6:58 am today

How regional deals differ from successful Manchester, Glasgow models

6:58 am today
Local Government Minister Simeon Brown announces the high-level framework for regional deals.

Local Government Minister Simeon Brown announces the high-level framework for regional deals. Photo: Supplied

Local Government Minister Simeon Brown on Thursday unveiled a framework for regional deals that would see high-growth investment plans developed for five regions.

They're based on a successful overseas model, but what's proposed is a little different.

The deals would aim to power up core infrastructure: roads, public transport, housing and economic growth - through long-term agreements between central and local government.

The government's high-level framework set out strategic objectives, an oversight bodies, and a ministerial group, with further oversight provided by the Department of Internal Affairs.

The deals are modelled on a similar approach seen overseas in the UK and Australia, each one unique.

Much has been made of the success of Manchester's deal from 2011 - a community-led banding together of 10 councils that has led to improved health and social care, active travel and municipal regional bus management.

It's funded through the collection of 100 percent of local business rates tax revenue.

In Glasgow, eight regional authorities signed a deal in 2014 aimed at boosting infrastructure, research, business innovation and employment.

Sally Loudon spoke at yesterday's conference as the former chief executive of the Convention of Scottish Local Authorities - a representative group like Local Government New Zealand.

She said the Glasgow deal had been a success, but could be very different to those proposed in New Zealand, with the UK and Scottish governments each investing £500 million, and the councils themselves putting forward £130m.

That money is spent on things like harbour, bridge and road improvements to connect people to jobs and bring more people and investment in.

A little different, then, to the prime minister's approach - who yesterday said there would be no "magic money tree" in Wellington for councils.

Instead, private businesses and iwi would be welcomed to invest, and other funding could come from new targeted rates or user charges.

It's also being led by the government, rather than the councils themselves: invitations will be sent to five hand-picked regions - focusing on high-growth zones that are ready to deliver - with the paperwork eventually going to Cabinet for final signoff.

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