An idea - seeded two years ago - for the Upper Clutha to separate from the Queenstown Lakes District Council (QLDC) has moved another step with the presentation of a petition supporting the break-away council to the Local Government Commission (LGC).

It’s a positive move for supporters of the plan, and the Wānaka App has taken a close look at what will happen next, as well as the likelihood of a breakaway council - given the last instance when the LGC approved such a thing was 30 years ago.

‘The Wrexit’ idea

Two years ago an idea for the Upper Clutha area to form a breakaway council was expressed on social media by long-term local Dean Rankin and a petition of support was circulated.

That petition has now been formally presented to the LGC requesting it review and investigate the representation of the Upper Clutha District with the purpose of creating a new district council for the area of the current Wānaka-Upper Clutha ward.

The petition said changes in the ward’s population size and demographics had made local governance by the QLDC ineffective and undemocratic; and that the apportionment of rates income by QLDC was not being spent fairly or equitably in this ward. 

Read more: Community board criticises funding inequity

“We propose forming our own council for the Wānaka/Upper Clutha region, having control of our own assets and resources, a complete split away from the QLDC, replacing a minority council voice with a genuine and effective one for residents and ratepayers in the Upper Clutha District,” Dean said in his application. 

The petition, first circulated in August 2021, received more than 1,800 signatures (above the 10 percent threshold of 1,068) when it was received by the LGC on March 27, 2023.

The Wānaka App has taken a closer look at the processes and next steps in what some have dubbed the ‘Wrexit’ proposal.

Wheels of local government grind slowly 

Having formally received the application in March this year, the LGC has yet to decide to investigate it.

The petition’s 1,800 plus signatures were checked and over 1,200 were verified as legitimate voters on the current Wānaka Ward electoral roll.

Today (Friday June 2) LGC advised it would formally receive the application and determine whether other content requirements for the application have been met before deciding whether or not to carry out an investigation. 

That includes determining the merits of the application and consulting with the council, iwi, the applicants, the community and other stakeholders. 

In deciding whether to undertake an investigation the Commission considers a number of matters, including the potential scale and scope of improvements to local governance and services, and the potential costs, disruption and other negative effects on affected local authorities and their communities.

Locals wait to have their say at a council meeting. PHOTO: Supplied

If the decision is to investigate, the LGC must determine the investigation process, including how interested parties, such as affected local authorities (for instance QLDC and ORC), iwi and the public, will be engaged and consulted, and a timeframe.

Recently amended legislation provides more discretion for the LGC to determine those processes and the requirement for the Commission to prepare a draft reorganisation proposal for consultation purposes is now no longer mandatory. 

At this point, however, the LGC has “not yet given the matter formal consideration”, LGC principal advisor Donald Riezebos said.

A thorough investigation

Donald said the time taken for considering applications varies widely as there is a long list of concerns to be considered and he wouldn’t speculate how long this may take. 

In assessing the desirability for the reorganisation the Commission must take into account how best to achieve certain matters including: 

• improving the purpose, productivity, efficiency, sustainability and effectiveness of local government; 
• efficiencies and cost savings; 
• an assurance that any local authority established or changed has the resources necessary to enable it to effectively exercise its responsibilities, duties and powers;
• enhanced ability of local government to meet the changing needs of communities for governance and services into the future;
• effective provision for any co-governance and co-management arrangements between local authorities and iwi or Māori organisations. 

It must also have regard to the likelihood of significant community opposition to any reorganisation that might result from the investigation. 

Also taken into account is that the ward has a well-established Wānaka-Upper Clutha Community Board and eight elected representatives either on the board and/or representing the Wānaka-Upper Clutha ward at the QLDC table.

Reorganisation plan

During or at the completion of the investigation, the LGC may develop and adopt one or more reorganisation plans for the ward based on its assessment of the scale of the potential benefits of the proposed changes, the financial disruption and opportunity costs of implementing the proposed changes, the effect on existing communities of interest, and the likelihood of the objectives being realised.

Public notice of the reorganisation plan including details of where it may be inspected has to be promulgated before a reorganisation plan can be adopted and notified by the Commission.

Lastly, a transition body is established to work with the LGC and facilitate local input into the development of a new council.

Outcome is not assured

At the end of its investigation, the LGC might also conclude it is better to just make recommendations to the existing council rather than opting for a reorganisation plan, or might decide to take no further action whatsoever.

But, even if the LGC’s plan proposes the creation of a new Upper Clutha district separate from the QLD there is no guarantee it will occur.

Donald said the last instance he recalls where the LGC approved the creation of a new district was 30 years ago.

In 1993 an application made for a Mangonui District Council to split from the existing Far North District Council was approved, but the decision was defeated by a poll of local electors and no separate council was established.