11. Question No. 11—Local GovernmentHon JACQUI DEAN (National—Waitaki) to the Minister of Local GovernmentQuestion No. 11—Local Government11. Hon JACQUI DEAN (National—Waitaki) to the Minister of Local Government: Does she stand by all her Government's policies and statements?Hon NANAIA MAHUTA (Minister of Local Government): Yes in the context and the spirit in which the statement was made.Hon Jacqui Dean: Does she agree that each council should be able to set their annual rates over their own assets after consultation with their communities?Hon NANAIA MAHUTA: I've advised councils that they should think very carefully and consider all the information about revenue as a result of the COVID-19 situation—revenue projected forecast for the 2020-21 period—before making decisions around rates.Hon Jacqui Dean: Does she agree with her ministerial colleague Phil Twyford who said about joint-infrastructure projects If councils cut their rates I will not be able to advocate for us to make up the difference and bail you out."?Hon NANAIA MAHUTA: I do agree with the fact that Minister Twyford has clearly been setting out the case for opportunity around infrastructure partnerships with local councils but they would need to think very carefully about the forecast revenue for the 2020-21 period before they consider cutting rates or having zero rates. But just to highlight the issue the forecast revenue in 2018-2028 through long-term projections for the 2021 year was approximately $15.5 billion. However as a result of COVID-19 the forecast reduction is currently projected to be between 2.3 percent to 11 percent which equates to $355 million or $1.5 billion loss in revenue to local government. If they want successful partnerships we suggest as a Government that they consider all the information before cutting rates or holding them—freezing them—at zero.Hon Jacqui Dean: Does she agree with Hamilton mayor Paula Southgate who said "If we want the Government to stand beside us and bring their money to our table to benefit our community we must invest alongside them because that's only fair and reasonable."?Hon NANAIA MAHUTA: I certainly heard that statement and agree with her sentiment because there is a strong ambition in the Waikato for a partnership to continue. She also said that the challenge for councils was a balancing act and they needed to consider carefully what they were doing in relation to rates decisions.Hon Jacqui Dean: Is it a priority for the Minister to take the views of local government into account when developing policy?Hon NANAIA MAHUTA: It certainly is a priority and I want to thank the local government sector for working with us during this COVID period in setting up a response unit made up of Local Government New Zealand and the Society of Local Government Managers in order to respond in an agile way to the everyday issues that councils were facing as they were working their way through this particular period. I also want to thank the civil defence emergency management response and the essential workers who have made sure that things have continued to happen while councils are dealing with the forecast challenges that are coming up during the recovery period."