Auckland strikes ‘underwhelming’ city deal as other regions push for more
Thursday, 12 March 2026
Auckland has struck a city deal with the government, including a formal commitment to consider a bed tax.
But the deal has already been described as “underwhelming” by Auckland mayor Wayne Brown, offering little in the way of new funding for major events or projects or transport upgrades.
Meanwhile, the other regions in talks with government, Otago Lakes and the Bay of Plenty, are holding out for stronger commitments.
John Glover, Queenstown’s mayor, said the region wants a firm commitment on a bed tax, which would be a key lever for funding local infrastructure and tourism projects.
Read More:
No money, but 10-year infrastructure plans on table for councils with regional deals
Auckland, Otago and Western BoP sign up to negotiate deals with Government
Former National figures appointed Crown negotiators for regional deals
“It’s got the potential to be upgraded,” he said. “But there’s no money, that’s the thing. It’s not very attractive to the regions.”
However, he’s hopeful it can be agreed ahead of November’s election.
The Western Bay of Plenty, meanwhile, is mired in intergovernmental disputes over transport priorities, including upgrades to key corridors in west Tauriko and extending the under-construction Tauranga to Te Puna expressway to Ōmokoroa.
Under the deals - which were a flagship National Party election pledge - local and central government would agree funding and project priorities over 10 years.
Mayors from the three regions signed memoranda of understanding in July and the first deal was due to be struck by November.
Brown told The Post: “It's not exciting, but it is a start. Does it do anything fantastically new? Not really. We do have an agreement, an agreement to be an agreement.”
The deal was expected to be formally unveiled with Prime Minister Christopher Luxon in the next couple of weeks.
Meanwhile, the Otago Central Lakes region - a partnership of Queenstown Lakes, Central Otago, and Otago Regional councils - is insisting on a deal that gives the region real legislative tools and financial flexibility to manage extreme growth pressures.
At the end of February, Xero founder Sir Rod Drury hosted Local Government Minister Simon Watts and other Otago stakeholders at his Taramea meeting house to try to further the deal. It’s understand no deal has gone before Cabinet.
The region wants to shift the financial burden of infrastructure from local ratepayers to those who profit from or visit the area. Among the asks is a 5% levy on accommodation providers to fund visitor-related services.
“We would be looking for a commitment,” he said. “I would hope we'd be able to agree a form of words between us…as strong as possibly can be agreed without going against the coalition agreements at the moment.”
Otago Central Lakes also seeks mining royalties, developer contributions for community housing, and funding for infrastructure, transport and a new base hospital.
Glover said getting the deal right was vital for a region that is struggling to keep up with population growth.
“In a world where it takes endless years to plan and consent wastewater or roads, it's really hard to keep up with the rate of growth, especially with Fast Tracks [projects consented under the government’s new consenting regime] popping up all over the place and in places that you've never even planned for.
“Absolutely, we can have a 30-year housing, infrastructure and spatial plan, but that gets completely compromised by a fast track application, which you are then hugely pressured to service with infrastructure.”
The Post understands that in recent days Crown negotiator Steven Joyce had been presenting ministers feedback to Western Bay of Plenty council representatives.
In a statement, Infrastructure Minister Chris Bishop said:
“I do not comment on ongoing negotiations.”