New Zealand’s infrastructure is at a crossroads. Water, transport, and resilience are not just local issues. They are national priorities requiring a coordinated effort between central and local government. Our Government understands the urgency of these challenges and is committed to providing the tools and support necessary to tackle them effectively.
However, our commitment comes with clear expectations. Councils must step up and focus on delivering the essential services that New Zealanders rely on every day. Kiwis expect local government to deliver the basics and do them well. That means collecting rubbish, fixing and maintaining the pipes, and looking after our roads so they aren’t littered with potholes. These are the actions that matter most to Kiwis, and that is what we expect councils to be focused on.
Too often, councils have been sidetracked from their main priorities by costly projects that offer little benefit to their communities.
Wellington City Council’s $180 million investment in a convention centre, now reportedly losing money, is a glaring example of misplaced priorities. Such projects do little to address the immediate needs of the community. Ratepayers are rightly frustrated and demand better.
Our Government is committed to ensuring that local councils operate within a framework that emphasises fiscal responsibility and accountability. We will not stand by while ratepayers’ money is squandered on nice-to-have projects. Instead, we are getting councils back to basics, ensuring they are laser-focused on core infrastructure and services that local government is meant to deliver.
Our Government has taken four actions to ensure this is happening.
First, we are streamlining the purpose provisions in the Local Government Act to refocus councils on their core responsibilities. This includes abolishing the previous Labour government’s four wellbeing provisions. All these did was divert attention and resources away from essential services.
Second, we’re exploring the introduction of performance benchmarks for local councils – something similar to what some Australian states are already doing. These benchmarks will provide transparency, allowing ratepayers to see how well their councils are performing in financial management and service delivery.
Third, we’re investigating revenue caps to control rates increases and ensure councils aren’t frittering money away on nice-to-have pet projects when core service delivery might not be up to scratch. This will encourage councils to prioritise delivering the infrastructure and services our communities need.
Finally, we’re enhancing transparency and accountability by reviewing the rules that allow unelected officials to withhold critical information from elected members. Elected representatives have an important role in making decisions on behalf of their communities. It is only right that they have all the information to make informed and timely decisions.
Localism comes with both rights and responsibilities. The Government is committed to empowering local councils to succeed, but with that empowerment comes the expectation of fiscal responsibility and a strong focus on delivering value for money. As we go line by line to eliminate wasteful spending and prioritise essential services at the central government level, we expect local councils to do the same.
My message to local government is clear: go line by line, stop the wasteful spending, remove the unnecessary bureaucracy, focus on better customer service, and end the projects that aren’t delivering value for money. Ratepayers don’t expect much. They just want the basics done brilliantly. -Hon Christopher Luxon, Prime Minister of New Zealand