Local Government New Zealand president Rehette Stoltz says the newly announced rates cap limits what councils can collect but leaves the costs driving rate rises untouched.

As a Gisborne ratepayer, she says she understands why the cap is popular.

“Every mayor or chair or councillor across New Zealand wants to do the best by their communities,” she says.

“What the rates cap is doing at this stage is capping the income that councils can receive, but it’s not addressing the real issues, the increasing costs.”

She says council costs are not tracking household inflation, with a 2024 assessment putting bridge cost rises at 39% and roading and sewage at about 20%.

“It’s definitely not an open-ended chequebook; the LGA has to be stuck to where there are certain fiscal responsibilities.”

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