Councils seek relief from irrelevant costs given looming government reform

Local Government New Zealand (LGNZ)’s members are calling on the Government to provide commonsense relief for councils as they navigate major central-government-driven reform.  

LGNZ’s Annual General Meeting (AGM) on Friday passed a remit asking the Government to remove the legal obligation for councils to publicly consult on how they represent communities (called “representation reviews”). For many councils, there’s no point to this consultation as they will not exist in their current form after the next local body election. This remit was put forward by Waikato District Council.  

Forty-four councils are legally required to undertake representation reviews ahead of the 2028 local elections. Four of these are regional councils, which the Government has committed to removing after the 2028 elections. It also seems unlikely territorial authorities accepted into the Head Start pathway will hold elections for their current make-up.  

Aksel Bech, Mayor of Waikato District Council, says given the Government kicked off these reforms, it should consider their unintended consequences and empower councils to avoid wasting ratepayer money. 

“If councils are forced to consult in coming months, communities will rightly be wondering why they're being asked about representation arrangements beyond this triennium, if a council will not exist in its current form. But these consultations are legally required and likely to cost councils at least $100,000. Similarly costs for audit of LTPs that might be irrelevant are also very significant.”  

“We’re really saying, please don’t make us do dumb stuff.” 

For example, Kapiti Coast District Council’s last representation review cost over $65,000 of external costs plus council staff time.  

LGNZ President Mayor Rehette Stoltz says LGNZ has raised this issue with Ministers multiple times.  

“When local government is going through a period of significant change, we need to make sure ratepayer money is being spent wisely. The Government has a huge role to play in supporting this.  

“LGNZ has written to Minister Chris Bishop and Minister Simon Watts about scrapping representation reviews for regional councils and councils who are part of Head Start. The Government has responded saying there won’t be any action till at least the end of the year, if at all. This leaves councils in a tough bind.  

“Late 2026 or early 2027 is too late for these decisions. Many councils face statutory deadlines for representation reviews in the coming months. 

“Councils need certainty now so they can avoid wasting ratepayer money.” 

On Friday, LGNZ’s members also passed a remit calling on central government to provide targeted financial support to help councils implement government reforms, including Simplifying Local Government and Resource Management Act reforms 

Mayor Rehette Stoltz says ratepayers should not be expected to carry the full burden of implementing central government directed reforms.  

“We think there is a strong case for Government to partner with councils on transition funding and practical implementation support." 

LGNZ members also backed a remit seeking improvements to Long-term Plan audit requirements, including more proportionate audit approaches, reduced duplication between audit stages, and greater transparency around audit costs.  

"Councils support strong accountability and transparency, but assurance processes should be proportionate and focused on value for money.”  

Mayor Rehette Stoltz says the three remits reflect a common message from local government. 

"When councils are being asked to embrace reform, governments can support councils to do so with practical and pragmatic changes that help reduce the burden on ratepayers,” Mayor Rehette Stoltz said.