Earlier this month, I introduced legislation in Parliament that will return local government back to the basics – providing quality services while keeping rates as low as possible.

We know Aucklanders are still doing it tough with cost of living challenges. In central government we continue to do our bit – inflation is down, interest rates are down, and we are seeing positive growth in the economy.

But local government must also do its bit. When councils were consulting on current long-term plans, rates were identified as a driver of household inflation. Rates had risen the fastest in 20 years and were forecast to rise again by an average of 15%.

There have been too many instances around the country where councils have lacked fiscal discipline and spent far too much on things that most people do not consider core activities of local government. We want to ensure ratepayers see real results for what they pay. We want councils to get back to the basics – and do them brilliantly. That means focusing on the essentials that are the top priority, like our water services, infrastructure, roading, and rubbish. 

That’s why our new legislation will remove the four ‘wellbeing’ provisions in the Local Government Act, while requiring that councils prioritise core services when managing finances and setting rates.

On top of that, we are currently looking at a potential rates capping model.

We are serious about ensuring ratepayers are getting value for money, with average rate increases in 2024 of 9.6%. With rates being a key driver of inflation, we have to make changes.

We will have more to say about potential rate caps at the end of the year – but for now, we are making sure councils know what New Zealanders expect from them.