Source: Radio New Zealand
Local Government vice president and Gisborne Mayor Rehette Stoltz. RNZ / Angus Dreaver
The national voice for local councils is relieved that the government is taking a more flexible approach to capping the amount local councils can increase rates.
The government announced on Monday that its long-awaited rates cap law would be a variable target band.
From 2027, councils would not be able to increase rates beyond the upper end of the government’s set range without permission.
The cap was expected to start with a maximum increase of four percent.
Local Government interim chief executive Scott Necklen said it was somewhat reassuring that the government had chosen a more flexible rates model.
But he wanted assurance that the policy would not affect local councils’ ability to invest in core services like roads, bridges and public transport.
“We need a common-sense, fast-track process for exemptions that enables investment in key infrastructure in economic growth in the regions, or when responding to natural disasters.”
Local Government vice president and Gisborne Mayor Rehette Stoltz said keeping rates low was a priority for all local councils.
But she said several councils, including the Gisborne District were rebuilding infrastructure after multiple severe weather events.
“Our community’s expectation is also that we deliver the critical infrastructure and services they rely on in a timely way.
“These are the sorts of considerations we will be working with the government to implement.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
