- Hon Chris Bishop
- Hon Simon Watts
The Government has announced proposals that would fundamentally simplify how we plan our cities and regions and make it far easier to build the future New Zealanders deserve.
"These reforms would deliver the most significant changes to local government since 1989," Mr Bishop says.
"Councils and their elected members shape the places we live, the local services we rely on, and makes decisions that affect our everyday lives.
"But local government is meant to serve communities, not confuse them. But right now, the system is tangled in duplication, disagreements, and decisions that defy common sense.
"The government does not think local government is serving New Zealanders well and the time has come for reform.
"In a couple of weeks, we will introduce our resource management reforms to Parliament.
"Our new planning system is a once-in-a-generation opportunity to set New Zealand on the path to economic growth that lifts our living standards and protects the environment.
"Our reforms will strip out duplication in the system, standardise processes, and drive down complexity and compliance costs.
"Under the new planning system there will be fewer plans, fewer consent categories, and fewer consents overall. Regional councils will have a significantly reduced role as part of this new planning system.
"The government is therefore proposing two changes to our existing system of local government."
Proposal 1 - Abolishing Regional Councillors
This would replace elected regional councillors with new Combined Territories Boards made up of mayors from the region's city and district councils.
"When citizens vote for their Mayor, they are choosing who they want to lead local representation for the next three years. Most people know their Mayor. Few could name the chair of their Regional Council, or even a regional councillor," Mr Watts says.
"Combined Territories Boards would empower Mayors from the same region to work together to govern their regions through genuine regional collaboration.
"It would streamline regional decision-making across planning, infrastructure, and regulation, reduce duplication, and strengthen accountability. It would also remove an unnecessary, confusing, and expensive structure.
"Most decisions would be made through a population-based voting system that ensures smaller communities' voices are heard. For resource management decisions, a dual threshold would apply requiring both a majority of population-weighted votes and a majority of Board members.
"This ensures both urban and rural interests are represented in decisions on land, water, and catchment management.
"Ratepayers deserve a system that works for them, not one bogged down by unnecessary layers of bureaucracy.
"By removing regional councils, we can cut duplication, reduce costs, and streamline decision-making. This means more efficient services, greater accountability, and better value for every dollar spend. It's about delivering a leaner, more efficient local government that puts communities first."
"We're also seeking feedback on what role and powers the Crown has on these boards."
Proposal 2 - Locally-led Regional Reorganisation
"This would see the new Combined Territories Boards (CTB) lead regional reorganisation plans.
"Each CTB would be asked to prepare a regional reorganisation plan within two years of establishment," Mr Watts says.
"These plans would assess how councils across a region can best work together to deliver efficient and effective local infrastructure, public services, and regulatory functions.
"Options could include shared services, council-owned companies, reallocating functions, or merging territorial authorities to form new unitary councils.
"Regional reorganisation plans would be tested against clear criteria. They must support national priorities like housing and infrastructure, offer financially responsible arrangements that keep rates manageable, and deliver better services at lower cost.
"Plans would need to set out clear leadership and accountability, ensure decisions are made at the right local level, and uphold all Treaty settlement commitments. They must also include a practical pathway for implementation so changes can be delivered smoothly and on time.
"Final plans would be approved by the Minister of Local Government, rather than through polls or referenda."
Consultation on these proposals is open now until Friday 20 February 2026 through the Department of Internal Affairs website. A final proposal will be confirmed by March so legislation can be drafted.
"This is a once-in-a-generation chance to build a simpler, clearer, and more efficient local government system for New Zealanders," Mr Bishop says.
Notes to Editor:
More information on the proposals is available on the Department of Internal Affairs' website.
Proposed criteria for regional reorganisation plans
Each regional reorganisation plan must demonstrate how the proposed changes meet the criteria set out in the table below. These criteria will guide assessment by the Local Government Commission and the Minister of Local Government. Further guidance for councils could be published to support understanding of these criteria.
| Regional reorganisation plan criteria | ||
|---|---|---|
| Criterion | Does the plan… | Example |
| Big-picture fit | …supports national priorities, strategies and goals (like housing, infrastructure, and competitive business settings)? | All councils in the region agree to establish a 'one-stop-shop' for consents that support infrastructure and housing. |
| Affordable now and in the future | …provide a financially responsible arrangement that will manage rates increases and support them to manage assets well (e.g., replace pipes before they burst)? | Two very small councils combine into one, which means they have a bigger balance sheet and larger economies of scale. This may allow them to borrow money at a lower cost to replace an unsafe bridge which would otherwise be unaffordable. |
| Better services | …reorganise local services so they work better and cost less? | All councils in the region establish a single regional roading agency that has more power to bargain with big national roading companies when agreeing contracts. |
| Clear leadership | …set out who does what and who is responsible across councils? | Combining two very small district councils into one so that one mayor has a stronger voice representing the area to central government. |
| Local say | …let decisions happen at the right local level? Does the plan provide fair and effective representation of communities of interest? | Two very small councils join together but agree to establish neighbourhood assemblies that have their own budget for parks, libraries, and events. |
| Treaty arrangements | …show how all Treaty settlement commitments that involve councils and other agreements with iwi/Māori will be given effect to and/or improved? | Keeping arrangements for rivers as agreed in Treaty settlements. |
| Can it be done | …include a realistic plan for putting the plan into action (e.g., how council staff might be moved)? | A step-by-step timeline for establishing the new regional roading agency. |
