Strong regions need sustainable funding

Regional and unitary councils share the government’s desire to address affordability for ratepayers. Councils are already working to keeping rates as low as possible while delivering essential services. 

The Government has announced consultation on a proposed legally binding council rates cap. Getting rates under control for ratepayers | Beehive.govt.nz

It's important to work through the implications of the proposal because regionally delivered services are major contributors to the productive economy and the wellbeing of our communities.

If rates capping stifles our ability to invest in New Zealand’s future, it risks being an own goal as we aim to unlock productivity. For example, investment in regional government services such as flood management infrastructure returns many times more benefit back to New Zealand’s economy on ever dollar spent and reduces household insurance premiums.

Speaking on behalf of the Regional Government Partnership - Te Uru Kahika, Canterbury Regional Council Chair Dr Deon Swiggs explored the idea and invited further discussion around how local government services are funded.
 

"Today's rates capping announcement needs to be understood alongside the challenges and changes proposed for local government, including the new resource management legislation due in coming weeks.
 

We absolutely share the government's concern about affordability for communities. No council wants to increase rates, and we work to balance essential service delivery with keeping costs down while meeting our legal obligations for environmental protection and climate adaptation.
 

The proposed 2-4% band provides some flexibility, but rates capping raises fundamental questions. How do we fund infrastructure renewal? How do we build climate resilience? How do we respond rapidly to extreme weather events when our funding is constrained?
 

The work of regional councils goes beyond processing consents. We are responsible for natural resource management, public transport, biosecurity, flood and river protection, harbours and environmental monitoring. All of these services directly underpin New Zealand’s productive economy and community wellbeing.

 

We need time to work through the detail to ensure that local government is empowered to support thriving communities, economies, and environments for future generations.

 

We're committed to working constructively with central government to develop sustainable funding solutions that protect both current ratepayers and long-term regional resilience."

 

ENDS