Ministry Mega Merger Risks Loss Of Momentum – VIA

The Government’s plan to create a “mega-ministry” by merging housing, transport, environment, and parts of local government has raised some concerns about delivery risks and policy distortion. 

Greig Epps, Chief Executive of the Imported Motor Vehicle Industry Association (VIA), says while the proposal shows surface-level logic, it risks embedding narrow assumptions and undermining specialist delivery. 

“On the face of it, bringing related functions closer together can help fix a perennial weakness in government: fragmented advice, duplicated effort, and portfolios that trip over each other when the issues are plainly connected in the real world,” Epps says. 

VIA represents New Zealand’s used vehicle import sector and regularly works at the intersection of transport and environmental regulation. Epps says the organisation sees merit in stronger coordination, but warns against oversimplifying environmental policy. 

“There’s a tendency—across multiple governments—to treat transport as the main lever for meeting environmental obligations. Transport matters, but it’s not the whole story. Environmental outcomes are also shaped by agriculture, energy, industry and waste. If ‘environment’ becomes defined mainly through a housing-and-transport lens, that narrows the frame in ways that risk poor policy,” he says. 

He notes real crossover points do exist, for example, how waste and environmental regulation relate to end-of-life vehicle processes and fleet emissions policy. But he says that structure should follow function, not replace it. 

“The practical risk is that in a large merger, important projects are delayed or deprioritised while attention turns inward, towards structure, leadership appointments, and back-office consolidation,” Epps says. 

VIA is currently working with the government on several time-sensitive matters, including the Clean Vehicle Standard review, emissions standard settings, and the broader transport rules reform. Epps says all of these require clear ministerial direction and policy focus now, not after the dust settles from an agency reshuffle. 

Another concern lies in the scope of the proposed ministry, dubbed the Ministry for Cities, Environment, Regions and Transport (MCERT). Epps questions where the boundary will be drawn. 

“Housing connects to infrastructure. Infrastructure connects to climate adaptation. Climate connects to water, land use, and primary industries. There’s almost no end to the linkages you can make. At some point, the better question is whether merging agencies is actually the right tool, or whether it’s smarter to lift cross-ministry coordination, shared goals, and consistent direction while keeping specialist agencies intact,” he says. 

Epps also points to the ambitious implementation timetable. RNZ has reported the new ministry would be fully operational by July 2026, with a chief executive in place by mid-year. “Six to seven months is not long to bring together multiple public sector entities and still deliver on the work programmes already in motion,” he says. 

VIA would like to see the Government focus on the following priorities as it considers the proposed creation of a new mega-ministry: 

1. Prioritise coordination before consolidation. Structural overhaul should not be the first step. Instead, government agencies should strengthen cross-portfolio coordination through shared accountability, consistent direction-setting, and more agile collaboration. Mergers are not the only tool to achieve joined-up government. 

2. Avoid narrowing the environmental lens. Policy settings must recognise that environmental outcomes extend beyond transport and housing. To be effective, environmental policy must also address major drivers such as energy systems, agricultural activity, industrial processes, and waste. 

3. Protect delivery during transition. Any structural change must be planned to ensure that critical workstreams—such as emissions standards, vehicle policy reviews, and fleet regulation—retain clear ownership and delivery momentum. Communities and businesses cannot afford a stall in progress. 

Epps says VIA will engage constructively with the Government, but is clear about its expectations. 

“We’ll be looking closely at how the Government protects priority work, maintains specialist capability, and avoids creating a structure that’s simply too big to steer well.” 

For more information: www.via.org.nz 

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VIA (Imported Motor Vehicle Industry Association) represents businesses involved in importing, preparing, wholesaling, and retailing used vehicles into New Zealand, primarily from Japan, Singapore, and other markets. As the industry's collective voice, VIA engages with government and stakeholders to support fair regulation and sustainable practices across the sector. 

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