The Government is taking the centralisation of Auckland councils too far and annual GDP across the region will fall by up to $605 million, Labour says.
The Government's plans will result in "a massive centralisation of resources within Auckland City", Labour's Auckland issues spokesman Phil Twyford said.
Labour supports aunitary council but wants a model that would see local councils have the power and resources to deal with local issues, he said.
Auckland University public economics lecturer Rhema Vaithianathan conducted research to establish the economic impact to the region using the Royal Commission's model adapted to the Government's plans.
She found Manukau would have the biggest loss with a $189m fall in annual regional GDP and 702 job losses.
Waitakere would see annual regional GDP fall $139m and 680 job losses, North Shore $162m and 658 jobs, Rodney $74m and 270 jobs and Franklin $41m and 113 jobs.
The negative impact was likely to be higher than this as local contractors were likely to lose out to big companies who could service the whole region, Mr Twyford said.
"The Government hasn't been upfront about this, but Aucklanders deserve to know how the changes will affect them and their communities."
