Govt Creates New Super-Ministry MCERT to Lead Housing, Transport & Environment Reform

Environment Minister Penny Simmonds emphasised that MCERT aligns environmental stewardship with economic opportunity.

The Government has announced a major restructuring of New Zealand’s public service with the establishment of a new Ministry of Cities, Environment, Regions and Transport (MCERT)—a central agency designed to deliver the Government’s large-scale reform agenda in housing, transport, urban development, and environmental management.

The new ministry will merge four major functions currently spread across separate departments:

• Ministry for the Environment (MfE)

• Ministry of Housing and Urban Development (HUD)

• Ministry of Transport (MoT)

• Local government responsibilities from the Department of Internal Affairs (DIA)

Housing, Transport, RMA Reform and Infrastructure Minister Chris Bishop said MCERT will coordinate the key levers of growth—planning, land use, housing, transport, water infrastructure, and local government—to create an integrated, accountable, and more effective system.

“The new agency will be at the heart of tackling some of New Zealand’s greatest economic and environmental challenges, from housing affordability and our infrastructure deficit to climate adaptation,” Bishop said.

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Why MCERT Is Being Created

Bishop said the Government is undertaking ambitious reforms including:

• Going for Housing Growth

• Transit-oriented development and congestion pricing

• Electronic road user charging

• Local Water Done Well

• City and Regional Deals

• The National Adaptation Framework

• Planning and local government reform

Currently, these responsibilities are scattered across multiple agencies, creating duplication, delays, and fragmented decision-making.

“For example, solving the housing crisis requires planning reform, which sits with the Ministry for the Environment, while infrastructure funding and financing is split between HUD, DIA and Transport,” Bishop said. “The system is too fragmented and too uncoordinated.”

Public servants, he added, often express the same frustrations as local government: overlapping responsibilities, uncertainty over who leads what, and barriers to delivering coordinated solutions.

“The new agency will be the ‘one-stop shop’ for councils and communities working through these complex issues.”

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What MCERT Will Deliver

The new ministry will integrate planning, transport, water, environmental management, and urban development functions under one structure. Key objectives include:

1. Clear Accountability

Removing overlapping roles so central and local government know exactly who is responsible for key decisions.

2. Integrated, Practical Advice

Bringing policy teams together to avoid missed opportunities such as those experienced with the City Rail Link, where land use, funding, and development opportunities were not fully aligned.

3. Reduced Duplication and Complexity

Simplifying public service structures to enable faster delivery of major reforms.

4. Boosting Growth and Productivity

Aligning long-term planning, infrastructure delivery, and environmental protections to support regional and national prosperity.

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Support from Senior Ministers

Public Service Minister Judith Collins said the new ministry will be designed for effectiveness, not cost-cutting, although efficiencies are expected over time.

“The primary purpose of MCERT is to unlock the potential of New Zealand’s cities and regions,” Collins said. “We’re establishing a high-performing agency to match our high-performing planning and infrastructure systems.”

Local Government and Climate Change Minister Simon Watts said merging the agencies will create a stronger, more coordinated system for councils navigating water reform, climate adaptation, and regional development.

“New Zealanders deserve a system that operates as one,” Watts said. “By bringing these departments together, we will have clearer coordination, more succinct advice, and better decision-making.”

Environment Minister Penny Simmonds emphasised that MCERT aligns environmental stewardship with economic opportunity.

“With clearer accountability and integrated advice, we’ll deliver better outcomes for communities—across housing, transport, water and the environment,” she said.

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Timeline for Establishment

• Chief Executive appointed: first half of 2026

• MCERT fully operational: July 2026

The creation of MCERT represents one of the most significant changes to the structure of New Zealand’s public service in decades, aiming to better equip the country to manage growth, infrastructure needs, and environmental pressures.