Members' Update: Decision of the Board on expulsions of Waikato Regional Councillors
Further to Jordan’s emailed newsletter and his recommendation that the Taxpayers’ Union expel the Waikato Regional Councillors who u-turned on their campaign “pledge” to exit the Regional Council from LGNZ, I’m writing to you as a member of the Taxpayers’ Union to advise the outcome of the Board’s extraordinary meeting.
Summary of decision and outcome
As expulsion is a sanction the Taxpayers’ Union has never imposed before, the Board approached the matter with particular care. Under Clause 31 of the Union’s Rules, expulsion may occur where a member does any act that may bring the Union into disrepute, or if in the Board’s view the person has an interest contrary to the purposes or aims of the Union.
The reputation and effectiveness of the Taxpayers’ Union rests on advancing high-quality public policy and holding public officials accountable for their conduct in office. The Board therefore considered not only the councillors’ explanations for their conduct, but also whether their actions were consistent with the principles and objectives of the Union.
The Board received both written and oral submissions from the councillors concerned, including participation by one member via Zoom at the extraordinary Board meeting. Given the judicial nature of the process, Jordan did not participate in deliberations or voting so as to avoid any suggestion that the outcome was pre-determined.
The Board carefully considered the two central commitments made by the “Rates Control Team” during the election campaign. The first — keeping rates increases below the rate of inflation — has largely been honoured. The proposed annual plan forecasts rates increases of just 1.4%, and the councillors deserve genuine credit for exercising financial restraint and identifying savings within Council.
But the second commitment — to remove the Waikato Regional Council from Local Government New Zealand — was plainly breached. The councillors acknowledged that they deliberately chose not to honour that campaign pledge.
To borrow an old phrase, the Board considered this a case deserving both a bouquet and a brickbat.
The bouquet is for the significant achievement of restraining rates. The brickbat is for reneging on a clear and repeated campaign promise to exit LGNZ — an organisation which continues to oppose rates capping, resist local government reform, and advocate positions often contrary to the interests of ratepayers.
In the Board’s view, the irony is that the singular achievement of low rates is substantially cancelled out by continuing to fund and support an organisation dedicated to frustrating reforms intended to protect ratepayers nationwide.
The councillors argued that remaining within LGNZ was justified because of the Government’s local government reform programme, improvements within LGNZ itself, and the perceived need for coordinated sector advocacy. The Board considered those arguments carefully, but ultimately did not accept them as sufficient justification for abandoning a clear electoral commitment. Indeed, the telling admission was that they wished to remain within LGNZ in order to preserve their position and influence as regional councillors. The Board therefore found it difficult to avoid the conclusion that self-interest materially drove the decision to breach their campaign pledge.
After weighing all matters, the Board reached a unanimous decision among those directors present and entitled to vote.
One member, whose membership was already in a grace period due to non-payment of subscriptions, confirmed that he would allow his membership to lapse. The second member has had his membership terminated pursuant to Clause 31 of the Union’s Rules.
The Board’s decision was ultimately driven by the need to preserve the integrity of the Taxpayers’ Union. That integrity is central to our mission and underpins our ability to continue being an effective force for lower taxes, less waste, and more accountable government.
Thank you.
As you can see, this was not a trivial matter nor a decision taken lightly.
I would like to extend my thanks to the many hundreds of members and supporters who took the time to share their views with us. The Board was provided with both the correspondence received and a summary of the key themes and sentiments expressed, and these informed the Board’s consideration of the matter.
Thank you for being a member of the Taxpayers’ Union, and for standing with us for Lower Taxes, Less Waste, and More Accountability.
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