Seymour admits regulations contribute to ‘enormous rate rises'
Deputy Prime Minister David Seymour says there is no policy for local government reform - yet.
In his speech to local government leaders in Christchurch today, Mr Seymour took a softer approach than expected, acknowledging pressures placed on local councils by central government.
Council leaders told Local Democracy Reporting they felt more upbeat after his speech at the two-day Local Government New Zealand conference.
It was a contrast to yesterday, when councillors said they felt like "the whipping boys" after a short video address from Prime Minister Christopher Luxon and then Resource Management Act Reform Minister Chris Bishop putting a halt to council planning to stop "wasteful spending".
In Mr Seymour's speech, he said the government has "no policy of changing the structure of local government" - contrary to recent political statements.
But he acknowledged change could come out of the Resource Management Act reforms.
Mr Seymour said he recognised regulations imposed by central government were helping to push up rates.
"It is true that people are angry with you [councils] because of enormous rate rises, but many of the challenges councils face are enforced by statutory rules."
He encouraged people to contact the "red tape tip-line" with any "unnecessary regulations".
"I want to float the idea that we all want the same thing - and that is affordable and efficient government."
Responding to a question from Gore Mayor Ben Bell, Mr Seymour admitted to "kicking the can down the road" to share goods and services tax (GST) on new builds with councils - a promise made by ACT during the 2023 general election.
"We aren't going to lose sleep about it, because times are tough."
But it remained on the agenda, he said.
Councils have been asking the government for the GST to be shared in a bid to create more revenue to help with rising costs.
Mr Seymour said city and regional deals would lead to better co-ordination between central and local government, creating more efficiencies and cost savings.
Hauraki Mayor Toby Adams said he felt councils were being rapped over the knuckles by central government at the conference.
"This year the tone has changed, where you are realising the pressure that local government is under financially from the statutory obligations of central government.
"You're saying it to us here, but you are not saying it to the public."
Mr Adams called on central government to share the message to the public that rising costs are pushing up rates.
"We are working hard, we are trying ... that's not out there in the public."
After the speech, Mr Seymour told LDR he wasn't taking a soft or hard approach to councils.
"We should be collaborative," he said.
- By David Hill, Local Democracy Reporter
• LDR is local body journalism co-funded by RNZ and NZ On Air.
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