He announced that the government would examine performance benchmarks for local authorities – and other options to limit local authority spending on “nice-to-haves” via revenue caps.
Hipkins countered, saying it was “all well and good to say that a public swimming pool is a nice thing when you have your own pool in your backyard, but the majority of our residents are not that privileged.”
“You may not care about the local playground if you can afford to give your children all the experiences they want, but most hard-working parents can’t afford that,” he said.
“You may think that a library is not a central facility if you can afford to buy all the books you want, but that is far from possible for all residents in our area.”
Luxon did not put public facilities such as swimming pools or playgrounds on the “nice-to-have” list in his speech, but Hipkins later told reporters that facilities such as swimming pools and parks would inevitably become “nice-to-haves”, instructing councils to focus on “fixing the pipes and nothing else”.
“Municipalities will tell you they have swimming pools that are nearing the end of their life and they have to decide whether to replace the pool or fix the pipes. These are the very real decisions that municipalities make every day.”
Local Labour Party spokesman Kieran McAnulty also attacked Luxon because, unlike Hipkins and himself, he did not take part in an on-stage interview or a debate with moderator Kim Hill after his speech.
“He came in, told these people what he thought and then disappeared,” McAnulty said.
During the conference, the government also announced a new regional agreement program under which the central government will invite up to five regions to submit proposals for long-term projects.
Regional agreements are long-term arrangements between local and central governments. Initial projects should focus on economic growth and productivity, critical infrastructure and affordable, high-quality housing.
LGNZ President Sam Broughton welcomed the move and said the government was ready to cooperate.
Hipkins also addressed the new Māori district legislation, which requires councils with Māori districts established since 2020 to hold a binding referendum to decide whether that district will remain or be abolished.
During the Select Committee hearing in Parliament, many councils voiced their strong opposition to the policy, saying it was discriminatory, expensive and exceeded the powers of central government. Councils must fund the referendums themselves.
This week, more than 80% of councillors voted to oppose new electoral rules for Māori districts at a Local Government NZ (LGNZ) meeting.
In his speech, Hipkins said the central government should respect the decision of local councils to establish a Māori district, just as it does when local councils decide to establish or abolish a general or rural district, a local authority or a district committee.
Speaking to reporters after his speech, Hipkins would not say directly whether Labor would change the law again if they were in power after the next election. However, he said: “We opposed the government’s change in the law and we will continue to do so.”
Hipkins also announced that there would be “no more unfunded seats” if Labour is re-elected to government at the next election.
“If we ask councils to do more, we need to talk to them about how it will be funded.”
One possibility could be a direct contribution from the central government, he said.
“That’s something I think all governments, Labour and National, have failed to do over the last few decades. And I think that’s one of the reasons why councils are struggling to fund much of their work.”
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.
