Sam Broughton: Local Government New Zealand President on the Government's bill aimed at local councils

The head of a local Government lobby group has raised concerns about the Government's newest bill aimed at local councils.

An amendment bill being moved through Parliament would require councils financially prioritise its core services. 

The Government wants councils to give more value to ratepayers. 

Local Government New Zealand President Sam Broughton says many people and councils want lower rates, but he's unsure if capping rates is the way to go.

"Lower rates increases has got to be the aim, whether a rates cap is the right way to go about it  - and compromises will need to be made to get us there - it's up for debate."

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Episode Transcript

Speaker 1 (00:00):
You're on news talk zb all happening at the local
government conference in Christus today. A rates cap is a coming.
This is according to Simon Watts, who's the minister. Have
a listen. I want this in place as fast as possible.

Speaker 2 (00:12):
We're aiming to have that all decided by the definitely
before Christmas.

Speaker 1 (00:17):
If we can go faster, we will. He was speaking
outside the conference. Sam Barton is the local government. He's
in in president with me now, Hi Sam.

Speaker 2 (00:24):
Yeah, good Ron.

Speaker 1 (00:25):
So you'll be welcoming news that there's going to be
a cap.

Speaker 2 (00:29):
I think we all want lower rates, so I know
I want lower rates increases. Mears and cheers around the
conference today. What lower rates increases the government does, and
I certainly know our community does. So lower rates increases
has got to be the game. Whether a rates cap
is the right way to go about it, and compromises
that will need to be made to get us there.
Thanks up for debate.

Speaker 1 (00:49):
What compromises are you talking about?

Speaker 2 (00:51):
Well? I think we look at international examples across the Tasment,
South Australia had actually got lower rates increases than New
South Wales. South Australia doesn't have a rate cap they've
gone with other measures looking at accountability, transparency and reporting.
New South Wales has a rates cap but has higher
rates increases, and some of that's due to the need
for catch up rates. So you can you can artificially

(01:13):
suppress rates and you know, truck along for a while,
but and then you've got to catch up.

Speaker 1 (01:17):
Can you see why of this is slightly patronizing to
rate payers who are listening to this. You know, your
local government New Zealand. You've got a bunch of mayors
and whatnot sitting around at the conference telling us that no,
don't put a rates cap on us. All we need
is greater transparency rules. I mean, why don't why don't
you do that? Now?

Speaker 2 (01:36):
Well, there's a lot of transparency, but what we haven't seen.
What we're going to see over the next couple of
weeks is the metrics of the government will be releasing
and again I welcome that because I think it's important
to see where councils are doing well and where councilors
might need a bit of extra support. That's what It's
why LG and Z exists. So I don't think that
we've currently got those right setting here in New Zealand
in the same way that South Australia does. I think

(01:57):
in our context too, we New Zealand is already the
most over centralized country in the OECD. Ninety three percent
of public money spent by Wellington, seven percent by local councils.
And so there's a piece here around local democracy and
of a question for New Zealand. I suppose our councils
an arm of central government and should just do what
central government do? Or do we elect local councils to
be able to think about and respond to local need

(02:19):
And a rates cap is you know, deciding out of
central government That doesn't lead a flexibility for local communities
to think about what they might need in their local setting.

Speaker 1 (02:27):
Okay, Sam, appreciate your time this afternoon. Sam Broughton, who's
the Local Government New Zealand President and also mirror of Selwyn.

Speaker 2 (02:33):
For more from Heather Duplessy Allen Drive, listen live to
news Talks.

Speaker 1 (02:37):
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