The New Zealand Government has published data on local council spending in a move designed to heighten accountability and public scrutiny. Local Government Minister Simon Watts said it was important for councils to demonstrate they were spending ratepayers’ money wisely.
“Ratepayers place immense trust in their local councils who make key decisions on local infrastructure, fiscal management, and how their community operates on a day-to-day basis on their behalf,” Watts said in a public statement.
“That’s why the government is putting clear facts and figures directly into the hands of ratepayers. When ratepayers know more about how their council is performing and where their money is going, they can engage more effectively and ask the tough questions.”
The published data has been called a first set of “council profiles” to gauge the financial performance of local government bodies, and includes information on council demographics such as population and land area, rates revenue, debt, staffing, and spending.
Councils are grouped with other similar councils and their performance is benchmarked.
Local Government New Zealand responded to the release, saying the data revealed only part of the story and should also include what councils are delivering for the money they spend.
“The profiles detail council expenditure, but they don’t show what the community gets for this investment or whether that investment has been supported by the community,” said Campbell Barry, the LGNZ vice president.
“At the moment, the metrics only provide part of the story. For example, is that council investing in key infrastructure to support future growth or make up for past underinvestment, has it been exposed to particular cost pressures or weather events, or is it at a particular point in an investment cycle?”
The New Zealand Government is considering a system of rate capping, and Minister Simon Watts said rate increases were a “massive worry” for households already struggling with the cost of living.
The release of the data enabled communities to compare how much their council spends on core essentials like infrastructure and see whether their rates are going up more than average.
“Releasing these performance metrics aligns with our commitment to lifting the performance of local government,” said Watts. “It is an opportunity for councils that are focused on their core functions to highlight their efficiency and value to their communities.”
This first release will be followed by the release of information relating to metrics on asset management, service delivery and governance.
