Hide orders review of local government

Act leader and Local Government Minister Rodney Hide. Photo / Brett Phibbs

A wide-ranging review of local government will look at its structure, functions and funding as well as its relationship with central government, Local Government Minister Rodney Hide says.

"Efficient and effective local government has a positive impact on New Zealand's performance and is a key arm of our overall system of government," Mr Hide said today.

"This review is an opportunity to contribute to an important policy project that has the potential to shape the future of local government."

Mr Hide said local government faced many challenges and there was a need to think very broadly about what some solutions might be and how the system could respond effectively to those challenges.

The Department of Internal Affairs will be the lead agency for the review.

Mr Hide said no decisions about the future of local government would be made until well into Parliament's next term.

- NZPA