1. INTRODUCTION

1.1 This submission on the draft Standardised Code of Conduct for Local Authorities (“the draft Code”) is made by The New Zealand Initiative (the Initiative).

1.2 The Initiative is a Wellington-based think tank supported primarily by major New Zealand businesses. We undertake research that contributes to the development of sound public policies in New Zealand, and we advocate for the creation of a competitive, open, and dynamic economy and a free, prosperous, fair, and cohesive society.

1.3 A well-functioning local government system is vital for democratic accountability, fiscal prudence, and sustainable economic growth. The Initiative has published extensively on these issues, most recently in Making Local Government Work (December 2024) and in our submission on the Local Government (Systems Improvements) Amendment Bill (August 2025).12

1.4 Making Local Government Work highlighted persistent problems with council codes of conduct, particularly their misuse to silence elected members, limit access to information, and sideline them under expansive conflicts of interest rules. These practices have undermined democratic accountability and shifted power towards unelected officials.

1.5 Against this background, we welcome the Local Government Commission’s work to develop a standardised Code of Conduct, referenced in legislation. Done well, a consistent framework can provide clarity, fairness, and guard against misuse. However, we are concerned that in its current form, the draft Code risks entrenching the very problems it is intended to address.