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Home / New Zealand / Politics

Government agrees to progress deals with three regions, reveals what’s on the table

NZ Herald
2 Jul, 2025 12:39 AM3 mins to read

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The Government's revealed the regions it will begin negotiations with. Photo / Mark Mitchell

The Government's revealed the regions it will begin negotiations with. Photo / Mark Mitchell

The Government has agreed to progress negotiations on city and regional deals with Auckland, Otago/Central Lakes, and Western Bay of Plenty.

Ministers want to agree to the first deal by the end of this year and have today released what it will “put on the table during negotiations”.

  • Improved central government coordination (both internally and with the regions), ensuring the right agencies are around the table. This could include agreement to deploy more senior officials to existing Urban Growth Partnerships and other governance arrangements, and improved Government infrastructure investment and asset management.
  • Early collaboration with councils on system reforms including undertaking joint-spatial planning ahead of RM reform implementation. We will consider improvements to existing regulatory frameworks including: zoning, fees and charges innovation, streamlined planning and land acquisition processes, regional spatial planning.
  • Providing councils with new funding and financing tools and incentivising them to better utilise existing ones. This could include considering the use of sharing of mining royalties, mobilising existing government funds to support deals, and providing access to government experts that could help councils use more complex tools such as Infrastructure Funding and Financing Act Levies.
  • Supporting regions to unlock growth sectors (e.g., technology, biotech, advanced transportation, aquaculture, tourism, cleantech, renewable energy). Central government will consider locating “confirmed/funded” innovation facilities/institutes in regions as part of a CRD.

Infrastructure Minister Chris Bishop said these deals will be “strategic 10-year partnerships between local and central government to progress joint priorities”.

These priorities are “economic growth, enabling abundant housing, better management and utilisation of local assets, and closing the infrastructure deficit”.

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Bishop said the Government expected local governments provide “a better framework/structure for regional relationships with central government, and improves asset renewals, maintenance and management including ensuring a pipeline of future infrastructure work”.

“We also expect that councils will go above legal and regulatory minimum requirements to unlock housing growth including around rapid transit corridors and where central government has invested in infrastructure. Further, we want regions to commit to exploring demand management tools like time of use charging.

“We are eager that regions commit to exploring new and existing tools including (but not limited to): Targeted rates, IFF Act Levies, Development Levies, asset recycling, and become attractive destinations for international investment opportunities.”

Local Government Minister Simon Watts and Infrastructure Minister Chris Bishop say the deals with unlock growth. Photo / Sylvie Whinray
Local Government Minister Simon Watts and Infrastructure Minister Chris Bishop say the deals with unlock growth. Photo / Sylvie Whinray

Councils were last year invited to submit regional deal proposals, with 18 submitted in total.

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Local Government Minister Simon Watts said a multi-agency assessment, including a review by independent experts, led Cabinet to agree to progress Memorandums of Understanding with the mayors from Auckland, Otago Central Lakes and Western Bay of Plenty.

“All three regions have existing Urban Growth Partnerships which demonstrate existing collaboration, and all three have economies with significant economic growth potential,” he said.

“These initial regions put together compelling proposals that reflect the Government’s and the regions’ priorities through strong propositions that provide a clear pathway to getting important work done.”

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