Auckland, Otago and Western BoP sign up to negotiate deals with Goverment

Wednesday, 2 July 2025

Auckland, Otago/Central Lakes and Western Bay of Plenty have signed up to negotiate deals with the Government, after Infrastructure Minister Chris Bishop and Local Government Minister Simon Watts announced the 10-year City and Regional Deals.

Bishop described it as “partnerships between local and central government to progress joint priorities including economic growth, enabling abundant housing, better management and utilisation of local assets, and closing the infrastructure deficit”.

During the deal negotiations, Bishop said central government would improve government coordination, such as making sure the right agencies were around the table, ensure “early collaboration with councils on system reforms”, support regions to “unlock growth sectors and providing councils with new funding and financing tools”.

Bishop also said central government would incentivise cities and regions to better utilise existing funding tools.

“This could include considering the use of sharing of mining royalties, mobilising existing government funds to support deals, and providing access to government experts that could help councils use more complex tools such as Infrastructure Funding and Financing Act Levies.”

Bishop said it was expected that councils “will go above legal and regulatory minimum requirements to unlock housing growth including around rapid transit corridors and where central government has invested in infrastructure”.

“Further, we want regions to commit to exploring demand management tools like time of use charging.

“We are eager that regions commit to exploring new and existing tools including (but not limited to): Targeted rates, IFF Act Levies, Development Levies, asset recycling, and become attractive destinations for international investment opportunities.”

Watts said councils last year were invited to submit ‘light touch’ regional deal proposals, with 18 submitted.

The regions that were chosen and that signed the Memoranda of Understanding were comprised of Auckland Council, Queenstown Lakes District Council, Central Otago District Council and Otago Regional Council, Tauranga City Council, Western Bay of Plenty District Council and Bay of Plenty Regional Council.

“All three regions have existing Urban Growth Partnerships which demonstrate existing collaboration, and all three have economies with significant economic growth potential,” he said.

The government had five objectives for the deals programme - better coordination, ‘unlocking’ potential for economic growth, making room for housing growth, ensuring local governments do a ‘better job’ at utilising asset bases without new funding from Central Government and adopting central Government priority reforms.

Labour local government spokesperson Tangi Utikere said “councils are expecting and deserve some true partnership and what we've heard today is just sending councils back to particular tools that they already have access to”.

“I know that the government are probably trying to tick off their list in terms of their next quarter and delivering on regional and city deals was was part of that. But actually, I think this falls far short of what councils and others might have actually been expected from an announcement.

“It's just simply saying, these are the three areas or regions that we want to have a conversation with… rather than actually saying this is what we are all keen on, we've engaged with the councils, and this is what our proposed plan of action is that we've all agreed to.

“This is basically saying, this is what the government are interested in pursuing.”

Last month, Regional Development Minister Shane Jones used the The Post/Infrastructure NZ Local Government Forum in Wellington to question the value of regional government, saying it was NZ First’s view there was “less and less of a justifiable purpose” once Resource Management Act changes went through.

Watts said while no decisions had been made he expect the future would “look differently than what it is”.

“You can envisage that with changes to RMA reform, then the activities that are left post that reform will then need to be worked out around who does what.”