ECan calls for pause on rates cap legislation

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Environment Canterbury (ECan) has called for a pause on introducing a rates cap while councils work on other local government reforms.

Environment Canterbury (ECan) has called for a pause on introducing a rates cap while councils work on other local government reforms.

The regional council called for the pause in a submission on the Local Government (Rates Capping) Amendment Bill, while councils work through the myriad of reforms including a implementing new planning regime, possible council amalgamation and the proposed abolition of regional councils.

The Waimakariri District Council has called for a more cautious approach in its submission, as a blanket two to four percent rates cap could force councils to cut services.

The Government has proposed a rates cap of between two and four percent, which would take effect from 2029, with councils expected to give effect to it in next year's 2027/37 long term plans.

The cap would apply to general rates, targeted rates and uniform annual charges, but would exclude water charges and other non-rates revenue like fees and charges.

ECan's submission says a pause would "enable fundamental decisions related to the functions and form of regional government to be determined before establishing the funding system required to deliver it".

Councillors suggested flood protection and other essential infrastructure should be excluded from any rates cap.

Under the proposed legislation, councils were required to apply for an exemption.

But any exemption regime may lack the flexibility to respond to changing circumstances and externally driven costs, ECan staff said.

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