Government Advances City and Regional Deals to Boost Economic Growth

Minister Bishop emphasized the critical role that regional development plays in the Government’s broader economic agenda.

The Government’s City and Regional Deals initiative has received an overwhelmingly positive response from regions across New Zealand. Now, the programme has moved into the assessment phase to determine which regions will be the first to progress towards securing a deal. Local Government Minister Simon Watts and Infrastructure Minister Chris Bishop have reiterated the Government’s commitment to fostering economic growth through targeted regional investments.

Strong Regional Engagement and Strategic Focus

Councils were invited to collaborate and submit regional proposals detailing up to five priority projects that could unlock economic potential in their respective areas. The deadline for submission was 28 February 2025, and the proposals are currently being reviewed by the Department of Internal Affairs.

Minister Bishop emphasized the critical role that regional development plays in the Government’s broader economic agenda.

“The Government has been clear that driving economic growth is a core focus. City and Regional Deals will be relentlessly focused on unlocking potential and delivering results that matter,” he said.

Addressing New Zealand’s Infrastructure Deficit

New Zealand faces a significant infrastructure deficit, with aging water systems, deteriorating roads, and a housing shortage. Minister Bishop reinforced the Government’s dedication to reversing this trend.

“Water pipes are bursting, roads are falling apart, and we simply do not have enough housing. This initiative is about delivering the long-term infrastructure we need for future growth,” he stated.

The City and Regional Deals initiative aims to reduce this infrastructure gap by fostering productivity, attracting investment, and enhancing national connectivity. The deals will ensure that regions have a long-term, strategic vision aligned with critical infrastructure priorities, including transport and housing development.

Collaboration Between Central and Local Government

Minister Watts highlighted the strong response from councils across the country, underscoring the shared vision between central and local governments.

“The enthusiasm from councils nationwide demonstrates the value they see in this programme. We know that collaboration between central and local government is essential to accelerating economic growth and productivity in our regions and cities,” he said.

Councils have been advised to align their proposals with broader government priorities, such as the Local Water Done Well programme. The Government has set clear expectations for proposals to demonstrate connectivity with existing infrastructure projects and overarching economic objectives.

Next Steps and Implementation Timeline

The assessment process for City and Regional Deals is now underway. Each proposal will be evaluated against the criteria outlined in the strategic framework before being presented to Ministers for final consideration. The Government intends to conclude the first deal by the end of 2025, with a target of implementing three deals by October 2026.

This initiative represents a transformative approach to regional development, ensuring that infrastructure investments are strategically aligned to deliver long-term economic benefits across New Zealand.