SociaLink recently made a submission to the Governance and Administration Select Committee on the Local Government (Systems Improvements) Amendment Bill. We are concerned about proposed changes to Section 10 of the Local Government Act 2002, which define the purpose of local government.
The Bill proposes to:
Remove references to the four aspects of community wellbeing (social, economic, environmental, and cultural)
Refocus local government’s purpose on cost-effective provision of infrastructure and public services
Reinstate emphasis on specific core services councils must consider
We oppose these changes and recommend that the four aspects of community wellbeing, as introduced in 2019, be retained.
Why the Four Wellbeings Matter
The four wellbeings provide the foundation for local government planning and action. They support liveable, vibrant, and resilient communities. Removing them would weaken councils’ ability to meet the diverse needs of the communities they serve.
Local government exists to serve communities, guided by their priorities. Strong consultation and engagement processes already help councils understand what their communities value most. Removing the four wellbeings risks narrowing this focus and prioritising economic growth over social, cultural, and environmental wellbeing.
Fiscal Concerns Should Be Addressed Differently
The Bill frames the issue as a “lack of fiscal discipline” among councils, but SociaLink notes that most rate increases relate to infrastructure needs, rising costs, and additional responsibilities passed down from central government—not discretionary spending. Removing the four wellbeings will not solve funding pressures. Constructive reform should focus on providing councils with more financial tools, rather than restricting the purpose of local government.
Communities and Councils Can Set Priorities
Councils already have robust consultation processes to set priorities with their communities. In the Western Bay of Plenty, for example, significant council investment in initiatives like Te Manawataki I Te Papa has improved cultural, social, and economic infrastructure in our CBD. These projects are widely appreciated locally, even if some vocal critics label them “nice to haves.”
Retaining the four aspects of wellbeing ensures councils continue to plan for communities where everyone belongs, balancing infrastructure needs with social, cultural, and environmental considerations.
Conclusion
SociaLink believes the proposed changes would narrow the purpose of local government, limiting its ability to serve communities effectively. We recommend the government retain all four aspects of community wellbeing in Section 10 of the Local Government Act, recognising their importance as the foundation for thriving, connected, and resilient communities.
It was prepared by Liz Stewart, Researcher, and Liz Davies, Chief Executive, as part of SociaLink’s commitment to advocacy for the social and community sector.
