Majority say ratepayers shouldn’t foot the bill for government-imposed costs

New polling shows two-thirds of voters think central government should fund costs it creates for councils and ratepayers. 11 percent said it should not, while 23 percent were unsure.

LGNZ President Rehette Stoltz says the public has recognised councils unfairly bear the brunt of reform.

“Just one example is Tasman District Council which estimates spatial planning in the new resource management system will swallow the equivalent of 1-2% of rates revenue. That’s a significant extra cost for those ratepayers.

“Councils in the Wellington region invested $250,0000 in the now-paused Head Start process, plus significant staff time.”

When asked who should make decisions about local government reform and the number and size of councils, 47% of voters chose local decision makers (either local councils or residents) and 16% chose the independent Local Government Commission whose current processes requires community consultation or binding polls. Just 19% thought central government should be the ones making decision on local government reform.

Rehette Stoltz says councils and communities need to be more involved in designing reforms.

“Councils want to be part of the solution, but local government reform has to be built to last. It must also be locally led.”

Local Government New Zealand (LGNZ) has released an open letter calling on political parties to back an enduring, locally led approach to reform, as local government representatives gather for the SuperLocal conference in Rotorua from 14-15 October.

The letter asks the next government to support a locally led process that is clear on the objectives for future arrangements, enables sustainable local government arrangements that deliver those objectives, and addresses underlying challenges, including funding.

“Councils have engaged in good faith and worked hard to meet the Government’s Head Start deadline, but any future reform needs to make sure it’s fit for the next 30 years. Putting councils and communities in the driving seat is the best way to achieve this.

“Enduring reform needs to go beyond structural change.

“During this conference, members overwhelmingly said two of the top priorities for any future changes should be to deliver effective and sustainable local government services, and democratic participation and representation.

“This is testament to the fact that local government leaders are democratically elected, and councils should be seen as more than just service delivery arms of Government.

“Members who were surveyed yesterday also said any future structural change process needed to have clear objectives for change and flexibility over future arrangements.”

Stoltz said the letter calls on political parties to share their local government policies before voting opens on 26 October.

“Voters deserve to know what political parties are planning for local government because those decisions will impact the services they rely on, the infrastructure their communities need and what they pay in rates. We look forward to parties setting out any further policies before voting opens.

“Addressing the significant costs that governments over time have passed onto ratepayers for their policies needs to be a top priority for the next government. There needs to be less policy flip-flopping that wastes money and leaves communities with nothing to show for it.

LGNZ will continue to engage with members, which will inform its briefing to the incoming government, setting out a pathway for an enduring approach to local government reform.