‘Expensive risk’: Amalgamation cost, estimated up to $185m, Wellington's top concern

Monday, 13 July 2026

Cost-weary Wellingtonians have come out in in favour of amalgamating with Hutt Valley and Porirua but the pricetag of the change, estimated up to $185 million for Wellington City alone, is the number one concern.

Councils around the country have been told by the Government that reform and likely amalgamation is coming and, if they want a say in how that looks, they have until August 9 to come up with a proposal.

Wellington mayor Andrew Little has already vented his “distaste” for the tight Government deadline and a model “imposed from on high ‒ with no community say, no mana whenua representation, and no regard for what makes this place special”.

A presentation into the issue by advisory firm MartinJenkins was recently given to the Wellington City Council including survey findings of 1644 residents. It showed more than 80% of residents favoured amalgamation with Porirua, Hutt City and Upper Hutt but the numbers dropped dramatically when factoring in Wairarapa and Horowhenua.

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A previous, rejected amalgamation proposal included Wairarapa but the most popular option now on the table is for Wellington City, Hutt City, Upper Hutt and Porirua, which would also assume the duties of a disbanded Greater Wellington Regional Council. The exact structure of that, with potential community boards, could be decided later, the council was told.

The top perceived benefit of amalgamation was improved long-term infrastructure planning but the biggest concern was the high transition and implementation costs, the survey found.

The MartinJenkins analysis of estimated costs for the favoured option came in at 20% to 25% of a single year of council operating expenditure. It would have a population of 415,000 to 470,000 people with operational (day-to-day running) savings of 3% to 5% a year and capital (new things) savings of 1% to 1.5%.

A rough estimate of Wellington City costs alone worked out by councillor Geordie Rogers showed that, for Wellington City, a four-city amalgamation would be $148m to $185.5m. Amalgamation stretching to Kāpiti, Horowhenua and Wairarapa would be $111m to $148m.

“Amalgamation isn’t a silver bullet for affordability, and these numbers show we’d have take to an expensive risk to see if there are even any benefits,” he said.

“This is just another example of central government throwing costs at local government, while demanding immediate rates decreases.”

A Government-imposed rates cap is due to come in 2029 with the current Government often accusing Wellington councils of “gold-plated” spending, including on climate mitigation and an convention centre.

Deputy mayor Ben McNulty said councils could expect some long-term savings from amalgamation but selling the idea based on cost savings was “dicey”.

Initial costs included merging systems, finishing existing contracts and hiring new staff, he said.

Meanwhile, Hutt City mayor Ken Laban released details of how he would like to see a super-city operate to include Kāpiti and Wairarapa with a regional authority absorbing nine existing councils under one rating system, one plan and one chief executive.

Under his proposal, a regional mayor would be voted around the region with Wellington City residents choosing seven out of 19 authority members. Lower Hutt would have four members, while Porirua, the Kāpiti Coast, Upper Hutt and Wairarapa would have two respectively.