Last week I touched on the issue of holding local government accountable in the processing of resource consents arena. I also mentioned local government’s penchant for viewing property as a bottomless well to fund its ever growing empire. Interestingly, that very dependence on property as a principal source of revenue has caught local government on the hop as property values come back and development dries up in the face of recession.

And so what is the response from local government? Is it to take a long hard look at their operations and seek to reduce costs? Far from it, one council has just increased its reserve contribution from five per cent to 7.5 per cent, a 50 per cent increase.

Similarly, given the downturn in economic activity, you would expect payments to council consultants to be reducing – alas, you would be wrong. An outspoken critic of such bureaucratic business, Owen McShane, makes the point in a recent article where he cites the case of a small council  with fewer than 20,000 population which has increased its weekly spend on consultants from $65,000 per week in the year ending June 30, 2007 to $125,000 per week for the year ending June 30, 2009.

He also mentions a recent case where an architect applied for a building consent for a 3x3m timber deck and was charged $1350. His investigations revealed that the application had passed over 13 desks between application and final approval.

Substitute a 3x3m deck for  a new building and you can see why there is a growing body of opinion in the country that is calling for a new deal for ratepayers and taxpayers alike.

Until next time, have a great week.