LGNZ says first City Deal ‘step in the right direction’

The City Deal signed on Friday with Auckland Council and the Government signals a strengthened local and central government partnership, but more levers are needed in future deals to achieve their full potential and grow regional economies, LGNZ says. 

LGNZ has long advocated for city and regional deals as a mechanism for partnership between central and local government, centred around joint priorities and investment, LGNZ President Rehette Stoltz says.

City and Regional Deals are intended to drive economic growth, abundant housing, better use of local assets such as ports, employment opportunities, and close the infrastructure deficit. 

"Today's Deal is a good first step. To drive more job opportunities and higher living standards for New Zealanders, the current form must evolve to suit different cities and regions across New Zealand," Stoltz says.

"In 2024, we developed a framework that reflects what local government expects in any deal with central government. That proposal outlined five key elements that City and Regional Deals must have. This includes aligning on outcomes, funding and financing tools, long-term commitment, authentic partnerships, and efficiency.

“With the Government set to implement rates capping, making sure communities have the right funding and financing levers in future arrangements is more critical than ever,” Stoltz says.

“It's great that the Deal signed today is said to create an equal partnership between the Government and Auckland Council, and addresses some of the points in LGNZ’s framework. But it is clear there is more work to do,” LGNZ Metro Sector Chair and Mayor of Palmerston North Grant Smith says.

“While there is some promising language around funding and financing, this needs to be backed with real levers to reduce the burden on ratepayers and remove disincentives for growth.

"It is encouraging to see the Government's commitment to working with Auckland Council and private developers on coordinated infrastructure planning, such as delivering greenfield development, amongst other commitments. It is important that there is clear agreement on outcomes so communities know what’s going to be delivered and who is going to be accountable.

“Local government has a huge role to play in growing regional economies.”

“We want to work with the Government to keep strengthening future deals so there is a clear benefit to the region that the deal applies to,” Smith says.