New Zealand’s local government reform agenda will only succeed if it leads to faster infrastructure delivery, more housing and stronger regional capability — not simply structural reshuffling, says Infrastructure New Zealand.

Chief Executive Nick Leggett says councils now face a clear choice.

“Councils have 3 months now to grasp the nettle and change. This fast-track process gives regions an opportunity to come together, build scale, and strengthen their ability to deliver for their communities. They should take it.” Leggett says councils must lead the change. “Councils must step up. If they do not take this opportunity, there is a real risk change will be done to them, not with them.”

The Government’s approach, which enables councils to put forward proposals for consolidation and reorganisation, is designed to reduce fragmentation and improve efficiency. Infrastructure New Zealand supports that direction.

However, Leggett says structural reform alone will not be enough.

“You cannot expect better performance from local government without giving it the tools to succeed. Councils own around 35% of New Zealand’s public infrastructure but receive only about 11% of total tax revenue. That imbalance, which stands out globally, has to be addressed.”

Infrastructure New Zealand says the ultimate test of reform will be whether it improves delivery. “This isn’t about lines on a map. The goal has to be faster infrastructure and transport delivery, more housing choice, stronger growth, and affordable services for communities. If reform doesn’t achieve that, it will fall short.”

The organisation is also calling on the Government to actively support councils through the transition. “If Government wants momentum, it needs to back it. Regions that move early should be prioritised for tools like regional or city deals, unlocking funding and financing to support growth.”

Leggett says reform should also be seen as the first step in a broader shift in how New Zealand is governed.

“New Zealand is one of the most centralised countries in the developed world. Strengthening local government with greater scope and scale, should prepare the way for more powers and responsibilities to sit close to communities over time – and only if Local Government can show leadership and reform itself.”

At the same time, he says local democracy must remain central to any changes.

“Communities need to see themselves in these new structures. Innovative approaches, such as citizens’ assemblies or other forms of public engagement, could play a role in building confidence and legitimacy for change. Tired old Local Government “consultation” won’t inspire change in weary communities.”

Infrastructure New Zealand also emphasises that key regional functions must be protected and improved.

“Good planning, environmental management, catchment oversight and public transport are critical services. Reform must demonstrate these will be delivered better and more efficiently, not simply reorganised.”

Leggett says the next few months will be decisive. “There is a real opportunity here to reset how local government delivers for communities. With the right balance of leadership, support and ambition, this reform can make a lasting difference.”

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