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The Government has decided on changes to the Local Government Act to rein in council development contributions to improve housing affordability.

“We are going to narrow the charges councils can put on new sections, provide an independent objections process and encourage direct provision of necessary infrastructure to get costs down,” Housing Minister Dr Nick Smith and Local Government Minister Chris Tremain say.

Government is giving councils greater delegated powers on how they manage more than 7000 reserves around New Zealand, Conservation Minister Dr Nick Smith and Local Government Minister Chris Tremain announced today.

“This change is about recognising that local councils and their elected local representatives are better placed to make decisions on local reserves than government departments and ministers. This reform will reduce bureaucracy and give local communities more say and greater flexibility about how reserves are managed,” Dr Smith says.

The Government is looking at changes to the way Councils charge for new sections and other developments by today releasing a discussion paper as part of its work on housing affordability and local government reform.

The ‘Better Local Government’ reforms announced today by Prime Minister John Key will provide clarity around the role of councils, stronger governance, improved efficiency and more responsible financial management said Local Government Minister Nick Smith.

“These reforms are part of the Government’s broader programme for building a more productive, competitive economy and better public services,” Dr Smith says.

Local Government Minister Nick Smith and the Christchurch City Council have met today and agreed to the appointment of a Crown Observer to assist the Council.

"The appointment of a Crown Observer onto the Christchurch City Council will help address any governance issues and work to rebuild the public confidence in the Council," Dr Smith says.