Local Government leaders in Wellington are saying no to a potential law change that could impose limits on annual rate increases.
Wellington Regional Council Chair Fran Wilde says using inflation to limit rates increases isn't acceptable because many rate increases are driven by the need to create new, or improve existing, infrastructure.
She says imposing a cap on rates could lead to deferral of maintenance and infrastructure work.
"When you do that you actually build up a long term problem, and in fact we have seen that in New Zealand, I think, with our rail service."
Wellington Mayor Celia Wade-Brown is also opposed to CPI limits on rate rises saying rates are about more than just provision of basic services.
"It's not only about taking sewage away and bringing the water, it's actually about promoting the city, working with businesses, and promoting economic growth."
Ms Wade-Brown believes the rates are cheaper than other utility costs the city's residents have to pay.
"I think it's really important to remember that rates are considerably less than the annual electricity bill, the annual telecoms bill, and other services like that."
Imposing limits on annual council rate increases are part of the Government's planned reform of the Local Government Act.