Simplifying Local Government Will Make It Easier To Do Business

Today’s announcement by Local Government Minister Simon Watts and RMA Reform & Infrastructure Minister Chris Bishop to make it easier for local authorities to voluntarily amalgamate will remove a layer of complexity for businesses.

EMA Head of Advocacy and Strategy Alan McDonald says businesses often mention the difficulties of navigating multi-layered local government structures. They want systems that are simpler, more cost-effective, and better aligned with how regions actually function economically.

"This is a pragmatic step that will help to reduce red tape and give councils the confidence to reorganise," McDonald says.

"While not everyone is a fan of the amalgamated Auckland Council, few would argue for going back to the previous fractious system.

"The massive legal bills incurred as Auckland City Council and Auckland Regional Council fought each other in court were one of the key drivers behind the amalgamation.

"At one of our recent CEO member events in Whangārei, it was clear the local government representatives in the room were well down the path of working together at a regional level. Many other councils are also heading in that direction.

"Some aren’t ready, but the Government’s proposal to enable councils to voluntarily move towards consolidated regional arrangements, when they are ready, is a welcome move.

"It also makes sense to align this nationally with the RMA reforms, where regional local governments drive the plans that are integral to the new Planning Bill."

From a business perspective, McDonald says the changes should help reduce costs and improve decision-making.

"Fewer layers of governance and clearer regional coordination should translate into lower costs and more coherent infrastructure and planning decisions," he says.

"Not every region will want or need the same structure, and that’s exactly why enabling legislation is the right approach."

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