible. The city, much like Wellington is stuffed. as a result of years of useless Lab/Green leaders. the rot set in years ago. The new minister needs to quickly legislate to get things done (or undone as the case may be), and a lot of people need to shown the door and the clean up needs to begin in earnest.

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argumentum ad odium

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You try that one on frequently when it suits your own argument ad hominem.

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Yep, idiots say stupid stuff when they have no answers.

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Mind you, left-leaning folk have in many cases at least been interested in fixes such as liberalising zoning - where conservative NIMBYs have led the resistance to any progress on critical issues. Even under Wayne Brown and the Auckland Council liberalising zoning, the conservative NIMBY figures were lamenting his betrayal, when in fact Brown was simply acknowledging reality and the need to act. We've been in far too many cases pandering to NIMBY entitlement mentality to ruling over land they don't own, for far too long.

We also need to move past the idea that it should be expensive to buy at auction time "because it's a global city" while expecting it to be cheap at Rates time.

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"cannot seem to push these guys like AT"
That is an intentional part of the design of the "Super City". You should be directing your scorn on the likes of Rodney Hide, who chose to ignore and not implement the various originally proposed Ombudsman who would oversee Water, Transport, etc. 

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Wellingtons localist idiocracy in action 

https://thespinoff.co.nz/politics/02-02-2024/the-first-recommendations-…

 

Edit: Wellington's current list of virtue signalling vanity projects 

Town Hall music venue $340 million
Rebuild central library rather than use existing ones – $189 million
A $13 million carpark building
Cycleways $226 million
Convention Centre $169 million
$32 million corporate welfare for Reading Cinemas
$139 million on the Golden Mile (removing cars)
$236 million on food recycling
 

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What virtue are these meant to be signalling, nostalgia?

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Rebuilding the existing library...was the issue? It broken and being improved....or is that too woke for you...need to ban some books perhaps?

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It should have been bowled over & a new one built for half the cost - as was Christchurchs.

But no, Wgtn localist "heritage" required other peoples money for the BS vanity 

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Built for half the cost?....mate you obviously have not been living in Nu Zealand for the last 50 years? 

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That quote was 4 years ago.??? Also the locals wanted the old one kept...as Local Government Minister Simeon Brown has been a passionate advocate for localism and devolution (except Auckland)

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And yet Wellington Council are seeking to save by doing things closing a library and swimming pool - stuff that actually adds quality of life.

The ineptly conceived, self-aggrandising projects that councils keep ambushing ratepayers with, when we only get to have a say on their performance every three years, need to be controlled. We need greater protections, like: binding referenda, recall legislation and public petitions for commissioners to replace councils.

We can't afford the vanity projects when the basics are disintegrating in front of us.

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Congestion charging is working elsewhere already. Why would it take years to aquire the same tech and deploy it?

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Rat runs.

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Woolworths can help with that.

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Nationwide fuel tax increase coming. problem solved.

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Not Aucklands.

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i would wager within 6 months the fuel price will be back where it is now in auckland , fuel is more expensive in a lot of places in NZ, the fuel companies will take the Opportunity to fatten the margins in auckland

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Dan, I don’t quite understand why you think scuttling the regional fuel tax flies in the face of localism. Auckland has the opportunity to raise funds by alternative methods according to Auckland’s priorities. And ultimately there will be congestion charging.

It’s the timing of the fuel tax removal that is the issue, not its removal per se.

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It flies in the face of localism because the council/mayor are openly opposed to the decision (for whatever reasons) 

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Don’t agree. Council has the ability to accrue revenue as it sees fit to pay for projects its community deems necessary.

I do agree with you in so far as it was apparently done with insufficient consultation and with insufficient lead time to plug the revenue gap with alternatives. But that’s more a process and timing issue than a substantive one around local autonomy.

Nonetheless it is simply absurdly hypocritical for the Labour party of all people to criticise when they brought in so many too down mandates.

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If the government told AC they could no longer charge for water, that’s still localism? If the government told AC which pipes they could spend their water bill money on, thats still localism? 
It’s not hypocritical for labour to criticise because they didn’t claim to want localism. 

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HM, you made the wrong decision voting for NACT, just own it and stop trying to defend this shambles of a government. 

Aucklander's support the regional fuel tax to support transport projects Aucklander's want. Simeon disagrees with those projects ideologically, not based on evidence, not based on efficiency, not based on best bang for your buck, ideologically. This is the worse sort of decision-making. One based on petty, uninformed, culture-war nonsense. He's a disgrace and reinforces Luxon as being the worse National leader in living memory. 

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He’s an utter cock and the worst minister NZ has had in a very long time. Auckland will go backwards while cities in other countries progress forwards, this is terrible for NZ. Even more reason for people to move to Aus, they aren’t cars only. 

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I didn’t vote for NACT.

And how do you know ‘Aucklanders support’ the fuel tax? Have the poorest Aucklanders been surveyed?

And why can’t some combination of rates, congestion charge and financial contributiins be used?

It would hit the poor less in the pocket. 

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Congestion charge will take a long time to implement. A big proportion of your rates bill is already transport, any more and you may as well call it your roads bill. Financial contributions pay for pipes, parks, etc don’t they? 

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No that’s *development* contributions under the LGA. Financial contributions are different and under the RMA. Much wider scope.

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Just get on with value capture tax already.

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A vote for NZ First was a vote for NACT.

Auckland Council consulted on the projects in 2018. The Mayor's office more recently surveyed Aucklander's to find out. 

Simeon is not looking at funding efficiencies, he's trying to make Auckland stop projects he doesn't want and trying to resuscitate Frankenstein abominations like East West (the world's most expensive motorway on per km basis) and force them back onto Aucklander's.

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Yes, the council needs to raise rates more. Didn't need the regional fuel tax in the first place. We always seem so resistant to having reasonable levels of rates to fund the infrastructure serving land. Always seem to be looking for ways to make others pay.

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Council could also make more use of financial contributions under the RMA.

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Yes, that's definitely going to help with housing affordability. 

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Lol

Guess what - the market won’t address the affordability issue. It’s an odd but common belief amongst the woke left

And guess what - Queenstown are introducing a 2% financial contribution on development to go towards genuine affordable housing. The thing that the market won’t, and indeed can’t, deliver.

Do you really think 2% on a 900k townhouse is going to meaningfully worsen affordability

 

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No but it also won’t pay for much transport or social housing. They can build one social house for every 50 market houses. 

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Exactly.

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Guess what - the market won’t address the affordability issue. It’s an odd but common belief amongst the woke left.

What a clown comment. 

1- I never said the market would solve it

2- traditionally it is the more right leaning people who think the market will address housing affordability 

3 - what is "woke left"? 

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Make young people who bought their first house in Drury and idle down the motorway every day to work pay the tax.  While wealthy older business owners who live more central claim what miniscule amount of fuel they do use as an "expense".  

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Transport should be user pays such as fuel tax. Rates just subsidises the biggest transport users. Imagine if rates also paid for unlimited electricity!

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Land receives betterment from infrastructure provided by rates, including roads. This is easily seen in the difference in value of remote, unserved land to central city land. Thus, rates are a good component of funding that infrastructure.

We're not automatically entitled to having others pay for all of the cost of a road to our land, or its maintenance.

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Simple solution. Double the rates in the Pakuranga electorate.

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those that benefit from the eastern busway should have higher rates to pay for it, Afterall it goes through some of the wealthier auckland suburbs 

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The north shore got theirs for free!

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but they got the cheap option hence the bottleneck at the harbour bridge into town, if they allocated one side of the clip-ons for busses it would solve that problem, and it was only 300 million to build, rather than light rail i think busways give more bang for buck  + one day you will have driverless electric busses so think of all the money you could save on drivers.

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Wonder what the left wing anti Mayor Brown think of him now? Far from being politically bias he’s certainly sticking up for Auckland. pity he wasn’t about 10 years ago. 

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Wayne Brown has been doing an outstanding job as mayor, the 2023 wobbles aside (a few months into the job). Fiercely Auckland focused, and getting what's best for the city (in his view). I don't recall much more than the occasional peep from Goff or the other Brown during their tenure. I've interviewed Goff before - he's a really nice guy, but maybe the Mayor of Auckland shouldn't be nice if it means getting walked over.

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I like that he's standing up for Auckland but has he actually achieved anything yet? 

So far central government don't seem to have given him anything he wants. 

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In fairness to him, he has adopted some more pragmatic liberalising of zoning (although he did pander to NIMBY undue influence and entitlement across St Mary's, Herne Bay, Westmere to Kingsland areas).

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Reminds me of some of those Sheriffs in America.  

  • Reporter : "Why did your deputies shoot the suspect 68 times?"
  • Grady : "Because we ran out of bullets"
  • * gasp * 
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Really what business it is of the governments what local transport projects the Council focusses on?  They should stick to inter regional or national scope projects and get their noses out.

Mayor Brown is correct.  Governance arrangements in Auckland need to revert back to what applies in every other region in the country, included the transport department (AT) being brought back under direct councillor control.

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that is the massive problem AT cannot do anything sensible and it seems their whole mantra is to make things worse for aucklanders and spend as much as they can doing it, the amount of dumb stuff you see from them, example they have down my bus stop as closed for two months on the app because a road of the same name in another suburb is getting redone they cannot even use google maps to double check info they give out lucky for me the bus driver ignore their own organisation and stop to pick and drop people off, or we have two bus stops on the same side within 50 metres and took the one on the other side of the road out so none to get off on the other side, i wrote to them  3 years ago and they said oops we got that wrong will put the one back on the other side and have done nothing 

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Government want to spend $56 billion on a harbour crossing and god knows how much on the east west link. AT look like geniuses in comparison. 

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Is the simian Brown leveraging the misplaced ill feelings the rest of NZ has towards Jaffas? Sure seems so.

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He's just a kid man, he'll ripen with age.  

hopefully.

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will he, or will he get stupider with age, he does not strike me as very bright and on top of that he has a BIG problem listening taking things in and making an informed decision, i watched him on the transport committee and he had a lot of problems understanding the CEO's answers, if it didn't fit his ideology, it didn't make sense to him.

i suspect he will leave us with untold PPP disasters and tolls all over the place, not that i am against those but they have their place, i.e build the 4 lane to Whangarei and toll it, as long as you leave a free road for those of us not in a hurry that's fine BTW i was against them removing the toll on the harbour bridge imagine what they could have built by now with that revenue

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He's so stupid he can't even see he's being set up as the fall guy.

Very Luxon move, throw an ambitious dumb young gun yes man onto a nasty task that Luxon needs doing and then then throw him under the bus when the shit hits the fan. 

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By cancelling our only way of paying for our own infrastructure? I hope the rest of NZ enjoy paying for it instead. 

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And local rate payers are now paying for their own water infrastructure (or paying a new foreign owner once they are sold off) ..win win 

 

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Selling off Watercare is something that has been discussed in National and ACT circles for eons.

And the easiest way to do it, based on how it's been done in the USA, is to ensue the Councils get so impoverished that they are forced to sell stuff. We'll be sold the 'private enterprise will do it better' nonsense but in in 10 years time we'll be paying through the nose while 'investors' make massive profits.

Sorry to say this - but 3 Waters would have made such a plan impossible. (One again, it appears kiwis aren't that bright.)

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They really learned nothing from rail sales eh. Or perhaps there's too much money to be made for some, for anything to be allowed to be learned.

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100% correct.

It's the same playbook the Tories have used in the UK. It amazes me that Kiwis are able to see the terrible consequences of shit policies implemented abroad 10 years ago and yet they vote for the same shit here. It's almost like we deserve what we get for being stupid and falling for culture war nonsense. 

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Yeah I was happy that Auckland finally had a plan to pay for Auckland problems. I lived there 20 years ago and it was bad then. I've never looked back. Have lived in Wellington & Sydney since which are much easier to get around with better public transport.

Scrapping the RFT is as much about being seen to be getting rid of another Labour policy than anything else. It's also a quick and easy thing to add to their 100 day list. Yay.

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The government get GST on top of the fuel tax, right? Could be quite a hit to the coffers at a bad time. 

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a BIG portion of the price is made up of government taxes,/levys so the road user charges for cars will be huge when SB changes the system and as you can see below those that use diesel trucks farmers are subsidized by all the petrol users.

Fuel excise (petrol)

The fuel excise portion includes:

Did you know?

It's now government policy for all petrol tax to be directed back into New Zealand's road and transport system. The AA lobbied hard on behalf of motorists to achieve this.

Previously, over a third of the tax collected on petrol was diverted by the government to other areas of spending.

  • 70.024 cents - National Land Transport Fund
  • 6 cents - ACC Motor Vehicle Account
  • 0.66 cents - Local Authorities Fuel Tax
  • 0.6 cents - Petroleum or Engine Fuels Monitoring Levy

In addition, GST is collected on the overall price of fuel, including the excise (which is essentially a "tax on a tax").

There are no excise taxes on diesel other than 0.33 cents Local Authorities Fuel Tax, and GST. Instead, diesel vehicles pay Road User Charges.

All fuels also pay an Emissions Trading Scheme levy, which has added between approx. 10-20 cents per litre depending on the price of ETS units (of which the price has varied between approx. $30-90 per tonne).

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I guess this is part of the fallout from voters swinging widely on support of the major parties. when both parties get down into the low 30's / high 20's , out goes a whole load of MPs that were just getting 3 - 6 years experience.

So suddenly , a MP who graduated frrm Uni in2016 , somehow went straight into a "senior" position at a bank for a year , and has been a MP for 6 years becomes the minister for several key portfolios.

 

 

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His "senior" position at the bank was one of the positions the banks provide to National politicians to get a private sector tick on their CV. My mate works in one of the Big Four consultancies and they do the same thing. There are roles reserved for people that aren't going to stay and do fuck all, the point of them is to then call in favours once the future politicians get into power. Soft corruption.

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Fuel tax is too blunt an instrument for raising funds. It also feeds into Auckland CPI. 
 

congestion charges appears to be a better option. 

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But why cancel the tax before you've brought in the new revenue stream. 

This is like ripping off your whole roof because it has a minor leak and not having any plan to get a new roof for another 4 years. It's f***ing retarded. 

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You do it because you're trying to please people.  For example, ripping off your roof might keep the wife happy temporarily because she sees progress.  

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