21 November 2025
New Zealand’s partnership of regional and unitary councils today released independent research by economics and policy advisory firm Castalia, which finds that delivering certain critical public services at a regional scale is best for the country’s economy, environment, and safety.
Coming amid speculation about government plans to remove regional government delivery of essential public services, this report highlights that abandoning regional delivery will create significant costs, risks, and disruption at a time when New Zealand can least afford it.
The independent research confirms that services currently undertaken by regional and unitary councils including flood protection, land and water management, biosecurity, and public transport are most effectively and efficiently managed region by region.
Dr Deon Swiggs, Chair of the Regional Sector and Canterbury Regional Council, said the Castalia findings don’t come as a surprise.
“Mayors and Chairs from across the country agree that the current local government arrangements are not sustainable. We are all supportive of the need for resource management reform to unlock potential and get better outcomes.
“This independent report underlines that regional representation for communities and regionally delivered services must be part of our future system.
“We’re a country with dispersed communities, valuable natural resources, and complex threats such as extreme weather, biosecurity, and water availability. Regional scale planning and delivery requires local decision-making by people who understand their communities' unique challenges and opportunities. It cannot be replaced by one-size-fits-all central government agencies or scattered across multiple small councils,” said Chair Swiggs.
The report finds that the functions delivered by regional and unitary councils extend well beyond environmental regulation, to include flood protection, emergency management, biosecurity/biodiversity, navigation safety, and public transport, which make communities and businesses safer and more resilient.
Castalia found a strong economic rationale for the services regional authorities deliver, including benefits in delivering groups of functions together. For example, regional councils deliver flood protection and emergency management and provide the environmental data that underpins both.
"Castalia determined that most regional council functions are best delivered at the regional level, but current delivery is hampered in some cases by mismatches in funding and accountability. In some areas, stronger strategic leadership from central government would allow us to focus on operational delivery," said Chair Swiggs.
Deputy Chair Regional Sector and Vice President LGNZ Mayor Rehette Stoltz noted that regional and unitary councils bring deep, practical understanding of their communities and environments.
“Our scientists, engineers, and planners have local knowledge and commitment that can’t be replicated by central agencies or resourced by smaller councils.
“The government’s massive reforms depend on our capability, from flood resilience to resource management to biosecurity and beyond. We want to work with central government to build a more resilient New Zealand for everyone,” said Mayor Stoltz.
“Changes are needed to achieve our collective vision for thriving communities, economies, and environments. Let’s have a constructive conversation across the country to make sure we get this right,” said Chair Swiggs.
Regional and unitary councils have written to government ministers requesting that central and local government work together on solving the big issues facing the country.
ENDS
Read the Castalia Report:
Functions of Regional and Unitary Councils in New Zealand