Government announces new infrastructure deal for councils

Local Government Minister Simeon Brown spoke about the regional agreement at the LGNZ conference.
photo: Calvin Samuel/RNZ

The UK government has announced that it will invite councils in up to five regions to submit proposals for long-term infrastructure deals, with the first proposals set to be approved next year.

So-called regional deals would set out joint funding commitments based on certain outcomes achieved by local councils, which could stretch over decades.

Local Government Minister Simeon Brown believes this is the solution Burst pipes and Dilapidated road All over the country.

Brown told a Local Government New Zealand (LGNZ) meeting in Wellington on Thursday morning that Cabinet had agreed to roll out the deals in stages across the country.

He said he hoped to receive “simple and basic proposals” rather than flashy documents.

“I have made clear to Parliament my expectation that we do not want to see taxpayers’ money spent on an extravagant proposal document,” Brown said.

“We will consider these proposals before finalising New Zealand’s first regional agreement in 2025.”

The agreements could also allow regions to implement charges or targeted rates to finance infrastructure development.

The program is modeled on similar arrangements in Australia and the United Kingdom.

“Regional agreements are a successful tool used in the UK and Australia to strengthen relationships between central and local governments and coordinate investment to deliver the infrastructure needed for economic growth and productivity,” Brown said.

The news was announced the day before by British Prime Minister Christopher Luxembourg. Speaker at LGNZ conferencecalling on councils to “control fantasies” and cut spending on non-essentials.

Luxon said the government wanted a constructive relationship with parliament but that “localism and devolution come with rights but also with responsibilities”.