Ashburton District Council has finalised a submission to the Government on its rates cap proposal.

Mayor Liz McMillan said that this Council is acutely aware of how rates add significant financial pressure to households and supports the intention of keeping rates low.

“This Council is committed to only increasing rates when necessary. That means - to maintain essential services, renew and protect infrastructure, respond to growth, meet community expectations, and comply with legislation.

“But we’re not yet convinced that a one-size-fits-all national rates cap would be able to account for the needs of different communities.”

The Council’s submission said that any cap must not override locally informed, democratic decision‑making.

“We’re elected by our residents to ensure the community have a voice on community-specific issues.

“We cannot agree with anything that would slow Ashburton District’s momentum, degrade essential services, or compromise long‑term sustainability.”

The submission said that Council’s ability to meet a cap would be limited by cost increases that exceed the Consumer Price Index (CPI).

Examples included escalating roading and bridge maintenance costs in recent years.

It also said it couldn’t let ratepayers absorb unfunded central government mandates and the cost of frequent legislative reforms.

“These reforms cost money and ultimately, it’s the ratepayer that foot the bill for them.”

The Council rejects the view that councils lack fiscal discipline and argues that the model’s indicators, particularly GDP and CPI, are unsuitable anchors for a national cap.

A strict rates cap could cause under‑investment and affect Council’s ability to borrow money for infrastructure and services that the community expects, the submission said.

The submission will be lodged with the Department of Internal Affairs and aligns with the broader sector positions submitted by the Canterbury Mayoral Forum, and other industry organisations.