What the Bill is about

The Local Government (System Improvements) Amendment Bill is a proposed change to the Local Government Act intended to refocus how councils operate. The Government says it wants councils to place greater emphasis on cost‑effective delivery of essential services and to strengthen transparency and accountability in decision‑making. The Bill has been reviewed by a Parliamentary committee, and several adjustments have been recommended before it progresses further.

Changes to council purpose and duties

One of the main changes is to the purpose statement in the Local Government Act. The Bill removes references to the four “well‑beings” (social, economic, environmental, cultural) and replaces them with a focus on councils providing good‑quality, cost‑effective local infrastructure, services, and regulatory functions. The committee has slightly amended how “cost‑effective” is defined to make it clearer what councils should consider when making decisions.

The list of “core services” that councils must have particular regard to is also clarified. This includes services such as waste management and community facilities, helping councils know what their key priorities should be.

Core services councils must prioritise are:

  • Network Infrastructure: Roads, transport, and water.
  • Public Transport Services
  • Waste Management and Minimisation
  • Civil Defence Emergency Management
  • Community Facilities: Libraries, museums, reserves, and other community/recreational facilities.

Access to information and transparency

The Bill includes provisions about elected members’ access to information. The DIA has already begun implementing standardised reporting of metrics of council performance, as per the aims of this Bill.

Councillors will be able to request information via the chief executive, and if access is refused, the governing body as a whole can decide whether to release the information. Other recommended amendments provide for the Minister to consult councils before introducing new reporting requirements or changes to codes of conduct and standing orders, and require chief executives to explain changes to codes of conduct in public meetings.

Impact on councils

For councils, the changes could influence how decisions are justified and how priorities are set. Focusing the statutory purpose on cost‑effective delivery of defined services may narrow the range of programmes councils choose to fund and require them to demonstrate clear value for money when using public funds. The changes to performance reporting and transparency aim to make councils more accountable to their communities. Councils will need to consider how they approach decision‑making and information access under the new framework, particularly in the context of public expectations about fiscal discipline.

Next steps

The Bill will return to Parliament for further consideration, taking into account the committee’s recommendations. Once debated and passed, councils will need to update their policies, planning, and reporting processes to comply with the new requirements. Selwyn District Council is already working towards more cost‑effective service delivery and improved transparency once the Bill becomes law. Public consultation and guidance from the Department of Internal Affairs will help councils implement the changes effectively.

Submissions on this Bill have closed. Following feedback, and review by a Parliamentary committee, some recommendations have been made before it progresses further e.g. clarification of what are core services, and how cost-effectiveness is defined.