Councils across the country had some of their most challenging conversations around the table last year, as they balance the need to protect ratepayer’s long-term interests with the financial sustainability of councils, Local Government New Zealand (LGNZ) President Sam Broughton writes
Looking ahead to 2025, we all know the long list of actions that central government is asking of local government.
So you may not be surprised to hear… local government’s got a list too.
But we don’t want this just to sit as a wishlist. If we want 2025 to be a better year for our communities, this is what we need from Government:
- Unlock other sources of funding and support for local government, like the Ratepayer Assistance Scheme, to help councils keep rates affordable.
- Simplify procurement processes and business case costs to lower the cost of building roads, pipes and other infrastructure – so councils can grow local economies in the way the Government expects, by delivering cost-effective and essential infrastructure.
- Make it easier and more efficient for councils to create long-term plans, by updating cumbersome rules and removing requirements of low value – cutting the cost of developing LTPs and reducing audit costs.
- Review and simplify the rules around council budgets and performance reporting, cutting through the red tape; unnecessary rules only slow councils down.
- Change local election terms to four years – especially if central government does the same – to allow councils more time to effect change.
But the best thing that Government could give councils in 2025? It’s the gift of partnership.
Councils work extremely hard for their communities; it’s a tough job to deliver everything that’s needed. Every day, councils make important decisions that impact future generations – from infrastructure investment like roads, bridges and pipes, to emergency management and waste.
Yet often Mayors and councillors face government or public criticism for making future-focused decisions that not everyone likes.
And while the Government is asking councils to focus on ‘basics’ and be fiscally responsible, in the background central government adds levies and costs onto councils to help balance their own books; things like waste and water levies and public transport fare hikes.
This puts added pressure on ratepayers and – combined with councils’ increasing need to invest in replacing/repairing infrastructure – means that the real drivers behind rates rises aren’t always obvious.
Imagine what we could achieve if local government worked in partnership with a collaborative Government to unlock growth? That would involve the Government understanding what ratepayers and the wider community truly value in their regions.
While councils focus on ‘core’ needs like better roads and efficient waste and water services, it’s everything else that gives each region a heart and soul. Where would a city or town be without public spaces, libraries, playgrounds, parks, event and arts venues and swimming pools?
These assets are fundamental to the vibrancy of the places we live in. They also underpin economic growth by bringing visitors, supporting local businesses and helping stimulate growth. You can see what happens every time a council proposes cutting a ‘non-core’ service like a swimming pool or library – people are outraged.
Often one person’s ‘nice to have’ is another’s ‘must have’.
So in 2025, we’re asking the Government to partner with local government and empower councils to do the best they can for ratepayers; we both serve the same communities so we need to work together.
Government’s greatest gift would be removing red tape, enabling more funding levers for growth – and working together with us to deliver for the people of New Zealand.
