Government Hits Pause On Council Amalgamation Plan Until After Election

The Government has told mayors around the country it's deferring decisions on amalgamating councils until after the election.

RMA Reform Minister Chris Bishop and Local Government Minister Simon Watts said they would be taking additional time before deciding which proposals, part of the Head Start local government reform process, should progress to the detailed design stage.

"It is clear from the response we received that there is genuine appetite for change," Watts said in a statement.

Eighteen proposals were submitted in August against the Government's objectives for a simpler, more effective and accountable local government system.

"While the overall quality of proposals was high, none came with the unanimous view of the region, and some needed further analysis before they can progress. These are important gaps we must fill in prior to making final decisions."

Particular areas that required further development included ensuring fair and effective representation with streamlined governance, and the transfer and delivery of regional functions, the ministers said.

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"Rather than asking councils to commit further time and resources to finalise proposals now, the Government will now work to fill in these gaps over the next few months. Cabinet will consider these proposals in early-2027."

Bishop said the Government remained committed to local government reform.

"The Government continues to expect proposals endorsed by Cabinet to be developed in detail and considered for final approval in 2027, with Head Start changes intended to be in place ahead of the 2028 local government elections."

"Work is also continuing on the backstop process for areas that do not progress through Head Start. Decisions on that process will be informed by lessons from the Head Start pathway, consultation feedback and further advice from officials. We continue to expect decisions on this in early 2027."

Ministers made promises they couldn't keep - Wellington mayor

But Wellington City mayor Andrew Little said the announcement showed the Government was not serious about the process.

Little, who is also co-chair of the Wellington and Wairarapa Mayoral Forum, said councils across the region put forward strong proposals that met the Government's requirements and would have worked, while spending nearly $250,000 collectively to put forward a proposal before the recent deadline - which was "significant time and ratepayer money".

Little told reporters councils had done everything the Government had asked of them, and they had "been let down".

It was "poor organisation" - the government had made a promise it couldn't keep, Little said, as it clearly didn't have the numbers to enact reform.

He said there had been mixed views among residents and ratepayers on whether to amalgamate or not, "but on balance people supported it".

The government's attribution of the delay to the fact that the proposals were not unanimous - an aspect that wasn't requested of them in the first place, Little said - was "effectively shifting the goalposts".

Millions had been spent nationwide by councils in preparing headstart proposals, he said.

If the government wanted change in time for 2028, councils were "rapidly running out of time", Little said.

"Ministers asked us to move quickly. We did exactly that. It is now clear the Government was not ready to follow through, and didn't have enough support around the Cabinet table."

Little said ministers made promises they couldn't keep and have now abandoned the process.

"Wellington ratepayers are entitled to ask why they were asked to pay for an exercise the Government was not prepared to complete.

"At a time when councils are doing everything possible to keep costs under control, facing an arbitrary rates cap that will affect services and facilities that communities rely on, spending nearly a quarter of a million dollars on a process that goes nowhere is unacceptable."

He said the three-month deadline was "totally unreasonable" and criteria continually shifted.

"We met all of the government's requirements to get a proposal in before the deadline.

"The only party that has not thought through their policy is central government themselves. It claims it is wanting to simplify local government, but today it has confirmed it has no plan for how to achieve this."

'Communities will not tolerate ratepayer money being spent on unclear processes'

Local Government New Zealand (LGNZ) said councils moved heaven and earth to meet an unrealistic deadline for proposals, and now need certainty.

LGNZ president Rehette Stoltz said the Government's inability to decide which proposals will progress has left councils feeling frustrated.

"Councils were put through a rushed process, only for the Government to now acknowledge that the work could not be completed properly in the time available," she said.

"Communities will not tolerate ratepayer money being spent on unclear processes that are repeatedly reshaped after the work has been done. Before councils do more work, they need certainty the goal posts won't be moved again."

She maintained reform should be locally led, not driven from the Beehive.

"Local government reform is too important to be subject to a constantly changing process."

More mayors react

Selwyn district mayor Lydia Gliddon said it was disappointing that councils had been asked to quickly develop and submit proposals only for the decisions to now be deferred.

"Selwyn invested significant effort into this process, including consulting with our communities. We owe it to those who took the time to share their views to ensure their voices continue to be heard," she said.

The council remained committed to working with the government to achieve the best outcome for its communities.

"The position of Selwyn residents has been very clear. Through our consultation, people told us overwhelmingly that they wanted Selwyn to become a standalone unitary authority, and we will continue to support and advocate for that view going forward," she said.

"As New Zealand's fastest-growing district, Selwyn faces unique growth, infrastructure and service delivery challenges.

"Our district is experiencing growth at a scale few other parts of New Zealand are facing, and it's important any future local government arrangements recognise those realities and give our communities a strong voice."

The Waitaki District Council straddles two regional council boundaries, working across the different planning systems, regulatory approaches and policy frameworks.

Waitaki district mayor Mel Tavendale said it created duplication, burdening ratepayers and the council with added cost, time and pressure, which was unsustainable.

She did not want to lose the momentum for change after councils invested a lot of time, money and effort to develop a solution on a tight deadline.

"The need for reform has not gone away, and we are disappointed because we did the work asked of us," she said.

"Waitaki put forward a credible, practical and well-considered proposal in good faith that reflects communities of interest and responds directly to the need for greater scale, capability and affordability."

Tavendale said Waitaki wanted a seat at the design table so that local communities could decide their own future.

The council has faced flak after originally proposing a 45 percent rates rise to plug a $14 million operating deficit, prompting backtracking, death threats and protest before settling on an average district-wide rates increase of about 17 percent.

"Ministers have been critical of Waitaki's rates rises, but those increases are being driven in part by a system that clearly needs reform," Tavendale said.

The mayors of Timaru, Mackenzie, Waimate and Waitaki districts lodged a single unitary authority proposal that would see a new region stretch from Aoraki Mount Cook to the coast, and from Ashburton to Waitaki.

Tavendale said it would create a stronger regional voice and ensure rural communities remained heard.

"The government also needs to consider how it will support local communities through the change process, so the weight of reform does not fall entirely on ratepayers."

Labour said the government's plans for council reform were an embarassing and expensive distraction.

Government has delivered a 'false start', Labour says

Local government spokesperson Tangi Utikere said ministers Chris Bishop and Simon Watts had promised a "head start", but delivered a "false start".

"They gave councils three months to spend time and money planning major structural change, only to pull the plug on getting anything done before the election.

"That's a huge embarrassment for a government that has spent months telling councils this was a priority."

He said Labour was not opposed to local government reform.

"There are sensible conversations to be had about councils working together, sharing services and delivering better value.

"But timing matters - local economies are struggling, businesses are under pressure and construction workers and tradies are crying out for work."

Utikere said it was the "worst possible time" to divert resources into an expensive structural reorganisation that had gone nowhere.

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