Simplifying Local Government

What is being proposed?

Most places in New Zealand have two separate councils – a regional council, and a city or district council (sometimes called ‘territorial authorities’). Each have a separate set of elected councillors who look after separate (but often similar) things.

There are 11 regional councils that govern services such as environmental management, regional transport planning, and civil defence. There are 67 city or district councils that govern services such as roads, water infrastructure, rubbish collection, libraries, parks, and land use planning. There are 6 ‘unitary authorities’ that combine the two roles.

The Government is proposing to simplify local government in two steps

• Step 1: Instead of electing separate regional councillors, the mayors you already vote for will collectively lead regional issues and govern the regional council. We also want to know what you think about the appointment of Crown Commissioners (appointed by the Government) to lead or join the board.
• Step 2: This board of mayors will develop future-focussed plans for how the councils in your region can work together more effectively and efficiently. These plans will be developed in consultation with you, examined independently, and be approved by the Government. 

What is a combined territories board?

A combined territories board (CTB) is the name for the board that will handle regional issues and govern your regional council. The rates you already pay will fund the CTB. 

What exactly will a CTB do?

CTBs will take over the governance for the roles and functions of regional councils, such as:

• managing rivers, lakes, the coastal marine area, and air quality
• implementing any Treaty settlement commitments that are administered by regional councils
• managing assets
• regional transport planning
• civil defence and emergency management
• environmental regulation and resource management.

How would a CTB make decisions?

CTBs will play an important role in making decisions about how your region is managed. To do so, CTBs will meet regularly, like how city / district councils do now.

When making decisions, each mayor would have a set number of votes. This number would be based on population and adjusted to ensure smaller communities receive effective representation. The independent Local Government Commission would make these adjustments. 

CTB decisions must comply with the same laws regional councils have to comply with now, including consulting with communities and considering environmental impacts.

What are the alternative options?

While a CTB made up of mayors is our preferred approach, we are considering alternative options for structuring regional decision-making in the short term. To ensure the system works in practice, we are seeking your views on alternative options that include a stronger role for the Crown. There are 3 options for a Crown Commissioner on the CTB:

• Observer only: Crown Commissioner has no vote
• Veto power: Crown Commissioner can override CTB decisions
• Majority vote: Crown Commissioner has more than half the votes on the CTB, with the remaining votes distributed among the mayors.

Another alternative option is to have no CTB at all and to appoint Crown Commissioners (Government appointees rather than elected representatives) to lead regional councils through the regional reorganisation plan (discussed below).

How will a CTB balance urban and rural interests?

Currently, the law requires regional councils to act for the benefit of all or a significant part of its region. Decisions cannot be taken to the benefit of a single district. This legal obligation will carry over to the CTB (or Crown Commissioners). 

Under the CTB model, participation by other agencies at the regional level will still occur where it is appropriate.

For example, regional land transport planning doesn’t just include the regional council. It also includes the city and district councils, and the New Zealand Transport Agency. This makes sure urban, rural, and national interests are all balanced.

A similar model is being proposed for the new resource management system to strike a balance between urban, rural, and national interests. This approach is described later in this document.

Why this change?

Local democracy is important, but many people don’t vote in local elections or understand the difference between regional councils and city or district councils.

CTBs simplify governance by consolidating decision making with mayors. This reduces duplication (only one set of councillors) and ensures regional decision making is more aligned across councils. There would be clear accountability to the public by the CTB for delivery of regional services. If Crown Commissioners are appointed, they would have the same responsibilities as regional councillors currently have.

Are CTBs permanent?

Each CTB would develop a regional reorganisation plan within two years of being established. Regional reorganisation plans will set out future-focussed ways that council services are delivered effectively and efficiently. Depending on the region, the CTB might be kept, dissolved, or repurposed via these plans. If Crown Commissioners are appointed, the appointments would run until a regional reorganisation plan is agreed.

These plans will need to reflect and incorporate local context and community feedback. They will:

• map all council functions in the region
• recommend the best delivery model for each of the functions across the region (e.g., shared services, joint council-controlled companies, or amalgamations) 
• require mandatory consultation with communities, iwi, hapū, Māori, and stakeholders in the region
• be approved by the Minister of Local Government if they meet  statutory criteria (not by referendum).

The goal of regional reorganisation plans is to design a better way for your councils to deliver services for you. The plans will reduce duplication, improve efficiency, and be responsive to local needs. 

To support this, a Government review of regional council roles and functions will provide clarity on which responsibilities remain local and which may be either centralised or discontinued. This review will be completed before CTBs are established and CTBs will need to take into account the outcomes from this review when developing their plans.

The areas that don’t have a separate regional council can opt in to doing regional reorganisation plans, but don’t have to. These councils are Chatham Islands Council, Gisborne District Council, Marlborough District Council, Nelson City Council and Tasman District Council.

Auckland Council is set up separately to other councils so won’t be able to develop a regional reorganisation plan.

What does it mean for me?

If this proposal is implemented, the only thing that will change on day one is that your mayor will represent you regionally – rather than you having separate regional councillors do this. If Crown Commissioners are appointed, they will represent you regionally in the short-term until the regional reorganisation plan is completed.

All other things will continue until your mayor and your CTB develop the regional reorganisation plan and consult you on it. The plan would need to be submitted to the Minister of Local Government within two years of the CTB being established for approval. There will be no changes for Auckland Council. Other unitary authorities can choose whether they want to do a regional reorganisation plan.

In the meantime, regional council operations will continue as they do now. For example:

• all public consultation requirements remain under the Local Government Act 2002
• functions under the Resource Management Act 1991 remain unchanged (until that Act is replaced)
• stakeholder groups, advisory panels, and joint committees continue to operate

• Treaty settlement commitments, arrangements and obligations remain unchanged.