The status quo is unsustainableCameron Bagrie is a proud son of Central Otago who’s become one of the most influential economic voices in New Zealand. Back near his old home town of Clyde this week, he told a business audience in Cromwell that local councils “just have to learn to live within their means.” He wasn’t making small talk. He was signalling a shift in the way local government is about to be run — and funded.
Bagrie is part of a small group of advisers helping draft new legislation to cap local authority rates rises. The goal is simple: rein in what has become one of the biggest and most consistent drivers of household cost increases. In the past year, local body rates have been a major contributor to inflation, pushing the Consumer Price Index above the 3 percent target band that the Reserve Bank is supposed to maintain.