Source: New Zealand Government
The Government’s plan to refocus councils on core services, such as roading, core infrastructure, water, and rubbish, has taken a major step forward with the introduction of the Local Government (System Improvements) Amendment Bill to Parliament.
Local Government Minister Simon Watts says the Bill will help restore discipline, transparency and performance across the sector, to the benefit of ratepayers.
“Kiwis are frustrated with rising rates, expanding bureaucracy, and poor value for money. This Bill puts councils back to work on the basics, their core services, so ratepayers see real results for what they pay.”
The Bill is part of the Government’s System Improvements programme, first announced by the Prime Minister in August 2024, and responds directly to public frustration over deteriorating infrastructure, rising rates, and lack of financial focus.
Key reforms in the Bill include:
- A renewed focus on core services in the statutory purpose of local government by removing the four ‘well-beings’
- A requirement to prioritise core services when managing finances and setting rates
- New financial performance measures for councils, with a requirement for regular public reporting
- Mandatory disclosure of contractor and consultant spending
- Stronger transparency and accountability requirements
- Regulatory relief to reduce unnecessary compliance burdens
“Local government has drifted from their core responsibilities. This Bill draws a line in the sand – focus on the essentials and deliver value for your community,” Mr Watts says.
“This refocusing of our councils will help to deliver better value for money, and ultimately help with addressing the number one issue people are dealing with right now, which is cost of living.
“I have made it clear that the Government will not support new taxes and revenue tools for local authorities at a time when we believe there is scope for improvement in the value for money New Zealanders receive in return for their rates.
“To that end, we are working at pace on a rates cap model, and I look forward to providing an update later this year.”
Mr Watts says the Bill is another major milestone in a significant period for local government reform.
Other key developments this week include the second reading of the Local Government (Water Services) Bill, and Ministerial attendance at the Local Government New Zealand conference, where Mr Watts will outline the vision for local government.
In recent weeks, Mr Watts announced the first City and Regional Deal agreements which will boost local investment and development in three regions, and the establishment of the first water services entity, Selwyn Water Ltd.
“These changes show we’re not just talking about reform – we’re delivering it. Stronger accountability, clear priorities, better infrastructure delivery – these are central to our vision for local government,” Mr Watts says.
The Government intends to pass the System Improvements Bill, the Local Government (Water Services) Bill, and have the first regional deal in place by the end of 2025.
