Government gives councils ultimatum for amalgamation - change or we will do it for you
Tuesday, 5 May 2026
Councils have just three months to submit proposals to amalgamate councils - or the Government will step in and do it for them.
“Our message to councils is simple: lead your own reform, or we will do it for you. Either way, change is coming,” Resource Management Act Reform Minister Chris Bishop said in an announcement on Tuesday.
The “Head Start” pathway gives councils three months to work with their neighbours to produce proposals that amalgamate councils into unitary authorities.
It follows the announcement late last year that regional councils would be disestablished and replaced with a board made up of mayors.
Read more:
Concern as end of regional councils tipped in local government reforms
Regional councils replaced by boards of mayors in radical Government push
LGNZ gets behind push to reorganise regional government - with conditions
Bishop said several mayors had told the Government they were ready to move now. He said consultation on the reform to regional councils showed there was consistent support for the change.
This is a retreat from the earlier proposal which involved replacing regional councils with a board of mayors.
Regional councils will still be abolished - there will be no regional council election in 2028 - but the Government has gone one step further by tasking all councils with amalgamation.
Bishop was asked if the Government had a mandate to force amalgamation and admitted that the Government had not campaigned on such a move, but said it was crucial for other priorities such as RMA reform.
'We didn't campaign on local government reform. That doesn't mean the Government can't do it,' Bishop said.
If councils failed to put forward credible proposals, Bishop said the Government would step in and make the decisions itself.
The proposals will focus on creating larger, more efficient unitary authorities that “streamline functions, reduce duplication and improve decision-making”, Local Government Minister Simon Watts said.
“This is about giving those councils around the country the steering wheel to design a system that actually works for their communities and their ratepayers.”
Councils had the opportunity to draw their own boundaries, and proposals did not have to cover an entire region, he said.
Cabinet will decide which proposals to progress, with decisions made later this year. Endorsed proposals would then be developed in detail and signed off in 2027, with changes implemented ahead of the 2028 local government elections.
Many councils had already begun the planning process, Watts said.
For councils that did not put forward a proposal, a “backstop” process would be enforced, which involved a standardised approach, including transitional governance arrangements while changes were put in place.
He said the status quo would not be an option
Proposals will be submitted by two or more territorial authorities, rather than individual councils, and regional councils cannot submit proposals.
The group must represent a majority of the territorial authorities or population in the affected area.
The assessment criteria includes:
Can it actually be done? The proposal needs to be realistic and able to be delivered on time.
Does it support the new planning system? It should make it easier, not harder, to roll out new planning rules and plans.
Does it simplify things? It should reduce duplication and make decision-making clearer and more efficient.
Will it deliver better value? It should improve efficiency, save money over time, and support better infrastructure and services.
Are communities still well represented? It needs to keep a strong local voice and fairly represent different communities, including urban and rural areas.