Govt tells councils to submit radical reform plans in next three months ‘or we will do it for you’

RMA Reform Minister Chris Bishop says councils have been given a clear choice over having input to a planned shake-up of local government. Photo / Jason Dorday

The coalition will give councils three months to submit proposals for the most radical reform of local government in three decades, which will merge authorities and ditch regional councillors.

RMA Reform Minister Chris Bishop announced the Head Start pathway at Parliament today, a fast-track option for councils eager to start reforms now.

Councils that did not create their own proposals would be forced into change after the 2028 local elections and have plans created on their behalf by central Government.

“We are giving councils a clear choice, lead your own reform or we will do it for you,” Bishop said.

“There is a clear ‘carrot’, which is a three-month window for councils to shape their own destiny and the future of their own local governing arrangements. If that opportunity is not seized and grasped by local government, the Government will act and do it for those communities.”

Local Government Minister Simon Watts reiterated the ultimatum, saying the status quo was no longer feasible.

“For areas that choose not to come forward, through the Head Start pathway, the Government will implement a back-stop process. And this will ensure the reform happens across the entirety of New Zealand.

“The door is now open, and the ball is now in the court of councils.”

Regional councillors will also be replaced at the 2028 local elections and replaced with an interim body that could include a panel of mayors or Crown commissioners. The Government has not determined the model.

From May 5, 2026, two or more territorial authorities or unitary authorities (such as Auckland) could submit a proposal to merge themselves into a new body covering part or all of the region.

The proposals would be submitted to Cabinet for approval.

Bishop has described the reforms as “the most significant changes to local Government since 1989″ and are designed to fit into Bishop’s Resource Management Act shake-up.

“Local government in New Zealand is too costly, it’s too hard for people to navigate,” he said.

“We have got 78 councils across a country of around 5 million people, and our view is too often that leads to duplication, dysfunction and decisions that don’t make sense.”

In November, Bishop proposed replacing elected councillors with “Combined Territories Boards” or CTBS. That option has been scrapped after strong opposition during consultation, but Bishop called it a “starter for 10”. About 1100 submissions were made during the consultation period.

“What we heard was quite consistent, there is strong support for change, and many councils want more flexibility to get on with that change in a way that works for them,” Bishop said.

“Several mayors have told us both in writing and personally, they have got quite clear ideas around what should change and they want to get on with it.”

Asked about whether three months was enough time for councils to prepare proposals, Bishop said “we are not starting from a standing start”. The deadline for proposals is August 9.

“There have been conversations happening in many regions already,” he said.

“You’ve got to set a window, the window is three months, we want to make decisions this side of the election, we think it is important to keep the momentum up.”

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.