Editorial: Luxon’s stark message for councils to rein in spending comes at the right time

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Prime Minister Christopher Luxon (right, with Local Government Minister Simeon Brown) has told councils to watch their spending. Photo / Mark Mitchell
EDITORIAL

It took him nearly a year, but Prime Minister Christopher Luxon put the hard word on local authorities to tighten their belts last week and told them to cut down
on waste.

The leader didn’t mince his words as he called on councils to “rein in the fantasies” and count every penny before asking the big brother of central government for handouts.
The message would have been roundly applauded by ratepayers, who are facing an average rates hike of more than 14% this year alone.
But Luxon’s stern words, warning ratepayers’ cash should be used wisely, didn’t go down well with every council chamber and mayor across the land.
Greens co-leader Chlöe Swarbrick called out Luxon’s “rhetoric” as hollow and “completely tone-deaf”.
Local Government New Zealand president Sam Broughton – also mayor of the Selwyn District in Canterbury – said councils already watch their budgets carefully, going through them “line by line” every three years.
“To suggest that we don’t already do that – we do,” Broughton shot back.
The Government has long suspected many councils have been wasting hard-earned money on wasteful projects and infrastructure instead of focusing on core services like water, roads, sewerage and rubbish, community services, local regulations and town planning.
But council officials might retort and say central government should stop passing the buck – literally – and shovelling on costs.
They also want new funding mechanisms that would help them deal with the costs of growth, including returning the GST central government gains from rates and new-build properties.
Not all local authorities were dismayed by the call from above to watch their spending, though.
It was “music to the ears” of Christchurch Mayor Phil Mauger.
Mauger – the contractor from the family firm who campaigned on a ticket to “get stuff done” – told Canterbury Mornings with John MacDonald on Newstalk ZB a war on waste was long overdue.
He embraced Luxon’s message, saying that was exactly what he got into politics for, to cut spending and wastage.
As for most Kiwi ratepayers, they would hope they don’t face double-figure rates spikes again next year – while also knowing their money is being spent well and smartly.
Luxon’s hardline message came at just the right time as the country continues to grind its way out of an economic mire.
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