Canterbury Mayoral Forum raises concerns over proposed rates cap

The Canterbury Mayoral Forum has lodged a formal submission expressing concern about the Government’s proposal to cap local authority rates increases. While acknowledging the intention to improve affordability and accountability, the Forum warns the proposed model lacks sufficient analysis and could have long-term implications for councils and communities across Canterbury.

Canterbury Mayoral Forum responds to Government rates cap proposal

The Mayoral Forum and Secretariat are supported by the Regional Council but remain a separate entity.

The Canterbury Mayoral Forum has expressed concern in a formal submission on Central Government’s proposal to cap rates at a local government level.

Government proposal to cap council rates

Late last year, the Government announced a suite of proposed reforms, including to cap rates set by Councils at between 2% and 4% per year.

Forum concerns over analysis and long-term funding

Canterbury Mayoral Forum Chair and Timaru District Council Mayor Nigel Bowen said the Forum acknowledged the government’s intention to reduce rates and improve efficiency and accountability – all of which are central to councils’ work in Long-term Plan and Annual Plan processes.

“We held two workshops in January discussing all the government proposals and were able to have some good in-depth and robust discussions. These have been reflected in the first of our submissions, for the rates cap proposal,” Mayor Bowen said.

“We appreciate the Government’s intention is to implement a rates cap, but we have significant concerns with the proposed model and the limited analysis that accompanies it.”

Call for sustainable local government funding

In its submission, the Forum recommended the establishment of a funding model for activities provided by local government that can be sustained for generations.

“We acknowledge that the current local government system requires reform to address long-standing economic, environmental, and funding challenges. However, the scale and pace of the change across the proposed reforms will require careful management and significant investment from communities and councils to transition to new statutory responsibilities.

“Each Mayor and the Canterbury Regional Council Chair will continue to engage with Central Government, their councils, and communities to understand the implications of these proposals and their potential impacts,” Mayor Bowen said.

Further submissions on broader reform package

The Mayoral Forum will also submit on the Planning Bill, Natural Environment Bill, Simplifying Local Government, and the Emergency Management Bill later this month.

“Our submissions will focus on the importance of aligning reforms, funding, timing, and change for the benefit of communities and ratepayers. Our focus is to work in partnership to get the best outcomes for Canterbury,” Mayor Bowen said.

Background information

The Canterbury Mayoral Forum submission for the rate cap proposal can be viewed on the website. The Forum will continue to proactively release its submission on each of the reforms and proposals as they are completed.