LGNZ backs new financial prudence regulations

Local Government New Zealand (LGNZ) has voiced its support for new financial prudence regulations for the sector announced today by Local Government Minister, Chris Tremain.

These regulations include benchmarks which aim to standardise financial reporting around affordability, sustainability and predictability.

LGNZ President Lawrence Yule says benchmarking will provide an effective measurement of local government performance, but cautioned that measures need to be supported with relevant contextual comments.

“Our councils are accountable to the communities that have elected them,” said Mr Yule. “This includes being transparent in the way their rates are invested in infrastructure, the amount of debt they need to service and their overall financial performance.

“The new regulations and benchmarking, when paired with relevant commentary, will illustrate the prudent financial stewardship of the sector, highlight best practice and provide a clearer picture on where investment is occurring.”

LGNZ has contributed to the regulations and will be supporting sector members in helping them meet the new reporting criteria.

Mr Yule confirmed that LGNZ will, over time, also be investigating and working with its members on additional sector-led benchmarks to further assist and support local authorities to demonstrate the value and effectiveness they deliver to the community.

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