Councils need to focus on core services and “rein in the fantasies” of their spending.

That was the message Prime Minister Christopher Luxon presented to councillors and mayors who gathered in Wellington for the annual Local Government NZ (LGNZ) conference, on Wednesday, last week.

"Ratepayers expect local government to do the basics and to do the basics brilliantly," he said, while addressing the conference.

"Pick up the rubbish. Fix the pipes. Fill in potholes. And more generally, maintain local assets quickly, carefully, and cost effectively."

Central Otago Mayor Tim Cadogan said that message effectively calls on councils to “just do core services in order that rates are controlled, which is an absolutely worthy ambition”.

In Central the core services were what was driving the bulk of the rises, especially three waters, he said.

He confirmed the Central Otago District Council (CODC) has not yet asked central government for financial support this year, and believed other councils were all doing their best and “making an effort”.

As rising costs continue to hit households and businesses, Mayor Cadogan believed the drop in the OCR recently by 25 basis points to 5.25 per cent was a really positive sign.  

“Central has, to an extent, been insulated from the worst of the current recession and I am hopeful we have reached the bottom not as low as others and will climb back up more quickly.”

Following on from the Prime Minister’s message, Local Government Minister Simeon Brown reiterated the measures being taken to ensure councils are getting back to basics, which aimed to reduce the cost of living, deliver core services and infrastructure, and improve the efficiency of decision making.

“Central government is focusing on the must-haves, not the nice-to-haves. Our expectation is that local government does the same,” he said.

“That’s why we are refocusing the purpose of local government to ensure councils are delivering the high-quality core services and infrastructure Kiwis expect, in a way that is most cost-effective for households and businesses.”