Rates capping cannot undermine community resilience

The Council has approved (9/02/2026) Environment Southland’s submission on the Government’s rates capping proposal.

In the submission, the Council supports the proposal’s intent to reduce the rates burden on households and improve clarity and transparency, while raising serious concerns about how it could affect essential services that Southland relies on.

Environment Southland Chair Jeremy McPhail said the rates target model could potentially limit the Council’s ability to deliver essential services such as flood resilience and biosecurity at a time when government reforms are increasing costs without additional funding.

“We have a significant programme of work dedicated to maintaining and improving our flood infrastructure network in Southland, which is essential for reducing flood risk and flood impacts on people, property and community assets such as main transport routes and telecommunications,” said Chair Jeremy McPhail.

“The proposed rates model excludes water charges and water-targeted rates and we would like to see river management rates excluded, too.”

The Council identifies biosecurity as another area at risk if funding flexibility is reduced, as regional councils have a legislative requirement to respond to pest incursions.

“We need to be able to respond in a timely way to biosecurity incursions, which can result in significant ecological and economic costs.”

An example given is the response to Undaria in Fiordland. The invasive seaweed was eradicated from Chalky Inlet and the continued effort means its spread has been limited to about 400ha, with the remaining 60,000ha remaining Undaria-free.

“This demonstrates the importance of being able to act appropriately in the face of a biosecurity risk. The Undaria programme is making a difference in an internationally renown tourism location and other biosecurity responses, such as wilding pines still require significant additional investment to get the problem under control,” said Chair McPhail.

“The proposed rates target model cannot come at the cost of community and economic resilience.”

Other matters raised in Environment Southland’s submission on the Government’s rates capping proposal include using evidence and methodology that reflects real council cost pressures and not relying on the Consumer Price Index; testing the model across a range of councils with different populations and responsibilities; sustainable funding for long-term infrastructure, including the ability to borrow; strengthening council transparency and accountability with measures to ensure work is meeting the expected priorities and the introduction of additional benchmarks relative to other councils.

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Environment Southland’s submission on the rates target model for New Zealand is available in the agenda (page 71) of the Council meeting on 9 February 2026.