After a week of eleventh-hour political manoeuvring, the Queenstown Lakes District Council has rejected a proposed merger with Central Otago and Clutha, instead teaming up with Dunedin on a rival plan for Otago’s future. The Queenstown Lakes and Dunedin City councils agreed at their respective full meetings yesterday to develop and submit a “Head Start” proposal supporting a “twin unitary authority’’ model by Sunday’s deadline. Under the proposal, the Queenstown Lakes and Central Otago councils would form an “Inland Otago’’ unitary council, while Dunedin, Clutha and potentially the Waitaki would form a “Coastal Otago’’ unitary council, with regional council functions delivered by an “appropriate shared services arrangement”. In a statement, Queenstown Lakes District Mayor John Glover said the decision recognised the need to actively participate in shaping the future of local government in Otago while keeping options open for the district. It ensured his district had a “seat at the table” as proposals for local government reform were considered. It was not a final decision on the council’s future, but instead enabled “further exploration of a potential model and ensures our district contributes to that conversation”, Mr Glover said. “Any significant changes to governance arrangements would require substantial further analysis, community consultation and government consideration.” A joint statement from Central Otago and Clutha councils said they were “disappointed” by the Queenstown Lakes’ decision and their proposal would still go to the government. “Leadership means standing up for the communities we represent and there is no appetite among our communities to see smaller towns and rural areas marginalised by larger entities. “Our proposal keeps catchments aligned, recognises the Clutha/Mata-Au as a single living system from source to sea and reflects Kāi Tahu aspirations for integrated catchment management.” Clutha District Mayor Jock Martin said the proposal would stand on its merits. “I’m strongly advocating for the rural voice, and believe the Head Start proposal that captures the ‘mountains to the sea’ . . . is well thought out and has merit.” Through its Head Start programme, the government invited all councils in New Zealand to make amalgamation proposals, with at least one other council, which would also take over the functions of the regional council for their combined areas. Announcing the programme in May, RMA Reform Minister Chris Bishop said councils who chose not to make proposals faced the prospect of a ‘‘backstop’’ reform process after the 2028 local body elections, telling them to ‘‘lead your own reform or we will do it for you’’. Initially, Otago mayors agreed preparing a joint Head Start proposal by August 9 was impractical and they would send a shared letter of intent to the government. However, Central Otago’s decision last Monday to submit its three-council merger proposal set off a chain reaction of responses by the region’s other councils. Clutha decided to support Central Otago’s proposal three days later, making it eligible for consideration by the government — with or without Queenstown Lakes’ consent. That, in turn, prompted a flurry of last-minute talks by the Dunedin and Queenstown Lakes councils on Sunday and yesterday morning to pursue the twin unitary council proposal. Both proposals are eligible for consideration by the government. The government will decide which proposals proceed to the detailed design phase based on an assessment against five criteria: deliverability before 2028, alignment with its planning reforms, whether they simplify local governance, achieve economies of scale and preserve local representation. Speaking at yesterday’s meeting in Queenstown, councillor Samuel Belk said they were being forced to choose from a list of bad options, but the twin unitary proposal “puts us in the driver’s seat”. The Queenstown Lakes and Dunedin represented about 75% of the region’s population and an even greater share of its GDP, Cr Belk said. “I think it would be very hard [for the government] to turn down.” Cr Matt Wong said a merger with Central Otago and Clutha was a “marriage destined to fail”. “I just can’t see how the three work together, but I do understand where the rural community is coming from, trying to protect their values, and I do not hold that against them at all.” His preference was for Queenstown Lakes to “stand on its own”, but failing that, a merger with Central Otago as part of the twin unitary model was the next-best option given the two councils were heading towards a regional deal. guy.williams@odt.co.nz