Merger Report Highlights Issues With Southern Councils

Tuesday, 29 April 2025, 7:35 pm
Article: Matthew Rosenberg - Local Democracy Reporter

A report supporting the shake-up of Southland's four councils has raised a raft of issues with the current model, including high costs, examples of "fraught governance" and concerns with the regional council.

In August, Southland mayor Rob Scott proposed the region’s four councils — Southland District Council, Invercargill City Council, Gore District Council and Environment Southland — merge into two unitary authorities.

Scott believed the current structure was excessive for a population of 100,000.

A report supporting the move was prepared by the district council and included in an Invercargill City Council agenda this week.

It included a range of challenges facing each council, including concern about a lack of attention for river and catchment management at the hands of Environment Southland.

“In rural Southland Murihiku there has been growing disquiet at the performance and focus of the regional council, particularly around rapidly deteriorating water bodies,” it said, noting recent court proceedings.

The regional council’s performance in recent emergency events was also an issue, with the dedicated service set up in 2010 not living up to expectations.

Meanwhile, Invercargill City Council and Gore District Council had experienced “fraught governance level relationships” which caught public attention.

The introduction of two external appointees in 2020 to guide Invercargill City Council through concerns raised by the Department of Internal Affairs was given as an example.

Gore District Council was noted for its strong independence, but also for relying heavily on other stakeholders to pick up the slack when it came to funding shared services.

At Southland District Council, strong criticism was received from communities which feared losing their voice.

The council was also struggling to manage Te Anau Airport Manapōuri, which it purchased from Air New Zealand in 2002 and ran at a loss.

Maintaining the district’s 5000 km roading network was also a challenge, alongside more than 800 road bridges and an estimated 14,000 culverts.

The report was not all critical, with Invercargill City Council's strong financial position highlighted and Southland District Council’s "history of successful community representation".

Gore District Council was said to have had "many years" of stable political leadership and dedicated staff.

Invercargill councillors showed their support on Tuesday for the Local Government Commission to further investigate the proposal, but expressed a preference for a single unitary authority.

Mayor Nobby Clark said the amalgamation process was a long one and a number of councils had already fallen short in their attempts.

A total of 40 councillors make up the four Southland councils, plus 66 community board members and one ward member.

Total operating revenue was listed in the report at more than $375 million, with expenditure of more than $371 million.

The report said there was a “high cost” of having four councils for a population of just over 100,000.

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