Castalia Report - Functions of Regional and Unitary Councils in New Zealand 2025

Regional and unitary councils across Aotearoa New Zealand know that the way local government currently operates is not sustainable. To help create a more informed national conversation about practical solutions, Te Uru Kahika - the partnership of all 16 regional and unitary councils - commissioned independent economic analysis from Castalia.

The report looks at the wide range of services regional authorities provide. While many people associate councils mainly with environmental regulation, their work also includes flood protection, emergency management, biosecurity and biodiversity, navigation safety, public transport, and the data and science that underpin all these activities. These services shape the safety, resilience, and wellbeing of our communities and environments.

Castalia’s findings confirm a strong economic rationale for delivering these functions at a regional scale. They highlight the efficiencies gained when related services are provided together. For example, when the same organisation manages flood protection, emergency response, and the environmental monitoring that informs both.

However, the report also shows that change is needed. Some services are held back by funding mismatches and gaps in accountability. In particular, there is often a disconnect between local land-use decisions and who pays when natural hazards create major impacts. The report notes that stronger national direction in some areas would improve coherence, reduce duplication, and allow councils to focus on high-quality delivery.

Te Uru Kahika has published Castalia’s full report and a visual overview of its findings, and looks forward to contributing constructively to discussions about how New Zealand can build on what is working, and strengthen what isn’t, to better serve communities now and into the future.

Read the Castalia report and A3 summary:
Castalia Report - Functions of Regional and Unitary Councils in New Zealand 2025
A3_Castalia Summary - Functions of Regional and Unitary Councils in New Zealand 2025