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pwc 
 
 
 Wellington Region Councils 
 
Governance Review 
October 2010 
 
 
 
 
 
 

Contents 
 
Page  
Preface 
1. Executive 
Summary 

2. Introduction 
12 
3. 
Setting the Context 
14 
4. Future 
Trends 
26 
5. Current 
State 
31 
6. Governance 
Issues 
39 
7. Opportunities 
49 
8. Governance 
Options 
52 
9. 
Conclusions and Next Steps 
58 
Appendices 
A.    Restrictions 
60 
B. 
London Spatial Plan 
61 
C.   Council Financial and Statistical Information 
62 
D. 
External Stakeholders Interviewed 
67 
E.    Bibliography 
69
 
 

Preface 
The Wellington region is well positioned to build on its successes to 
date, while addressing the current external drivers of change: 
•  The emerging changes in the external operating environment; 
•  The inherent planning dysfunctionality of the current legislative 
framework; 
•  The Minister’s “Smarter Government – Stronger Communities” 
programme; 
•  A “powered up” Auckland region; and 
•  The business case for greater regional collaboration. 
The critical issue in addressing these drivers is how the Wellington 
region can genuinely collaborate and agree on necessary changes 
to further enhance the region.   
History has shown that if there is no legislative imperative, local 
government units will not give up power and control.  If Wellington 
as a region is to succeed it will require a bold approach 
underpinned by strong and focused political leadership to drive 
change. 
 
 
 
 



 
 
PricewaterhouseCoopers 
188 Quay Street 
Private Bag 92162 
Auckland, New Zealand 
Craig Rice 
DX CP24073 
Mr Max Pedersen 
Partner 
www.pwc.com/nz 
Telephone +64 9 355 8000 
Chair 
E mail: [email address] 
Facsimile +64 9 355 8001 
Wellington Region Councils 
Telephone: 
+64 (9) 355 8641 
Direct Phone +64 9 355 8641 
Chief Executives’ Forum 
Mobile:   
+64 (21) 624 462 
Direct Fax +64 9 355 8024 
C/- Upper Hutt City Council 
Fax: 
 
+64 (9) 355 8024 
 
Private Bag 907 
 
Upper Hutt 
 
 
 
29 October 2010 
 
 
Dear Max 
 
Wellington Governance Review 
 
We are pleased to present our report which contains the results of the Wellington Governance Review. 
 
There are a number of issues and opportunities that the region should consider in the context of regional governance.  These matters if 
addressed, will provide a platform for strengthening the functioning of local government within local communities, the Wellington region and 
nationally. 
 
 
Yours sincerely 
 
 
 
 
Craig 
Rice 
           John 
Shewan 
Partner 
 
 
 
 
 
 
 
 
 
 
 
Partner 
 
 

 
1.  Executive Summary   
 
 
Background and Scope of Review 
•  Regional visioning and strategic planning processes; 
As a result of nation-wide interest in the reform of local government 
•  Delivery of services and activities; 
in the Auckland region, the Wellington Mayoral Forum engaged 
•  The sustainable provision of infrastructure;  
PricewaterhouseCoopers (PwC) to review its current governance 
arrangements to establish whether they are optimal for taking the 
•  Potential flow-on impacts from the new Auckland structure; and 
Wellington region and its communities into the future.  
•  Possible future governance options for subsequent analysis. 
This Governance Review incorporates: 
This consolidation of views has again highlighted the key tension 
•  Research and analysis to identify governance issues and 
that exists in local government reform relating to the reconciliation 
potential opportunities; 
of the community connectiveness of small authorities with the 
strategic and efficiency opportunities available in larger or special 
•  Consideration of national and international precedents and 
purpose authorities. 
guiding practice; 
Importance of the Review 
•  Facilitated workshops with each of the Councils to identify 
issues and opportunities;  
The Councils within the Wellington region consider it important that 
the many unique and diverse challenges facing the region be 
•  Meetings with Council executives to draw out key themes for 
addressed.  Continuing and building on current collaborative efforts 
consideration; and 
is key to the future wellbeing of the region, in order that it can 
•  Interviews with Council-nominated external stakeholders to 
improve economically, socially, culturally and environmentally. 
understand the issues from an informed citizen perspective. 
Given the Government’s expressed intentions around efficiency and 
It is intended that the Review will inform the incoming Councils 
its actions both within and beyond the public sector, it is evident that 
following the October 2010 local government elections.   
enhancements to the current delivery by Councils within the 
A specific exclusion from the Review was the development of 
Wellington region will be viewed favourably and supported.  There 
structural options.  It was agreed only issues and opportunities 
is an opportunity for the results of this Review to inform the Minister 
would be considered in this first stage.  However, given that options 
of Local Government’s initiative relating to the future role of local 
were regularly raised during the engagement, we have provided a 
government and its relationship to Central Government.   
high level overview of them. 
The Minister is looking for local government to address a number of 
This Review has enabled the consolidation of views on: 
specific imperatives, including: 

•  Rates rises not outstripping inflation; 
 
Successes to date that can be built upon; 

•  Enhancing transparency around costs, rates and activities; 
 
Long term drivers of change; 
•  Engaging communities more meaningfully;  
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•  Effective delivery of services; 
Auckland, Northland and the Waikato that have relevance to the 

Wellington region, include: 
 
Utilisation of the more permissive legislative framework (e.g. 
long term water contracts) to improve service delivery; and  
•  Lack of a single regional voice; 
•  Streamlining regulatory processes. 
•  Fragmented governance; 
International Guiding Practice and other Regional Reviews 
•  Misalignments of strategies and priorities; 
International1 and national research considered during this Review 
•  Optimisation of available funding; 
highlighted a number of generic issues and opportunities for local 
•  Efficiency and effectiveness; 
government.  This research also reinforced the tension that local 
government has to manage relating to the provision of long term 
•  Community engagements and connectedness; and 
sustainable infrastructure within the context of a near-term focused 
•  Sustainability into the future. 
political environment.  These studies and the reform of Auckland 
Finally, current regional governance and implementation of strategic 
governance, highlight a number of opportunities to address this 
documents on a national level are compromised by a lack of binding 
dilemma and broader local government issues. 
commitment to action on agreed plans across constituent Councils.  
Key issues include: 
This is a critical planning and delivery issue. 
•  The need for infrastructure networks to be managed in an 
The key conclusion arising from this work is that all of the studies 
integrated manner and not separated by local political 
point towards the necessity for change.  The status quo is not a 
boundaries; 
sustainable option in the longer term. 
•  Large authorities typically operating more efficiently than small 
Metropolitan Contribution to National Economic Success 
authorities; 
International commentators have highlighted that metropolitan and 
•  Small authorities typically achieving better citizen engagement 
ultimately national economic success requires: 
than large authorities; and 
•  Regional co-ordination; 
•  Local authorities not keeping pace with changes in the external 
•  Effective governance; 
regional environment e.g. urban growth over existing Council 
boundaries. 
•  Investments in infrastructure; 
Other reviews that have been undertaken nationally also point 
•  Addressing constraints; and 
towards existing authorities not keeping pace with change, 
•  Co-ordinating regional planning. 
particularly addressing long-term infrastructure demands which are 
With regard to this latter point, there has been an emerging 
more commonly regional in nature.  Generic issues highlighted from 
realisation of the importance of “spatial” planning for city regions.  
                                            
This concept which is now a legislative requirement for the new 
1 International research was drawn from a cross‐section of countries but with 
Auckland Council, requires regional and local RMA and Local 
particular reference to the UK, Canada and Australia 
Government Act plans to give effect to ‘or be consistent’ with the 
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spatial plan.  This change is designed to permit the simplification of 
such as the long-term retention and development of industrial land 
the planning framework by using the spatial plan to incorporate 
regionally. 
regional policy and Regional Land Transport Strategy.   
For integrated planning to work, there needs to be: 
The plan at its simplest level is an integrated planning framework 
•  Engagement and alignment of programmes and priorities 
covering all four well-beings, as depicted in the diagram overleaf. 
between central and local government; and 
Regi
Reg on
i
al
on
•  Real commitment and agreement amongst the Councils. 
Vis
Vi i
s on
o
This latter point is particularly challenging in the voluntary 
Central 
En
E gage
n
m
gage en
m
t
Central 
en
Regi
Reg on
i
al
Engag
a em
e en
e t
onal
n
collaborative environment that Councils work within. 
Sta
t keh
k
olders
Gove
v rnmen
e t
Alignment o
en
f
t o  
Spa
p tia
t l Plan
l Pl
prog
o ram
a m
m e
m s 
s
Future Trends 
and pr
d p iorit
i ies
i
The analysis of future trends highlights the fact that change will 
Socia
Soci l /
l
Econo
c
mic
Envi
v r
i o
r n
o me
m n
e ta
t l
a
Infrastructur
r
e
astructur
Element
m
s
continue.  Councils will need to be cognisant of and adaptive to 
Cult
Cul ur
t al
ur
these changes.  Trends of specific relevance to local government 
include: 
Mandated Po
 P licy 
lic
Framework for 
ew
•  The role that city regions can play in national economics 
Local A
c
r
al A ea
r
s
 
through the generation of “agglomeration” benefits; 
 
•  An ongoing productivity imperative e.g. keeping rates rises 
This contrasts with the current national planning framework for local 
within the rate of inflation; 
government which is: 


 
Utilising technology to both improve efficiency and produce 
 
Fragmented - characterised by Councils within the same region 
smarter services, but also to evolve new public goods where 
having different visions, strategies and philosophies; 
there is a demand or need; 
•  Not comprehensive on a regional basis;  
•  Continuing to improve the liveability of urban areas; 
•  Lacking subsidiarity - the local level does not have to take 
•  Addressing the changing demographics of society; 
account of the level above; and 


 
Proactively addressing sustainability where there are clear 
 
Placing local government in a position where it has insufficient 
opportunities to do so e.g. sustainable water management; 
scale to deal effectively with Central Government. 
•  Considering how the region can improve collaboration rather 
Although the Wellington region has sought to proactively address 
than compete at both a regional and national level e.g. 
limitations in regional planning with initiatives such as the 
designation of commercial areas and events; 
Wellington Regional Strategy and the Water Strategy, it still has to 
operate within the legislative planning framework.  Accordingly, 
•  Streamlining regulation e.g. single District Plan;  
there are both gaps and matters of disagreement in some areas 
•  Improving infrastructure management; and 
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•  The ongoing reform by Government that will necessarily impact 
This change from the 2006 position is largely the result of increased 
on local government form and function across a range of areas 
service demands, such as the effect in the districts of more 
including regulatory and water. 
stringent wastewater effluent standards.  An outcome of meeting 
these requirements is large projected rates increases.  Given these 
Current State 
pressures are likely to continue into the future, a question arises as 
The current state of the Wellington region was assessed through a 
to the palatability to ratepayers of ongoing rates increases. 
combination of: 
Structural Issues 
•  Analysis of current performance documentation; 
A number of structural issues were identified during the Review, 
•  Engagement with the Councils and their executives; and 
including: 
•  Interviews with key external stakeholders nominated by the 
•  The regional strategic planning frameworks, including the 
Councils. 
Wellington Regional Strategy; 
The analysis of financial data in particular highlighted that the 
•  Alignment of transport to land use and development; 
stresses are uneven, with the smaller Councils under particular 

pressure.  Unchecked this will lead to a position in the longer term 
 
Regional management of water services; 
where rates in the districts are likely to rise faster than rates in the 
•  Regional management of irrigation, in particular funding; 
cities.  The following graph indicates that the districts will have the 
•  Regional management of waste management; 
highest rates by 2014 (discounting the impact of Wellington due to 
its CBD). 
•  The approach to regional facilities; and 
•  The ability to make further significant gains from shared 
1,600 
services. 
1,400 
2010 Rates 
Governance Issues 
1,200 
revenue per 
1,000 
resident (census 
Facilitated workshops with the Councils, their executives and 
2006)
800 
external stakeholders echoed a number of similar themes with 
2014 Rates 
600 
Revenue per 
issues identified across: 
400 
resident (census 
•  Governance; 
2006)
200 
•  Regional strategy; 

•  Central and local government collaboration; 
•  Economic development; 
•  Transport; 
 
•  Three waters; 
Source:  Department of Statistics/Wellington Council’s LTCCPs 
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•  Other regional infrastructure; 
The key opportunities identified were as follows: 
•  Service delivery; 
1. Regional 
Strategy 
•  Capabilities and capacity; and 
•  Seek agreement on how a spatial planning approach could 

lock in vertically and horizontally integrated strategies and 
 
Efficiency and effectiveness. 
plans, including legislative options. 
External stakeholders had an expectation that change in current 
•  Explore the potential of utilising the Wellington Regional 
governance arrangements is inevitable, and that it should happen 
Strategy as a base for the spatial plan. 
sooner rather than later.  Specific concerns raised included: 
2. Governance 
•  Capability and capacity of the smaller Councils, both at a 

financial and human resource level; 
  In lieu of governance reform, Councils commit to a stronger 
regional collaboration model. 
•  Differing philosophies at times of the Councils, leading to a lack 
•  Utilise the existing Regional Strategy Committee to 
of regional coherency;   
progress broader regional issues. 
•  Political boundaries that did not reflect the workings of the 
•  In anticipation of potential changes to status quo 
region;  
governance structures, explore alternate models for local 
•  Inequitable funding of regional facilities; and 
community engagement. 
•  Regional collaboration, while not openly dysfunctional in the 
3. Economic 
Development 
Auckland sense, was viewed as being shallow. 
•  Explore and agree the role and priority of the Wellington 
The majority of external stakeholders overtly discussed governance 
CBD in relation to other CBDs in the region and in the 
structures and expressed a clear preference for a single unitary 
context of wider regional economic development. 
authority, particularly if local representation could be addressed. 
•  Extend the successful development of a shared Wairarapa 
District Plan to the entire Wellington region, and 
Opportunities  
subsequently develop a centralised approach to service 
As the Review progressed it became apparent that there are a 
both the planning and building authority functions. 
series of opportunities that the region could pursue.  A number of 
4. Transport 
these initiatives could be implemented without moving to a single 

unitary authority model or other structural change, but would require 
  Continue to explore additional opportunities to take a 
regional approach to the planning and delivery of transport 
deeper collaboration and agreement than has been evident to date. 
services. 
 
5. 
Water and Wastewater 
 
•  Develop a coherent regional strategy to map out the future 
 
direction of the Three Waters. 
 
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•  Consider the case for integrating water and wastewater 
5. 
Sub regional unitary authorities (Wellington and Wairarapa2); 
delivery regionally. 
and 
6. Stormwater 
6. 
A single regional unitary authority. 
•  Seek to better integrate the regional and local stormwater 
We did not analyse these options in any detail nor do we make a 
and flood management initiatives. 
recommendation given this work is intended for a subsequent stage 
7. Irrigation 
post October 2010. 
•  Consider how the operation of irrigation in the Wairarapa 
However, we are firmly of the view that some change of a structural 
and its latent economic potential can be realised and 
nature provides the opportunity to be more effective than the 
funded following the current pre-resource consent stage. 
collaborative model if the region wishes to: 
8. 
Other Regional Infrastructure 
•  Achieve a unified vision and plan; 
•  Introduce a coherent package for the future funding and 
•  Enable better governance and decision-making; 
development of regional facilities. 
•  Be cost effective and efficient; 
9. Service 
Delivery 
•  Deliver equitable impacts across the region; and 
•  Commit to a “transformational” approach to the 

implementation of back office shared services. 
 
Be resilient and sustainable into the future. 
Options 
We consider that the opportunity to change is related to improving 
the Wellington region’s performance rather than fixing dysfunctional 
New structural options were not a specific consideration of the 
governance which was evident in Auckland.  However, not 
Review brief.  However, because this topic was raised and 
prudently addressing the issues highlighted in the Review will be to 
discussed on a number of occasions, we note that there are six 
the economic detriment of the Wellington region and the country. 
options to consider going forward: 
Next Steps 
1. Status 
quo; 
Once the opportunities for change have been reviewed by both the 
2. Strengthened 
Regional 
Council; 
Chief Executive and Mayoral Forums, they should represent key 
3. Logical 
clusters; 
elements of the next programme of work.  The next steps should 
4. 
Two tier local government (i.e. regional services delivered by 
also consider how these initiatives would relate to potential 
a single regional Council.  Local services delivered by local 
structural changes. 
Councils with all services funded through a single regional 
The key next steps are to: 
rating system); 
•  Confirm that any change or reform is premised on collaborative 
leadership at both political and executive levels; 
                                            
2 Noting that other combinations are possible 
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•  Agree the areas that do not require change; 
•  Confirm the set of issues and opportunities to be pursued; 
•  Develop a programme to address those areas identified as 
requiring change;  
•  Incorporate detailed analysis of the identified structural options 
into this programme of work; and 
•  Ensure adequate resourcing to undertake this work. 
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2.  Introduction 
 
 
2.1  
Background to the Review 
•  Develop a report that encapsulates the issues, key questions 
 
arising and potential opportunities and governance options to 
•  The New Zealand Government’s decision to establish a unitary 
address them. 
authority in the Auckland Region has provided the context and 
impetus for the Wellington region to review its current 
2.3  
Scope 
governance arrangements to determine whether they are 
The Wellington Councils have specified that the work programme 
optimal for taking the Wellington region and its communities into 
should comprise four steps: 
the future.   
(i) 
Research into any issues with current governance 
•  The Wellington Mayoral Forum agreed on 26 February 2010 to 
arrangements and opportunities to enhance outcomes. 
review any current issues in Wellington governance, and identify 
(ii) 
Analysis of existing services, infrastructure and local 
possible solutions.  It was agreed the Review would not start 
democracy, identification of gaps and opportunities in 
with any presumption of structural change to the current 
governance arrangements, and analysis of best practice 
Councils comprising the greater Wellington region.   
outcomes and the application in a New Zealand/Wellington 
•  It is intended that the Review be received prior to the local 
context. 
government elections in October 2010 to allow the incoming 
(iii) 
Identification of opportunities to address issues identified in 
Mayoral Forum to consider issues identified and refer to the 
current governance arrangements. 
incoming Councils for action. 
(iv) 
Preparation of a report capturing the outcomes of the work 
PwC has been engaged by the Wellington Councils to undertake 
programme, including potential high level governance 
this Review.  Our engagement is subject to the Restrictions in 
options. 
Appendix A. 
The Wellington Councils have also identified the following specific 
2.2  
Review Objectives 
exclusions from this Review: 
The Review objectives are to: 
•  Consideration of Central Government Agency and institutional 
arrangements; 
•  Undertake research and analysis to identify issues, potential 
opportunities and governance options, taking into account some 
•  Making recommendations on funding required; 
of the distinctive features of the Wellington region; 
•  Consideration of local government functions generally; 
•  Facilitate workshops with each of the Councils and their 
•  Reviewing the Wellington Regional Strategy; and 
Executives to draw out views on the issues;  
•  Making conclusions about changes or structural options in 
•  Seek external stakeholder feedback on the current operation of 
governance arrangements. 
the Councils; and 
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2.4 Approach 
These views were then supplemented through consultation with 
external stakeholders nominated by the Councils. 
To ensure that strategic regional issues are captured, the 
information gathering stage incorporated a high level review of key 
Good Governance and Practice Principles 
documentation including strategic plans and LTCCPs, and other 
Throughout the Review, PwC accessed and overlaid its extensive 
documents of significance.  Analysis of this material identified a 
national and international governance experience and knowledge.   
range of issues which led to the development of broad questions 
Good governance principles were also utilised as a benchmark to 
and themes for the subsequent executive meetings and councillor 
consider issues, including: 
workshops where they were discussed and debated.  This analysis 
took into account a number of key questions, including: 
•  Enablement of democratic local decision-making; 
•  The issues which will inhibit the region’s ability to deliver on its 
•  Achievement of the unified vision and plan for the region; 
vision; 
•  Decisions being taken at the appropriate level of governance; 
•  The current governance arrangements being durable over the 
•  Provision for clear accountability to the public for outcomes; 
next 20 to 30 years; 
•  Efficiency and effectiveness; 
•  The levels at which functions and activities are best carried out; 
•  Equity across the region; and 
•  Issues impacting on effective, efficient and sustainable provision 
•  Resilience into the future. 
of public infrastructure, services and facilities; and 
•  Problems with current governance and representation 
 
arrangements. 
This provided an excellent basis for the workshops that we 
facilitated with each Council and its Executives. 
The workshop and research process also enabled the consolidation 
of views on: 
•  Successes to date that can be built upon; 
•  Long term drivers of change; 
•  Regional visioning and strategic processes; 
•  Delivery of functions and activities; 
•  The sustainable provision of infrastructure; and 
•  Potential flow-on impacts from the current Auckland reforms. 
 
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3.  Setting the Context 
 
 
3.1 
Why this Review is Important 
examples of clustered shared services.  The shared services 
This Review is one of the most important pieces of governance 
initiatives to date have been diverse, ranging from the construction 
work to be undertaken in the Wellington region.  As a consequence 
of the successful Westpac Stadium through to the development of 
all nine Wellington Councils committed to explore current issues in 
the joint District Plan between the Masterton, Carterton and South 
Wellington’s governance, together with possible solutions. 
Wairarapa District Councils. 
In doing so, the Councils within the Wellington region are focused 
This collaboration has enabled the region to become renowned in 
on how present governance arrangements can be improved to 
recent years for its culture, events, waterfront, city shape and wider 
achieve better economic, environmental, social and cultural 
regional facilities.   
outcomes.  This document is a first step.  It provides ideas on how 
However, more recent attempts at collaboration at a more granular 
local government in the greater Wellington region might respond to 
level such as shared services, have been difficult to progress due to 
the many unique and diverse challenges facing the region both 
challenges, particularly securing adequate resourcing and working 
currently and in the future in a more unified and efficient way. 
across independent political, institutional and managerial entities. 
Although the Wellington region comprises several diverse 
It is our view that progress in areas where there are obvious service 
communities across a large geographic area with natural 
provision ‘spill-over’ effects, could be accelerated if the 
boundaries, it has strong linkages as a city region, particularly from 
responsibilities for planning, funding and delivery of regional 
the perspective of economic and transportation infrastructure and 
infrastructure and services was not separated between the nine 
policy.  Residents within the region routinely cross territorial 
Councils.   
authority boundaries in their journeys to work and recreate at 
There is opportunity for: 
facilities, events, shopping centres and rural recreation areas 
across the region.   
•  Provision of a unified regional vision and voice; 
Identifying how the Wellington Councils can work together 
•  More efficient service delivery3
collaboratively, and best contribute to developing and improving the 
•  Integrated decision-making; 
region’s position economically, socially, culturally and 
•  Rethinking engagement mechanisms with communities, to 
environmentally is key to the future well-being of the region. 
improve local democracy; and 
Generic Opportunities 
•  Providing better value for citizens in the Wellington region. 
Councils across the region have for a number of years worked 
                                            
collaboratively, particularly at the sub-regional level, with numerous  
3 Financial Analysis, Reorganisation of the Councils in the Auckland Region, Taylor 
Duignan Barry, Royal Commission on Auckland Governance, February 2009 
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The Changing Landscape 
across local Councils or stakeholders in a region.  Although we are 
Aside from the importance of resolving issues within the region, 
not currently aware of any particular issues within the Wellington 
there is also a need to ensure the region is planning for changes in 
region, recent national examples include Queen’s Wharf in 
the broader national and international environment.  These changes 
Auckland and Environment Canterbury. 
include: 
Local authorities that demonstrate an ability to work in a 

constructive and coordinated way locally to help Government 
 
Continuing globalisation; 
execute its infrastructure and economic development objectives, will 
•  Climate change; 
benefit from doing so.  The Wellington Region is well placed to 
•  Rapidly evolving technology; 
leverage its position nationally. 
•  Ageing of the population; 
3.2.2 Minister’s 
Perspective 
•  Maintaining essential services and resources within strict 
In his address to the Local Government Chief Executives Forum in 
financial parameters; 
June 2010, the Minister of Local Government reiterated imperatives 
•  Increasing pressure from communities for enhanced services 
for local government.  A number of these are useful to consider in 
and service levels; and 
the context of issues needing to be addressed by the Wellington 
•  Maintaining and developing the region’s competitive 
region: 
advantages. 
•  Rates increases not outstripping the rate of inflation; 

3.2 
Central Government Perspectives 
 
The need for greater transparency around costs, rates and 
activities; 
3.2.1 Government 
Perspective 
•  Engaging with communities in a more meaningful way than 
achieved through current statutory processes, e.g. LTCCPs; 
Central Government in recent years, and across the political 
spectrum, is beginning to recognise the pivotal role of local 
•  Focusing on core Council services; and 
government in helping to execute some of its key economic 
•  Providing greater legislative flexibility for water service delivery 
transformation objectives.  Increased and significant investment in 
modes, including use of public private partnerships (PPP). 
transportation infrastructure and Rugby World Cup 2011 are a 
The Minister also highlighted a number of changes occurring during 
testament to this. 
the transition to the new Auckland Council which are potential 
In addition, there are other opportunities yet to be tapped by Central 
pointers to future expectations for local government generally.  
Government including the international linkages facilitated through 
These expectations include: 
city Mayoral and sister city relationships. 
•  Regional leadership and vision; 
It is evident though that Central Government has concerns with the 
•  Local boards ensuring community interests are well represented 
inability at times of local government to achieve coordinated buy-in 
in regional decision-making; 
at the local level, and to show a willingness to do so, whether 
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•  Streamlined regulatory processes, including a single district 
expectation that communities will be proactive in driving local 
plan; and 
reform.  This expectation was also reinforced at the July 

conference. 
 
Establishment of major infrastructure CCOs that are able to 
make use of specialist commercial expertise, but with greater 
3.3 
Comparative International Best Practice 
accountability requirements including the requirement to hold 
annual public meetings. 
The Review of Auckland Governance including, the Royal 
In making these comments, the Minister reiterated that he did not 
Commission process, resulted in extensive consideration of current 
see problems of the same scale as Auckland anywhere else in New 
international best practice in local government.  While the 
Zealand, but was pleased to see Councils in other regions taking a 
Wellington region is able to leverage off this work, it must be 
look at the effectiveness of their own governance arrangements. 
considered in the context of matters that are relevant to the 
Wellington region. 
Given improving overall effectiveness of the framework of local 
government was a priority for the Minister, he wanted to consider 
Three studies are particularly relevant to the Wellington context 
how Central Government could facilitate local, community led 
because they considered the key elements of: 
solutions to achieve better governance and better results for 
•  Size and relationship to efficiency; 
ratepayers.  This would be achieved through consideration of 
•  Size and relationship to citizen engagement; and 
whether there was a need to clarify the role of local government and 
the relationship between central and local government.   
•  Regionalisation keeping pace with the changing environment. 
A point of particular interest to the Minister in the relationship was 
Research into size and its relationship to efficiency4 was prompted 
the fact that local government has to deal with 27 departments.  If 
by the 2006 Government White Paper inviting Councils in shire 
local government reform is linked to a better portal to central 
county areas to submit proposals for structural reorganisation in a 
government, the ultimate outcome may be ‘joined up’ service 
bid to enhance efficiency and effectiveness. 
delivery agencies. 
The research specifically assessed the relationship between size 
These questions are the subject of work the Minister is proposing to 
and structure (as in unitary single tier or two tier county and District 
carry out over the next two to three years.   
Councils) of the units in local government and expenditure on 
administrative overheads. 
At the Local Government Conference in July 2010, the Minister 
announced that this work would be termed “Smarter Government – 
The UK Government (Department for Communities and Local 
Stronger Communities”.  This work is intended to directly feed into 
Government 2006) stated the primary reason for encouraging the 
the Government’s response to ongoing pressure for Council 
development of unitary structures and a new two tier model was to 
amalgamations in an ad hoc manner. 
make substantial efficiency gains. 
This Review by the Wellington region provides an excellent 
opportunity to lead and influence some of the thinking in relation to 
                                            
4
local government reform, while meeting the Prime Minister’s 
 Size, Structure and Administrative Overheads:  An Empirical Analysis of English 
Local Authorities – Rhys Andrews and George Boyne, Cardiff University, 2006 
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The research concluded that administrative costs do fall as the size 
The paper explored the question of why citizens should be involved.  
of the organisation increases.  In addition to lower administrative 
It concluded that it was necessary to ensure that local knowledge, 
costs the research found that larger authorities also devoted a 
needs and perceptions could be factored into decision-making. 
higher proportion of resources to the front line.  The research was 
In doing so, there were three main objectives of increasing citizen 
quantitative and so was not conclusive as to whether the lower 
involvement (citizen centred governance): 
administration costs were as a result of greater efficiency or greater 
purchasing power.  The research noted: 
•  Improve design, responsiveness and outcomes of services; 
“… local authorities with a small client population are likely to reap 
•  Build social capital/increase cohesion; and 
efficiency gains on administrative costs by reorganising into a larger 
•  Improve legitimacy and accountability of local governance – 
unit or by sharing back office functions.” 
building trust. 
The research also acknowledged that the theoretical implications of 
The paper also made a point relevant to the Wellington Region - 
local government structures can be contradictory.  While 
“complexity and pace of change of local government structures is a 
larger/single tier structures should have lower administrative costs, 
major challenge” in terms of engaging citizens.  New structures and 
there are a number of potential downsides to local authorities 
arrangements are introduced just as people are getting used to the 
becoming larger or unitary, including: 
old ones. 
•  Less competition and a bigger area means that citizens are less 
This concept of structures not keeping pace with change was 
likely to migrate out of the area reducing pressure on the local 
highlighted in a paper considering what a US region constituted in a 
authority to do things more efficiently; 
governance sense7.  A region was defined as: 
•  Problems of coordination and control which may impact on front 
“… an all-inclusive place, sharing common and collective interests.  
line service delivery; 
Place-based decision-making requires that a region be identified 
•  Too large equals more bureaucratic which means more costs5
and conformed to the interests involved in each issue”. 
•  Reduced democratic accountability with larger structures; and 
A region may be based on one or a combination of: 


 
Reduced “sense of place” among citizens. 
 
Political geography; 
These latter ‘citizen’ issues were explored in a paper delivered by 
•  Resources – geographical or environmental factors (mountain 
the Joseph Rowntree Foundation in 20096, which examined citizen 
ranges, watersheds); 
involvement in decision-making and the impact of structures. 
•  Economic; 
•  Cultural; 
                                            
•  Service delivery e.g. water; and 
5 Myth Busters, Examining Common Perceptions about Local Government in New 
Zealand; Local Government New Zealand, September 2010 
                                            
6 Citizen Involvement in Local Government, Jane Foote, Joseph Rowntree 
7 US Regional Governance Models, Hansford Economic Consulting, a paper for 
Foundation, UK, June 2009 
Truckee Meadows Regional Planning Agency, November 2007 
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•  Metropolitan – readily identifiable urbanised area. 
3.4 
Learnings from Regional and Other Studies 
The paper noted that “Regionalism is constantly being rethought, 
reshaped and new efforts applied.  There is not one regional 
3.4.1  Strengthening Auckland Governance 
planning structure that fits all.” 
In 2006 the eight Councils of the Auckland region undertook a 
The paper supports the approach being taken by the Wellington 
similar process to the current Wellington governance review in 
Region in so far as before designing a new form of regional 
terms of identifying issues and opportunities.  This work was a 
governance or modifying an existing one, an assessment should be 
forerunner to the Royal Commission process and reinforced the 
conducted incorporating stakeholder engagement to define the 
need for change in Auckland due to a number of factors, including: 
issues. 
•  The city/region had to compete globally; 
A key conclusion arising from this research, was that size does 
•  Management of growth was difficult; 
matter in terms of efficiency, but there is potentially a trade off in 
•  Addressing regional challenges with fragmented governance 
terms of community connectiveness.  Often the approach to 
was fraught; 
address this trade-off is to reinforce local representation models, 
although there is no particular model that stands out in terms of 
•  Successful regional development required: 
effectiveness.  In the Auckland context, this is planned to be 
−  Joint long-term funding; 
addressed through the establishment of 21 local boards. 
−  Cohesive regulatory policy and service delivery; 
This trade off is particularly stark when considering how to deliver 
−  Single accountabilities; and 
the best outcomes for long term infrastructure with near-term 
focused local representation, both of which comprise the essence of 
−  Investment in infrastructure regionally. 
local government. 
These reasons for change arose from a number of common 
During the debate on Auckland’s governance prior to the Royal 
emerging themes, including: 
Commission8, this point was reiterated in a New Zealand context: 
•  Adequate strategy not fully integrated into regional priorities; 
“The Councils and Central Government will need to decide what 
•  Delivery failure due to fragmented powers and accountabilities 
trade off they are prepared to make, and which of the models is 
for funding and delivery; 
best likely to meet the current and emerging challenges to make 

Auckland a world class city region”. 
 
Misallocated decisions, e.g. decisions taken at a local or 
national level when they should have been at a regional level; 
 
•  Heavy reliance on voluntary/statutory joint decision-making that 
could not bind or influence expenditure and decisions of 
 
sovereign organisations; 
                                            
•  Lack of certainty; 
8 Strengthening Auckland’s Regional Governance Discussion Paper, 3 November 
2006 
•  Lack of a single regional voice; 
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•  Insufficient revenue at the regional level; and 
•  Poor urban design; 
•  Inefficiencies and inconsistent standards and financial impacts 
•  Funding; 
due to duplication and transaction costs. 
•  Regional governance being weak and fragmented, with the 
The strengthening Auckland governance project also highlighted a 
Councils lacking a collective sense of purpose, constitutional 
number of good governance principles which are applicable to all 
ability and momentum; and 
regional groupings, including: 
•  Community engagement being poor through existing formal 
•  Enabling democratic local decision-making on behalf of 
consultation mechanisms. 
communities; 
The Royal Commission went on to define three essential 
•  Enabling achievement of a unified vision and plan; 
characteristics of successful governance arrangements: 
•  Ensuring decisions are taken at the level of governance closest 
•  Democratic ability; 
to those affected, best informed and best placed to deal with 
•  Building a sense of place; and 
consequences; 
•  An ability to bring together communities. 
•  Provision for clear accountability to the public for outcomes, use 
of funds, and stewardship of public assets; 
Finally, it noted that success for any city region should result in: 


 
Being cost effective and efficient; 
 
Strong economic performance; 


 
Delivering equitable impacts across the region; and 
 
Well planned urban form; 


 
Being resilient into the future. 
 
Assured infrastructure supply, particularly transport, Three 
Waters, broadband and energy; 
3.4.2  Royal Commission on Auckland Governance 
•  Social cohesion; 
In March 2009, the Royal Commission on Auckland Governance 
•  Lifestyle and amenities; 
reported its findings to the Government9 noting that the Auckland 
•  Strong identity; and 
region had a significant opportunity to fuel growth, improve the 
health of communities and improve amenities and infrastructure.  
•  Sustainability. 
Issues preventing these opportunities from being taken included: 
In doing so, the Royal Commission also highlighted that these 
•  Messy and inefficient urban growth; 
factors needed to take account of the special considerations 
applying to rural areas.  These considerations included; 
•  Infrastructure constraints; 
•  Providing amenities and open space; 
•  Social disparities; 
•  Preventing urban sprawl; 
                                            
9
•  Maintaining agricultural production; 
 Auckland Governance Report – Report of Royal Commission on Auckland 
Governance, March 2009 
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•  Maintaining the environment; 
•  Appropriate rural development. 
•  Ensuring rural voice; and 
At an operational level, the study also noted the need to: 
•  Delivering services to rural areas. 
•  Rationalise the plethora of rules and plans to streamline 
The Royal Commission’s recommendations relating to structure 
regulation; 
correlate to option 4 in Section 8 which sets out six governance 
•  Achieve better management and ownership of regional facilities 
options.  This option, which included direct Maori representation, 
and infrastructure; and 
was not favoured by the Government which ultimately mandated a 
•  Develop responsive and engaged local communities. 
single unitary model. 
The study also highlighted a number of key changes since 1989 
3.4.3  Future Governance of the Waikato 
that were drivers for reform, including: 
In March 2010, the University of Waikato reported on an 
•  Treaty settlements; 
independent study10 it had initiated as a result of growing interest in 
•  Technology; 
understanding options for future regional governance.  The study 
•  Central Government desiring a whole of government approach 
identified reasons, from a citizen’s perspective, why the existing 
to regions and the ability to interact with a single regional voice; 
governance was not optimal, including: 
and 
•  Multiple overlapping planning regimes; 
•  A growing level of importance for the accountability of regions 
•  Sustainability of small Councils; 
as opposed to local communities for major decisions.  
•  Ability to influence Central Government; 
The study noted that amalgamating Councils was not necessarily a 
•  Reinvigorating local democracy; and 
panacea for the issues arising, however it concluded there were 
opportunities to enhance Waikato governance through: 
•  The importance that citizens placed on Waikato determining its 
own future, as opposed to waiting for Central Government to 
•  Establishing an optimal number of Councils; 
define that future for it. 
•  Establishing an optimal number of organisation structures within 
The findings of the study included concerns that the current political 
and between Councils, e.g. CCOs, local boards; and 
boundaries and institutional arrangements would be able to 
•  Enhancing relationships with key external stakeholders, 
facilitate: 
especially Government. 
•  Environmental management; 
•  Communities and regional towns; 
•  Hamilton City’s continuing place; and 
                                            
10 Future Governance of Waikato, University of Waikato, March 2010 
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Key findings were used to form the basis of fit-for-purpose local 
3.4.4  Local Government Options for Northland 
government in Northland, which included: 
In February 2010, the three district Councils in Northland issued a 
•  More local input into environmental management; 
report11 they had commissioned on identifying options for the future 
local government in Northland.  The Northland Regional Council 
•  Least cost means of infrastructure, including: 
was invited to participate, but declined to do so. 
−  Partnership opportunities with the transport agency; and 
The brief was to consider four different options, two of which both 
−  Energy line companies. 
relate to the development of a single or dual unitary authority and 
•  Community decision-making to improve connectiveness; 
have subsequently been taken out for public consultation.  The 
results of this consultation are pending. 
•  Economic development to be a wider partnership with business 
and tangata whenua; 
The study highlighted a number of changes driving the change 
since the previous sector reforms in 1989, which again reiterated 
•  Minimising incentives for existing Councils not collaborating; 
some of the common themes from the other studies, including: 
•  Central government coordination; and 
•  Technology; 
•  Creating critical mass for CCOs to service planning, regulatory 
•  Globalisation; 
and infrastructure delivery. 
•  Climate change; 
3.4.5  Metropolitan Contribution to National Economic 
•  Importance of local government in influencing the urban look 
 Success 
and feel, ultimately leading to the place shaping of communities; 
Leading economic geographer, Greg Clark, addressed the issue of 
•  Partnership with central government and community building; 
metropolitan contribution at the Local Government Conference in 
•  Community desire to shift participation in local government from 
July 201012.   
elections to direct involvement and engagement in decision-
This address highlighted that the ingredients of local economic 
making. 
success are not achieved by chance but through: 
Critical conclusions highlighted by the report included: 
•  Regional coordination; 
•  The need for Northland local government to be strengthened at 
•  Effective governance; and 
both a local and regional level; and  
•  Addressing constraints and capitalising on opportunities. 
•  To meet future needs, the region must effectively engage with 
Clark also highlighted that city regions which are not successful 
Central Government on a partnership basis. 
exhibit the following characteristics: 
•  Absence of metropolitan leadership; 
                                            
                                            
11 Local Government Options for Northland, McKinlay Douglas Ltd, February 2010 
12 Big Cities, Economic Development, Local Government, LGC July 2010 
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•  Lack coordinated regional planning; 
•  Environmental issues; 
•  Fail to invest in infrastructure; and 
•  Framework for land development and use; 
•  Are unable to capitalise on the wider investment market for 
•  London-wide policy context for the boroughs to set their detailed 
metropolitan development and enhancement. 
planning policies; and 
•  Sustainable development. 
Many of the New Zealand study findings highlighted within this 
report are supported by international experience.  This emphasises 
Legislation requires that the London Plan should take account of 
the importance of regional coordination and spatial planning as 
three cross-cutting themes: 
critical drivers to address these issues. 
•  Economic development and wealth creation; 
3.4.6 Spatial 
Planning 
•  Social development; and  
Metropolitan best practice advocates the importance of “spatial” 
•  Improvement of the environment. 
planning for city regions.  Essentially, a spatial plan sets out an 
The planning process also incorporates a further safeguard to 
integrated economic, environmental, infrastructure and social 
ensure integration through the application of a compulsory 
planning framework.  At the highest level, this is represented by a 
“Integrated Impact Assessment”. 
spatial map highlighting key aspects such as mandated land use 
and transport corridors (an example is included in Appendix B).  
Given the coherence provided by such a planning regime, it is 
This not only ensures an integrated approach to planning, it enables 
easier for:  
differences to be reconciled within the plan, as opposed to between 
•  Local Councils to work within and support the agreed regional or 
independent plans produced by separate sovereign entities. 
metropolitan vision and strategic planning framework; and 
There are numerous international examples available and in 
•  Central Government to become active and collaborative given 
London’s case, the London Plan13 brings together the geographic 
their critical role in cities. 
and locational aspects of the Greater London Authority’s strategies 
 
for: 
•  Transport; 
•  Economic Development; 
•  Housing; 
•  Culture; 
•  Social issues; 
                                            
13 Help Shape London’s Future, Greater London Authority, July 2010 
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Regi
Reg on
i
al
on
•  Not have legal status. 
Vis
Vi i
s on
o
3.4.7 Common 
Themes 
Central 
En
E gage
n
m
gage en
m
t
Central 
en
Regi
Reg on
i
al
Engag
a em
e en
e t
onal
n
The recent studies across three different New Zealand regions 
Sta
t keh
k
olders
Gove
v rnmen
e t
Alignment o
en
f
t o  
Spa
p tia
t l Plan
l Pl
prog
o ram
a m
m e
m s 
s
contain a number of common themes and issues that are relevant 
and pr
d p iorit
i ies
i
to the Wellington region.  We have considered at a high level, the 
relevance of these themes to the Wellington region overleaf: 
Socia
Soci l /
l
Econo
c
mic
Envi
v r
i o
r n
o me
m n
e ta
t l
a
Infrastructur
r
e
astructur
Element
m
s
Cult
Cul ur
t al
ur
Mandated Po
 P licy 
lic
Framework for 
ew
Local A
c
r
al A ea
r
s
 
 
Currently there are few spatial plans in New Zealand.  Porirua City 
Council has developed the “Porirua Development Framework” 
which in essence constitutes a simplified spatial plan.  Rodney 
District Council’s “Rural Strategy”14 has been prepared to assist the 
new Council to prepare its spatial plan.  We understand that 
Manukau City Council has also produced a spatial plan to help 
guide the new Auckland Council, which is required to produce a 
plan. 
Spatial planning could be introduced as a positive initiative by the 
Wellington region.  The implementation of the plan outside of the 
RMA / Transport functions would however: 
•  Require agreement and commitment from the Councils; 
•  Be completely dependent on the collaborative approach of the 
Councils; 
•  Have the potential to contain compromise to limit local impacts 
at the cost of overall regional benefit; 
•  Need to seek engagement and alignment of programmes and 
priorities with central government; and 
                                            
14 Rodney District Council Rural Strategy – Consultation Draft May 2010 
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Common Themes from Studies 
 
 
 
Regions 
 
Auckland 
Waikato 
Northland 
Wellington 
(Royal Commission Findings) 
Lack of a single regional voice15
No mandated overarching 
No mandated overarching 
No mandated overarching 
No mandated overarching 
regional leader or institution 
regional leader or institution 
regional leader or institution 
regional leader or institution 
Fragmented governance 
Single metropolitan region 
Region managed by 10 
Region managed by 4 authorities 
Region managed by 9 authorities 
managed by 8 authorities 
authorities 
Misalignment of strategies and 
Agreed growth strategy, no 
Tension between Regional 
Absence of District Councils in 
Linkage of Wellington Regional 
priorities 
agreement on implementation 
Council and TLAs 
economic developments 
Strategy and other regional plans 
to individual Council plans and 
strategies 
Misallocated decision-making 
Regional level decisions taken at 
Citizen frustration with 
Issues between the Councils 
Regionally significant land use 
national or local level, e.g. 
overlapping responsibilities 
across integrated resource 
decisions, e.g. industrial, retail 
Waterfront Stadium 
management 
made at local level 
Optimisation of available funding 
No agreed and prioritised 
Financial viability challenges 
Significant difficulties due to 
Combined regional balance sheet 
infrastructure plan other than 
funding, topography and resource 
would provide greater opportunity 
transport 
base 
for regional prioritisation and 
funding allocation 
Efficiency and effectiveness 
Duplication of functions, e.g. 
Opportunity to establish optimal 
Prima facie case for considering 
Limited prospect of success with 
seven local rating systems plus a 
organisation structures 
the establishment of single 
latest shared services initiative 
regional one covering all seven 
structures for professional and 
areas 
technical services 
                                            
15 We note that each region generally operates a Mayoral Forum which is utilised to provide regional leadership  
and voice.  These forums do not have a legislated mandate but can make decisions if mandated by their individual Councils. 
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Common Themes from Studies (continued) 
 
 
 
 
 
Regions 
 
Auckland 
Waikato 
Northland 
Wellington 
(Royal Commission Findings) 
Community engagement and 
Low engagement levels and voter 
Potential reform provides the 
Engagement performance issues 
Smaller Councils provide ready 
connectiveness 
turnout 
opportunity to address local 
noted 
access for engagement with 
issues through better democratic 
elected members and staff 
engagement mechanisms 
Sustainability into the future 
Difficulty in managing growth 
Challenge in sustaining small 
Lowest level of compliance for 
Small local authorities will struggle 
demands 
local authorities with limited 
freshwater sites nationally 
to meet growing service standards 
resources 
 
 
Re
R lev
le ance 
v
to t
o he
h  
e W
 
el
e lliln
i g
n ton
o  r
n eg
e ion
i
Hig
Hi h
 
 
Med
Me iu
i m
u  
 
Low
 
 
 
 
 
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4.  Future Trends 
 
In this section we consider national and international trends that are 
Underpinning the crucibles of change is ever advancing technology 
likely to influence the future state of the Wellington region. 
which continues to reshape organisational strategy.  In this regard 
McKinsey has identified ten key mega technology trends, including: 
4.1 Global 
Trends 
1. 
Value creation through the web will continue to move into 
McKinsey has identified five crucibles of change that will restructure 
the mainstream. 
the world economy for the foreseeable future16.  These include; 
2. 
Web technologies will continue to expand access to experts 
1. 
The great rebalancing as emerging countries begin to 
around the world. 
contribute more growth than developed ones. 
3. 
Continued demand around how technologies can be used to 
2. 
The productivity imperative - where developed world 
keep improving efficiency and effectiveness. 
economies will need to generate pronounced gains in 
productivity to power continued economic growth. 
4. 
The growing tool kit of smart technology that can be used for 
all sorts of applications. 
3. 
The global grid – with the global economy growing ever 
more connected with freer flows of capital, goods, 
5. 
Growing technology for capturing and analysing the vast 
information and people, which are creating an interlink 
amount of data being created. 
network that spans geographies, social groups and 
economies, in ways that permit large scale interactions at 
6. 
The importance of wiring for a sustainable world, given the 
any moment. 
ability of IT to eliminate carbon emissions through the 
application of technology. 
4. 
Pricing the planet – the next decade will see an increased 
focus on resource productivity, the emergence of substantial 
7. 
Organisations monitoring, measuring, customising and 
clean-tech industries and regulatory initiatives to address 
billing at a much more granular level, given the ability to 
rising demand for resources where supply is constrained. 
capture data about services supplied. 
5. 
The market state – which questions how distinct national 
8. 
Continued growth in the multisided business model, where 
entities can govern in an increasingly globalised world. 
services to one group of consumers can be supplemented 
by revenues from third parties. 
 
9. 
Innovation emerging from developing countries where 
                                            
technology is combined with extreme market conditions. 
16 Global Forces: An Introduction, June 2010 McKinsey Quarterly 
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10. 
Producing public good on the grid where technology is 
3. 
Older and bolder; and 
important in the evolution of new public goods and the role 
of government in shaping economies. 
4. 
It’s not easy being green. 
These trends will impact on the way Councils provide services in 
This local analysis is consistent with global thinking and highlights 
the future.  Taking water supply as an example, embedded senses 
key areas where Councils will have to evolve, particularly if they 
could be used to ensure that water flowing through the systems is 
wish to maintain competitive cities in addition to meeting the 
uncontaminated, safe to drink and identifies leaks while effective 
Government’s growth expectations. 
metering and billing for water ensures that the appropriate 
incentives are in place for efficient usage.   
4.2 International 
Cities 
Truly international cities are often defined by the activities and ideas 
Local Views on Mega Trends 
that are generated from within the city that have the ability to shape 
the world.  New York and London, as an example, can lay such a 
Recent work on the Wellington Regional Strategy and Wellington 
claim with a strong international image that encompasses diverse 
City’s 2040 project has identified similar trends to those highlighted 
cultural events, dynamic populations and commanding business 
in the McKinsey reports.  The Wellington Regional Strategy 
and financial clout.  Given this background, a number of broad 
published five external trends that it believed would affect the 
observations have been made about the nature of these cities, 
growth strategy for the region: 
including: 
1. Peak 
oil; 
1. 
The idea that an international city is tied more closely to 
2. Climate 
change; 
function than size. 
3. 
Competition internationally for the 25-45 age group; 
2. 
No international city exists in isolation, rather they are hubs 
for leaders in a network of centres that facilitate investment 
4. 
Global disruption and conflict; and 
and social development. 
5. 
Major shifts in national policies, e.g. energy, international 
3. 
There is no single policy which can lead to the emergence 
markets, transport and governance. 
as an international city.  Rather, becoming one results from 
numerous smaller policy goals which through effective, 
Wellington City Council more recently has commenced drafting its 
integrated planning in management, have achieved a high 
2040 strategy and has identified four key trends: 
level of innovation and implementation of best practice. 
1. 
Place is everything; 
2. Technology 
city; 
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Accompanying these broad observations, there are a number of 
•  Macro-economy:  Stable and sustainable. 
specific attributes which combine to underpin an international city.  
These ordinarily include: 
He went on to state that natural resources are a key source of 
competitive advantage, but we need to manage our resources more 
•  Economic power through industry and business concentration; 
effectively through: 
•  Intellectual capital, including universities and research centres; 
•  Deciding when to exploit non-renewable resources; 
•  Adequate infrastructure to service business and social needs; 
•  Setting limits on resource use that reflect social, cultural, 
•  Adequate social infrastructure which deals with critical 
economic and environmental goals; 
community concerns around health, education, housing and 
•  Allocating the remaining resource to highest value economic 
community safety; and 
use – now and over time. 
•  Enviable lifestyle characteristics. 
In terms of Resource Management Reform the Government has 
New Zealand’s relative isolation, size and the state of its physical 
recognised the need to tune up the resource management 
and social infrastructure creates a potential barrier to its cities 
framework through: 
becoming truly international.  However, it is evident that there are 
significant opportunities for New Zealand metropolitan areas to 
•  2009 Amendments to provide a streamlined and simplified 
collaborate to a much greater degree both within and across 
process; and 
metropolitan areas. 
•  “Phase II” reforms to examine better approaches for 
infrastructure, urban design and freshwater management, 
4.3 
Central Government Perspective 
among other things. 
John Whitehead17, Secretary to the Treasury, in a recent address to 
The Secretary stressed the importance of infrastructure investment 
the Local Government Chief Executives’ Forum, outlined the way 
given: 
forward for New Zealand to achieve its growth expectation. 
•  It is a key part of the Government’s economic growth 
In doing so he advised that raising New Zealand’s growth 
programme; 
performance and reducing our vulnerabilities will require consistent 
•  There is room for improvement at both the national and local 
and incremental improvements across many fronts, including: 
levels; and 
•  Business environment:  Tax, regulation; 
•  The Government wants to keep working with local government 
•  Investment:  Skills, innovation, infrastructure; 
to maximise the economic impacts of investments. 
•  Public sector:  Better, smarter public services; 
                                            
17 Speech to Local Government Chief Executives’ Forum, 18 June 2010 
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4.4 
National Economic Geography Perspective 
4.5 
The ‘Auckland’ Factor 
Philip McCann18, Professor of Economic Geography at Waikato 
In the lead-up to the recent local government elections, a number of 
University, in a recent publication, sought to address the reasons 
candidates observed that cities and districts outside of the Auckland 
why the country that appeared to have best practice growth driver 
region would need to increase their level of engagement with 
policies, was an average performer in the OECD.  McCann’s 
Central Government to ensure that their level of influence is 
argument is predicated on the interrelationship between geographic 
maintained. 
location, economies of scale and the diversity of production and 
Looking at a few of the comparators which will be a factor in the 
trade. 
level of influence, there are a number of significant contrasts as the 
He highlighted the growing realisation internationally of the role 
Wellington comparison highlights. 
played by cities in generating “agglomeration economies”.  
Evidence suggests: 
 
Auckland 
Wellington 
•  There are major advantages associated with industrial and 
Mayor 

8 plus Chair 
commercial clustering of high value added activities; 

CEOs 1 

  The geographical concentration of these types of activities is 
becoming more important over time; and 
Utilities: 
 
 
•  The importance of cities in shaping not only the spatial 
- Water 

1 bulk, 9 local 
distribution of activity but also the spatial distribution of 
productivity is beyond question. 
- Transport 

9 local 
McCann went on to highlight that all of New Zealand’s regions play 
Total Assets 
$32,440m 
$11,890m 
a critical role in the country’s exports, and therefore anything that 
limits accessibility and global engagement, damages the economy 
Total Opex 
$  1,785m 
$     835m 
as a whole. 
Total Capex 
$     807m 
$     273m 
A key inference to draw from McCann’s work is that it is vital for 
regions to operate integrated land use and transport planning 
Population 
Per graph 
Per graph 
regimes.  Further, operating competitive land use activities within 
Represented 
the same metropolitan areas, is likely to run contra to the 
agglomeration arguments and lead to low productivity.  Allowing 
 
competing industrial zones or clusters is an example of this. 
                                            
18 Economic geography, globalisation and New Zealand’s productivity paradox, 
University of Waikato, December 2009 
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2.  Technology  -  how this can be utilised to support productivity 
Usually resident population in 2006 census
improvements and growth? 
1,400,000
3.  Sustainability  -  how can the growing cost of resources be 
1,200,000
managed more effectively? 
1,000,000
4. Population 
800,000

How can the region accommodate growth equivalent to the 
600,000
addition of two Porirua Cities over the next 20 years; 
400,000

How to address the needs of the ageing population including 
200,000
a likely increase in demand for publicly provided goods and 
0
services; and 
Auckland Region
Wellington 
Christchurch City Wellington City
Hamilton City
Region

How to attract and retain younger talent. 
 
5.  International city attributes 
The opportunity presented by a stronger regional approach also 
potentially provides benefits beyond the ability to influence central 

How to facilitate industry and business concentration without 
government.  For instance, the annual spend of key central 
the benefit of a fully integrated land use plan; 
government service delivery agencies within cities and districts far 

How to grow and improve infrastructure to meet the 
exceeds that of local Councils.  Having a united pan-region 
combined needs of population change, technology based 
approach is likely to have a more direct impact on how agency 
industry and efficient transport of people, goods and 
expenditure is targeted within communities. 
services; and 
4.6 
Challenges for Wellington 

How the spend of the wider public service agencies can be 
efficiently and effectively targeted. 
This section on future trends highlights that the Wellington region 
faces similar challenges to many other regional and metropolitan 
Given these trends are well signalled, the region can plan for them.  
areas.  Globalisation and the ease with which both people and 
It is inevitable that change will occur.  The question is how the 
investment can move rapidly around the world, are challenges the 
Wellington region can best position itself to address future 
region will need to address if it wants to both ensure growth and 
challenges. 
influence the way growth occurs. 
 
Specifically the trends highlighted through this section pose several 
key questions: 
1.  Productivity  -  what steps can the region take to improve 
productivity? 
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5.  Current State 
5.1  
Current Governance Arrangements 
 
5.1.1 The 

Region 
 
The geography of the Greater Wellington region has been well established since the 1989 formation of the Greater Wellington Regional 
Council. This Review encompasses the local authority areas within the Greater Wellington Region shown below:  
 
 
Source: Greater Wellington Regional Council website 
 
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5.1.2  Greater Wellington Regional Council 
•  Porirua City Council; 
 
•  South Wairarapa District Council; 
The Greater Wellington Regional Council has a leadership role 
within the region and is responsible for the following statutory 
•  Upper Hutt City Council; and  
functions: 
•  Wellington City Council. 
 
•  Resource management (water quality and allocation, soil, 
Each Council provides local leadership, and importantly contributes 
coastal planning, etc.); 
to both the regional and national environment. 
 
•  Land management; 
The statutory functions of territorial Councils are: 
•  Biosecurity control of regional plant and animal pests; 
 
•  Community well-being and development; 
•  River management, flood control and mitigation of erosion; 
•  Environmental health and safety (including building control, civil 
•  Harbour management; 
defence, and environmental health matters); 
•  Regional land transport planning and contracting of passenger 
•  Infrastructure (roading and transport, sewerage, 
services; 
water/stormwater); 
•  Civil defence (natural disasters, marine oil spill); 
•  Recreation and culture; and 
•  Water supply to reservoirs;  
•  Resource management, including land use planning and 
•  Regional parks and forests; and 
development control. 
•  Economic development. 
All of the TLAs function under the Local Government Act 2002, and 
collaborate regionally through a combination of statutory 
The Regional Council has significant interrelationships across all of 
mechanisms such as the Regional Transport Committee and 
these functions with the territorial local authorities of the region. 
forums such as the Mayoral and Chief Executives. 
 
 
5.1.3   Wellington Region Territorial Local Authorities 
There are also a variety of other engagement and collaboration 
 
mechanisms, including those with Maori. 
The Territorial Local Authorities (TLAs) in the Wellington region are: 
 
 
Appendix C contains statistical and financial details for each of the 
•  Carterton District Council; 
Councils. The financial data relates to the 2009/10 financial year, 

being the most recent financial year.  
 
Hutt City Council; 
 
•  Kapiti Coast District Council; 
•  Masterton District Council; 
 
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From this data several general observations can be made: 
•  Water and Transport expenditure makes up a high percentage 
 
of each council’s expenditure. With the exception of the Greater 
•  Councils vary in size, and size can be measured in a number of 
Wellington Regional Council, these costs represent between 
different ways. This means that financial ratios should be 
47% and 62% of total expenditure. 
interpreted cautiously before assumptions are made; 
 
•  Councils vary in their dependence on rates as a source of 
5.2 Structural 
Issues 
income; 
 

Regional Strategic Framework 
 
Changes to the governance and servicing of key infrastructure, 
 
e.g. transferring transport function to a regional entity, would 
The regional strategic framework currently comprises two key 
severely impact on the critical mass of the small Councils; and 
elements: 
•  The political nature of Councils means that the outputs and 
 
outcomes of each council vary considerably. 
1. 
The Regional Council legislation planning framework for 
environmental and land transport strategies. 
The data also enables a number of specific observations to be 
 
made: 
2. 
The Wellington Regional Strategy which is a sustainable 
 
economic growth strategy developed by the region.  The 
•  Rates increases are variable, ranging from moderate to high; 
Wellington Regional Strategy also contains some of the 
•  District Councils are experiencing more rating stress than City 
elements that would be expected in a comprehensive 
Councils; 
regional strategic plan including transport, housing, urban 
design and open space. 
•  The Regional Council, aside from adjustments relating to major 
 
rail upgrade projects and oil price peaks for bus contracts, has a 
Current regional governance and implementation of strategic 
similar profile to the Cities; 
documents on a national level are compromised by a lack of binding 
commitment to action on agreed plans across constituent Councils.  
•  2010 rates revenue per resident ignoring Wellington City due to 
An example of this is that local land use planning does not reflect 
the impact of the CBD, do not indicate any significant difference 
regional growth strategies.  This is a critical planning and delivery 
between the cities and districts.  When this comparison is 
issue, which is accentuated by the lack of ‘binding’ agreements with 
moved forward to 2014, the districts begin showing a trend with 
central government.  The recent work between central and local 
the highest rates per resident; 
government relating to ‘leaking buildings’ may however be a 

catalyst for better linkages. 
 
The population served by each Council full time equivalent 
 
(FTE) staff member varies considerably between 140 and 283 
This position across the regions including Wellington is amplified by 
(excluding the Regional Council).  Also this ratio is higher for the 
the absence of an overarching regional vision, strategic plan and 
smaller Councils, potentially an indicator of less capacity albeit 
completely mandated planning framework.  As noted in section 4 of 
strongly related to the proportion of work contracted out which 
this report, this could be addressed through a regional “spatial 
differs across the Councils; and 
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plan”.  This avoids the need to reconcile strategies and plans 
•  Initiatives are identified but there is a lack of clarity about the 
horizontally and vertically across the wider council activities. 
level of commitment and funding; 
 

Wellington Regional Strategy 
 
The document is quite high level and initiatives are typically 
economically focused;  
In 2007 the Wellington Regional Strategy was signed off and the 

Wellington Regional Strategy Committee established consisting of 
 
There appear to be limited initiatives, and an emphasis on plans 
to do more plans; 
six Mayors of the region, the Chair of the Wellington Regional 
Council and selected members of the community.  This sustainable 
•  The role of Government as the largest ratepayer and potentially 
economic growth strategy aims to make the Wellington region 
customer in the region is unclear; and 
internationally competitive.  It is not however a detailed work plan.  
•  The individual Councils continue to fund separate economic 
It provides an overview of opportunities and requires achievement 
agencies and programmes19
through collaboration of the public and private sectors.  The 
strategy includes action plans for: 
A question arises as to how the strategy can shift the emphasis 
from preparing plans to achieving genuine collaborative decision-
1. Leadership 
and 
partnerships; 
making and progressing initiatives.  For instance, there is a vision 
2. 
Growing the region’s economies, especially export; and 
for town centres development within each sub region or centre, but 
there is no guidance as to how they can be strategically integrated.  
3. 
Good regional form. 
Stakeholder feedback has indicated there is a general level of 
Implementation of the strategy is constrained by the Committee’s 
disagreement over such matters such as the status of retail in each 
limited powers given they can only: 
area, and how they interact.   
•  Recommend investment to support actions; 
Broader feedback reinforces the view that the Wellington Regional 
•  Set out focus for the activity of delivery agencies such as the 
Strategy provides lists of ideas which lack substantive 
economic development agency (Grow Wellington); 
underpinning.  This feedback is consistent with regional 

collaborative initiatives often facing the risk of contributing parties 
 
Maintain contact with infrastructure providers to ensure they 
being able to opt out.  A manifestation of this problem in the 
meet the economic, urban form and social requirements within 
Wellington region is the retention and development of industrial 
their developments; 
land.  This can be identified regionally, but lacks a mechanism to 
•  Monitor progress; and 
allocate and enforce it locally, resulting in a breakdown in planning 
•  Undertake a review of the strategy. 
and ultimately development integrity. 
Full implementation of the strategy would require greater 
Transport 
investment than the parties are currently contributing.  In reviewing 
Transport nationally has undergone a number of changes and 
the strategy, a number of observations can be made: 
reviews. 
•  It contains a lot of planning, collaboration and research; 
                                            
19 There was an expectation that some individual local funding would continue. 
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Current problems occur at the strategy and funding levels.  The 
Regional Water Services 
critical issue for funding is the fact that transport is an integrated 
PwC20 has recently undertaken a review of the provision of the 
network and funding decisions by the region’s Councils and Central 
Wellington area’s water, wastewater and stormwater activities and 
Government need to be mandated, aligned and prioritised 
networks.  Currently each of the city and district Councils in the 
according to the regionally agreed strategy. 
region own their own networks for these assets, while the Regional 
The problems currently manifest themselves in a variety of ways, 
Council provides bulk water supplies for the metropolitan areas.  In 
including execution of services and projects that do not always 
addition to this the Wellington and Hutt City Councils utilise 
align, such as the balance between roading and public transport 
Capacity Infrastructure Services Limited, which is a joint venture 
and planning for the impact of new infrastructure on development, 
company owned by the Wellington and Hutt City Councils, to 
e.g. rail enhancements in the Kapiti Coast. 
manage services for the Three Water assets in Wellington, Hutt and 
Three Waters 
Upper Hutt cities.   
 
The review found a number of issues with the way these 
While water services are primarily provided through interrelated 
metropolitan councils operate the services.  If substantial gains are 
central infrastructure, ownership/structure and decisions are 
to be achieved, the Councils would need to rethink the approach to 
fragmented across different dimensions, including: 
the delivery of water services.  The review highlighted that the 
 

integration of the Wellington region’s water services is a goal that 
 
Geographically (8 Local network operators (LNOs); 
the Councils should seek to achieve.  In doing so, the region would 
•  Vertically (GWRC bulk water); 
achieve both horizontal and vertical gains through regionalisation.   
•  Functionally (water, wastewater, stormwater, environmental 
For instance, incorporating Porirua City Council is likely to provide 
regulation etc.); and 
management cost savings, and possible scale benefits in 
•  Management (5 LNOs, 3 CCOs). 
contracting for the purchase of goods and services.  This would be 
supplemented by vertical integration, whereby the bulk supplies 
Water is a major area of spend for most local authorities and major 
provided by the Regional Council would provide the opportunity for 
long-term investment decisions will need to be made about new 
gains through system optimisation and management by linking the 
bulk water facilities and enhancements to existing networks in the 
source of supply to the end customer.  This latter point is 
near future. 
particularly significant when looking to the future, given the 
We have been advised that the Regional Council has been 
impending need for a new water source.   
developing a Water Strategy which is still in the drafting stage, but 
is not currently intended to be a comprehensive and overarching 
Three Water strategy. 
 
 
                                            
20 Capacity Infrastructure Limited and Wellington Region Water Services, 
 
June 2010 
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In pursuing a strategy for the regionalisation of water services, the 
overarching environmental policy and regulatory framework 
report also highlighted that an amalgamated entity, although 
whereas the city and districts are responsible for management 
requiring management and control over the function, would not 
policy.  All Councils are involved in waste reduction initiatives.  
necessarily have to own the assets, which could remain in the 
Seven of the Councils individually or jointly manage four separate 
integrating Council’s books. 
landfills.  This compares with one landfill in the Canterbury region 
Irrigation 
which enables it to achieve integration benefits similar to those 
described for water. 
Irrigation is becoming a significant issue for the Wairarapa sub-
region with potential significant economic benefits available if the 
Regional Facilities 
broader governance, ownership and funding issues can be 
Currently, local and regional government in Greater Wellington 
addressed. 
provide and maintain facilities that result in local, regional and 
Preliminary studies commissioned by the Wairarapa Irrigation Trust 
national benefits.  These include: 
have indicated significant potential for irrigating land that does not 
•  Regional stadia (Westpac); 
currently have access to water in the Wairarapa sub region.  
•  Sub-regional stadia (Memorial Park, Masterton); 
Addressing this need however, is complex given the number of 
stakeholders, and the fact that it is difficult to fund this type of 
•  Performing arts organisations (such as the Symphony 
infrastructure without a certain income stream. 
Orchestra); 
To progress matters, a leadership group has been formed called 
•  Events (such as the NZ International Arts Festival, Rugby 
Wairarapa Irrigation, with representatives from the regional EDA, 
Sevens and Wearable Arts); 
the Wairarapa Councils, iwi, the Regional Irrigation Trust and the 
•  Museums and attractions (such as Te Papa and Wellington 
Regional Council.  The leadership group is currently seeking 
Zoo); and 
information, issues and views around viability, options, ownership 
•  Performing and concert venues (such as the Wellington 
and funding.  We understand that the first hurdle is to complete the 
Convention Centre). 
necessary background work through to the resource consenting 
stage, which the Regional Council is facilitating.   
Some facilities, such as Westpac Stadium, are considered to be of 
regional benefit and are subject to some regional arrangements 
The major hurdle however, to the implementation of appropriate 
such as the Regional Council rating for the Westpac Stadium loan.  
infrastructure will be funding.  Given the size of the requirement 
Difficulties emerge when facilities are funded by a single Council, 
which has been estimated at around $200 million, it clearly would 
where the benefits are regional or potentially national in nature.  We 
have to be supported as a regional project with the backing of the 
have been advised that this is a current issue and point of 
wider Wellington Council grouping. 
contention amongst the Councils, who are working collectively to 
Waste Management 
resolve the matter. 
Responsibility for waste management is shared between the city 
These issues and the need for future regional facilities has resulted 
and district Councils.  The Regional Council is responsible for the 
in debate about what should be funded locally or regionally, and the 
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appropriate mechanisms to fund current and future regional 

Joint procurement of archives; and 
facilities. 

Building control which had been put on hold pending the 
In this regard, a critical success factor that needs to be agreed is 
Building Act changes which have been recently published. 
how to deliver agreed facilities and services at the right level (local, 
•  Libraries have been making integration progress but 
regional and national) and with sufficient and secure funding. 
independently of the shared services initiative. 
We note in the Auckland context, the issue of equitable funding was 
While a range of initiatives are being considered as opportunities for 
a particular point of irritation which activated influential recreational 
regionalised shared services, it is evident that there is a lack of 
and cultural groups to lobby Central Government.  The inability of 
incentive for collaboration, leading to low prioritisation of effort and 
the Councils to collaborate led to Government taking this issue out 
inadequate resourcing and funding. 
of their hands with the introduction of a regional amenities bill. 
The real issue is not the governance or structure, but the task of 
We understand that the Wellington Mayoral Forum has agreed to 
developing supporting business cases, addressing change 
look at the regional amenities bill approach adopted in Auckland. 
management issues, and then implementing the change.  This 
Regional Shared Service Delivery 
requires leadership at a political and executive level to drive the 
Current progress reported to the Regional Chief Executives in July 
change management programme required. 
201021 highlighted that: 
Regional Spatial Plan 
•  Progress is being made but success tends to be in fringe areas 
not impacting core organisation form.  These areas include 
Section 3.4.6 of this report considered the importance of city 
insurance, elections, procurement and emergency 
regions adopting a spatial planning regime as a critical factor in 
management; 
ensuring regional integration and coherence across the four 

wellbeings. 
  Other initiatives appear to be making limited progress or have 
become contentious, including: 
The diagram overleaf portrays the current planning framework 

Rates and billing, where willingness to change only 
within the context of a regional plan.  There are a number of gaps 
extends to external service aspects, e.g. rates printing, 
shown as question marks despite the intent of LTCCPs to create a 
mail outs; 
balance across the four wellbeings.  In addition, these gaps are 

Waste management which is going through an 
exacerbated by the non binding nature or “subsidiarity” of plans that 
assessment process; 
sit below or alongside strategy.  It is also noted that there must be a 
regional vision from which spatial plan strategies can be coherently 

IT which is an advisory function only and limited to 
developed. 
initiatives driven by shared services;  
                                            
21 Wellington Region Shared Services Programme, report to Regional Chief 
Executives’ Group, 23 July 2010 
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Regional Planning: Spatial Versus Current Approach 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Other key regional subsidiary plans incorporate fresh water, coastal, soil and pest management 
2 Porirua City Council’s Village Plans are an example of local level plans that could fit within a spatial planning hierarchy 
3 Hutt City Council’s District Plan considers the RPS, RLTS and Wellington Regional Strategy
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link to page 39  
6. Governance Issues 
 
 
6.1 
Issues Raised in Councillors’ Workshops 
•  Lack of prioritisation and focus of regional projects; 
 
•  Retention of local governance and decision-making; 
The facilitated workshops undertaken with each of the Councils 
drew out a broad range of issues and opportunities.  Although there 
•  The focus of the Wellington Regional Strategy on regional 
were a number of local differences, there was a reasonable degree 
economic growth without recognising the other well-beings; 
of commonality across the Council workshops, and the Councillors’ 
•  Variable mandate and ownership of the Wellington Regional 
observations on the six key themes.  These key themes were: 
Strategy amongst the Councils; 
 
•  Regional strategy and planning; 
•  Concept of subsidiarity not applying, i.e. cannot change 

strategic principles or intent from the level above (WRS over 
 
Economic development; 
individual Council plans); 
•  Transport; 
•  Engagement of Councillors in regional decision-making; and 
•  Three Waters; 
•  Lack of integration across individual Council strategic and 
•  Other infrastructure; and 
district plans22
•  Service delivery. 
2. Economic 
Development 
A number of the observations were also consistent with the studies 
 
that have been undertaken nationally as summarised in section 3 of 
•  The need to integrate economic development with the other 
this report.   
well-beings; 
 
•  Tapping the irrigation potential of the Wairarapa sub-region; 
6.1.1 Issues 
 

•  Lack of linkage of Grow Wairarapa with Grow Wellington
Key issues highlighted across seven categories included: 
•  Grow Wellington being seen as too focused on Wellington City 
 
and not other town centres; 
1. Regional 
Strategy 
 
•  Insufficient funds to invest in economic development; 
•  The regional vision and the role of their respective Councils is 
•  Spend being spread across too many small projects; and 
generally not clearly understood; 
•  Lack of linkage into the long term vision. 
•  An ongoing  relatively low level of Wairarapa input into the 
Wellington Regional Strategy; 

                                            
 
Lack of linkage of economic initiatives into the Wellington 
22 Recognising however, that the Masterton, Carterton and South Wairarapa 
Regional Strategy; 
District Councils have developed a combined district plan 
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link to page 40  
3. Transport 
5. 
Other Regional Infrastructure 
•  Governance reflecting the integrated regional nature of the 
•  Equitable funding mechanisms across the region; 
infrastructure; 
•  Duplication; and 
•  Funding and growth demands; 
•  The need for an equitable approach to regional funding. 
•  Regional prioritisation of projects; 
6. Service 
Delivery 
 
•  Regional Transport Strategy being overridden by the New 
Zealand Transport Agency; 
•  Customers not respecting political boundaries; 
•  Funding for rural roads; 
•  Small gains to date from regional shared services initiatives; 
•  Passenger rail from Wairarapa to Wellington;  
•  Inefficiencies of multiple rating agencies; and 
•  Integration transparency and collaboration across modes and 
•  Community demand for delivering services locally. 
corridors; and 
7. Local 
Democracy 
•  Airport size, scale and capacity23
•  Value placed by constituents on the accessibility of elected 
4. Three 
Waters 
members in the rural districts; and 
•  Lack of agreed Three Water regional strategy; 
•  Lack of community understanding of the role of the Regional 
•  Irrigation in the Wairarapa; 
Council. 
•  Economies of scale and efficiency; 
6.2  Issues Raised by Council Executives 

 
 
Affordability of stormwater infrastructure; 
Key issues highlighted included: 
•  The requirement for a new water source; 
 

1. Regional 
Vision 
 
Flood protection strategy and management; 
 
•  Regional approaches missing local priorities, e.g. sustainability, 
•  Lack of clarity; 
conservation; 
•  The need for greater integration of regional vision and strategy; 
•  Funding; and 
•  The need to better integrate the sub-regional areas into the 
•  Different service models across the Councils, and lack of 
overall vision and plan e.g. role of Hutt Valley; 
consistency. 
•  Councils not delivering on regional outcomes; and 
 
•  Decisions not being able to be driven through the Wellington 
Regional Strategy. 
                                            
23 The Wellington airport is addressing these challenges through its 2030 Plan 
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                40 

 
2. Governance 
•  Active and connected communities; 
•  Ownership of the Wellington Regional Strategy; 
•  Provision and funding of infrastructure; 
•  Confusion around leadership and accountabilities; 
•  Absence of a regional infrastructure plan outside of transport; 

and 
 
Inability to develop an overall regional spatial plan and mandate 
Councils to implement it; 
•  Support for a regional infrastructure body. 
•  Legitimate role for a regional entity where regional functions 
6. Shared 
Services 
could be funded and delivered; 


 
Shared services to date reliant on service areas which do not 
 
Fragmented decision-making; and 
impact significantly on the organisation, e.g. libraries; 
•  Shared services leading to the potential to strand overheads 
•  Optimising service delivery regionally with separate and 
within Councils, necessitating organisational change. 
individual configurations; 
3. 
Central/Local Government Collaboration and 
•  Divesting assets to CCOs to facilitate regional delivery where it 
 Coordination 
makes sense to do so; 
•  No single consistent voice for the region; 
•  Shared services being difficult to implement within existing 

Council arrangements across all nine entities; and 
 
Limited collaboration; 


 
Perception that the weight of Auckland will disadvantage 
 
Lack of resourcing and funding to make the initiatives happen. 
Wellington; and 
7. 
Capabilities and Capacity 
•  Central government relationship complicated by differing agency 

geographical splits across the region. 
 
Ability of smaller Councils to address increased standards, e.g. 
water and wastewater; 
4. Economic 
Development 
•  Duplication across administrative facilities; and 
•  Opportunity to achieve greater integration through Grow 
•  Employability of skilled specialist staff in outlying Council areas. 
Wellington;  

8. 
Efficiency and Effectiveness 
 
Leveraging off events around the region; and 


 
Opportunity to address inefficient planning and regulation. 
 
Limitations under current organisation configurations; 
•  Leveraging regional opportunities; and 
5. Community 
Priorities 
•  Maximising the utilisation of Council assets. 
•  Economic and community development; 
•  City and town centre revitalisation; 
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•  The differing philosophies of each of the Councils was leading 
9. Local 
Democracy 
to different outcomes within the same economic region, e.g. use 
•  Community understanding of local and Regional Council 
of debt and its application to infrastructure; and 
framework; 
•  There is a perception that Councils are too focussed on today 
•  Reliance on LTCCP for community engagement with limited 
and not thinking about tomorrow. 
success; and 
2. Governance 
•  Current community board model seen by some as weak. 
•  There was a clear preference for a single unitary authority for 
 
the entire region, subject to addressing issues of local 
6.3  Feedback from External Stakeholders 
representation; 
 
•  Political boundaries not matching economic boundaries with the 
Each of the nine Councils nominated key stakeholders (listed in 
example of the outer areas being inextricably linked to the inner 
Appendix D) to be consulted during the course of the Review.  The 
areas for employment and education;  
individuals nominated were very knowledgeable about their local 
•  There was a need to understand the new realities of a united 
cities and districts, in addition to the operation of the region.  It was 
Auckland’s heightened influence; 
apparent from these discussions that there was a clear belief that 

the status quo was untenable going forward.  There was also a 
  Councils being afraid to change due to concerns around the 
strong view that the small Councils had significant human resource 
effect regionally beneficial initiatives would have on their local 
areas, e.g. job losses in an area due to shared services 
and financial capability issues which would inevitably lead to further 
initiatives;  
council consolidation. 
 
•  Pre-eminence of local decision-making slowing regional 
Key issues highlighted included: 
initiatives and progress; 
 
•  Limitations in people capability to spread across the Councils; 
1. Regional 
Vision 
and 
•  Greater Wellington is a region but needs to be approached in an 
•  The perceived linear relationship between Council size and 
integrated manner; 
capability, as depicted overleaf.  The larger the Council, the 
•  There was a perception that there was goodwill for collaboration 
greater the capability at both political and staff levels, and vice 
across the region, but it was relatively shallow and would have 
versa for small Councils. 
limited ability to make change where it was needed; 
•  Examples where collaboration was perceived as faltering 
included competition for business zones, inter-council 
opposition to Transmission Gully, progress on shared services, 
and reluctance to seek advice from other Councils; 
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Coun
C
cil si
oun
ze
z
•  Grow Wellington not proactively dealing with immediate issues, 
e.g. surplus CBD office space and the impact of Transmission 
Larg
Lar e
Gully on logistics businesses; 
•  Funding for irrigation, once it has been progressed through to 
the resource consent stage; 
•  Funding of tourism which has not been agreed to be funded 
regionally; 
•  Regulation being an inhibitor to development with different rules 
Small
Coun
C
ci
oun l Cap
l
ab
 Cap
ilit
li y
and regimes for businesses across the region;  
Low
High
 
 
•  Cost and reliability of energy in the Wairarapa; and  
3. Economic 
Development 
•  Opportunity to build stronger linkages between Westpac 
•  Wellington Regional Strategy/Grow Wellington was perceived 
Stadium events and Grow Wellington’s programme. 
as too Wellington City orientated e.g. Asian visitor attraction 
4. Facilities 
programme not involving other cities and districts; 
•  An inequitable funding and sharing of the cost of provision; 
•  Duplication of economic development spend by local councils 
due to a perception that they were not benefiting from the 
•  Competition between the cities, e.g. Pataka Cultural Museum 
regional agency or that the regional agency was not able to 
and Te Papa; 
deliver all required levels and types of activity; 
•  Optimisation of facilities, e.g. Wellington indoor community 
•  Clarity around what economic development is undertaken at a 
sports centre being based in Kilbirnie which was understood to 
regional versus local level; 
be the best site within Wellington City, but a question arose as 
to whether it was the best site for the region if it was to be used 
•  Emphasis on the film/high tech industries at the expense of 
as a regional facility; 
growing wider capability in the region; 
•  Inability to match transport timetables to major stadium events; 
•  Wellington Regional Strategy perceived as too focused on 
and 
planning, and not focused enough on practical initiatives and 
their delivery, e.g. Bright Ideas Challenge being converted into 
•  Need to build on the very liveable environment created by 
specific actions; 
Wellington City by investing in the wider region to remain 
competitive, attractive and vibrant in the eyes of skilled 
•  Major gaps in strategy and coherence around infrastructure; 
migrants, e.g. improved access and facilities for city residents to 
•  Transport gaps relating to north and east-west links;  
enjoy in the broader region. 
•  Central government as the largest ratepayer and customer of 
the region not receiving due recognition in the plans; 
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5. Local 
Democracy 
 
•  Maintenance of local democracy, particularly if there was 
change, but through more innovative mechanisms than 
community boards, e.g. Porirua Village concept, properly 
resourced ward based electoral representation. 
6.4 Issue Analysis 
 
We have aggregated and filtered the various issues raised at the 
Council workshops, the meetings with Council Executives and the 
stakeholder feedback, and provide our comments in the following 
section. 
 
 
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                44 

 
Issue PwC 
View 
1. Regional 
Strategy 
Serious consideration should be given to establishing a spatial 
•  Regional vision not well understood; 
planning approach through vertical and horizontal integration of vision, 

strategies and plans across all wellbeings and regional/local levels. 
  RPS is a product of the RMA; 
The current legislative approach to planning processes such as the 
•  Wellington Regional Strategy does not generally link to other 
Regional Policy Statement (RPS) is cumbersome and time 
plans; 
consuming.  The Region should explore the merits of an overriding 
•  Prioritisation and focus of regional projects; 
spatial planning approach to facilitate agreed and mandated regional 
•  Gaps in planning framework; 
priorities.  This will require a level of collaboration and agreement 

beyond that currently evident amongst the Councils. 
  Variable mandate of agreed plans; 

The Regional Strategy Committee could be utilised to address broader 
  Integration across individual Council strategic and district 
issues than economic development but the question of mandate would 
plans; 
need to be addressed for it to be effective.  Addressing the issue of 
•  Regional good being subservient to local demands. 
subsidiarity of local to regionally agreed plans and priorities is critical 
for regional progress. 
2. Governance 
Other leadership models should be explored, e.g. greater utilisation of 
•  The region could be better positioned to influence Central 
the Regional Strategy Committee process.  
Government and other stakeholders. 
•  Legitimate roles for a regional entity for regional functions, 
There needs to be greater leadership at a regional level to drive 
funding and delivery. 
change and establish regional functions where it makes sense to do 
so e.g. establishment of a vertically and horizontally integrated water 
utility for the metropolitan areas of the region. 
•  Mismatch of political and economic boundaries. 
Councils in lieu of any governance reform will have to commit to a 
stronger regional collaboration to address the lack of economic 
coherence. 
•  Retention of local governance and decision-making. 
There are different models by which appropriate engagement with 
communities of interest can be retained or enhanced.   
The key is to ensure the models reflect the local value sets and 
drivers, e.g. South Wairarapa versus Porirua, while not being 
inconsistent with or undermining regionally agreed strategy. 
An example of how this can be initiated is the Porirua Village Strategy 
which has been successful in engaging local level communities. 
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Issue PwC 
View 
3. Economic 
Development 
EDAs are the service delivery arm of the Councils.  They require 
•  Linkages of EDAs and EDA plans e.g. Grow Wellington and 
coherence in their overall planning and funding.  EDAs should also be 
how it links to Wairarapa, Kapiti; 
required to take account of “statements of expectations” produced by 

the Councils jointly to ensure they are truly aligned before EDAs 
 Insufficient 
funding; 
respond with their respective SOIs. 
•  Spend spread across too many small Council projects. 
•  Grow Wellington is perceived by some as too focused on 
Successful city regions require a vibrant and successful CBD.  There 
Wellington City and the CBD. 
needs to be a transparent prioritisation and agreement about how the 
Wellington City CBD should be treated relative to the region including 
its interactions with other CBDs in the region.  Also how Grow 
Wellington should interface on wider regional economic development. 
•  Central Government’s role as the largest ratepayer and 
Understanding Central Government’s role should be a strategic 
customer in the region. 
bottom line for the region given it can significantly influence the shape 
of decision making, e.g. the transfer of departmental functions to other 
districts could positively impact local areas and transport infrastructure 
whilst negatively impacting the Wellington City CBD. 
•  Inefficient planning and regulation across nine different 
The Auckland reforms have identified that the current number of 
authorities. 
regulatory forms total 800 across the eight Councils and that these will 
be reduced to 150.  This highlights the potential cost to citizens of 
doing business across Council boundaries.  Developing an integrated 
district plan and a single building authority for the region are two 
measures that the Wellington region should take to address this. 
4. Transport 
There is a general view, although not unanimous, that transport 
•  Governance is not integrated regionally; 
operates well with priorities agreed for the next ten years.  There is 

also a general view that integration of transport along the lines of 
  Regional prioritisation of projects; 
Auckland Transport, would bring limited benefits. 
•  RTS being overridden by the NZTA; 
Issues included future funding, prioritisation and integrated regional 
•  Lack of funding for local roads; 
planning.  However the key issue appeared to be the relationship 
•  Integration transparency and collaboration across roads and 
between local and Central Government.  Adopting a spatial planning 
corridors. 
approach would initiate the appropriate discussions to ensure better 
alignment and the possibility of a “binding” agreement between the 
parties. 
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                46 

 
Issue PwC 
View 
5.  Water and Wastewater 
There is a need to develop an overall regional strategy to map out the 
•  No regional strategy; 
future direction of the Wellington region’s Three Waters.  The 

development of a draft Waters plan by the Regional Council could 
  Economies of scale and efficiency across LNOs; 
provide the building blocks for this strategy. 
•  No structural integration between “bulk” and retail assets; 
In terms of delivery, there appears to be a case for aggregation to 
•  Funding small schemes in the Wairarapa; 
address funding, efficiency and effectiveness.  The Royal Commission 
•  Addressing the need for a new water source; 
concluded in its recommendations that an integrated water and 

wastewater entity would lead to better demand management, better 
  Different service models and approaches; 
environmental management, and cost savings. 
•  Desire of Kapiti Coast to maintain independent provision and in  The desire of Kapiti to remain independent will be problematic, and 
the process restrict growth; 
needs to be addressed if the district is seen as a growth area for the 
• Addressing 
water 
standards. 
Wellington region. 
The recent PwC Wellington Region Water Services draft report has 
clearly identified the opportunity for a step change in this area if the 
Councils agreed to vertically and horizontally integrate these utility 
services.  This would lead to cost savings, efficiencies and asset 
optimisation benefits. 
6. Stormwater 
There is a need for good policy frameworks to address stormwater 
•  Affordability of stormwater infrastructure. 
affordability due to its integration with city shape and form.   
Collaboration is also required in conjunction with good catchment 
planning to achieve jointly agreed flood protection priorities. 
7. Irrigation 
Irrigation has been identified as a major economic development 
•  Implementing irrigation schemes in the Wairarapa. 
enabler by the Government.  As the project moves towards the critical 
funding stage, the combined resources of the region could further 
assist the three District Councils in the Wairarapa. 
8.  Other Regional Infrastructure 
Integrated spatial planning and decision-making would enable the 
•  Equitable funding of regional facilities; 
transparent prioritisation and debate of those facilities which are 

regional. 
  Inconsistencies in the equity of funding regional facilities, e.g. 
Westpac Stadium versus Masterton Memorial Rugby Park; 
Promotion of an agreement or legislation for compulsory funding 
based around the agreed regional position would lock in the 
• Duplication 
of 
services; 
appropriate equitable funding mechanism. 
•  Maximising the utilisation of assets. 
PricewaterhouseCoopers 
                47 

 
 
Issue PwC 
View 
9. Service 
Delivery 
Service delivery will be significantly enhanced through a 
•  Customers not respecting political boundaries; 
transformational and well resourced approach to shared services.   
•  Inefficiency of multiple rating agencies; 
Some gains have been made but there are many more opportunities if 
the Councils are truly committed to improving the current situation.  
•  Small gains achieved to date from shared services, e.g. only 
The key to delivering on these opportunities is a decisive leadership 
two Councils with an integrated District Plan; 
approach to break through the road blocks that are placed in the way 
•  Divesting services to CCOs to facilitate more efficient delivery 
of significant change. 
where it makes sense to do so; 
Leadership also needs to address:  
•  Duplication of administrative facilities; 
•  “Stranded” assets and resources in the organisations following any 
•  Ability to attract specialist staff in outlying areas. 
agreed change; and 
•  Councils holding back on transformational change due to the fear 
of service impacts. 
 
 
 
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7.   Opportunities 
 
 
This review has identified a number of opportunities which, if 
•  Building on sub-regional initiatives/sharing achieved to date, 
pursued in combination with a programme to address key issues, 
e.g. landfill, district planning, water and wastewater; 
would strengthen the Wellington region and the well-being of its 

citizens now and into the future.   
 
Improving efficiency and service delivery through the 
 
prioritisation and adoption of common IT standards, portals and 
Structural change options although not considered in any detail in 
software; 
this report are highlighted in the next section.  The scope of our 
•  Defining and optimising the place of the Wairarapa sub-region 
Review was to focus on the consideration of issues and 
within the greater Wellington region; 
opportunities. 
 
•  Maintaining and reinforcing local identity and influence in 
In the course of the Review, the following generic opportunities 
decision-making while achieving the benefits of greater regional 
were identified: 
collaboration and service delivery; and 
 

•  Considering the role of central government as a major employer 
 
Developing a single spatial planning regime for the region; 
and ratepayer to understand future potential collaboration 
•  In lieu of governance changes, developing an approach to 
opportunities. 
ensure agreed regional priorities are mandated and adopted as 
 
policy at the local level and executed; 
The initiatives overleaf have been derived taking into account the 

current status of the elements and overlaying sector guiding 
 
Utilising technology to enable economic development at a local 
practice, current reforms and emerging trends. 
and regional level e.g. building on the metropolitan broadband 
infrastructure already in place along the rail corridors; 
Implementation of further regionally based activities, e.g. rating, 
water management, will impact on the critical mass of the smaller 
•  Regionalising key infrastructure, e.g. transport and water 
Councils in particular.  This will need to be an overriding 
management; 
consideration during any change process. 
•  Reforming regional and local service delivery, including 
 
economic development, so that delivery is based on who can 
 
best achieve the outcomes; 
•  Operating and leveraging services and assets as a single region 
while maintaining local connectivity; 
 
 
 
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Regional Strategic Framework 
Utilisation of a regional forum comprising regional and local government representatives to:  
−  develop a single coherent regional vision and strategic framework; 
−  develop a “spatial” implementation plan with specific actions, timeline and accountabilities; 
− oversee 
implementation; 
−  consider how efficiency could be enhanced through the utilisation of CCO operations; 
−  make recommendations to Central Government agencies on their policy and expenditure; 
−  develop a single integrated district plan for the region; and 
−  agree how this will be implemented in a binding manner on all the participants including a possible 
binding agreement between local and central government on priorities. 
Economic Development 
Explicitly identify, debate and resolve all issues that result in local competition or resistance to change, 
e.g. retail strategy, industrial / commercial area zoning, economic clusters, government department 
hosting. 
Wellington regional economic development strategy once agreed should be adopted by the Councils to 
implement. 
Develop an agreed understanding of the role of the different communities and areas in an integrated 
regional strategy. 
Develop an agreed understanding of the role of central government as the major rate paying regional 
customer. 
Explore the opportunity for technology based opportunities given the broadband infrastructure already in 
place along the Hutt rail corridor. 
Transport 
All Councils give effect to the Regional Land Transport Strategy (RLTS). 
Councils consider the merits of a national bulk funding arrangement with NZTA consistent with the RLTS. 
Councils review the merits of a regional transport entity subject to standard CCO provisions. 
This could incorporate regional arterials and rail infrastructure could be transferred to the transport entity. 
Three Waters 
Regional water forum established to produce a Three Waters strategy (including irrigation) which parties 
must give effect to. 
Establish a jointly owned vertically and horizontally integrated water entity. 
Consider as a region the approach to how funding the irrigation opportunity can be progressed. 
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Regional Facilities 
All Councils fund designated regional facilities, according to the agreed regional plan. 
Regional Services 
Define and agree activities which are best delivered locally and regionally to consider options for more 
effective and efficient delivery.  Generic back office functions, e.g. rating to be divested into a dedicated 
regional shared services CCO, subject to business case.   
Waste management and landfill management to be considered on an integrated regional/sub-regional 
basis, through a CCO framework. 
Consideration of the impact of technology as a major service and efficiency transformation tool, could be 
harnessed regionally to improve effectiveness and efficiency of services. 
Consider leveraging off changes currently occurring in the wider legislative environment e.g. RMA, 
Building Act. 
 
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link to page 52

 
8.  Governance Options 
 
Although the identification of governance options was not strictly 
part of the scope of our Review, they were repeatedly raised during 
our discussions.  We have not analysed the governance options in 
detail or made a recommendation given they are intended to be 
reviewed in detail subsequent to the October 2010 elections. 
 
There are six governance options to consider: 
 
1. Status 
quo; 
2. Strengthened 
Regional 
Council; 
3. Logical 
clusters; 
4.  Two tier local government (i.e. regional services delivered by a 
single regional Council.  Local services delivered by local 
Councils with all services funded through a single regional rating 
system); 
 
5.  Sub regional unitary authorities (Wellington and Wairarapa)24
 
and 
6.  A single regional unitary authority. 
Each option has benefits and limitations.  We have undertaken a 
 
high level assessment of each option against the following criteria: 
Each option needs to be considered in the context of the region-
 
wide opportunities identified.  A number of these opportunities could 
• Regional 
leadership; 
be considered adjuncts to options e.g. a stronger regional planning 
• Duplication; 
framework and substantive shared services.  If pursued, these 
• National 
engagement; 
opportunities would drive changes to all of the options, including the 
• Local 
engagement; 
status quo because they fit into a broad spectrum of regional 
• 
Funding allocation and priorities; 
service delivery. 
• 
Fragmented decision-making; and 
 
• 
Lack of a regional framework. 
 
 
 
 
 
                                            
24 Noting that other combinations are possible 
PricewaterhouseCoopers 
                52 

 
1.  Status Quo
2.  Strengthened Regional Council
Communities
Communities
WCC
KCDC
WCC
KCDC
GWRC
HCC
MDC
HCC
MDC
Regional 
GWRC
Functions:
UHCC
CDC
- Water
UHCC
CDC
- Transport
- Major 
PCC
SWDC
PCC
Facilities
SWDC
- Spatial
Planning
3.  Local Clusters
Communities
Existing
GWRC
WCC
PCC
KCDC
HC
UHCC
SWDC
CDC
WDC 
Various
GWRC
WCC
West Coast
Hutt Valley
Wairarapa
combinations
possible
GWRC
Wellington/Porirua
KCDC
Hutt Valley
South Wairarapa
North Wairarapa  
 
PricewaterhouseCoopers 
                53 

 
4.  Two Tier Local Government
5. Sub Regional Unitary Authorities
Community
Community
Communities
Wellington
Wairarapa
- Regional Rating
GWRC
- Delivery of 
(Note:  Other combinations  are possible)
Regional Services
WCC
KCDC
6. Regional Unitary Authority
HCC
MDC
- Local Councils operating
local services and
Community
UHCC
CDC
community functions
PCC
SWDC
Greater 
Wellington
Council
13
 
 
PricewaterhouseCoopers 
                54 

 
High Level Assessment of Options 
 
 
 
Funding 
Fragmented 
Lack of 
 
Regional 
National 
Local 
Allocation 
Duplication
Decision -
Regional 
Leadership
Engagement
Engagement
and 
making
Framework
Priorities
Nine 
sovereign 
Ongoing 
authorities 
9 regional 
Multiple 
Some 
issues of 
with no 
leaders -
organisations 
framework in 
1. Status quo
No change
No change 
capacity and 
primary/ 
diffuse 
and 
place, non-
responsibility 
secondary 
leadership
processes
binding
for funding
decision 
making 
mandated
Multiple 
2. 
Single 
organisations 
Better 
Regional 
Engagement on 
Strengthened 
regional 
with less 
prioritisation of 
Fragmentation 
framework 
Improved
local issues 
Regional 
leader on 
duplication of 
regional 
improved
enhanced; 
only
Council
certain issues
regional 
projects
non-binding
functions
Unlikely to 
Unlikely to 
Several 
Unlikely to 
Framework 
Multiple 
materially 
materially 
regional 
change public 
Some 
may improve; 
3. Logical 
organisations 
improve 
improve 
leaders -
perception or 
fragmentation  
lack of binding 
Clusters
with less 
current 
current 
diffuse 
citizen 
remains
mandate likely 
duplication
engagement 
regional 
leadership
involvement
to remain
issues
issues
Multiple 
Regional 
Single 
organisations 
framework 
4. Two Tier 
Engagement on 
Prioritisation 
regional 
with less 
Fragmentation 
enhanced with 
Local 
Improved
local issues 
of regional 
leader on 
duplication of 
improved
possible 
Government
only
projects
certain issues
regional 
binding 
functions
mandate
PricewaterhouseCoopers 
                55 

 
High Level Assessment of Options (continued) 
 
 
 
Funding 
Fragmented 
Lack of 
 
Regional 
National 
Local 
Allocation 
Duplication
Decision -
Regional 
 
Leadership
Engagement
Engagement
and 
making
Framework
 
Priorities
 
Regional 
 
Funding of 
 
5. Sub 
Likely to be 
Likely to 
framework will 
regional 
Substantial 
more effective 
change public 
Fragmentation 
have to be 
Regional 
2 regional 
activities 
duplication 
with two sub-
perception and 
substantially 
recreated, 
Unitary 
leaders
remains an 
removed
regions 
citizen 
reduced
lack of binding 
Authorities
issue and 
engaging
involvement
mandate likely 
more costly
to remain
Authority able 
Single multi-
to accept 
Single 
Single multi-
functional 
New model of 
responsibility 
6. Regional 
regional 
functional 
authority able 
Single point of 
community 
for regional 
Fragmentation 
Unitary 
leader and 
authority 
to plan  and 
engagement
involvement 
and local 
eliminated
Authority
leadership 
without 
mandate 
required
activities and 
structure
duplication
regional 
make trade-
framework
offs
PricewaterhouseCoopers 
                56 

 
We are firmly of the view that some change of a structural nature 
provides the opportunity to be more effective than the collaborative 
model if the region wishes to: 
•  Achieve a unified vision and plan; 
•  Enable better governance and decision-making; 
•  Be cost effective and efficient; 
•  Deliver equitable impacts across the region; and 
•  Be resilient and sustainable into the future. 
PricewaterhouseCoopers 
                57 

 
9.  Conclusions and Next 
 
 
 Steps 
 
 
 
The Wellington region is well positioned to enhance the well-being 
Analysis of the Council workshop and executive meeting data in 
of the region, while addressing the current external drivers of 
particular, highlighted that: 
change: 

 
 
As individual civic entities, the Councils are functioning well and 
•  The emerging changes in the external operating environment; 
providing good services to citizens in areas such as recreation 
infrastructure and customer services; 
•  The inherent planning dysfunctionality of the current legislative 
framework; 
•  There was no unanimous endorsement of any theme working 
well; 
•  The Minister’s “Smarter Government – Stronger Communities” 
programme; 
•  Transport and some aspects of infrastructure did feature as 
working well, but were linked to the particular locality and 
•  A “powered up” Auckland region; and 
situation; 
•  The business case for greater regional collaboration. 
•  Functions that featured in the doing better or to be fixed 
 
category albeit again not unanimous, included: 
The critical issue in addressing these drivers is how the Wellington 
- Economic 
development; 
region can genuinely collaborate and agree on necessary changes.  
History has shown that if there is no legislative imperative, local 
- Regional 
strategy; 
government units will not give up power and control.  If Wellington 
-  Three Waters; and 
as a region is to succeed it will require a bolder approach 
underpinned by strong and focused political leadership to drive 
- Service 
delivery. 
change. 
•  Major areas of concern looking forward, included: 
 
The requirement for regional leadership was evident from the 
- Economic 
development; 
Review feedback and data collection processes, which attempted at 
- Transport; 
and 
the outset to group themes into the following change categories: 
 
- Three 
Waters. 
•  What is working well? 
Despite significant cross-over between these categories, there are 
•  What could be done better? 
several opportunities for the Wellington region to pursue. 

 
 
What is broken or not being addressed? 
Consultation with external stakeholders amplified concerns about 
 
the current approach and governance arrangements, and the need 
for change. 
PricewaterhouseCoopers 
                58 

 
Following the consideration of this Review and the associated 
issues and opportunities by the regional Chief Executives’ Forum in 
September, and Mayoral Forum in October, a number of 
subsequent steps for the incoming Councils in October 2010 are 
possible.  These steps could include: 
 
1. 
Confirmation that decisive and collaborative leadership is 
critical to move the Review forward. 
 
2. 
Agreement over those activities and services which are 
operating well, and which do not require any further 
intervention at this stage. 
 
3. 
Consideration of the approach to address those areas which 
 
do require enhancement or where there are opportunities to 
 
be pursued in: 
 
•  Regional Governance; 
•  The regional strategic framework, including a spatial 
plan; 
•  Economic development; 
•  Transportation; 
•  Three Waters, including irrigation; 
•  Regional facilities; and 
•  Regional services. 
 
4. 
Development of a programme, including prioritisation and 
timetable by which these matters will be addressed. 
 
5. 
Consideration of associated structural opportunities which 
would enhance the implementation of the opportunities 
highlighted in this Review.
PricewaterhouseCoopers 
                59 

 
Appendix A: Restrictions 
 
 
 
This report has been prepared solely for the purposes stated herein 
omissions result from our reasonable reliance on information 
and should not be relied upon for any other purpose.  
provided by others or assumptions disclosed in the report or 
 
assumptions reasonably taken as implicit. 
In preparing this report and forming our opinion, we have relied 
 
upon, and assumed the accuracy and completeness of, all 
We reserve the right, but are under no obligation, to revise or 
information available to us from public sources and furnished to us 
amend our report if any additional information (particularly as 
by the nine Wellington region Councils.   
regards the assumptions we have relied upon) which exists at the 
 
date of our report, but was not drawn to our attention during its 
We have evaluated that information through analysis, inquiry and 
preparation, subsequently comes to light. 
review but have not sought to verify the accuracy or completeness 
 
of any such information.  It should not be construed that we have 
This report is issued pursuant to the terms and conditions set out in 
conducted an audit of the information we have used. 
our Engagement Letter dated 5 May 2010 and the Terms of 
 
Business attached thereto. 
This report has been prepared solely for use by the nine Wellington 
region Councils and may not be copied or distributed to third parties 
without our prior written consent.  
 
To the fullest extent permitted by law, PwC accepts no duty of care 
to any third party in connection with the provision of this report 
and/or any related information or explanation (together, the 
“Information”).  Accordingly, regardless of the form of action, 
whether in contract, tort (including without limitation, negligence) or 
otherwise, and to the extent permitted by applicable law, PwC 
accepts no liability of any kind to any third party and disclaims all 
responsibility for the consequences of any third party acting or 
refraining to act in reliance on the Information. 
 
Our report has been prepared with care and diligence and the 
statements and opinions in the report are given in good faith and in 
the belief on reasonable grounds that such statements and opinions 
are not false or misleading. No responsibility arising in any way for 
errors or omissions (including responsibility to any person for 
negligence) is assumed by us or any of our partners or employees 
for the preparation of the report to the extent that such errors or  
PricewaterhouseCoopers 
                60 





































 
 
Appendix B: London Spatial Plan 
LEE VALLEY
WOOD GREEN
ROMFORD
HARROW
ILFORD
WESTERN WEDGE
THAMES GATEWAY
EALING
HOUNSLOW
KINGSTON
BROMLEY
CROYDON
SUTTON
WANDLE VALLEY
 
The spatial plan sets out an integrated economic, environmental, infrastructure and social planning framework.  At the highest level shown here, it highlights 
key aspects such as mandated land use and transport corridors.  There are many layers to this plan, and this diagram depicts only the highest level. 
 
Source:  Big Cities, Economic Development, Local Government?  What might Auckland contribute to national economic success?  Greg Clark
PricewaterhouseCoopers 
                61 

 
Appendix C: Council Financial and Statistical Information 
Key Council Statistics 
 
South 
Greater 
Carterton
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt Wellington
Number of employees                      37                      80                      33                     410                  413                   261                    307                  177               1,282 
in 2010
Usually resident 

              7,101             22,623                8,889             448,956            97,701             46,197              48,546            38,415           179,466 
population in 2006 
census
Usually resident 

              6,852             22,617                8,739             423,765         95
   ,490            42,444            47
  ,367         36
  ,369        16
  3,827
population in 2001 
census
Number 

                 249                        6                   150               25,191            2,
   211               3,753               1,
  179            2,
  046          15
   ,639
increase/decrease
Percentage change

3.6%
0.0%
1.7%
5.9%
2.3%
8.8%
2.5%
5.6%
9.5%
Land area km
              1,145               2,299               2,457                 8,130                 377                  731                   182                 540                  290 
People per km 2006
                      6                     10                       4                       55                 259                     63                   267                    71                  619 
Median income 2006 
           22,200             21,700             24,100               28,000            27,300             23,000              26,300            26,900             32,500 
(Population aged > 15 
years)
Rates revenue per 

                 938                   805                1,211                     176                  820                   855                 1,042                  835               1,141 
resident (census 2006)
Population/FTE

                 192                  283                  269                 1,095                 237                  177                   158                 217                  140 
PricewaterhouseCoopers 
                62 

 
Financial Summary – 2009/10 
South 
Greater 
$000
Carterton
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt Wellington
Operating Revenue
           11,014            30,074            15,439            168,867        124,180            51,701             58,793           38,616          366,189 
Operating Expenditure               9,869            30,069            13,920            162,502        120,720            52,475             63,396           40,145          342,061 
Capital Expenditure
              3,707            17,704               6,489              32,136         27,374           32,156           11,267
          9,797
      132,191
Current Assets
              6,249               4,037               7,306              78,405           29,038            14,328             23,502           10,481            37,040 
Non Current Assets
         135,781          595,624          382,596            707,996     1,160,095          793,926       1,116,926         513,868      6,273,726 
Total Assets
         142,030          599,661          389,902            786,401     1,189,133          808,254       1,140,428         524,349      6,310,766 
Current Liabilities
              1,525               5,217               3,423              71,865           69,460            26,471             39,579              7,122          176,759 
Non Current Liabilities               2,093            18,480               8,491              79,693           33,586            85,788             17,710           19,268          240,079 
Total Liabilities
              3,618            23,697            11,914            151,558        103,046          112,259             57,289           26,390          416,838 
Public Equity
         138,411          575,965          377,988            634,843     1,086,087          695,995       1,083,139         497,959      5,893,928 
Revenue derived from 
rates

              6,661            18,218            10,769              79,093           80,087            39,479             50,587 
32063         204,841 
% of revenue
60%
61%
70%
47%
64%
76%
86%
83%
56%  
 
Rates Revenue Three Year Comparison 
South 
Greater 
$000
Carterton
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt Wellington
Rates 2008
              5,459            15,828               7,216              94,276           73,607            34,415             36,333           23,685          191,373 
Rates 2009
              5,970            17,249               8,126            100,671           77,321            36,752             38,531           25,064          206,264 
$ Change 2008‐2009
                 511               1,421                  910                 6,395             3,714               2,337                2,198              1,379            14,891 
% 2009
9%
9%
13%
7%
5%
7%
6%
6%
8%
Rates 2010
              6,661            18,218               9,545            102,553           80,587            39,479             39,679           26,175          213,992 
$ Change 2009‐2010
                 691                  969               1,419                 1,882             2,766               2,727                1,148              1,111              7,728 
% 2010
12%
6%
17%
2%
4%
7%
3%
4%
4%  
PricewaterhouseCoopers 
                63 

 
Operating Expenses by Function 
South 
Greater 
$000
CDC 
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt
Welling o
t n
$
%
$
%
$
%
$
%
$
%
$
%
$
%
$
%
$
%
Water
   2,212 
22%       5,934 
20%    2,373 
17%   26,077 
16%    30,770  25%    14,248 
27% 19,328 
30%  12,693 
32%   82,071 
24%
Transport
   3,058 
31%       9,489 
32%    4,484 
32%   90,150 
55%    23,511  19%      9,171 
17%   8,845 
14%    7,416 
18%   48,561 
14%
Other
   4,599 
47%     14,646 
49%    7,063 
51%   46,275 
28%    66,439  55%    29,056 
55% 35,223 
56%  20,036 
50% 211,429 
62%
Total Opex    9,869  100%     30,069  100% 13,920  100% 162,502  100% 120,720  100%    52,475  100% 63,396  100%  40,145  100% 342,061  100%  
 
Transport 

South 
Greater 
$000
Carterton
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt Wellington
Operating Revenue
              1,699               2,149               2,997              87,819           11,077               2,797                2,120           12,052            41,040 
Operating Expenditure               3,058               9,489               4,484              90,150           23,511               9,171                8,845              7,416            48,561 
Capital Expenditure
              1,622               6,155               2,166                 9,424             8,525            39,755                2,204              4,636            33,507   
Note - Greater Wellington opex excludes public transport improvements funded by 
capital grants provided for improvements where GWRC will not own the resulting asset 
 
Water and Wastewater 
South 
Greater 
 
$000
Carterton
Masterton
Wairarapa
Wellington
Hutt City
Kapiti Coast
Porirua
Upper Hutt Wellington
 
Operating Revenue
                 402               3,674                  640              25,432             5,588            13,774                5,247           15,027            83,246 
Operating Expenditure               2,212               5,934               2,373              26,077           30,770            14,248             19,328           12,693            82,071 
 
Capital Expenditure
              1,326               5,445               2,752                 8,003             6,746               4,467                4,878              2,334            23,625 
 
Note - Revenue for water and wastewater is not identified separately within the environment function.  
It has therefore been apportioned according to the % of opex and capex by water and wastewater
PricewaterhouseCoopers 
                64 

 
 
Rates Revenue Comparison 2008 -2014 
 

South 
Greater 
$000
Carterton
Masterton
Wairarapa
Kapiti Coast Wellington
Hutt City
Porirua
Upper Hutt Wellington
Rates 2008
              5,459            15,828               7,216              34,415            69,989            73,607             36,333           23,685          191,373 
Rates 2009
              5,970            17,249               8,126              36,752            76,200            77,321             38,531           25,064          206,264 
$ Change 2008‐2009
                 511               1,421                  910                 2,337              6,211               3,714                2,198              1,379            14,891 
% 2009
9%
9%
13%
7%
9%
5%
6%
6%
8%
Rates 2010
              6,661            18,218               9,545              39,479            79,093            80,587             39,679           26,155          213,992 
$ Change 2009‐2010
                 691                  969               1,419                 2,727              2,893               3,266                1,148              1,091              7,728 
% 2010
12%
6%
17%
7%
4%
4%
3%
4%
4%
Rates 2011
              7,253            19,851            10,254              42,391            80,892            82,712             42,471           27,268          221,987 
$ Change 2010‐2011
                 592               1,633                  709                 2,912              1,799               2,125                2,792              1,113              7,995 
% 2011
9%
9%
7%
7%
2%
3%
7%
4%
4%
Rates 2012
              7,458            24,098            11,383              48,028            86,589            85,359             45,201           28,752          236,632 
$ Change 2011‐2012
                 205               4,247               1,129                 5,637              5,697               2,647                2,730              1,484            14,645 
% 2012
3%
21%
11%
13%
7%
3%
6%
5%
7%
Rates 2013
              7,391            24,003            11,666              53,425            94,000            88,090             47,356           29,127          241,675 
$ Change 2012‐2013
‐                  67  ‐                  95                  283                 5,397              7,411               2,731                2,155                 375              5,043 
% 2013
‐1%
0%
2%
11%
9%
3%
5%
1%
2%
Rates 2014
              7,739            24,677            11,889              59,013         102,149            90,909             49,153           29,842          246,875 
$ Change 2013‐2014
                 348                  674                  223                 5,588              8,149               2,819                1,797                 715              5,200 
% 2014
5%
3%
2%
10%
9%
3%
4%
2%
2%  
 
PricewaterhouseCoopers 
                65 




 
Recent % Rates Movements   
Population/FTE1  
 
 
District Councils 
 
Population/FTE
300 
250 
200 
150 
100 
50 
Population/FTE

  
 
 
 
City Councils and Regional Council 
2010 and 2014 Rates Revenue per Resident1 
 
 
1,600 
1,400 
2010 Rates 
1,200 
revenue per 
1,000 
resident (census 
2006)
800 
2014 Rates 
600 
Revenue per 
400 
resident (census 
2006)
200 

 
 
 
Source:  Annual Reports, Annual Plans and LTCCPs 
 
 
Source:  Department of Statistics/Wellington Councils LTCCPs 
 
 
1 Excludes Greater Wellington Regional Council for comparative purposes 
PricewaterhouseCoopers 
                66 

 
Appendix D: External Stakeholders Interviewed 
 
Name 
Title 
Organisation 
Jenny Chetwynd 
Regional Director 
New Zealand Transport Agency 
Paul Wilson 
Project Delivery Manager 
Meridian Energy 
David Gray 
Chief Executive Officer 
Westpac Regional Stadium Trust 
Te Waari Carkeek 
Chair 
Ngati Raukawa   
Anders Crofoot 
President 
Wairarapa Federated Farmers 
Simon Calvert 
Executive Director 
Porirua Chamber of Commerce 
Paul Winder 
Chief Executive 
NZ Chamber of Commerce 
Helen Chipper 
Operator 
Moana Lodge 
Bob Francis 
Chair 
Wairarapa District Health Board 
Former Mayor 
Masterton District Council 
Robin Dunlop 
Member 
Wairarapa Development Group 
Stephanie Gunderson-Reid 
CEO 
Wairarapa Chamber of Commerce 
Paul Jordan 
Director JNL 
Dame Margaret Bazley 
Former Commissioner 
Royal Commission on Auckland Governance 
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Name 
Title 
Organisation 
Leo Austin 
Chair 
Hutt Valley Chamber of Commerce 
Michelle Riwai 
Manager 
Housing New Zealand 
Linda Going 
Partner 
Phillips Fox 
Malcolm Gillies 
CEO 
Gillies Group 
Sue Trueman 
CEO 
UH Chamber of Commerce 
Peter Richardson 
Chair 
Upper Hutt Law 
 
Expressions Arts and Centre 
Sir Noel Robinson 
Owner 
Paraparaumu Airport 
Chris Barber 
Chief Executive 
Nature Coast 
Gordon Strachan 
Board Member 
Former KCDC Councillor 
 
Kapiti PHO 
Wendy Huston 
Manager 
Seven Oaks Retirement Village 
 
Previous Chair  
Kapiti Chamber of Commerce 
Steven Quinn 
Partner 
Phillips Fox 
Sir John Anderson 
Chair 
Wellington Regional Strategy 
Lloyd Morrison 
Executive Chair 
Infratil 
Tim Brown 
Financial Advisor 
Infratil 
Sir Ngatata Love 
Chair 
Port Nicholson Block Settlement Trust 
Murray McCaw 
Chair 
Grow Wellington 
Tom Greally 
General Manager 
Weta Workshops 
 
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Appendix E: Bibliography 
•  Auckland Governance Report – report of Royal Commission on Auckland Governance, March 2009; 
•  Auckland City Council submission to the Royal Commission on Auckland Governance, June 2008; 
•  Future Governance of Waikato, Prof. Frank Scrimgeour, University of Waikato, March 2010; 
•  Local Government Options for Northland, McKinlay Douglas Ltd, February 2010; 
•  Size Structure and Administrative Overheads:  An Empirical Analysis of English Local Authorities, Rhys Andrews and George Boyne, 
Cardiff University, 2006; 
•  Citizen Involvement in Local Government, Jane Foote, Joseph Rowntree Foundation, UK, June 2009; 
•  US Regional Governance Models, Hansford Economic Consulting, A Paper for Truckee Meadows Regional Planning Agency, November 
2007; 
•  Speech to 2010 Local Government Chief Executives’ Forum, Minister of Local Government, 18 June 2010; 
•  Speech to 2010 Local Government Chief Executives’ Forum, Secretary to Treasury, 18 June 2010; 
•  Seizing the Day – the Impact of the Global Financial Crisis on Cities and Local Public Services, PricewaterhouseCoopers; 
•  Cities of Opportunity: Business-readiness Indicators for the 21st Century, PwC; 
•  National Financial Sustainability Study of Local Government, Commissioned by the Australian Local Government Association, November 
2006; 
•  Cities of the Future, Global Competition, Local Leadership, PwC; 
•  Big Cities, Economic Development, Local Government; What might Auckland Contribute to National Economic Success?  Greg Clark, 
Economic Geographer.  A presentation to the Local Government New Zealand Conference, July 2010; 
•  “Smart Government – Strong Communities”, Hon. Rodney Hide, Minister of Local Government.  An address to the Local Government New 
Zealand Conference, July 2010; 
•  Metro Project Action Plan, implementation of the Auckland Economic Development Strategy, October 2006; 
•  Sydney, Australia’s Global City, PwC, Commission by the Sydney Business Chamber, June 2010; 
•  Wellington Region Shared Services Programme, Programme Updates for the Regional Chief Executive Group, 23 July 2010; 
•  Wellington City Council Annual Plan – 2040, Global Mega Trends, July 2010; 
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•  Strengthening Auckland’s Regional Governance, November 2006; 
•  Hutt City Council and Wellington City Council, Capacity Infrastructure Limited and Wellington Region Water Services, June 2010; 
•  The draft replacement London Plan, The Mayor’s London Plan, July 2010; 
•  Rodney District Council Rural Strategy – Consultation Draft May 2010; 
•  Village Planning Programme, Porirua City Council, August 2010; 
•  Global Forces: An Introduction – McKinsey Quarterly, June 2010; 
•  Clouds, by Data, and Smart Assets: Ten Tech-enabled Business Trends to Watch, McKinsey Quarterly, August 2010; 
•  Economic geography, globalisation and New Zealand’s productivity paradox – Philip McCann, Department of Economics, University of 
Waikato, December 2009; 
•  Local Government Structure and Efficiency – McKinlay Douglas Limited, October 2006; 
•  What New Zealand can Learn from Local Government Amalgamation in Canada, Presentation to Law and Economists Association of New 
Zealand, Peter Holle, Frontier Centre for Public Policy, February 2010; 
•  Myth Busters, Examining Common Perceptions about Local Government in New Zealand, Local Government New Zealand, September 
2010; 
•  London Councils, Total Place – Towards a New Service Model for Londoners, PwC, January 2010. 
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