Central government’s recent decision to sign a draft Memorandum of Understanding with the Western Bay of Plenty has the potential to be transformational, writes David Porter.
Port of Tauranga. Photo: Chris Parker
A bold new approach to regional infrastructure planning is taking shape, as the central government moves to formalise draft Memorandums of Understanding (MOUs) with the Western Bay of Plenty, Auckland, and Otago/Central Lakes.
These agreements, which aim to establish long-term strategic partnerships between local and central government, are being hailed by business and civic leaders as a potential game-changer – offering greater certainty, improved coordination, and a pathway to unlocking economic growth across key regions.
Nigel Tutt
The MOUs – once signed into fully operating agreements – will affect the way that infrastructure is provided to the regions and the general partnership between regions and the government, outgoing Priority One chief executive Nigel Tutt says.
“Around infrastructure development, the relationship clearly doesn’t work,” says Tutt.
“That’s why we have problems and deficits now. The whole idea is to improve that. It will provide massive benefits to the region.”
Tutt says one of the most valuable aspects of the final MOUs will be the creation of 10-year plans between the region and the government.
Proposed changes
Draft agreements have already been signed with Auckland and Otago/Central Lakes, as well as Western Bay of Plenty. In the view of some business observers, the shape of the proposal at this stage reflects: the inclusion of New Zealand’s largest city; the tourism industry clustered around Queenstown; as well as the Western BOP as an expanding local urban region, as well as Tauranga’s role as one of New Zealand’s busiest ports.
Todd Muller
The MOUs will be transformed into strategic 10-year partnerships between local and central government. These will aim to progress joint priorities, including economic growth, enabling abundant housing, better management and utilisation of local assets, and closing the infrastructure deficit, says Infrastructure Minister Chris Bishop.
But one of the most significant outcomes of the government proposal, assuming it goes ahead as envisaged, will result in us seeing less of the sometimes extreme changes of policies that often come about as a result of changes in government.
Tauranga deputy mayor Jen Scoular speaking to The News while attending the recent Small Government of NZ Conference, says there was cross-party recognition that long-term projects benefit from stability.
“For projects it would be a lot better for everyone if there was an ability to carry those on across government changes.”
Long-term willingness
Priority One chair and former Tauranga MP Todd Muller says there appears to be a genuine willingness for the Crown to commit to long-term funding and regulatory support for the region over the next decade. He also noted a desire to remove political interference from the planning process.
“I think the MOUs announcement is quite significant.”
According to the government announcement, the programme has five key objectives:
Better coordination between central government and regions, including how we work together and align our priorities
Unlocking regions’ unique potential and lifting economic growth, including regional employment opportunities
Making room for housing growth
Ensuring local governments do a better job at managing and utilising their asset base and make significant progress to close their infrastructure deficits – without new funding from Central Government.
Ensuring Local Governments comprehensively adopt Central Government priority reforms such as Local Water Done Well, Resource Management Act reform, and Going for Housing Growth.
Bay of Plenty Regional Council chair, Doug Leeder says a deal would provide certainty for new infrastructure that is critical to the region’s continued prosperity.
“That certainty would create confidence, attract investment, improve productivity and drive growth, all of which would strengthen our nation’s trade gateway via the Port of Tauranga.”
Port of Tauranga chief executive Leonard Sampson says the port, New Zealand’s busiest, handles almost half of all exports by value and volume.
“So, its economic resilience is important for the whole country. The Regional Deal will get everyone working together to ensure the region has the core infrastructure to support economic and population growth, and will ensure the focus and investment is in areas that will have the most impact.”
At this stage neighbouring region Waikato has missed out on funding and resources under the initial phase of the regional deals scheme.
However, Waikato Mayoral Forum chair and Hauraki mayor Toby Adams says the region is still committed to progressing its economic and housing goals.
“While it’s disappointing the Waikato region has not received central government support for its Regional Deals proposal, it will not stop the work going ahead,” he says.
Tauranga’s Jen Scoular remains optimistic about the Bay of Plenty’s prospects under the proposed partnership.
“I’m very confident that it’s good for the Bay of Plenty and the area. And I’m very confident it’s going to happen,” emphasising the importance of government certainty in planning infrastructure such as roads and schools.
“We absolutely need growth and certainty from government on issues such as on roading and where schools are going to go. We certainly think it’s encouraging. It’s not just about housing but housing close to industrial areas and we need to know where schools are going to go because that enables us to know where roads need to go to.
“From Tauranga city council’s perspective, we believe that a regional partnership and also a partnership with the government gives us certainty to enable our renewed growth,” she says.
Confidence
