Otago Central Lakes selected for Regional Deals
A visitor levy, gondolas, congestion charging, privately-funded public hospitals, more housing, an upgraded electricity network, and a supercharged business and tech sector are all now on the table.
Queenstown Lakes and Central Otago are one of three areas chosen to negotiate a Regional Deal with Central Government, along with Auckland and Western Bay of Plenty.
The deals are designed to better co-ordination between local and Central Government over the next 10 years, unlocking more economic growth while closing the infrastructure deficit - without new funding from Central Government.
Otago Central Lakes submitted its proposal back in February and the three councils, Queenstown Lakes District, Central Otago and Otago Regional Council, have now signed a memorandum of understanding with the National-led coalition Government.
The proposal outlined the region’s current challenges, which are set to intensify as population and visitor numbers continue to rise.
Queenstown Lakes mayor Glyn Lewers says: "Our entire region is seen as a highly desirable place to live and visit, but we can’t manage the impact of growth alone.
'We need to work with Central Government on affordable and sustainable tools that enable us to continue to manage growth and ensure the entire region retains its status as a destination of choice."
Central Otago District Council Mayor Tamah Alley says "while it is by no means a done deal" the selection shows commitment by Central Government to address to challenges in the region.
"Central Otago understands the growth issues Queenstown has faced in recent years and we are already seeing some of those emerge in our district," she says.
"Working alongside ORC, QLDC and Central Government to future proof our communities across infrastructure, housing and economic growth is a smart play."
Chair of Otago Regional Council Gretchen Robertson also welcomed the Regional Deal selection, as a "great step forward" to give the region the ability to manage the impacts of growth.
In the coming months representatives from the Central Otago Lakes will engage in negotiate with Central Government around the contents of the deal, while final approval will remain delegated to individual Councils and Cabinet.
What the Government wants
The Government wants councils better coordination with councils and wants them to lift economic growth, make room for housing, utilise their asset base and close infrastructure deficits without new funding, and adopt reforms such as Local Water Done Well.
In return, it could deploy more senior officials into the regional to collaborate on planning, infrastructure investment, asset management, and will consider improvements to regulations covering charging and fees, zoning, planning and land acquisition.
It will provide councils with new funding and financing tools, including a share of mining royalties, mobilising existing government funding to support deals, and providing access to government experts that could help councils use more complex tools such as Infrastructure Funding and Financing Act Levies.
And it will support regions to unlock growth sectors (e.g., technology, biotech, advanced transportation, aquaculture, tourism, cleantech, renewable energy). That includes locating confirmed facilities and institutions to the regions.
“City and Regional Deals will be strategic 10-year partnerships between local and central government to progress joint priorities including economic growth, enabling abundant housing, better management and utilisation of local assets, and closing the infrastructure deficit,” , Infrastructure Minister Chris Bishop says
“The Government expects that local government provides a better framework/structure for regional relationships with central government, and improves asset renewals, maintenance and management including ensuring a pipeline of future infrastructure work.
“We also expect that councils will go above legal and regulatory minimum requirements to unlock housing growth including around rapid transit corridors and where central government has invested in infrastructure. Further, we want regions to commit to exploring demand management tools like time of use charging.
“We are eager that regions commit to exploring new and existing tools including (but not limited to): Targeted rates, IFF Act Levies, Development Levies, asset recycling, and become attractive destinations for international investment opportunities.”
The Government will now begin negotiations with the three regions, with a view to agreeing the first deal by the end of 2025.
