“Further analysis” needed after election before amalgamation decisions

Report from RNZ
The Government has told mayors around the country it’s deferring decisions on amalgamating councils until after the election.

RMA Reform Minister Chris Bishop and Local Government Minister Simon Watts said they would be taking additional time before deciding which proposals, part of the Head Start local government reform process, should progress to the detailed design stage.

Eighteen proposals were submitted in August against the Government’s objectives for a simpler, more effective and accountable local government system.

“While the overall quality of proposals was high, none came with the unanimous view of the region, and some needed further analysis before they can progress. These are important gaps we must fill in prior to making final decisions,” Watts said.

Particular areas that required further development included ensuring fair and effective representation with streamlined governance, and the transfer and delivery of regional functions, the ministers said.

“Rather than asking councils to commit further time and resources to finalise proposals now, the Government will now work to fill in these gaps over the next few months. Cabinet will consider these proposals in early-2027.”

Watts denied the government had misjudged the complexity of local government reform.

“We haven’t underestimated it. We are committed to getting this right.

“We don’t want to be making decisions this close to the election, and we’ve got a few gaps in the proposals that we want to work with councils on.”

The reforms were among the largest the country had seen in the past few decades, he said. “Taking time until after the election to work with the councils to do that is the sensible thing to do.”

Addressing criticism over the delay, he said he understood some mayors were “enthusiastic about change and reform”.

“It was a voluntary process, and councils put together high-quality proposals.

“There’s no wasted effort or wasted money in that regard.”

Bishop said the Government continued to expect proposals endorsed by Cabinet to be developed in detail and considered for final approval in 2027, with Head Start changes intended to be in place ahead of the 2028 local government elections.”

“Work is also continuing on the backstop process for areas that do not progress through Head Start. Decisions on that process will be informed by lessons from the Head Start pathway, consultation feedback and further advice from officials. We continue to expect decisions on this in early 2027.”

Local Government New Zealand (LGNZ) president Rehette Stoltz said people were frustrated after they “moved heaven and earth” to meet an unrealistic deadline for proposals.

LGNZ was only informed of the delay shortly before it was announced publicly, she said. “The minister rang me this morning to give me a heads up that an announcement would be made at 11, and that was the first that we heard, and then our members were informed.

“We have really stretched local government only for us to find out today that nothing will proceed before the election.

“I think it’s unfair on local government and councils, councillors, as well as staff.

“The time and money, the effort, the relationships that were damaged with a rushed process, that is all in play now and we are just processing it,” she said.

Addressing Watts’ comments about gaps in proposals, she said councils did not know what was missing and what needed to change.

“We have not received any feedback yet, but when this was announced earlier in the year we made it very clear with the minister, with officials, that three months is insufficient for us to consult with our communities and our neighbouring councils.

“It’s not fair on councils and on ratepayers,” she said.