The government has announced the creation of the new Ministry of Cities, Environment, Regions and Transport (MCERT) to drive its bold reforms in housing, transport, urban development, and environmental policy.
“The new agency will be at the heart of tackling some of New Zealand’s greatest economic and environmental challenges – from housing affordability, our infrastructure deficit, and adaptation to climate change,” Housing, Transport, RMA Reform and Infrastructure Minister Chris Bishop said.
The MCERT will consolidate the Ministry for the Environment, Ministry of Housing and Urban Development, Ministry of Transport, and local government functions from the Department of Internal Affairs into a single, unified agency.
“The government has a series of ambitious and complex policy reforms underway across all of these areas, from Going for Housing Growth, a renewed emphasis on transit-oriented development, congestion pricing and the transition to electronic road user charges for all vehicles, Local Water Done Well, City and Regional Deals, and the National Adaptation Framework. Underpinning it all is planning and local government reform.”
According to Bishop, many of these reforms currently involve responsibilities spread across multiple agencies.
“For example, solving our housing crisis is impossible without fundamental planning reform, which is currently the responsibility of the Ministry for the Environment (which looks after city, district and regional plans). It is also impossible without reforms to infrastructure funding and financing (currently split across HUD, DIA and Transport).”
“New Zealand is very well served by outstanding public servants in all of these agencies doing their best to serve ministers and the public in difficult circumstances. My experience is that they are often as frustrated as ministers are by the duplication, overlapping responsibilities and lack of coordination.”
“Local government and communities rightly complain that dealing with central government on these important issues is difficult, bordering on impossible, because it is often not clear who they should be talking to and coordinating with.”
“The new agency will be the ‘one-stop shop’ for local government and others to deal with on these complex challenges,” Bishop explained.
Public Service Minister Judith Collins has also commented on the announcement.
“The government is committed to delivering the best results for taxpayers in the most efficient way possible, and this new ministry will do that.”
“The primary purpose of MCERT is to unlock the potential of New Zealand’s cities and regions. It will help boost growth and productivity by reducing duplication and complexity and by creating a simpler and more responsive public service.
Local Government and Climate Change Minister Simon Watts said duplication of functions across these agencies has hindered progress and caused confusion over accountability.
“As we move ahead with significant reforms to the role of local government, it makes sense to merge the departments to provide clearer direction and more coordinated support – from planning and infrastructure through to climate adaptation.”
A chief executive will be appointed in the first half of 2026, with the MCERT fully operational by July 2026.