Local Government Minister Simeon Brown announced on November 21 that the government has invited all regions to submit proposals and collaborate with the central government to establish a 30-year vision and a 10-year plan. This initiative aims to illustrate how the proposals can enhance productivity, connectivity, and housing.
These deals entail collaboration between cities or regions, the private sector, and central government to identify key opportunities and priorities that will drive growth and improve economic outcomes.
Patrick McVeigh, the technical director of Economic Development Advisory at Beca, a consultancy focused on advisory, design, and engineering services, states that New Zealand faces a significant infrastructure deficit that affects transport, productivity, housing, and overall quality of life.
“It’s always helpful to look outwards and to recognise that while we’re an island nation, we’re not isolated from the rest of the global economy. Other places also have deficits and see the need for infrastructure investment to improve growth, to create more competition, and to stimulate innovation,” McVeigh stated.
“We’re already seeing the challenges in New Zealand from a labour market perspective, of how attractive Australia is to younger workers at the moment. We are in a global competition for talent and investment, and we need to have the right settings to ensure that, as a nation, we can compete and generate the quality of life we want for our residents in the future.”
One of the most discussed agreements internationally is the Manchester City Deal, which has inspired similar initiatives in the United Kingdom, Australia, and beyond.
The Manchester City Deal represents a collaborative effort among ten local authorities aimed at enhancing funding access from both the central government and the European Union.
One of the key components of the Manchester City Deal is the establishment of an “earn-back” fund. This funding is intended to support essential projects in several areas, including infrastructure, housing, emissions reduction, and skills and training initiatives.
McVeigh emphasises that in New Zealand, there is a significant imperative to ensure that our deals are executed effectively.
This month, all councils will receive invitations to submit proposals for a regional deal. Following this, the government will prioritise regions that show the greatest potential to contribute to its economic growth agenda.
Although the government has indicated that it anticipates finalising only three deals by October 2026, McVeigh stated that all regions across the country need to start prioritising their long-term goals and aspirations.