Council calls for pause on rates capping as Canterbury transport planning progresses
Canterbury Regional Council (Environment Canterbury) has suggested a pause in work towards a rates cap while wider reforms affecting local government are still underway.
The Strategy and Policy Committee met on Wednesday 4 November for its last meeting of 2026, to confirm Council’s submission on the Local Government (Rates Capping) Amendment Bill.
They also received an update on the development of Canterbury’s next Regional Land Transport Plan, with work progressing towards public consultation on the draft plan.
Council calls for pause on proposed rates capping legislation
The Committee approved Environment Canterbury’s submission on the Local Government (Rates Capping) Amendment Bill, to be lodged with the Finance and Expenditure Select Committee.
In its submission, the Council recommends that development of the legislation be paused while decisions and details around wider reforms affecting regional government are worked through.
A pause, as stated in the submission, would “enable fundamental decisions related to the functions and form of regional government to be determined before establishing the funding system required to deliver it”.
Committee members discussed the challenges a rates cap could create for services and infrastructure where costs can be difficult for councils to control. Public transport is affected by factors including fuel prices, and it was suggested that flood protection and other essential infrastructure could be excluded altogether from any proposed rates cap. Any potential exemptions regime may lack the flexibility to respond to changing circumstances and externally driven costs.
The proposed legislation would introduce a target range for annual increases in non-water-related council rates, initially set at 2 to 4 per cent. If passed as currently proposed, councils would need to consider the cap from 1 July 2027, with legislation taking full effect from 1 July 2029.
Regional transport plan work progresses
The Committee received an update on development of the Canterbury Regional Land Transport Plan 2027-37. Significant progress has been made on the draft plan, including work on its strategic framework, policies, monitoring framework and approach to programme and funding.
The draft strategic framework sets out the collective expectations for transport investment in Canterbury by central and local government. It takes a targeted, staged approach to improving Canterbury’s transport system, while identifying areas for further investigation as the plan develops.
Committee members discussed the significant funding pressures facing Canterbury's transport network, including public transport and infrastructure resilience.
Councillors highlighted the need for continued advocacy to secure investment that better reflects Canterbury’s economic contribution and the transport demands placed on the region.
Work will now focus on developing the programme and funding section of the draft plan, further stakeholder engagement, getting the draft plan ready for consultation, and progressing through hearings, deliberations and approval.
The final plan will return to Canterbury Regional Council for approval before being submitted to NZ Transport Agency Waka Kotahi by August 2027.