Prime Minister Christopher Luxon is challenging councils, including Ashburton, to “rein in the fantasies”, manage spending, and focus on core services.

But that’s something mayor Neil Brown believes is already the case in Ashburton.

The council’s latest budget, the first three years of the long-term plan, is infrastructure-focused, and there was no wasting money, he said.

The council’s 11.8% rate increase was to fund the basics, Brown said.

“We looked after the roads, the waters, the essential things we need for day to day. We cut or didn’t increase the fluffy stuff,” he said.

“And if there’s any buildings to be done, it’s on a needs basis.”

Luxon delivered his address at the Local Government conference in Wellington, taking aim at wasteful council spending and announcing plans to tighten the reins

“Ratepayers expect local government to do the basics and to do the basics brilliantly.

“Pick up the rubbish. Fix the pipes. Fill in potholes. And more generally, maintain local assets quickly, carefully, and cost-effectively.”

Luxon also said that “the days of handouts are over”.

“There is no magic money tree in Wellington.”

To steer councils to focus on “must-haves, not nice-to-haves”, the Government plans to abolish the four wellbeing provisions in the Local Government Act and concentrate on local services and infrastructure.

It will also investigate performance benchmarks for councils, options to limit their expenditure on non-core activities, and review the transparency and accountability.

Luxon said his Government was taking steps to stop wasteful spending and “shifting money from the back office to the frontline” and it was time for councils to do the same.

Brown said the Prime Minister had “put a shot across the bow that wasting money not appropriate going forward”.

“We’ll take that message onboard and we’ll make sure we don’t do that to the best of our abilities.”

Local Government NZ president and Selwyn Mayor Sam Broughton said councils have already gone through budgets to cut spending.

“Councils go, line by line, through our budgets every three years,” he said.

“To suggest that we don’t already do that – we do. It’s very clear and taken very seriously.”

Rates in Selwyn jumped 14.9%, but Broughton said the cost of delivering council services has increased.

By Max Frethey