Speaking at the Local Government NZ conference in Christchurch, Mr Robertson announced the Productivity Commission would undertake an inquiry into cost pressures on local councils and ways to fund and finance them.
It comes after Auckland Mayor Phil Goff and others' calls for councils to be given more mechanisms for raising funds other than through rates and borrowing.
Dunedin Mayor and LGNZ president Dave Cull said having only property rates as a funding mechanism for local governments restrained decision-making, as it de-incentivised investment in things like infrastructure.
Communities were resistant to rates rises, so councils were inclined not to do things that needed to be done.
Decentralised communities with other ways of raising funding were more prosperous.
Mr Cull said the LGNZ had launched a "localism project" intended to rebalance the respective financing and decision-making powers of government and local government.
Mr Cull said decision-making should be as close as possible to the people it affected.
The conference ends tomorrow.
- Additional reporting from NZME
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Comments
How about some original ideas on how councils can contain their spending? Victoria Australia has a cap of 2.5% on council rates increases unless they get ministerial permission for special projects. Mobs such as DCC seem to think ratepayers have bottomless pockets and set future rate increases far above inflation.
Dunedin's population growth is virtually non existent but councilors can't seem to grasp the impact of their decisions on the ability of people to live here.