Local Government (System Improvement) Bill
The Local Government (System Improvements) Amendment Bill proposes changes to the Local Government Act to refocus how councils operate.
The Government has signalled that councils should:
- focus more clearly on delivering essential services
- deliver services in a cost‑effective way
- strengthen transparency and accountability.
The Bill has been through select committee review, and recommendations have been made before it progresses further.
The Bill is still before Parliament and may change as it is debated and finalised.
Changes to council purpose and duties
A key proposed change is to the purpose of local government.
The Bill removes reference to the four well‑beings (social, economic, environmental, cultural) and places greater emphasis on:
- providing good‑quality local infrastructure
- delivering public services
- carrying out regulatory functions in a cost‑effective way.
The Bill also updates how “cost‑effective” is interpreted, to make clearer what councils should consider when making decisions.
This reflects a shift toward a more defined and practical focus for councils, however the removal of the four wellbeings has attracted debate.
The wellbeings have been added to or removed from the Local Government Act multiple times since 2003, reflecting ongoing differences in view about the appropriate scope of local government.
Core services
The Bill clarifies the core services that councils must have particular regard to when carrying out their role.
These include:
- 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 and recreational amenities
This is intended to provide clearer guidance on priorities and help focus decision‑making.
Access to information and transparency
The Bill includes changes to strengthen transparency and access to information.
Key proposals include:
- elected members can request information through the chief executive
- if access is declined, the governing body can determine whether information should be released
- greater clarity around reporting requirements and council performance metrics
- requirements for transparency around changes to codes of conduct and governance practices.
These changes aim to support more open decision‑making and improve accountability to communities.
What this means for you
The proposed changes are intended to ensure councils focus on delivering core services efficiently and being transparent about decisions.
This may lead to:
- clearer priorities for council spending
- stronger focus on value for money
- more visible reporting on council performance.
What it means for councils
If enacted, the Bill would influence how councils plan, prioritise, and justify their work.
This is likely to:
- place greater emphasis on core services and infrastructure
- require clearer justification of spending decisions
- increase expectations around reporting and transparency.
Councils may also review how they deliver services to ensure they meet the cost‑effectiveness expectations set out in the legislation.
Next steps
The Bill has been reviewed by a parliamentary select committee, and recommended changes have been made to clarify aspects such as:
- the definition of cost‑effectiveness
- the scope of core services.
The Bill will return to Parliament for further debate before it is passed into law.
If enacted, councils will need to update their policies, planning, and reporting to align with the new requirements. Guidance from the Department of Internal Affairs will support implementation.
Useful links
- LGNZ submission on Local Government reform
