'Serious shake-up' of local government imminent

The coalition is set to announce a major shake-up of local government which could spell the end of regional councils, RNZ understands.

Ministers are expected on Tuesday to announce proposed reforms, including the potential abolition of regional councils.

On Sunday, Prime Minister Christopher Luxon told National party members there would be a "very serious shake-up coming" to local government alongside the upcoming RMA reforms.

"Watch this space," he said.

Luxon later told media there would be "major reform coming" and the government wanted to "radically simplify" local government, but he would leave the details to RMA reform minister Chris Bishop and local government minister Simon Watts.

"I'm just signalling very strongly that, and it's not a surprise in my conversations I've had with local government leaders as well, that this is a country that has so many layers of management and government that actually it's stopping us from getting things done," Luxon said.

"It's hard and difficult decisions, but I'm sorry, we have to keep changing the way we run the country to make it simpler and easier to get things done."

A spokesperson for the RMA reform minister declined to comment, saying reporters would have to "wait and see".

Earlier this year, regional development minister and New Zealand First deputy leader Shane Jones told a forum there was "less and less of a justifiable purpose" for keeping regional government once the RMA reforms went through.

In July, Bishop told councils to halt work on district plans until the new RMA legislation took effect.

Watts has also been tasked with bringing policy options for rates caps to Cabinet by the end of the year.

Speaking on Morning Report, Labour leader Chris Hipkins said he wanted to see the government's proposal before he set out his party's position.

"If what they come up with is sensible, I certainly want to leave open the option of working with them to make it a success," he said.

"There is room for consolidation in local government. There is room for a streamlining of functions."

But Hipkins said the government would need to be careful not to make the situation even more fragmented.

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