Councils could face significant rate increases, says Horizons boss

Horizons Regional Council chief executive Michael McCartney makes his monthly report on activities. Photo / Stuart Munro

As Horizons Regional councillors are getting to the "pointy end" of drafting a Long Term Plan, chief executive Michael McCartney warns rate increases are likely to be significant across New Zealand.

"It's always hard to sell [a rate increases], especially in a recession," he told councillors.

The draft plan should be ready in January.

The Government's expectations around policy reform and pressure for delivery will make for a hefty workload, McCartney said.

The freshwater changes are "massive" for the council. It has two other matters to progress as well - changes to biodiversity policy and the Resource Management Act.

Horizons got $55 million from Government for projects to boost employment in response to Covid-19. But it has to pay a proportion of the cost itself.

"It's a great opportunity, but there's no such thing as a free lunch. It's a demanding piece of work, and demanding on our team," McCartney said.

Jobs have been created, some of them as fixed term contracts. The council now has 276 full time equivalent jobs, with 17 from Jobs for Nature funding.

Its executive team is about to embark on a growth strategy.

Getting the funding brings the risk that council will fail to deliver on the projects - at a time when there is talk of changes and amalgamations in local government.

"You are hearing a lot of commentary coming out about the performance of the sector and local government. There's a great opportunity to succeed, but also a high risk of being seen as failing," McCartney said.

The council's climate change strategy was approved at its November 24 meeting, subject to its emissions reduction target being reviewed before the end of 2021. Horowhenua councillor Sam Ferguson wanted that change, because he said the target council and Government have adopted will not meet New Zealand's Paris Agreement commitment.

Councillors Nicola Patrick and Fiona Gordon questioned Horizons' role in the region's Accelerate25 economic action plan. Patrick said Covid-19 was an opportunity for Horizons to "build back better" and the plan should have more emphasis on the environment and holistic wellbeing.

McCartney said Horizons' role with Accelerate25 was to facilitate it, and the region's mayors could choose what they take from it.

Gordon said there was an economic thrust there, but she wasn't sensing an environmental agenda.

"Are we taking the opportunity to shake things up? If we aren't doing that then why are we spending $200,000?" Patrick asked.

The councillors are to take their concerns about the "refreshed" action plan to their district mayors, or to Horizons chairwoman Rachel Keedwell.

McCartney's report also highlighted a meeting earlier this month, where more than 40 Māori leaders from across the region presented their aspirations for everything from freshwater to climate change.

"There's a huge opportunity and necessity to think about co-designing policy work with Iwi going forward, is this post-settlement world," he said.