Simplifying Local Government
Improving local government
What would happen?
Under the Government’s preferred option, each CTB would be asked to prepare a regional reorganisation plan within two years of establishment. Regional reorganisation plans will set out how all the services and functions your councils deliver could be improved in the future. This plan could also be delivered by an alternative regional governance entity.
The plans will be designed to answer the question: “What is the best way the councils in my region can work together to deliver effective and efficient services and functions in this region?”
Before CTBs are required to do their reorganisation plans, the Government will review regional council functions to see if any should be reallocated to another agency or delivery model (e.g., where national consistency is needed) or are no longer necessary. The results of this review will guide future decisions and help CTBs prepare their regional plans.
What happens to the CTB? Is it temporary?
Regional reorganisation plans will set out what happens to the CTB itself. Options include retaining, dissolving, or modifying the CTB. The preferred option will depend on the region and what is planned for the other councils. For example, a region that currently has eight city/district councils and a regional council could be divided into two unitary councils, without a CTB laying over the top.
If Crown Commissioners are appointed, they would be temporary. The appointments would continue until the regional reorganisation plan is completed. The Crown Commissioners would be required to work with the councils in the region to prepare the regional reorganisation plan.
What is the purpose of regional reorganisation plans?
The purpose of regional reorganisation plans is to:
- encourage all the councils in your area to work together to reduce duplication and improve efficiency
- keep local voice and identity where it matters most
- ensure services are delivered in a way that fits the region’s needs
- provide a structured, transparent process for reform.
What will a regional reorganisation plan include?
Under the proposal, regional reorganisation plans will be broad and flexible so CTBs can adapt them to their region. At their core, they will have to:
- map all current functions across councils in the region and assess how well they are working together and opportunities to do better. Where appropriate, CTBs might look at certain functions across more than one region (with another CTB) or sub-regionally (where this makes sense)
- set out options for future delivery, such as:
- sharing services to save money (e.g., one council does all the back-office functions, like legal, HR, and IT)
- creating joint council-owned organisations so everyone in a region gets the same service (e.g., if two neighbouring councils have separate rules for household waste collection this can be both confusing and costly. Instead, they could create a new council owned company to run this service on behalf of the whole region)
- combining to form one or more combined (‘unitary’) councils for the region (or parts of it)
- design new ways for the community to input into decisions (e.g., empowering community groups to make more decisions on parks or recreational activity).
- consider the likely impacts on cost, service quality, and local representation of different options
- work with post-settlement governance entities in relation to any relevant Treaty settlement arrangements
- set out a financial and organisational transition plan.
CTBs would have to consult the public, iwi/Māori, and regional stakeholders on a draft regional reorganisation plan.
The Government is considering whether the law needs new options to let communities make decisions on local issues – such as libraries, pools, and other facilities. Right now, options include community boards and local boards. Any new option would be something CTBs could choose to propose in their regional reorganisation plan.
What happens after consultation?
The CTB for your region will update the regional reorganisation plan based on community views. Revised regional reorganisation plans would be provided to the Minister of Local Government (the Minister). The Minister will receive independent advice from the Local Government Commission on the regional reorganisation plans. The Local Government Commission will assess each regional reorganisation plan against statutory criteria set out in the table below.
The Local Government Commission will make a recommendation to the Minister on the quality of the plan, how it could be improved, and whether it strikes a suitable balance between the criteria. The Minister can then either:
- approve the plan
- provide feedback on the plan, and request changes
- make changes to the plan directly
- appoint a Commissioner to draft the plan (if the CTB fails to produce a robust plan).
Once the plan has been approved, the decision is final and implementation will begin.
Criteria for regional reorganisation plans
Each regional reorganisation plan must demonstrate how the proposed changes meet the criteria set out in the table below. These criteria will guide assessment by the Local Government Commission and the Minister of Local Government. Further guidance for councils could be published to support understanding of these criteria.
|
Criterion |
Does the plan… |
Example |
|---|---|---|
|
Big-picture fit |
…support national priorities, strategies and goals (like housing, infrastructure, and competitive business settings)? |
All councils in the region agree to establish a ‘one-stop-shop’ for consents that support infrastructure and housing. |
|
Affordable now and in the future |
…provide a financially responsible arrangement that will manage rates increases and support them to manage assets well (e.g., replace pipes before they burst)? |
Two very small councils combine into one, which means they have a bigger balance sheet and larger economies of scale. This may allow them to borrow money at a lower cost to replace an unsafe bridge which would otherwise be unaffordable. |
|
Better services |
…reorganise local services so they work better and cost less? |
All councils in the region establish a single regional roading agency that has more power to bargain with big national roading companies when agreeing contracts. |
|
Clear leadership |
…set out who does what and who is responsible across councils? |
Combining two very small district councils into one so that one mayor has a stronger voice representing the area to central government. |
|
Local say |
…let decisions happen at the right local level? Does the plan provide fair and effective representation of communities of interest? |
Two very small councils join together but agree to establish neighbourhood assemblies that have their own budget for parks, libraries, and events. |
|
Treaty arrangements |
…show how all Treaty settlement commitments that are administered by councils and other agreements with iwi/Māori will be given effect to and/or improved? |
Keeping arrangements for rivers as agreed in Treaty settlements. |
|
Can it be done |
…include a realistic plan for putting the plan into action (e.g., how council staff might be moved)? |
A step-by-step timeline for establishing the new regional roading agency. |
Why Ministerial approval?
The Minister of Local Government will make decisions on regional reorganisation plans based on the nationally consistent criteria set out above. The Minister will need to consider independent advice from the Local Government Commission before making a decision. This provides an impartial check on whether plans meet statutory requirements for efficiency, representation, and Treaty compliance.
Importantly, Ministerial approval does not bypass community input. Public consultation by the CTB is required before any plan is finalised.
The alternative would be to hold a referendum. This process is costly and slow. Referendums often have low voter turnout and a tendency to favour the status quo. This means only a small proportion of people in the region end up making the decision.
Further information
You can download the full proposal document and other materials from the Department of Internal Affairs website: www.dia.govt.nz/simplifying-local-government.