The Northland Economic Action Group wants a single local government authority set up in Northland but incorporating strong local boards and iwi representation.
The NEAG is a committee formed after two economic summits were held in 2012 with the clear aim of providing a platform for regionwide growth of the Northland economy.
The group has prepared a submission supporting in principle the Local Government Commission's restructure proposal, saying a 'whole of Northland' approach is important for economic development.
"NEAG agrees with the statement made in the proposal - Northland is on the edge of population and economic pressures that will change the face of the region. Local government must adapt to meet these challenges," chairman Shane Lloydd, of Omapere, said.
Mr Lloydd said "empowered" local boards that represent identified communities of interest would be the key to public acceptance of re-organisation and would ensure sustainable local democracy that could not be undermined.
"Our second qualification is the proposed Maori representation."
While the NEAG supports 'in principle' the proposed structures as a general improvement on the status quo, it acknowledged the proposals fail to properly provide for Maori aspirations.
Maori make up 34 per cent of the region's population, a figure expected to grow beyond 40 per cent by 2030, yet Maori rights as tangata whenua and Maori in local government were under-represented. The NEAG submission said growth of the Maori economy will stimulate growth in the Northland economy as a whole. Potential industries with strong Maori participation include aquaculture, forestry and agriculture.
"Our support is focused around the economic development benefits of the restructure, however our support is qualified because of the issues of local democracy and Maori representation," Mr Lloydd said.
The NEAG submission called for increased Maori representation on councils, local boards, standing committees and all other levels of local government.
Whangarei District Council will resist the restructuring proposal, Mayor Sheryl Mai saying residents could be disadvantaged under a single unitary authority.
Ms Mai said much of the bigger council's proposed funding would come from the Whangarei area, with no guarantee where it would be spent.