19 March 2014

For immediate release

LGNZ supports strengthening financial performance

Local Government New Zealand (LGNZ) welcomes new financial prudence regulations the Government is introducing for councils, which support LGNZ’s work lifting governance and performance across the sector.

The regulations were developed in consultation with LGNZ and will measure the financial performance of councils using seven benchmarks on local authority finances. Councils will publish their results against the benchmarks in 2013/14 financial year annual reports.

LGNZ President Lawrence Yule says that councils are responsible to the communities that have elected them; clearly outlining their financial performance every year not only strengthens accountability to their communities but also improves transparency.

“Many local authorities are well-structured financially and deliver good value to their communities. We will be looking at ways to ensure communities have a stronger understanding of the financial position of their council and the local government sector in general,” Mr Yule says.

When paired with relevant commentary the new benchmarking will provide a more accurate picture of spending, borrowing and the stewardship of council infrastructure.

“It is vital the measures be supported with relevant contextual comments so the information is correctly understood. This will further assist LGNZ’s efforts to improve governance and performance under our newly launched Centre of Excellence, EquiP,” Mr Yule says.

LGNZ will work with central Government on developing ways of interpreting and publishing the results of the benchmarks and will work with councils on implementing the regulations.

Councils must adopt the new benchmarks by 31 October.

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