The government has signalled a shift in priorities for local councils, introducing legislation this week aimed at tightening focus on core services and restoring ratepayer confidence.

The Local Government (System Improvements) Amendment Bill was introduced to Parliament on Tuesday (July 15), and proposes removing the four ‘well-beings’ - social, economic, environmental, and cultural - from council mandates.

In a statement, Local Government Minister Simon Watts said the bill aimed to restore discipline, transparency and performance across the sector, for the benefit of ratepayers.

“Kiwis are frustrated with rising rates, expanding bureaucracy, and poor value for money,” he said. 

“This bill puts councils back to work on the basics - their core services - so ratepayers see real results for what they pay.”

The minister said councils had “drifted” from essential responsibilities like roading, water, rubbish, and infrastructure, and that the government was drawing a line.

“This refocusing of our councils will help to deliver better value for money, and ultimately help with addressing the number one issue people are dealing with right now, which is cost of living.”

The minister also ruled out supporting new taxes or revenue tools for local authorities, saying there was still room for greater efficiency. 

A model for a potential rates cap was in the works, and he planned to provide an update later in the year.

Coalition partners appeared unconvinced a cap was a silver bullet.

On Thursday, New Zealand First leader Winston Peters told media his party preferred not to interfere with local government.

"It's a case of doctor, heal thyself" he told RNZ reporter Lillian Hanly.

"We can't be preaching to them when we haven't got our own spending under control ourselves."

For ACT leader David Seymour, the priority was to “cut non-essential spending” and not “worry about the ‘four wellbeings’”.

In a social media post, he also stressed the need for cooperation between central and local government.

“Finger-pointing has not worked to ease pressure on ratepayers. So, let’s work together,” he said.