‘Political punching bag’: Hipkins says councils made 'scapegoats'

Labour leader Chris Hipkins has accused the Government of using councils as a “scapegoat” and a “political punching bag”, telling local government leaders they had been blamed for problems created in Wellington.

Speaking at Local Government New Zealand’s SuperLocal conference in Rotorua today, Hipkins said the relationship between central and local government had deteriorated over the past three years.

“Local government has been used as a scapegoat for the current central Government’s poor choices over the current term,” he said.

“For the past three years, we’ve seen a Government that has been far too focused on treating councils as a political punching bag, blaming local government for problems that it hasn’t properly funded, demanding more whilst providing less.”

The comments reflected a key theme of the conference’s first day, with delegates arguing councils were carrying growing responsibilities without sufficient funding or support from the central Government.

Hipkins said councils had been asked to take on more responsibilities without sufficient support.

“Local government has been asked to carry a huge amount over the last three years, funding, without certainty and without the support needed to do the job properly.”

He argued that central Government could not continue requiring councils to deliver more infrastructure and services while limiting the funding available to them.

“You can’t demand better roads, better pipes, more housing and better services whilst squeezing the funding that’s available to pay for those things.”

On rates-capping, Hipkins said Labour supported the legislation through its first reading to allow debate on the issue but argued the focus should be on addressing councils’ long-term funding challenges.

Labour leader Chris Hipkins talking to Rotorua councillor Trevor Maxwell at the LGNZ SuperLocal Conference in Rotorua. Photo / Stephen Barker

“We shouldn’t pretend that an arbitrary limit can substitute for a serious discussion about local government funding.”

Asked what alternatives Labour would support, Hipkins said “everything should be on the table”, including giving councils access to additional funding tools such as visitor levies.

Labour local government spokesman Tangi Utikere said rebuilding the relationship between councils and central Government would require a more collaborative approach.

“Taxpayers are ratepayers. We are talking about the same individual here, and you’re elected, we’re elected,” he told delegates.

Utikere said councils and central Government served the same communities and needed to work more closely on longstanding funding and financing challenges.

Chris Hipkins and Labour's local government spokesman, Tangi Utikere, at the LGNZ SuperLocal Conference in Rotorua. Photo / Stephen Barker

Hipkins also used his address to announce Labour would expand its proposed ratepayer assistance scheme to include support for rates and development contributions.

New polling released by Local Government New Zealand (LGNZ) on Thursday found 66% of voters believed central Government should pay for costs it imposes on councils and ratepayers, compared with 11% who disagreed.

Nearly half of respondents said local governments should decide on reform, either councils or residents, while only 19% thought central Government should lead.

“Councils want to be part of the solution, but local government reform has to be built to last,” LGNZ president Rehette Stoltz said.

“It must also be locally led.”

National’s Local Government Minister, Simon Watts, is scheduled to address the conference this afternoon.

Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in Britain for eight years.

- LDR is local body journalism co-funded by RNZ and NZ On Air.