Speech
Christopher Luxon  ·  2026-09-16 00:00

Bill passed to get councils back to basics

The Government is delivering changes to get councils focused on the basics, with the Local Government (System Improvements) Amendment Bill passing its third reading, Minister Simon Watts says.

“The Bill is a significant step forward for councils and their communities. It means a stronger focus on core services, clearer information on performance and greater accountability for the decisions councils make.

“Ratepayers expect councils to deliver the services they rely on. This Bill removes the focus on the four ‘well-beings’ and puts councils back on core services like roading, infrastructure, water and rubbish.

“Councils will continue to make local decisions, but the expectation is clear: essential services and sound financial management must come first.”

The legislation also strengthens council reporting, giving ratepayers regular information about their council performance and spending.

“Ratepayers deserve to know where their money is going and whether they are getting value for money,” Mr Watts says.

“Six-monthly reporting will give ratepayers clearer information on council performance and spending, making it easier to compare councils and hold them to account. Better information means greater transparency and stronger accountability.”

“The Bill strengthens democratic accountability to Local Government, by restricting council voting to elected members.

“Democracy is non-negotiable. Unelected members can provide valuable expertise and advice, but voting rights should sit with those elected and accountable to their communities.”

The legislation also strengthens elected members’ access to council information, modernises outdated requirements, and removes unnecessary compliance costs.

Councils will also receive additional tools to recover growth-related infrastructure costs from Fast-Track approved developments that are unanticipated, proceed ahead of planned infrastructure investment, or place demand on infrastructure across council boundaries.

“Growth should pay for growth. Where a Fast-Track development creates additional demand for infrastructure, an appropriate share of that growth-related cost should be met by the development rather than existing ratepayers,” Mr Watts says.

“The changes do not alter the Fast-Track approvals process. They provide a pathway for councils to recover growth related infrastructure costs and reduce the risk of funding shortfalls falling on councils and ratepayers.”

“The Bill will now proceed to Royal assent, with implementation phased in over time and support provided to councils as the reforms take effect.

“This legislation is an important part of the Government’s wider programme to restore discipline, improve performance and get councils focused on the basics.

“Combined with our work on water reform, regional deals and rates capping, these changes will help deliver stronger accountability, better infrastructure outcomes and better value for ratepayers.”