Local Government (System Improvements) Bill
The Government has introduced the Local Government (System Improvements) Bill, which proposes changes to the Local Government Act to reshape how councils operate.
The Local Government (System Improvements) Bill proposes changes to how councils operate, including updates to council responsibilities, transparency requirements and reporting. The Bill aims to improve consistency and accountability, while potentially influencing how councils plan services, make decisions and engage with communities.
The overall intent is to place greater emphasis on delivering essential services in a cost-effective way, while strengthening transparency and accountability in council decision-making.
Council submitted on the Bill, that we were broadly supportive of the objective of the Bill: Supporting reducing rates to take pressure off our community. Council recommended a number of amendments to clarify and enhance the operation of the legislation when passed and urged the Select Committee to ensure definitions are tested, to ensure the avoidance of unintended consequences.
The Bill has been considered by a Parliamentary committee, which has recommended a number of refinements as it progresses.
Changes to council purpose and duties
One of the most significant proposals is a change to the purpose of local government in legislation.
The Bill removes references to the four “well-beings” (social, economic, environmental, and cultural) and replaces them with a working to for councils to provide ‘good-quality, cost-effective local infrastructure, services, and regulatory functions’.
Following feedback, the committee has recommended refinements to better explain what “cost-effective” means, helping councils and communities understand the factors that should be considered when decisions are made.
The Bill also clarifies the list of “core services” that councils must have particular regard to. These are intended to reflect the services councils are primarily responsible for delivering.
Proposed core services include:
- Network infrastructure (roads, transport, and water services)
- Public transport services
- Waste management and minimisation
- Civil defence emergency management
- Community facilities (such as libraries, museums, reserves, and other community and recreational facilities)
Access to information and transparency
The Bill includes changes aimed at improving access to information and strengthening transparency.
Councillors would be able to request information through the chief executive, and if access is declined, the governing body as a whole could decide whether the information should be released.
There are also recommended amendments that would:
- Require consultation with councils before new national reporting requirements or changes to codes of conduct and standing orders are introduced
- Require chief executives to explain changes to codes of conduct in public meetings
At a national level, the Department of Internal Affairs | Te Tari Taiwhenua has already begun work on more standardised performance reporting, which aligns with the direction of the Bill.
What this means for councils
If passed, the Bill would influence how councils frame decisions, set priorities, and demonstrate value for money.
A stronger statutory focus on cost-effective delivery of defined services may mean councils take a more targeted approach to what they fund and how they explain the benefits of that investment.
The changes around performance reporting and information access are intended to support greater consistency and accountability to communities.
For councils, this will involve reviewing policies, planning processes, and reporting practices to ensure they align with the new framework.
Our submission
You can read Council’s submission here:
Horowhenua District Council - Submission to Local Government (System Improvements) Bill(PDF, 187KB)
Next steps
The Bill will return to the New Zealand Parliament for further debate, taking into account the committee’s recommendations.
Submissions on the Bill have now closed. Based on feedback, several refinements have been recommended, including clearer definitions of core services and cost-effectiveness.
If the Bill is passed, councils will be supported with guidance to help implement the changes. We will continue working toward delivering services in a cost-effective way and improving transparency, while keeping our community informed as the legislation progresses.
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