Business leader backs council amalgamation in ‘year of the impoverished voter’

Thursday, 23 January 2025

Waikato Chamber of Commerce chief executive Don Good says voters don’t need councillors or mayors with ‘big ideas’ but those who have better business acumen.

The Waikato Chamber of Commerce will “call out” candidates and councils who oppose amalgamation at this year’s elections, saying voters are sick of 15% rates rises and need councillors “who can control the purse strings better”.

Chamber chief executive Don Good said 2025 would be “the year of the impoverished voter” with ratepayers experiencing an ongoing cost of living crisis, and councils facing “carrot and stick pressure” from central Government.

He said those issues combined “could be a toxic recipe for the re-election of current councillors and mayors”.

Ōtorohanga mayor Max Baxter, left, does not support amalgamation, while Waitomo mayor John Robertson has said he’d be keen to merge the two councils.

“Many of them have had several terms to prove their ideas and skills, but delivered substantial rates increases to their voters.”

Good said ratepayers were sick of double-digit annual rates increases “so efficiencies and sacrifices must be found, and that will mean amalgamation”.

“The amalgamation issue will dominate election debates in 2025 - it is time for change.

“Voters are looking for council bureaucracy and profligate spending to be reined in and councils focus on the essentials.”

“Huge and ongoing rates increases means amalgamation is coming to Waikato local government,” Good predicts.

in 2018, former Waikato Chamber of Commerce chief executive Chris Simpson said amalgamation would come at some stage and people needed to get used to the idea.

In November last year, the Waikato Times produced a series of articles on the subject of amalgamation, with mixed responses from local mayors, MPs and local government experts.

While many councils already share some services, such as insurance, building consents and property valuation, through the multiple-council owned organisation Co-Lab (formerly known as Waikato Local Authority Shared Services), Good said this could easily be improved.

In a case study, Ōtorohanga mayor Max Baxter (who is not running again in 2025) previously said he was opposed to amalgamation for a number of reasons, but felt taking on debt held by other councils would not be palatable.

Good encouraged voters to push for “some form” of regional amalgamation and that having 12 councils serving a population of around 536,000 was “ludicrous”.

He said duplication of council services was “immense” across the region and that creates inefficiencies that cost ratepayers.

He said voters were already becoming impatient waiting for “better times” and should elect “those who can control the purse strings better”.

“Faced with tight times, the all-important centre voter has shifted away from councillors with big ideas but poor financial skills, experience, and lack of prudence.”

Good said he did not have all the answers, but suggested the downsizing of council staff would be one solution“ but should have been done years ago”.

“Sharing tasks among councils is another that could work to reduce costs, but not complete centralisation.

“That seldom works, and invariably reduces democracy.

“Hub and spoke is one idea, or it could be each spoke, council, or town specialising in a particular backroom function whilst holding constant the number of their frontline voter facing staff.

“Technology will help, and we have world class tech companies here in the Waikato - we should use them.”

But Good warned of “poisonous parochialism” in smaller councils that could be the undoing of any amalgamation plans.

“Councillors and council staff protecting their patch need to be called out.

“Many have developed cosy, comfortable, monopolistic attitudes and relationships.”

While Good would not be drawn on which councils he was referring to, he also said a Hamilton City dominated set-up would “ send shivers up the spine of many smaller councils and their voters”.