Govt to Ensure Councils Focus on Core Services, Reduce Spending to Ease Cost of Living

The Government is set to finalize policy decisions related to the Local Government System Improvements workstream later this year.

The Government has introduced measures aimed at ensuring local councils prioritize essential services, reduce costs, and improve decision-making efficiency, according to Local Government Minister Simeon Brown.

Key initiatives include refocusing the purpose provisions in the Local Government Act, investigating performance benchmarks for councils, exploring options to limit spending on non-essential projects, and reviewing transparency and accountability rules.

Minister Brown emphasized the Government's commitment to rebuilding the economy and lowering the cost of living by curbing wasteful spending and directing investment towards critical services and infrastructure. He pointed out that council rates have risen by an average of 15% this year, far outpacing inflation, which has placed undue pressure on ratepayers.

"Ratepayers expect local government to focus on delivering the basics—like rubbish collection, water infrastructure, and road maintenance. We have done our part, and Kiwis expect councils to do theirs," said Minister Brown.

The Government has already introduced the "Local Water Done Well" policy, which allows councils to transfer water debt to new Council Controlled Organizations and increase borrowing against water revenue. However, further actions are being taken to ensure councils remain focused on essential services.

To this end, references to the previous government's "four wellbeings" will be removed from the Local Government Act, as these were seen as distractions from the core issues facing communities. The Government will also explore performance measures for councils, with regular publication of these measures to enhance financial transparency.

Additionally, the Government plans to review the rules surrounding transparency and accountability in local government. This includes ensuring that elected council members have access to the information necessary to represent their communities effectively.

The Government is set to finalize policy decisions related to the Local Government System Improvements workstream later this year.