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Concerns over debt and the loss of local voice were raised, as the Hurunui District Council voted to submit a North Canterbury proposal for local government reform.
Councillors voted in favour of partnering with the Waimakariri District Council to form a new North Canterbury unitary council by 8-2, with one abstention, at a council meeting on Thursday, August 6.
But several councils expressed concern at the combined debt levels of a new North Canterbury council, compared to forming a rural Canterbury council, without the towns of Rangiora, Kaiapoi, Woodend and Pegasus.
Other councillors expressed concern at the loss of local voice for small rural communities, and others wanted to leave the door open to forming a bigger council with Kaikōura, Selwyn and Ashburton.
Councils have until August 9 to present proposals for forming unitary councils, which would take on regional council functions, under the Government’s Head Start policy.
Cabinet is expected to make a decision in September on which proposals would proceed.
Hurunui Mayor Marie Black said forming a new North Canterbury council is a once in generation opportunity.
‘‘The challenge before us has been to strike the right balance. To create a new entity fit for our future, while protecting local voice.’’
The council considered five options, including a merger with Marlborough and Kaikōura, a partnership with the West Coast councils, or one of two rural Canterbury scenarios without the Greater Christchurch urban areas.
Council chief executive Hamish Dobbie said the options had narrowed as other councils made decisions.
‘‘North Canterbury has some issues with it, but it’s a very strong option and is well supported by the community.’’
A council survey found 84 percent of more than 1250 respondents backed a North Canterbury council.
Deputy Mayor Fiona Harris said she wanted the door to remain open to include Selwyn and Ashburton.
‘‘If there’s an opportunity and Waimakariri was agreeable, it would make north and central Canterbury a powerhouse.’’
Councillors Chris Carthy and Vince Daly voted against forming a North Canterbury unitary council, while Cr Tom Davies abstained.
Cr Carthy raised concerns about the high combined debt level of a North Canterbury entity.
But Mr Dobbie said the two councils had invested in infrastructure, including three waters.
While Hurunui had a high debt profile, the majority of its debt will be passed to the new water entity, Kaikōura Hurunui Water Services Ltd.
Waimakariri chief executive Jeff Millward said his council had a AA credit rating, which he was confident would carry over to a new North Canterbury council.
In contrast, not all Canterbury councils had credit ratings, while Christchurch had a AA- credit rating, he said.
Councils with lower ratings face higher costs to service the debt, he said.
Under the proposed structure, Hurunui would retain its existing three wards, but its councillors would reduce from from 10 to five, while Waimakariri would have nine councillors.
Each ward would have a community board to retain some local decision making.
A combined North Canterbury council would have around 90,000 people, with Hurunui making up just 17% of the population, which would qualify for up to three councillors on a 14-seat council (plus a mayor), based on population.
‘‘It will depend on the Government passing bespoke legislation,’’ Mr Dobbie said.
‘‘I liken it to buying a Lotto ticket. We’re not quite sure how it will land with the Government now and after the election.’’
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
