This week we saw some very clever politicking, didn’t we?

I doubt there are many voters in the country who would disagree with the Prime Minister’s message to councils at the Local Government NZ Conference this week.

With ongoing rates increases on the cards, many ratepayers would prefer their councils strip back spending and focus on basic services to help get spending under control.

The Prime Minister’s message was well received publicly, if not by local Government representatives. Councils are an easy target. There has always been tension between central and local Government, and whenever an opportunity presents itself, both are quick to point the finger.

Simeon Brown’s threat to introduce a regulator to cap the amount of spending on non-core activities was the icing on the cake – and one could suggest central Government would benefit from this mechanism too. Reducing waste, however, should not just be aimed at non-essential activities, but core activities as well.

As much as some councils need to have it spelt out for them that there is a new sheriff in town who’s not interested in handing out cold hard cash to solve local Government problems, I would argue many councils have spent a considerable amount of time over the last 4 years going line by line through their budgets, most recently to prepare their 10 year budgets.

It’s likely the Prime Minister’s direct talk this week was to set the scene for the coming Regional Deal negotiations.

Like the regulator idea, Regional Deals is another idea from Australia. The aim of these partnerships is to co-ordinate capital investment to deliver the infrastructure each region needs for economic growth and productivity. The framework has been announced, and the first deals are expected to be finalised in 2025.

These partnerships are critical, especially for a city like Auckland which is estimated to be home to 40% of the country's population by 2040. They will enable regions to come up with housing and transport policies that will go beyond the local and central election cycles. Maybe we can commit to getting some stuff done!

So, as much as a slap on the wrist from the Prime Minister and his Local Government Minister this week may have been painful, if it’s a step on the way to the Government sorting out its future contribution to local Government - the pain will quickly pass.

• Watch: PM speaks to media after stern message to councils
• 'Visionless': Wellington Regional Council fires back at Luxon's calls to rein in spending

So in my eyes, this message is step 1 – now the coalition needs to get on with working with local Government to help them see through their long term plans.

LISTEN ABOVE