After months of bombast attacking local government, the Government has zeroed in on its real enemy – regional councillors.

Announcing a pair of local government reorganisation options, the Government hasn’t proposed eliminating regional councils, for now, just the elected representatives who run them.

Two proposals are being floated, with consultation beginning on them now and continuing until 20 February. A final proposal will be confirmed by March and then necessary legislation drafted.

In both proposals, our mayors come out the winners, at least in the short run. Indeed, the proposals might divide our political class – regional councillors are left twisting in the wind … any opposition they mount risks being dismissed as naked job protection.

Proposal 1 – Combined  Territories Boards

Regional councillors would be replaced by ‘Combined Territories Boards’ (CTBs) made up of the mayors from the region. Think of this as the current Matariki Governance Group without the HBRC Chair and iwi representation. The CTBs would run the region with the participating mayors having voting strength weighted to the population size of their district.

Importantly for our region, the announcement says: “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.”

The benefit, according to the Government: “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.”

The Government seems unclear about what functions regional councils actually perform and says it plans to study that further (see below). Somebody needs to do the work regional councils actually do, which is different from what Territorial Authorities do.

So for now, the only obvious savings in this proposal is a reduction in salaries paid to regional councillors … they’re soon to be history. 

So that leads to Proposal 2, where the rubber really hits the road.

Proposal 2 – Locally-led Regional Reorganisation

Minister comments to media indicate that what the Government really wants is a dozen or so unitary authorities across NZ.

To get there, each CTB will be expected to prepare a ‘regional reorganisation plan’ within two years of its establishment. So those of you petrified of amalgamation can breathe easier – with the need for legislation to be drafted and enacted in 2026 to set this in motion, and then two years to fashion a plan, our five councils (including the CTB-headed HBRC) probably have a three-year shelf life. Arguably reformers would want to see any reorg plan in place soon enough that it set the deck chairs in place for 2028 local elections.

The Government announcement never uses the word ‘amalgamation’. Instead it says: 

“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.”

Again, one gets the impression that the Government thinks the only function of local government is building housing and maintaining roads and bridges. The Government view seems to be that it is stripping key functions away from regional councils anyway via its RMA and Fast-track reforms. The proposal says:

“… a Government review of regional council roles and functions will provide clarity on which responsibilities remain local and which may be either centralised or discontinued. This review will be completed before CTBs are established and CTBs will need to take into account the outcomes from this review when developing their plans.”

In any event, the reorg plan prepared by our CTB would be approved by the Minister of Local Government, “rather than through polls or referenda”. It seems that referenda are fine for chucking Māori wards, but an unwanted nuisance for setting up the rest of local government.

I’ll plead personal consistency here – I’m opposed to referenda in both situations!

The background material for the announcement floats the idea that Crown commissioners might be appointed to the CTBs, just in case we locals can’t sort our affairs out ourselves. “There are alternative options for regional governance set out, based on the Crown Commissioner model, so with less local voice.” Including an option where the Commissioner has more than half the votes.

The implications of these proposals are profound and require really serious consideration … by HB locals who understand the requirements of their cities, rural areas and the region as a whole. 

But who is going to help us understand and weigh all the implications and how best to address them for Hawke’s Bay? Our councils? In the first instance, the consultation process is directed to the Government, because that’s who will decide the path that will be taken … and they will do so by March. Later, public consultation will be required of CTBs as they prepare reorg plans.

Regular BayBuzz readers will know I was a champion of amalgamation ten years ago. And I am even more a ‘regionalist’ today. I welcome a Government-mandated charge to formulate “a plan for how the councils in your region can work together more effectively and efficiently (called a Regional Reorganisation Plan)”. And instruction to do it within two years.

That said, there’s plenty to probe regarding the intentions and fishhooks embedded in the proposals the Government is floating – the fate of environmental protection, urban/rural disparities, Crown Commissioners, Māori representation, and the interface with faster moving Local Water Done Well consolidation are just the first few that come to mind.

So stay tuned. BayBuzz will be on this like ticks on a hound.

Everything you want to know about the proposals is here.