Rates cap commitment remains: Watts

Local Government minister Simon Watts. PHOTO: ODT FILES
Local Government minister Simon Watts. PHOTO: ODT FILES
The government is committed to its rates cap despite looking at making big changes in local government.

The coalition government announced earlier this week a ‘‘head start’’ proposal which would give the lead to councils to look to form their own unitary authorities.

The councils had been given three months to get the details right and then they will be assessed by the government.

Local Government minister Simon Watts said when the proposal was released councils were given real flexibility.

Proposals would have to have at least two territorial authorities though they did not have to be from the same province.

Otago mayors had welcomed the proposal, saying it had sharpened the focus on amalgamation.

When contacted, Mr Watts confirmed the rates cap legislation was still in play.

‘‘The government’s work programmes do not need to stop or delay as a result of councils choosing to progress the head start pathway. We remain committed to introducing legislation to put a cap on council rates before the election,’’ he said.

He was confident councils could meet the timeline.

‘‘This is a voluntary process for councils that have indicated that they are ready and keen to get under way now, to get on with the job. The three-month window is for councils to submit outline proposals.

‘‘If accepted into the head start pathway, officials will work with councils to further develop proposals ahead of final decisions in 2027.

‘‘This timeline allows proposals to be developed, assessed, agreed, and implemented ahead of the 2028 local elections.’’

The government had initially floated the idea of setting up an idea of combined territories board.

‘‘The head start pathway provides a quicker route to change that doesn’t require a combined territories board to be established.

‘‘New interim bodies, broadly based on the combined territories board model, would be established as part of the backstop process.’’

The backstop process would have the government set a standard approach to reorganising local government.

It is likely to include simplifying structures and reducing duplication, similar to the goals of the head start pathway.

There will be transitional governance arrangements, such as a board of mayors or other interim body, while changes are put in place.

The backstop process will be finalised in 2027, with changes expected to take effect from the 2028 local elections.

Central Otago District Council, Queenstown Lakes District Council and Otago Regional Council had been working with the government to strike up a regional deal.

The regional deal focused on big-ticket infrastructure items.

Mr Watts said the regional deal was an active negotiation and that process is not impeded by the head start pathway.

It was up to the councils involved to determine whether they would like to undertake both processes, he said.