A Government proposal will take “the local out of local government”, a draft submission from Masterton District Council says. 

The submission was in response to the Local Government (Systems Improvements) Amendment Bill, legislation designed to combat public frustration over deteriorating infrastructure, rising rates, and lack of financial focus. 

However, the draft submission raised concerns the Bill didn't account for important council services, such as community events, social housing for the elderly and safety initiatives. 

Key reforms in the Bill included a renewed focus on core services by removing the four ‘well-beings’ requirements; and forcing councils to prioritise core services when managing finances and setting rates. 

Local Government Minister Simon Watts said the changes would help restore discipline, transparency, and performance across the sector, to the benefit of ratepayers. 

But a draft submission, which Masterton councillors would be asked to approve on Wednesday, said the changes would limit the council’s ability to respond to the unique needs of its community. 

The core services listed in the proposed Bill were: network infrastructure, public transport services, waste management, civil defence emergency management, libraries, museums, reserves, and other recreational facilities. 

Masterton District Council’s (MDC) submission said this left several important council-led initiatives unaccounted for, such as responding to community safety concerns, refugee resettlement initiatives, and social housing for the elderly. 

“For MDC, removing the non-core activities and services provided in the last year would have meant, for example, no community events or celebrations, no Youth Council, [and] no refugee resettlement support...”

It said central Government intervention, through this proposed legislation and likely rates capping on non-core activity, was “undermining local democracy”. 

“The proposed legislation will fundamentally impact how local councils operate within and connect with their communities,” MDC’s draft submission said. 

“By restricting councils’ ability to respond to local needs and priorities, the Bill undermines the core principle of democratic local governance.” 

MDC said it was increasingly providing services where central Government or other service providers had withdrawn. 

“Who fills the gap if councils also withdraw?,” it said. 

“When there is a need, but no other provider exists, local government delivery is often the most cost-effective, or only, option.” 

In MDC's 2025/26 Annual Plan, it had $73.1 million of operating costs and $55.2m of capital expenditure. 

Of that, 58% related to the core infrastructure services of roading, three waters, and solid waste.

Pending the council’s approval, the submission would be sent to the Governance and Administration Committee for consideration, by 11.59pm on Wednesday. 

The council was set to meet at 2pm on Wednesday. The Government intended to pass the Bill by the end of the year. 

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

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