City and Regional Deals a good first step forward

LGNZ says councils are ready to "roll up their sleeves” to deliver on City and Regional Deals – so long as both central and local government are clear on expectations.

Yesterday the Government announced the signing of the first Memoranda of Understanding (MOUs) to negotiate deals with Auckland, the Otago Central Lakes region (Queenstown Lakes District, Central Otago District and Otago Regional councils) and the Western Bay of Plenty region (Tauranga City, Western Bay of Plenty District and Bay of Plenty Regional councils).

Both sides will work together to finalise a strategic 10-year partnership, with the Government signalling the first City and Regional Deal will be in place by the end of year.

LGNZ Chief Executive Susan Freeman-Greene says the partnership is an opportunity for local and central government to deliver joint priorities.

“This is a good first step, and these councils will want to move quickly to the next phase,” says Susan Freeman-Greene.

“City and Regional Deals are intended to drive economic growth, abundant housing, better utilisation of local assets, employment opportunities and the closing of the infrastructure deficit. These are all things councils are utterly committed to, so like the Government we think these deals are a good idea.

“There’s a lot of complex components to work through, and we know what works for one council won’t necessarily work for another. Ensuring there is open dialogue and transparency from both sides will be key.”

Susan Freeman-Greene says while the Government has been clear in setting expectations for local government, councils need to be equally clear back.

“To close our infrastructure deficits, councils need new funding and financing tools and the Government needs to remove disincentives.

“We’re keen to explore some of the tools the Government has mentioned, but others – such as a bed tax and the sharing of GST on new builds - could also be useful to achieve shared goals and unlock economic growth.”