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Local government plans flagged away by Minister Brown

September 10, 2024 September 2024 No Comments

By Ray Lilley

Local bodies nationwide face a funding crisis, most agree, but the Coalition Government is apparently in no mood to sort out a solution _ even though several have been put forward in a major Local Government NZ report: “Future for Local Government Review.”

Local Government Minister Simeon Brown has just confirmed the Coalition Government will not be responding to the review’s 17 recommendations, such as returning to councils revenue equivalent to the GST charged on local rates or paying rates on Crown property.

The review agreed on the need to build a new system of government that’s fit for purpose, and to

rebalance the country’s tax take between central and local government.

The review follows years of government imposing legislative requirements on local councils _ like high drinking water qualitystandards _ but not funding their implementation or continued application.

The report mayors presented to Brown asked for dedicated funding to allow local government to

transition to a future system, characterised by local decision-making, four-year electoral terms and

infrastructure investment fit for the future.

But early last month Brown issued a statement – which said he wouldn’t even respond to the local

government review’s recommendations.

The million-dollar review had “lost its way” by focusing on issues such as lowering the voting age,

changing the voting system, and removing local voices from establishing Māori wards, he said.

“These issues are a distraction from the key issues facing local government, such as the need to reform funding and financing, and planning for long-term economic growth, housing and infrastructure, which is what our government is focused on,” he noted.

“The Government is establishing a regional deals framework and unlocking new funding and financing tools to enable central and local government to work together in delivering the services and infrastructure Kiwis rely on,” Brown said, offering no details.

While the Review highlighted longstanding funding and financing issues in the local government sector, he noted, some of the review’s other recommendations were ideologically driven.

“The Coalition Government is focused on rebuilding the economy to reduce the cost of living for New Zealanders. We are setting clear expectations that councils focus on the delivery of core services and value for money,” the minister added.

Labour local government spokesperson Kieran McAnulty doubts the government is committed to funding solutions.

“I’ve asked the minister on a number of occasions in public forums, most recently during Scrutiny Week, whether he believed that the rating system was unsustainable, and he refused to answer,” McAnulty told “Newsroom” in July.

McAnulty points out that five review proposals rejected by Brown go to the heart of funding and

financing local communities – transferring the GST charged on rates to councils, rating Crown land like conservation estate, hotel bed taxes, and National’s place-based agreements.

McAnulty told “Newsroom” different councils will need different solutions, but the LGNZ review’s box of funding tools is a start.

ends

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