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RNZ News

Government begins negotiations with councils for regional deals

Minister Chris Bishop says all three regions have significant economic growth potential. Photo: RNZ / Samuel Rillstone The government is to begin negotiations with councils in Auckland, Otago and Western Bay of Plenty to set in place so-called city or regional deals. Mayors from those three regions have signed memoranda of understanding (MOUs) with the coalition, after earlier submitting "light-touch proposals". The proposed deals are a coalition initiative under which local and central government will agree funding and project priorities over 10 years. Infrastructure Minister Chris Bishop said all three regions had significant economic growth potential and had already demonstrated an ability to partner with government. "These initial regions put together compelling proposals that reflect the government's and the regions' priorities through strong propositions that provide a clear pathway to getting important work done," he said in a statement. "The government will now begin negotiations with the three regions, with a view to agreeing the first deal by the end of 2025." Bishop said, as part of negotiations, the government was prepared to offer easier access to new and existing funding and financing tools, as well as more collaboration with its experts and officials. It could also set up already funded "innovation facilities" - such as public research institutions - in a desired location. Bishop said in return, councils would have to sign up to the government's vision around economic growth, housing, water services and transport. Councils would have to do a better job looking after pipes, roads, and other important assets, he said. They would also be expected to do more than just the bare minimum when it came to encouraging new housing - especially near "rapid transit corridors" where the government had already helped pay for infrastructure. Bishop said the government also wanted councils to consider congestion charging, special rates for certain areas, or development charges. The government hoped to finalise its first deal by the end of the year.