Local Government Minister Simeon Brown spoke to the LGNZ conference about Regional Deals. Photo: Calvin Samuel / RNZ
The day after giving councils a telling off at the Local Government New Zealand (LGNZ) conference in Wellington, Brown said the deals would be rolled out in stages across the country.
"Regional deals mark a historic shift for New Zealand to come together to establish a clear plan."
Each deal would stretch over a decade based on a 30-year vision for the region. The exact regions to be invited to take part have yet to be announced.
Brown said he expected to receive straightforward basic proposals, not "glossy documents". .
giving councils a stern telling-off, the government has followed up with a potential salve when it comes to fixing their broken water pipes and roads.
Cabinet has agreed to invite councils from up to five regions to submit proposals for long-term infrastructure partnerships, with the first to be greenlit next year.
Local Government Minister Simeon Brown on Thursday morning unveiled more about the so-called Regional Deals which would set out joint funding commitments on the basis of councils delivering certain results.
Speaking at the Local Government New Zealand (LGNZ) conference in Wellington, Brown said the deals would be rolled out in stages across the country.
"Regional deals mark a historic shift for New Zealand to come together to establish a clear plan."
Each deal would stretch over a decade based on a 30-year vision for the region. The exact regions to be invited to take part have yet to be announced.
Brown said he expected to receive straightforward basic proposals, not "glossy documents". .
"I've made my expectations clear to councils that we are not interested in seeing ratepayers' money spent on extravagant proposal documents," Brown said.
"We will consider these proposals before finalising New Zealand's first regional deal in 2025."
The deals could also allow regions to implement tolling or targeted rates in order to fund the infrastructure.
The scheme has been modelled off similar arrangements in Australia and the United Kingdom.
"Regional 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," Brown said.
Following his speech, Brown told reporters the deals would focus on the prioritity areas of core infrastructure, roads, new land for housing, and economic growth.
"We're not going to be using these deals to build flashy convention centres... There is no magic money tree here in Wellington."
LGNZ president Sam Broughton, who is also the Selwyn mayor, hailed the "exciting" announcement as a "great win" for local government, but wanted more detail.
"The broken system that is funding local government at the moment needs to be addressed," Broughton said.
"Today we're hearing the things that we've been asking for."
Broughton also called for cross-party support across Parliament to ensure the deals are sustainable and truly long-lasting.
The announcement comes a day after Prime Minister Christopher Luxon addressed the LGNZ conference, calling on councils to "rein in the fantasies" and cut spending on the nice-to-haves.
Luxon said the government wanted a constructive relationship with councils, but that "localism and devolution comes with both rights and also responsibilities".
