We should know more by August 8 — the due date for local councils across New Zealand to submit their amalgamation plans.
New Zealand First has been vocal about the current local government model being broken.
A mix of 84 district, regional and unitary councils, each with their own plans and bureaucracies.
Ratepayers are staggering under the burden of propping up this model, it has simply become unsustainable for communities and businesses.
The replacement of the Resource Management Act (RMA) gives us a unique opportunity to drive change.
There will now be 17 regional plans, down from the 84.
There will be an estimated 46% reduction in the need for resource consents under the new RMA settings due to clearer planning rules.
For the local government bodies required to deliver value and efficiency under the new model, what would this look like?
Regional council functions will be wrapped into a unitary model, a combination of district and regional councils.
We already have six of these in New Zealand.
So, what are the options?
Otago is one of the more complex regions to consolidate.
Heavily rural Clutha and Waitaki, the fast-growing Queenstown Lakes and Central Otago, and the city of Dunedin.
All have different drivers to their economies and spread over vast areas.
Clutha could conceivably head south to tie in with Southland where it has a more similar, farming-driven economy.
It could tie in with Dunedin and Waitaki for a coastal Otago council.
Or we could see a mega Otago council combining the functions of all five district councils and the regional Council.
Big decisions with wide ramifications.
The core debate for Clutha will be the potential benefits of economies of scale, versus retaining sufficient local representation.
There is concern that decisions affecting rural- and farming-based communities could be disproportionately driven by an urban voting base; there is a very careful balance to strike.
The other big issue to watch is the distribution of ownership of the Port of Otago.
Owned by the regional council and based in Dunedin, it receives its cargo from the primary sectors of Otago’s rural hinterland.
If the region is to be sliced up, a fair and proportionate ownership division will need to be negotiated.
It will be a big challenge for mayor Jock Martin and his new council.
Community consultation and feedback will be vital.
The risk and rewards of all options will need to be articulated.
Local government needs to be back on sustainable footing.
It’s time for leadership and bold action.
