Waikato mayors come out swinging at Government's rates cap

The Government had better have a "magic pill" if it's going to bring in rates caps, one Waikato mayor says.

Another finds the restrictions a bit rich when the Government's driving a costly amalgamation process that "no-one wanted".

The local leaders didn't pull any punches when it came to plans to cap councils' yearly rates increases at 4%, starting in 2029.

Local Government Minister Simon Watts who initiated the scheme, saying it will put the brakes on "excessive increases".

Hauraki District Council mayor Toby Adams said it wouldn't work and councils are being treated "like we're gum off the bottom of their shoe they're trying to scrape off".

The Government would need to administer a "magic pill" to curb the rising costs of services, he said, and he's unsure how councils will continue to fund projects with "no money".

"We look after just as many expensive assets as [the Government does]. We've got to do it with a fraction of the budget."

"This country is slowly going backwards because of the complete disconnect between central and local government, and they're buying into a rhetoric from people saying our rates are out of control.

"If you actually ask reasonable-minded people, they'd rather have slightly more rates and ensure infrastructure is getting upgraded to the necessary needs," Adams said.

Hauraki's budget last year was trimmed to "only do exactly what the core services are", Adams says. That still produced a near 9% rate increase, including funding for water and wastewater investment - two aspects exempt from the cap.

"You listen to the Prime Minister and the minister of local government saying 'what a waste of money these councils are spending'... but then two days later they're going out and spending $250 million on a new courthouse just to tell the criminals off."

"They're wasting just as much money but they get the benefit of [saying] no new taxes but they can raise them if they want."

Watts' office was approached for comment but did not respond by deadline.

In a previous statement, Watts said the cap will "sharpen the focus" on services communities expect of council.

Launching barbs at central government is far from foreign for Matamata-Piako District Mayor Ash Tanner, who said water and wastewater are two of the three major components which drive rates up.

He has previously blamed over-regulation, especially on water, from Government for rising prices. He doubled down on his stance, saying they "don't have a clue" what the council actually supplies.

"My opinion is that then we throw our hands in the air and basically say 'we give up', and setting up these [water] entities hopefully is going to make it better," he says.

Amalgamation spending grinds Tanner's gears, and he says it's hypocrisy to have a government that's "hell bent" on councils saving money be behind a move "no-one wanted" but that's cost millions of ratepayers dollars nationwide.

"They've just given us an amalgamation conversation to go out and talk to our communities but councils are busy spending $200-400,000. There's a percent of an increase there on its own," Adams said.

"They [Government] should stop changing their mind every two minutes. That would save the country billions of dollars each year and the rates increase wouldn't be such a worry."