It’s been more than 30 years since the last comprehensive reorganisation of local governance, and a lot has changed in that time. Local government has become much more complicated and demanding, placing the sector under pressure. Recent reviews have raised significant questions about the roles and functions of local government, and about financial sustainability and the strength of local democracy. Planned resource management and three waters reforms, along with reforms of the health and education systems, also call into question the broader functions and roles of local government and have implications for local governance and wellbeing.

Over the next 30 years, New Zealand will change and evolve, and new challenges will emerge. The impacts of climate change, demographic change, information and technology systems change, and changing relationships among central government, local government, and iwi and Māori will all have implications for local governance in the future. By reviewing now, it is possible to develop a new system that is ready to meet these challenges and strengthen community wellbeing.

(Taken from the Future for Local Government website.)

The review is being conducted in three stages. During the first stage, from April to September 2021, the review panel conducted early soundings with local government, some iwi representatives, and other community leaders and thought-leaders to identify key issues and lines of inquiry.

During the next stage, research was undertaken and best practice examples from around New Zealand and internationally were collated. The Panel also engaged with New Zealanders about the future of local governance. This included engagement with the local government sector, iwi and Māori, the business community, community organisations, youth, and many others.

The panel reports to the Minister of Local Government with draft recommendations for reform in late 2022. After public consultation on the draft recommendations, the panel will present its final report to the Minister in June 2023.

The Review Panel identified five key questions as part of their interim report to help reimagine the future system of local governance, and  provide a basis for further engagement, research and policy development. 

1. How should the system of local governance be reshaped so it can adapt to future challenges and enable communities to thrive?

2. What are the future functions, roles and essential features of New Zealand’s system of local government?

3. How might a system of local governance embody authentic partnership under Te Tiriti o Waitangi, creating conditions for shared prosperity and wellbeing?

4. What needs to change so local government and its leaders can best reflect and respond to the communities they serve?

5. What should change in local governance funding and financing to ensure viability and sustainability, fairness and equity, and maximum wellbeing?