Central Otago District Council has signalled concerns about the government’s Local Government (System Improvements) Amendment Bill, warning it could limit the council’s ability to plan for long-term community needs. 

Mayor Tamah Alley said she intends to present the council’s submission to central government decision makers, if given the chance.

The bill, introduced earlier this year, aims to focus councils on “core services” such as roads, water, and waste, while removing the broader social, economic, environmental, and cultural well-being responsibilities reinstated in 2019. 

It also seeks greater national oversight, standardised governance tools, and stronger reporting on council expenditure.

In its submission on the bill, delivered last week, CODC welcomed the government’s goal of improving efficiency and transparency but raised concerns that the bill misunderstands the drivers of rate increases and could encourage short-term decision-making at long-term cost.

“Our community has clearly asked us to manage increasing cost pressures with a mature, planned approach,” the submission said. 

“We ask the government facilitate this with a bipartisan government consensus on the purpose of local government and stability to navigate the future.”

The council notes 77 percent of its spending is on roading, water infrastructure, and waste, with increases in three waters, insurance, and energy costs driving a chunk of rates rises. 

The submission warns proposed rate-pegging measures could severely limit the council’s capacity to invest in housing, infrastructure renewal, and climate resilience.

While supporting improved reporting and accountability at a national level, the council emphasises that “what looks good for Christchurch or Wellington is not the same as what looks good for Ranfurly or Cromwell”.

The submission also raises concerns about community well-being: removing the four well-being provisions could narrow councils’ purpose and restrict their ability to reflect local values. 

“Local government is the most immediate and accessible form of democracy,” the submission said. 

“The strength of our system lies in its responsiveness to local voices, local diversity, and local aspirations.”

Finally, the council is concerned there’s a risk the bill shifts new responsibilities onto them without enough support, particularly in civil defence and climate adaptation work.

“Central Otago District Council is concerned about the potential for unfunded mandates and communities falling through gaps in this legislation,” the submission said.

Mayor Alley said the council will continue to advocate for local autonomy, clear guidance, and resources that enable Central Otago to plan for its community now and into the future.

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