Simon Watts: Local Government Minister on National urging Labour to take a clear stance on rates caps

National says Labour must take a clear stance on rates caps, with the Government planning to introduce legislation before the election. 

Labour's Chris Hipkins has told Newstalk ZB his party's yet to decide on a position. 

He says the policy is "good retail politics" but adds councils will need ways to fund core services. 

Local Government Minister Simon Watts told Mike Hosking they want to make sure that when they implement a policy, it’s enduring and there is certainty for businesses and households. 

He says the problem is that Labour has previously indicated that they would vote against the legislation, but are now saying they don’t have a position. 

Watts says he just wants to know where they stand on this.  

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Episode Transcript

Speaker 1 (00:00):
Another one of these. The government wants labour's helps and
obviously it's nil all when you're rolling around on the ground,
you don't score much. The government wants another week that
labour's help. So it started with the India FTA, currently
happening with the social Media band and now the call
has gone out on this Council rates cap. The Nets
want Labor to take some sort of standover. The Simon
wats is the Minister for Local Government and is with us.

Speaker 2 (00:21):
Very good morning, very good morning, Mike.

Speaker 1 (00:23):
Now is this the numbers thing? If you've got problems
in New Zealand first an act or not?

Speaker 2 (00:27):
No, we don't, but we want to make sure that
when we put in policy in this country that it's
enduring and we don't have a flip flop of you know,
the next guys and ten years time pulling it out.
And you know, people want certainty. Business wants certainty, households
want certainty. And the problem with labor there is is
that you know December they said they're not keen on it, no,
and then Hipkins says last week, well we haven't got

(00:48):
a position and you know, I just want to know
where are they on this on this.

Speaker 1 (00:52):
Well, I was watching Arena Williams yesterday. I don't know
whether she's got any sort of oversight on it, but
she goes it's all about local communities and local voices
and local this and local that. So she sounds like
she's against it. So maybe they don't know where they're at.

Speaker 2 (01:05):
Well, what is actually about, Mike, is the fact that
rates are a major driver of the pressure that households
are facing under the cost of living, and we want
to put in place a proposal where those rates are
capped so that councils are able to operate and not
do operate on the increases within a bend. The moment
they're unregulated, they are a monopoly, and you know they've

(01:26):
been spending pretty willy nilly hill over the place. Average
rate increase of eight percent coming into this year with
inflation at three, you know, we want that to be
capped at four and we think that that's a pretty
sensible way to move forward.

Speaker 1 (01:40):
The interesting thing from Hipkin's point of view, and I've
got an element of sympathy, is that you are asking.
I mean, you're right on the right side of this overall,
and I think it's probably popular apart from anything else.
But there are a number of councils that do have
limited rating bases and major problems, and by capping them,
you've created a bigger headache for them, haven't you.

Speaker 2 (01:57):
Look what we're doing, And we're not heading the sand
to that is, but we have built into the policy
process we're in exceptional circumstances. You know, you have a
big weather event and you need to replace all your roads.
Then they are going to be able to work with
a regulator and get a plan where they can spend
a little bit more, but they need to come back
in within the cap a bit like the inflation band.
We're going to have an independent regulator and they're going

(02:18):
to be watching over these guys. But the problem is,
again they're a monopoly. They've been unregulated and they just
can In terms of operational spending, it's been a whole
lot of staff on stuff that doesn't core business. So
you us can't afford that.

Speaker 1 (02:30):
Okay, so you're in contact with labor. When you ask
for labor to come up with them, you actually in contact.
You're twisting an army, you're having a drink, you're having
a meeting, and you're buying somebody lunch. What are you doing?

Speaker 2 (02:38):
Well, we're not. We don't even drinks. Are having lunch
sadly but well not sadly, but we are definitely having
the dialogue. Look, I just want a clear position from labor.
Are you supporting the rates cap or are you not?
And you know, I think that'd be a good signal
in New Zealand so that we can just get on
and put this reform and it makes sense.

Speaker 1 (02:55):
All right, Nice to talk to you, appreciate it, Simon wants,
Who's the Minister for Local Government.

Speaker 2 (02:58):
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