Government Announces Major Reforms to Regional Councils

The Government has unveiled significant reforms to regional councils, marking what officials describe as the most substantial transformation of local governance in decades. Under a new two-stage proposal, mayors will assume control of regional councils, aiming to enhance service efficiency and reduce rates through government-sanctioned initiatives. These changes were announced on October 10, 2023, and public consultation will run until February 20, 2024.

Understanding the Current Landscape

Currently, the country operates with three main types of councils: regional, territorial, and unitary. There are a total of 78 councils, comprising 11 regional councils, 67 territorial councils, and six unitary councils. Each council is governed by a distinct set of councillors who are elected every three years.

Territorial authorities, which include city councils and district councils, serve primarily urban areas and a mix of urban and rural regions. In contrast, a unitary authority combines the functions of both territorial and regional councils. Established in 1989 by the Labour Government, regional councils were created to streamline local governance, reducing 850 entities to just 86 multi-purpose authorities.

Regional councils focus on broader environmental management issues such as land, air, and water resources, while local councils handle more localized services like roads, libraries, and parks. There are currently 131 regional councillors, with salaries varying significantly across different regions—from $100,238 in the West Coast to $186,660 in Canterbury.

Key Changes Ahead

The proposed reforms will dissolve existing regional councils, replacing them with Combined Territorial Boards (CTB). Under this new structure, mayors from territorial and unitary councils will take over duties traditionally performed by regional councils. While the functions will remain, the role of regional councillors will be eliminated.

In the following two years, councils are expected to develop a “regional reorganisation plan” aimed at merging services wherever feasible and reducing rates. This plan will be evaluated against national priorities, including housing, infrastructure, and financial sustainability. The Local Government Minister will oversee the final approval of these plans.

“We are committed to ensuring that local governance is efficient and responsive to community needs,” said the Local Government Minister during the announcement.

Options for merging services include consolidating back-office functions or establishing a single council-owned organization to manage services across the region. There is also potential for councils to amalgamate, similar to the super city model implemented in Auckland in 2010.

In terms of power dynamics, the Government is considering a system where mayoral votes are weighted by population, allowing mayors of larger areas to have a greater influence. Protections will be integrated to ensure that smaller towns are not overshadowed by larger city mayors.

Implications for Residents and Councillors

The CTB will inherit all functions traditionally managed by regional councils, meaning any alterations to public transport or environmental initiatives will come from leadership changes rather than systemic overhauls. Residents will continue to receive separate rates bills for both local and regional councils, although officials argue that streamlining governance could eventually lead to lower rates.

The Government’s involvement in the new structure may include varying levels of intervention, potentially allowing a Crown Commissioner to possess veto power or a majority vote in decision-making processes. This is under public consultation, and the community will have a say in how much governmental oversight is appropriate.

Critics, including members of Te Pati Maori, have characterized the reforms as a “power grab,” particularly noting the lack of mandatory iwi representation on the new boards. The Government maintains that mayors will effectively represent both Māori and general voters.

As for the future of regional councillors, their roles will be disestablished, with no guarantees regarding the retention of their positions following the reforms. The Government has indicated that amalgamation remains a long-term goal, and while boundaries will not change under the current proposal, isolated populations may receive additional representation.

Overall, the proposed reforms represent a significant shift in local governance, with potential implications for service delivery and community representation. The final implementation is targeted for 2027, following the upcoming election, and the public consultation period will provide residents with an opportunity to voice their opinions on the proposed changes.