Prime Minister Christopher Luxon has issued a strong directive to local government leaders, urging them to return to basics by focusing on essential services and cutting down on extravagant spending.
Speaking at a conference, Luxon underscored the need for councils to prioritise critical infrastructure and manage their finances more responsibly.
In his address, Luxon highlighted the pressing infrastructure challenges facing New Zealand, particularly in water, transport, and resilience.
He said these areas are vital for the country’s future and must be prioritised.
“New Zealand faces big infrastructure challenges—water, transport, resilience. Each of those will be absolutely critical to get right.”
Luxon acknowledged that while his government is committed to easing the financial burden on councils, the days of central government handouts are over.
“I have to be honest with you—the previous government might have taken that approach, but the party is over. There is no magic money tree in Wellington,” he said.
The Prime Minister also took aim at councils for engaging in costly projects that do not deliver value for money, citing Wellington City Council’s $180 million convention centre as an example.
“It looks very nice, and it’s very nice that politicians like us have another expensive room to deliver speeches in, but can anyone seriously say it was the right financial decision or the highest priority for Wellington given all of its challenges?”
He urged councils to focus on delivering the basics “brilliantly,” such as waste collection, infrastructure repairs, and road maintenance.
“Ratepayers expect local government to do the basics and to do the basics brilliantly. Pick up the rubbish. Fix the pipes. Fill in potholes. And more generally, maintain local assets quickly, carefully, and cost-effectively,” Luxon said.
Luxon also announced several legislative changes aimed at improving accountability and transparency in local government. He said his Cabinet has agreed to streamline the Local Government Act by abolishing the four wellbeing provisions and refocusing on essential local services and infrastructure.
Additionally, Luxon revealed plans to introduce performance benchmarks for councils, similar to those used in Australia, to ensure that ratepayers get value for their money.
In a clear message to councils, Luxon said that while the government is ready to support local authorities, it expects them to be more fiscally responsible. “We do want to work closer together—but the days of handouts are over. My parting message: it’s time for you to do the same,” he said.
Luxon concluded his speech by calling on councils to scrutinise their spending, eliminate wasteful projects, and focus on delivering core services to their communities. “Ratepayers don’t expect much—they just want the basics done brilliantly,” he said, reinforcing his call for a back-to-basics approach in local government.
