14594 (2025). Tangi Utikere to the Minister of Local Government

14594 (2025). Tangi Utikere to the Minister of Local Government: What steps, if any, is the Minister taking to ensure local councils can continue to invest in critical infrastructure despite credit downgrades?

Hon Simon Watts: The Coalition Government has been aware of the possibility of a deterioration in council credit ratings for some time and that is partly the driver of our very frank message to the sector last year that they need to fund themselves appropriately for the must haves, not nice to haves. The Government has worked closely with the Local Government Funding Agency (LGFA) to ensure local councils have greater access to finance for infrastructure investment including water services and for high growth councils. With greater use of LGFA finance to fund infrastructure investment, councils and their qualifying council-controlled organisations will be cushioned from changes to their own creditworthiness by LGFA’s strong credit rating. LGFAs’ credit worthiness is supported by the liquidity facility provide to it by the Crown, which the Government recently agreed to increase. Use of LGFA funding by water CCOs will free up debt headroom for parent councils, giving them choices about funding investment in non-water infrastructure or even to help rein in rates increases.