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The New Zealand Government has launched a framework to establish Regional Deals between central and local government.
The Government has launched a framework to establish Regional Deals between central and local government that will drive economic growth and deliver the infrastructure New Zealand needs, Local Government Minister Simeon Brown says.
“New Zealand is facing an infrastructure deficit. Water pipes are bursting, roads have been falling apart, and there simply isn’t enough houses. With a growing population, it is critically important we are delivering the long-term infrastructure we need for growth in our cities and regions.
“As part of our plan to rebuild the economy and address the infrastructure deficit, we will be establishing Regional Deals with councils to deliver for New Zealanders,” Mr Brown says.
Implementing Regional Deals is a commitment under the National-ACT coalition agreement.
“Regionals Deals have been a successful tool used in the UK and Australia to build stronger relationships between central and local Government and to co-ordinate investment to deliver the infrastructure needed for economic growth and productivity.
“Regional Deals in New Zealand will support long-term collaboration between central and local government, deliver a joint, long-term vision for regions, and will be relentlessly focused on economic growth and productivity, delivering resilient critical infrastructure, and improving the supply of affordable, quality housing.
“Regional Deals will be used to help coordinate capital investment between central and local government and will also be a tool to enable regions to utilise new and existing funding tools to fund and finance this infrastructure.”
Cabinet has also agreed to a staged approach for rolling out Regional Deals around the country.
“The Government will invite up to five regions to provide straightforward basic proposals for a Regional Deal. I’ve made my expectations clear to councils that we are not interested in seeing ratepayers’ money spent on extravagant proposal documents.
“We will consider these proposals before finalising New Zealand’s first Regional Deal in 2025,” Mr Brown says.
What are Regional Deals
Regional Deals will be based on a 30-year vision, with negotiated 10- year strategic plans to deliver shared objectives and outcomes between central and local government.
Deals will be long-term commitments, intended to endure, to promote economic growth and productivity, delivering connected and resilient infrastructure, and improving the supply of affordable, quality housing. To better deliver shared objectives and outcomes between central and local government, the deals will align with local government 10-year planning cycles rather than central government’s three-year planning cycles.
Though each Regional Deal will cater for local priorities, they will share the following foundational components:
- A defined economic/geographic area;
- a 10-year strategic plan with clear outcomes sought and the actions
required to achieve them; - decision-making arrangements, delivery timeframes and accountabilities;
- the capital and operational investmentsrequired;
- performance metrics with monitoring and reporting requirements; and
- regulatory and institutionalsettings to support the deal.
Once a deal is finalised, central and local government partners from the region will establish an oversight body. The composition and membership of oversight bodies will be agreed by both parties and will have independent chairs, and senior partner representatives. Involvement of the private sector and iwi/Māori entities will be encouraged.
Regional Deals will be finalised in a staged ‘waves’ approach, with the first deal finalised in 2025.
Deal making milestones
Regional Deals will follow a staged approach with the following phases:
- Milestone 1: a letter from the Minister of Local Government
inviting the regions to apply and laying out the government’s
expectationsfor proposals - Milestone 2: consideration of proposals
- Milestone 3: a signed Memorandum of Understanding (MOU)
- Milestone 4: final stage negotiation of a deal
Source: New Zealand Government, Department of Internal Affairs
Source: New Zealand Government Media Release
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