Should the law be changed to refocus councils' purpose on core services, remove the four community wellbeings, standardise council performance reporting and codes of conduct, and reduce certain regulatory requirements?
This bill amends the Local Government Act to remove the four community wellbeings from the purpose of local government and refocus councils on cost-effective infrastructure and public services, while adding a new financial management principle, standardising reporting and conduct rules, and altering several regulatory requirements.
⚡ Taken under urgency
Parliament advanced this bill under urgency (second reading) — moving it through faster than usual, with less time than normal for public submissions.
MPs’ arguments for and against the bill
Why support it
Supporters argued that including the four community wellbeings broadened councils' focus and contributed to rates rising faster than inflation, so narrowing the purpose to core services like water, roading and rubbish would ease cost-of-living pressure.
Supporters said standardised, publicly available council performance data would let ratepayers compare their council's spending and performance against others and improve transparency and accountability.
Supporters argued that removing outdated regulatory requirements, setting central codes of conduct and standing orders, and improving councillors' access to information would reduce council costs and improve consistency.
Why oppose it
Opponents argued the bill centralises control by prescribing council behaviour from Wellington rather than trusting democratically elected councils, despite existing tools to intervene in poorly performing councils.
Opponents said the bill does not address the actual drivers of rates, which they attributed to legacy under-investment and future needs like climate resilience, and that councils instead need better financing tools.
Opponents argued that narrowing core services and altering natural-hazard provisions, along with removing the requirement to consider tikanga Māori in CCO appointments, would reduce climate preparedness and Māori participation in decision-making.
These are claims MPs made in Parliament’s debate — not verified facts.
Full bill summary & link to official bill page
A Government bill that changes what councils are legally required to focus on. It removes the 'four wellbeings' — the social, economic, environmental and cultural goals added to the Local Government Act in 2019 — and instead directs councils to prioritise cost-effective core services such as water, roads, rubbish and infrastructure. It also adds a new financial-management principle and standardises rules on public reporting and the conduct of elected members.
Introduced by Local Government Minister Simon Watts, it is part of the coalition government's response to public frustration over rising rates and council spending. Supporters say it restores financial discipline and value for money; critics, including some councils and local-government bodies, say dropping the wellbeings narrows councils' role and weakens their ability to respond to community needs.
Local Government (System Improvements) Amendment Bill · Second Reading, 30 Jun 2026 Parliament voted 67–54 — it passed. (Provisional — from Hansard’s uncorrected transcript.)