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Home / New Zealand

Local government reform debate heats up – Editorial

NZ Herald
25 Jul, 2025 05:00 PM4 mins to read

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Tauranga Mayor Mahé Drysdale, pictured at a Tauranga City Council meeting in May. Photo / David Hall

Tauranga Mayor Mahé Drysdale, pictured at a Tauranga City Council meeting in May. Photo / David Hall

Opinion

THE FACTS

  • Local government reform is being debated, with Tauranga Mayor Mahé Drysdale advocating for tough amalgamation conversations.
  • Drysdale’s proposal aims to increase efficiency and reduce costs, gaining 80% support from councils.
  • Eastern Bay mayors oppose amalgamation with Tauranga, saying it will swallow up their communities.

The thorny issue of local government reform has been in the media spotlight over the past few weeks.

There’s good reason for that, as the last widespread restructuring occurred more than 35 years ago.

In June, NZ First questioned the future of regional local government, and Prime Minister Christopher Luxon raised the idea of scrapping regional councils.

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First-time Tauranga Mayor Mahé Drysdale then emerged as the driving force for change.

Drysdale sparked debate by pushing for “tough” amalgamation conversations between Bay of Plenty councils, saying people see what’s needed but are not “prepared to act”.

He points out there are seven Bay of Plenty councils, each with a head office, chief executive and duplication of services. He believes that Tauranga linking up with Rotorua, Whakatāne, Kawerau and Waikato’s Matamata-Piako councils makes sense.

Naturally, not everyone is as enthusiastic about amalgamation.

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His Western Bay counterpart, James Denyer, says their councils should work more closely on shared services but remain separately governed. He fears the “voice” of smaller towns and rural communities will be lost if Tauranga and Western Bay join, and “at this point, I don’t feel that it’s something my community are keen on”.

Rotorua’s Tania Tapsell supports efficiencies where practical and believes any mergers should follow “natural” alliances, but says “we do have to tread very carefully to not disadvantage ... the people we represent”.

Eastern Bay of Plenty mayors drew battle lines days later with a joint statement that made clear they were united against any amalgamation attempts. “Amalgamation would see our communities swallowed into Tauranga, and whose interests does that serve? Not the interests of the Eastern Bay of Plenty.”

However, Drysdale’s calls for a review of councils are gathering momentum.

Local Government New Zealand backs his call and a remit he put forward aimed at increasing efficiency in local government and reducing ratepayer costs was passed at the national local governance body’s annual general meeting last week.

It received 80% support from councils.

That’s a powerful catalyst for change.

Drysdale cautions that change may not necessarily result in amalgamation because that is just one solution, and an open mind is needed.

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New Zealand has 78 councils: 11 regional, 11 city, 50 district and six unitary authorities (regional and city/district combined). Local government was overhauled in 1989 with a dramatic reduction in the number and type of councils. Another change was the merging of Auckland’s councils in 2010.

On one hand, joining councils together makes sense. It would reduce duplication of services and create efficiencies. Ratepayers would surely stand to benefit from that.

But there’s a flipside. Local voices and control are important and there will be many communities aghast at the thought of having a bigger city or town swallow up their community and take over. Concerns about the loss of local say are real and need to be carefully considered.

There is also a knock-on impact, as amalgamation is likely to result in job losses.

This newspaper last month acknowledged in an editorial the potential need for reform, but it’s now clear that some real action is needed.

It is time for a full review to ensure ratepayers get the best service and return on their rates. New Zealand needs local government that is fit for purpose for the years ahead.

All the tough questions need answering. Should some councils merge? Which ones? Can we reduce the number of councils and change the overall structure of local government? Or will it be enough to have councils share some services, such as IT, to create efficiencies? Are there other ideas?

Changes to water through Local Water Done Well and the Resource Management Act are also relevant.

Local bodies and Local Government New Zealand are best placed to lead the charge as they have the knowledge, and it means they will be invested in the process.

However, there will be a lot of different opinions and competing interests, and that means it might not be an easy process. Central government leadership will be crucial. It is also important that ratepayers have a big say.

Councils have a huge influence on our lives, governing many services including roads, water, libraries, waste management, city parking and amenities.

Any changes must be the right ones for the right reasons.

Sign up to the Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.

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