Hon Simeon Brown
Minister of Local Government

The Government has announced measures to ensure councils are getting back to basics to reduce the cost of living, deliver core services and infrastructure, and improve the efficiency of decision making, Local Government Minister Simeon Brown says.

• Refocusing the purpose provisions in the Local Government Act.
• Investigating performance benchmarks for local councils.
• Investigating options to limit council expenditure on nice-to-haves.
• Reviewing transparency and accountability rules.

“Our Government is rebuilding the economy and reducing the cost of living by reining in wasteful government spending, directing investment into critical frontline services and infrastructure, and providing hardworking Kiwis with tax relief.

“Council rates are increasing by around 15 per cent on average this year, which is more than four times the rate of inflation. This is unacceptable and councils must ensure they are doing everything they can to reduce pressure on ratepayers.

“Ratepayers expect local government to focus on delivering the basics, picking up rubbish, fixing water infrastructure, and filling in potholes. We have done our part, and Kiwis expect councils to do theirs.

“The Government has already taken action to support local councils with our Local Water Done Well policy, which will ensure councils can move water debt into new Council Controlled Organisations and increase borrowings against water revenue to 500 per cent. However, there is more work to do.

“We are removing references to the previous government’s four wellbeings in the Local Government Act, which distracted councils from the key issues facing communities at a time when Kiwis have been doing it tough.

“Central government is focusing on the must-haves, not the nice-to-haves. Our expectation is that local government does the same.

“That’s why we are refocusing the purpose of local government to ensure councils are delivering the high-quality core services and infrastructure Kiwis expect, in a way that is most cost-effective for households and businesses.

“Our Government will also investigate performance measures for local government on the areas councils should already have a close eye on, and will look at options like revenue-capping to limit councils spending hard-earned ratepayer money on nice-to-have pet projects. These performance measures will be published on a regular basis to give ratepayers more visibility about the financial prudence of their council.

“There is no room for wasteful spending and there is no escaping the need for fiscal responsibility. Kiwis have had to tighten their belts when faced with the high cost of living. We need councils to get serious about focusing on the basics.”

Cabinet has also agreed to launch a review of the transparency and accountability rules that apply to councils.

“While reducing the cost of living is our priority, it is unacceptable that unelected bureaucrats can prevent elected council members from accessing the information needed to represent their communities.

“Ratepayers expect their voice to be heard at the table, and elected members should be entitled to access information to assist in decision-making. We will review the current settings to ensure that democracy is upheld.”

The Government is considering options to implement the Local Government System Improvements workstream and will make final policy decisions later this year.

Overview of system improvements fact sheet

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