10. Question No. 10—Local GovernmentRACHEL BOYACK (Labour—Nelson) to the Minister of Local GovernmentQuestion No. 10—Local Government10. RACHEL BOYACK (Labour—Nelson) to the Minister of Local Government: What Government initiatives will help limit future local government rates increases?Hon KIERAN McANULTY (Minister of Local Government): Kiwi households and businesses are doing it tough. Across the board we are implementing measures to take the pressure off. Most local authorities are faced with no choice but to put rates up to meet the rising costs of providing services to communities. It is important that Government supports local government to keep rates down. One example of this is the Government's affordable water reforms. Without these reforms rates rises will become unbearable. Through these reforms we've managed to keep forecasted rates rises down. For example the establishment of the Auckland and Northland entity will avoid the doubling of charges projected in Auckland Council's 2021 to 2031 long-term plan. This will also bring average household charges in Northland down to similar levels to those in Auckland.Rachel Boyack: What would repealing and reversing the affordable water reforms do to rates rises?Hon KIERAN McANULTY: Repealing and reversing affordable water would be a disaster for the rate-paying public. For example in the Wellington region which uses the council-controlled model a model that has been put forward by some as an alternative to reforms would see a 60 percent rates increase by 2054. These are forecasts that have been verified by engineering consultancies Beca and Farrierswier. To put that kind of pressure on Kiwi households is unfair and unjustifiable.Rachel Boyack: What would repealing and reversing the affordable water reforms mean for infrastructure investment if councils can only rely on rates?Hon KIERAN McANULTY: New Zealand faces up to $185 billion of required investment in water infrastructure and local authorities have told us that they cannot do it by themselves. If affordable water reform is reversed small and rural councils will be left out in the cold and without the means to make the required investment. Councils in Otago and Southland for example by 2054 will need to introduce annual household charges of nearly $10000 per year to make the required investment in their infrastructure. Many of these councils are near their debt ceilings or their populations simply can't cope with higher charges. That means critical investment won't be able to be made and levels of service will decline.Rachel Boyack: How is the Minister showing commitment to the sector to help them keep rates under control?Hon KIERAN McANULTY: When I visited all 55 rural and provincial councils the messages I heard were consistent: localism works but councils can't be left to fend for themselves with only limited ways to generate income. Small and rural councils can't rely on rates from large populations or significant businesses to cover their costs. I've been clear that under any reform I undertake as Minister no small or rural council will be left behind. I note that no such commitment is being offered by members on the other side of the House.