LGNZ manifesto calls for councils to be incentivised for enabling growth

Local Government New Zealand today launched its election manifesto, calling for the next government to incentivise councils’ role in enabling housing and economic growth.

LGNZ President Rehette Stoltz says councils play a vital role in enabling growth, but the current funding system relies on ratepayers carrying the costs.

“If a council enables more homes or welcomes more visitors, it needs to invest in roads, water, public spaces and other services. These extra costs land on councils and ratepayers, but the lion’s share of additional revenue flows to central government,” Rehette Stoltz says.

“If growth costs local ratepayers, why would they invest in it? We need a system where councils and communities share in the benefits of the growth they help create.”

Rehette Stoltz says ACT’s Local Tourism Dividend offers welcome recognition of that principle. It would provide councils with $1 for every commercial guest night, giving tourism communities a direct benefit when visitor numbers grow.

LGNZ’s manifesto calls for the same approach to housing and infrastructure through mechanisms that allow growth to pay for growth.

It builds on growing momentum for the LGNZ-spearheaded Ratepayers Assistance Scheme. National, Labour and the Greens have backed RAS’ home energy component. LGNZ is continuing to advocate for the full scheme, including options to postpone rates and finance development contributions.

“The Ratepayers Assistance Scheme is another example of councils developing practical solutions that deliver benefits for ratepayers, such as cost-of-living relief, rather than simply asking government for funding.

“Our manifesto is about getting the incentives right. When councils enable national priorities, remove barriers and support economic activity, their communities should share in the benefits.”

The LGNZ manifesto sets out 12 priorities that ranges from working with councils to tackle cost-of-living challenges to building resilient communities and strengthening local democracy - read it here.