Shane Ardern: Local body reforms make headway

New Zealand families, businesses, and individuals have been tightening their belts over the past few years.

This, along with smart management of the Government's finances, has seen New Zealand come through the worst of the global financial crisis in good shape.

But ratepayers and taxpayers rightly expect better value from local government too. Ratepayers deserve to know their council is spending their money wisely, on services that matter to them. In a recent survey sent out to households in the electorate, overwhelmingly people said that increasing rates was their number one concern.

Under the previous Government, council debt quadrupled and rates skyrocketed. Struggling ratepayers could not keep up.

That is why National is embarking on its Better Local Government reforms.

Our reforms are part of our drive to deliver better public services - one of our four key priorities.

The first phase of our Better Local Government reforms was passed into law last year.

We are working with Local Government New Zealand to introduce new financial prudence regulations, setting benchmarks for council income, spending, and debt. These tools will help councils operate within their means and keep rates affordable.

After the previous Government expanded the role of councils, rates went up an average of 7 per cent a year, far outstripping inflation. This had to stop. Our reforms focus councils on their core roles: local infrastructure, local public services, and local regulatory functions.

It's early days but our reforms are off to a good start. In 2013, we've had one of the lowest average annual rate rises across local government in recent years.

Our next steps in reforming local government are also under way. There is an even greater focus on reducing red tape, and better enabling ratepayers and communities to understand what councils do on their behalf.

We also want to see local government play its part in making housing more affordable. We are looking at the way councils fund infrastructure for new sections and developments. The average development charge has increased from $3000 per section a decade ago to $14,000 per section now - placing pressure on families aiming to afford their own home.

Good, effective local government is important for all New Zealanders.

Affordable rates mean more money in the pocket for hardworking Kiwi families, and help build a brighter future for all New Zealanders.