NZ Launches Regional Deals Framework to Address Infrastructure Deficit

Minister Brown emphasized that councils should avoid spending excessive funds on extravagant proposal documents.

The New Zealand Government has introduced a new framework to establish Regional Deals between central and local governments aimed at driving economic growth and addressing the country's infrastructure needs, Local Government Minister Simeon Brown announced.

"New Zealand is currently facing a significant infrastructure deficit, with aging water pipes, deteriorating roads, and a shortage of housing. As our population grows, it's essential that we deliver the long-term infrastructure necessary for the development of our cities and regions," said Minister Brown.

To address these challenges, the government plans to establish Regional Deals in collaboration with local councils, a commitment outlined in the National-ACT coalition agreement. These deals, modeled after successful initiatives in the UK and Australia, will foster stronger relationships between central and local governments and coordinate investment in critical infrastructure to support economic growth and productivity.

"Regional Deals will ensure long-term collaboration, deliver a shared vision for regional development, and focus on building resilient infrastructure while improving the supply of affordable, quality housing," Brown added.

The framework will also help align capital investments between central and local governments, and provide regions with new and existing funding tools to finance essential infrastructure projects.

The government has agreed to a phased rollout of the Regional Deals across the country, starting with an invitation to up to five regions to submit straightforward proposals. Minister Brown emphasized that councils should avoid spending excessive funds on extravagant proposal documents.

The first Regional Deal is expected to be finalized in 2025.