Government Unveils Major Reforms to Regional Councils

The government has announced significant reforms to regional councils, marking what officials describe as the most substantial overhaul of local governance in decades. Under a proposed two-stage plan, mayors will assume control of regional councils, aiming to streamline services, enhance efficiency, and reduce rates through government-sanctioned initiatives. This announcement was made on Tuesday, with public consultation set to continue until February 20, 2024.

Understanding the Current Structure

Currently, there are three types of councils in the country: regional, territorial, and unitary councils. In total, there are 78 councils: 11 regional, 67 territorial, and six unitary. Each council is governed by a separate set of councillors, elected every three years.

Territorial authorities comprise city councils, which serve urban areas, and district councils, which cover a mix of urban and rural regions. Unitary authorities combine the roles of both territorial and regional councils. Established in 1989 by the Labour Government, regional councils were created to consolidate local governance, reducing 850 local bodies into 86 multi-purpose authorities. Their primary responsibilities include managing natural resources, environmental conservation, and public transport.

Key Changes on the Horizon

The proposed reforms will replace regional councils with Combined Territorial Boards (CTB). This shift will see existing mayors from territorial and unitary councils taking over the responsibilities traditionally handled by regional councils. The role of regional councillors will be eliminated, and councils will have two years to create a “regional reorganisation plan” aimed at merging services and lowering rates.

The plan will be evaluated based on criteria that align with national priorities, including housing, infrastructure, and financial sustainability. Local Government Minister David Bennett will have the final say on the proposals. Options for service merging could involve a single council managing all back-office functions or creating a new council-owned entity to oversee services for the entire region.

Public consultation will determine whether mayoral voting power should be weighted according to population, allowing mayors of larger areas to exert greater influence while ensuring smaller towns are not overshadowed.

Changes in leadership will not alter the core functions of public transport or environmental management but will reflect the new governance structure. Current regional council rates will remain unchanged, although it is anticipated that streamlining governance could ultimately reduce costs for residents. Bennett suggested that the introduction of a rates cap will be presented to the cabinet before Christmas.

The reform raises questions regarding government involvement in local governance. One possibility includes the government joining mayors on the CTB, with varying levels of intervention, such as granting veto power or majority voting rights to a Crown Commissioner. Public input will shape these decisions.

Representation of iwi (Māori tribes) on the new boards remains uncertain, as no mandatory positions are proposed. Bennett indicated that mayors would represent voters from both Māori and general rolls, which has drawn criticism from the Te Pati Māori, describing the changes as a “power grab.”

The future of elected regional councillors is also in question, as their roles will be disestablished without guarantees of continued employment. The government has previously indicated an interest in amalgamating councils, a sentiment echoed by Bennett, who acknowledged that optimal effectiveness could require merging councils.

While no boundary changes are proposed, isolated populations may be reassigned to different districts or granted additional representation. Final implementation of these reforms is slated for 2027, following further public consultation and legislative processes.

As these significant changes take shape, residents will be closely monitoring how they will affect local governance, service delivery, and community representation in the years to come.