New Zealand is set to undergo the most significant overhaul of its local government structure in three decades, with regional councils poised to be abolished. The ambitious proposal, announced by Local Government Minister Simon Watts and RMA Reform Minister Chris Bishop, will see city and district council mayors assume the responsibilities currently handled by regional councils.
Introducing Combined Territories Boards (CTBs)
Under the new framework, these mayors will form 11 new entities known as Combined Territories Boards (CTBs). These boards are designed to meet regularly and will not only manage the existing functions of regional councils but also spearhead a long-term "Regional Reorganisation Plan." This plan aims to redefine the structural organization of their respective councils.
Furthermore, the CTBs will play a crucial role in the government’s Resource Management Act (RMA) reforms. Their duties will include developing region-wide spatial plan chapters and national environment plan chapters, which will then be integrated into combined regional plans.
Why the Shake-Up?
The government cites a system plagued by duplication, inefficiency, and a disconnect from communities. "Local government is meant to serve communities, not confuse them," stated Minister Bishop, highlighting concerns that the current structure is "tangled in duplication, disagreements and decisions that defy common sense." He believes these changes will exert "downward pressure" on rates.
A perceived loss of social license and public faith in local government, evidenced by over half of New Zealanders not voting in local elections, underscores the urgency of the reform. Bishop stressed that "the status quo is not an option" and that the existing structure is "no longer fit for purpose." The impending replacement of the Resource Management Act presents a "once-in-a-generation opportunity" to "reset" local government.
Implementation and Consultation
The proposed changes are currently open for public consultation until February 20th. Legislative measures are anticipated to be introduced mid-next year and enacted by 2027. The announcement, strategically released at 5 pm, aimed to prevent market jitters, especially given regional councils' ownership stakes in various port companies nationwide.
CTB Structure and Crown Involvement
Mayors on the CTBs will likely have voting power weighted by population, with adjustments to ensure smaller communities retain their influence. A discussion document accompanying the announcement outlines three options for Crown Commissioner involvement to ensure system functionality and government oversight:
- Observer Only: The Crown Commissioner would have no voting rights.
- Veto Power: The Crown Commissioner could override CTB decisions.
- Majority Vote: The Crown Commissioner would hold over half the votes, with the remainder distributed among mayors.
Minister Watts emphasized that a "fair and balanced voting system" would guarantee representation for both regional and urban interests in critical land and water decisions.
Benefits and Local Empowerment
The government expects the reforms to lead to more efficient services, enhanced accountability, and a smarter allocation of ratepayer funds. Watts clarified, "This is not a one-size-fits-all approach. It is a framework for regions to design what works best for them... crucially, it is also not about centralising power. This is about empowering local leaders to lead their own reform." Bishop echoed this, asserting, "It's not a power grab... This is about making local government fit for purpose."
Regional Reorganisation Plans (RRPs)
Beyond their initial responsibilities, the CTBs will have two years to develop their Regional Reorganisation Plans (RRPs). These plans must adhere to "clear national criteria" and undergo ministerial approval. Crucially, public consultation by the CTB is a mandatory step before any plan is finalized, ensuring community input. The government noted that opting for referendums, an alternative, tends to be "costly and slow" with low turnout and a bias towards maintaining the status quo.
New Zealand's Current Local Government Landscape
Currently, New Zealand operates with 11 regional councils primarily focused on resource management (flood protection, air quality, public transport, pest control, civil defence). These were established in 1989, replacing numerous local boards and county councils. Separate from these are 67 "territorial" authorities (city and district councils) managing local services like roads, water, waste, parks, and bylaws. Additionally, six unitary authorities combine both regional and territorial powers.
Minister Bishop indicated that the reorganisation plans could potentially lead to the creation of more unitary authorities, a concept supported by a "strong lobby" within the local government sector. Watts affirmed the changes align with the National party's commitment to localism and devolution, aiming to streamline services and improve accountability by reducing competition between different layers of local government. Treaty of Waitangi settlement obligations will remain intact.
Boundary and Representation Details
Initially, regional and district boundaries will remain unchanged until further decisions arise from the RRPs. For districts spanning multiple regions, such as Rotorua and Taupō, the government proposes two options for representation:
- District Adoption: Areas are "adopted" into a neighbouring district, with an option for residents to vote on their representative mayor.
- Proportionate Voting Share: Districts receive a voting share in each regional group they belong to, potentially with local ward councillors representing them instead of the mayor.
Significantly, the discussion document states that existing regional constituencies, including Māori and general constituencies, "would no longer exist," with city or district mayors representing voters from both rolls.