Matter of Opinion
Local Government Overhaul: Grasping the Reform Nettle
Local government is set for its most significant restructuring in decades. As Minister Chris Bishop puts it, this is “the most significant change since the abolition of provinces in 1876”. That historic reform, led by New Zealand's eighth premier, Sir Julius Vogel, dismantled the provincial system and concentrated legislative power in Wellington – a centralising tendency that has shaped New Zealand’s governance ever since.
The Government’s draft proposal, announced on 25 November, aims to “simplify” local government. But is this genuine reform, or simply a new form of centralisation under the guise of localism?
At its heart, the proposal consists of two key changes:
- First, elected regional councillors would be abolished. In their place, each region would be governed by a Combined Territories Board (CTB), made up of the mayors of each city and district council within that region. These CTBs would assume all current regional council functions, including environmental management, regional transport, and civil defence. Importantly, CTBs will also take on new responsibilities under the government’s Resource Management Act reforms, including developing region-wide spatial plan chapters and national environment plan chapters for combined regional plans. The intention is to cut through duplication and confusion, with directly elected mayors collectively making regional decisions.
- Second, each CTB would be required to develop a Regional Reorganisation Plan within two years. This plan must set out how councils in the region can work together more efficiently and effectively, considering options like shared services, joint council-owned companies, or even amalgamation. While the process is designed to be flexible, plans must meet government-set criteria, undergo public consultation and independent review, and ultimately be approved by the Minister of Local Government – who can approve, request changes, or appoint a Commissioner to draft the plan if the CTB fails to deliver.
The proposal claims to advance localism, moving decision-making closer to communities. Yet, it also leaves the door open for significant Crown intervention. The government is consulting on the role of Crown Commissioners on CTBs. The three proposed roles that the Crown Commissioners could take are: (a) holding observer status, (b) holding a majority of votes or (c) holding an outright veto. These options raise questions about the balance between local and central control and highlight a tension at the heart of the reforms – while the rhetoric is about empowering communities, the proposed mechanisms for central government control remain clear and substantial.
The voting system for CTBs is another balancing act. On each CTB, it is the mayors themselves who would cast votes on regional decisions. Each mayor’s vote would be weighted according to the population of their district or city, but these weightings would be adjusted by the Local Government Commission to ensure smaller communities are not drowned out. For certain resource management decisions, a dual threshold applies – a majority of both the population (as represented by the mayors’ weighted votes) and a majority of the mayors themselves must agree. This is a pragmatic attempt to balance democratic legitimacy with effective representation, but it is not without risk – gridlock or dissatisfaction from both urban and rural interests remains a possibility.
Politically, the proposals have already sparked heated debate. Critics warn of a loss of local democracy and the risk of forced amalgamation. Supporters argue the reforms will reduce costs, speed up projects and make local government more accountable. The Government insists that “the status quo is not an option”, but whether these changes deliver real benefits or simply shift power from one group of decision-makers to another is far from settled.
All of this is unfolding against the backdrop of an approaching general election year. The consultation period runs until 20 February 2026, with legislation expected to be introduced in mid-2026 and passed in 2027. As political parties begin to shape their campaigns, and with Opposition Parties already making public comment, these reforms are likely to become a political flashpoint – testing the Government’s narrative on efficiency and localism and providing fertile ground for both supporters and critics. The outcome of the election could well determine the final shape of these reforms, or even whether they proceed at all.
For now, the proposal is a test of whether New Zealand can truly balance efficiency with meaningful local democracy – or whether, once again, centralisation will hold sway.