Local Government Bill Seeks to Remove Council Wellbeing Provisions

A new bill has been introduced to overhaul the Local Government Act, aiming to refocus local councils on their core responsibilities by removing specific wellbeing provisions that have been a point of contention.

The Local Government (System Improvements) Amendment Bill, proposed by Minister Simon Watts, seeks to eliminate four wellbeing provisions—social, economic, environmental, and cultural—that were reintroduced by the Labour government in 2019. These provisions were initially removed by the previous National government in 2012.

Watts emphasized that the bill is designed to restore discipline and transparency within local councils, pushing them to concentrate on essential services like roading, infrastructure, water, and waste management. He stated, "Kiwis are frustrated with rising rates, expanding bureaucracy, and poor value for money. This bill puts councils back to work on the basics, their core services, so ratepayers see real results for what they pay."

The proposed changes would require councils to prioritize core services when managing budgets and setting rates. The bill also introduces new financial performance measures, with a focus on regular public reporting. Additionally, it mandates the disclosure of contractor and consultant spending, aiming to increase transparency and accountability.

Other key reforms include regulatory relief to reduce unnecessary compliance burdens and a push for stronger transparency measures. Watts described the bill as a major milestone in local government reform, stating, "Local government has drifted from their core responsibilities. This bill draws a line in the sand—focus on the essentials and deliver value for your community."

While the bill has received support from some quarters, there are concerns about its potential impact on vulnerable communities, particularly Māori and Pasifika populations. Critics argue that the removal of wellbeing provisions could undermine efforts to address social and environmental challenges at the local level.

The debate over the bill highlights the ongoing tension between fiscal responsibility and the broader goals of local governance. As the bill moves forward, it will be closely watched by both supporters and opponents, with the outcome likely to shape the future of local government in the country.