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Government Targets Local Government Wasteful Spending

Government Targets Local Government Wasteful Spending

Rates rises to hit homeowners hard.

The New Zealand government has announced reforms aimed at refocusing local councils on delivering essential services and core infrastructure, following a period of significant rates increases. According to Local Government Minister Simeon Brown, the goal is for councils to "do the basics brilliantly" rather than pursuing expensive projects that burden ratepayers.

The reform programme will involve removing references to the 'four well-beings' from the Local Government Act 2002 and refocusing local government on basics, guiding council decision-making. The Department of Internal Affairs (DIA) will also publish a yearly report on key financial and delivery outcomes, helping ratepayers hold councils accountable.

Additional measures are set to be considered next year, including rates pegging similar to NSW and the establishment of a written question system to give councillors more access to information. These reforms aim to put local government on a more efficient and affordable path by scrutinising every dollar spent.