Cabinet Approves Regional Deals to Boost Economic Growth and Infrastructure Development

Minister Brown highlighted that the focus of these Regional Deals will be on supporting economic growth and improving the supply of affordable housing across New Zealand.

Cabinet has agreed to offer all regions the opportunity to submit proposals for Regional Deals aimed at tackling New Zealand’s infrastructure deficit, driving economic growth, and improving key infrastructure such as housing, water systems, and transport networks.

Local Government Minister Simeon Brown and Infrastructure Minister Chris Bishop outlined that the proposed Regional Deals will help unlock critical funding, reduce regulatory barriers, and foster collaboration between central and local governments.

“New Zealand is facing a significant infrastructure challenge. From bursting water pipes to deteriorating roads and housing shortages, we need a comprehensive plan to deliver the infrastructure necessary to support our growing population,” said Minister Bishop.

Regional Deals: A Path to Addressing Infrastructure Deficit

The government aims to initiate three Regional Deals by October 2026, with the first to be finalized by December 2025. These deals are designed to:

Address the infrastructure deficit by focusing on critical projects in water, housing, and transport.

Unlock funding and financing tools that support infrastructure development.

Enhance collaboration between local councils and central government for better outcomes.

As part of the initiative, regions will be asked to submit light-touch proposals that focus on practical infrastructure needs, without the need for extensive documentation. The goal is to develop focused, outcome-oriented plans that will drive sustainable economic growth.

Supporting Long-Term Growth and Housing Supply

Minister Brown highlighted that the focus of these Regional Deals will be on supporting economic growth and improving the supply of affordable housing across New Zealand. He emphasized that the Government’s priority is to ensure these deals align with long-term growth and infrastructure priorities for the regions.

“We want to work with councils to develop proposals that directly support economic growth and improve the quality of life for New Zealanders. Local governments are expected to focus on practical proposals that address key infrastructure needs, rather than overly detailed or glossy documents,” said Minister Brown.

Setting Clear Priorities for Regional Development

Practical proposals: The government expects councils to create proposals that are aligned with the region’s specific infrastructure, housing, and transport needs, while fostering economic development.

Transparency and Accountability: Ratepayers expect transparency and responsible spending by councils when developing proposals for Regional Deals.

“The proposals will be assessed based on their potential to drive the Government’s economic growth agenda,” said Minister Brown.

A Partnership for the Future

Minister Bishop added, “Regional Deals will provide a long-term partnership between central and local governments, ensuring that New Zealand can meet the growing demand for housing, roads, and other critical infrastructure.”

The Government is committed to tackling the infrastructure backlog and ensuring that regions are equipped with the tools and support needed to achieve long-term, sustainable growth. These deals will also reinforce the alignment of regional development priorities with national growth objectives, helping to drive productivity and prosperity for all New Zealanders.

Next Steps and Timeline

Proposals: Invitations to councils will be sent out this month, inviting regions to begin developing their proposals.

Timeline: The government aims to finalize the first Regional Deal by December 2025, with three deals expected by October 2026.

The initiative also forms a critical component of the coalition agreement with the ACT Party, underlining the Government’s commitment to ensuring long-term, strategic infrastructure planning.

By aligning central and local government efforts, Regional Deals are set to be a key driver of New Zealand's future infrastructure and economic growth, addressing both current challenges and preparing for future demands.