15 Jul 2025

Local Government Amendment Bill introduced to remove council wellbeing provisions

10:28 am on 15 July 2025
Simon Watts

Local government Minister Simon Watts. Photo: RNZ / Samuel Rillstone

The local government Minister is introducing a bill to remove four wellbeing provisions from the Local Government Act to "refocus" councils on their core functions.

Minister Simon Watts said the Local Government (System Improvements) Amendment Bill would help restore discipline and transparency, and push councils to focus on things like roading, core infrastructure, water and rubbish.

"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," Watts said.

The bill will remove four well-being provisions - social, economic, environmental and cultural - which were reintroduced by Labour in 2019 after being removed by the previous National government in 2012.

It will also impose a requirement on councils to prioritise core services when managing finances and setting rates.

Other reforms

  • New financial performance measures for councils, with a requirement for regular public reporting.
  • Mandatory disclosure of contractor and consultant spending.
  • Stronger transparency and accountability requirements.
  • Regulatory relief to reduce unnecessary compliance burdens.

"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," Watts said.

"This refocusing of our councils will help to deliver better value for money, and ultimately help address the number one issue people are dealing with right now, which is cost of living."

Watts said the bill was a major milestone for local government reform.

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