Local Government Minister Simon Watts. Photo: RNZ/Mark Papalii
Local Government Minister Simon Watts says the rates capping policy is still being developed and will have exemptions for extreme circumstances like major weather events.
LGNZ's president Rehette Stoltz has raised concerns about the costs for councils of the higher emergency management standards brought in last year.
The Gisborne mayor warned some councils might need government support, particularly given the four percent maximum rates rise limit the government plans to impose.
But Watts, in a statement, said the rates capping policy would allow for variations in "extreme circumstances".
"The policy on this is still in development but it is expected to cover circumstances that are unforeseen and urgent, including examples such as natural hazards, global economic crises, or other significant events," he said.
The government was consulting with councils and other stakeholder groups this month, he said.
"This consultation includes questions on what council spending will or will not be able to take place within the range and whether changes are needed to account for certain variations. I look forward to the outcome of the targeted consultation and how it guides the rates capping policy moving forward."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
