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What are the Real Reasons for local government reform?

Victor Luca, 18-Aug-26



Current and past Governments have been zealously working toward a reform of Local Government (LG) and I am not writing here to argue that there isn’t need for some change in the sector.



On 25 November 2025 Ministers Simon Watts and Chris Bishop made a televised announcement that can be still seen on YouTube (Search Details revealed in major shake-up of local government | RNZ).


Watts is the Minister for Local Government, Climate Change, Revenue, Auckland, and Building and Construction. Bishop is the Attorney-General, Minister of Housing, Infrastructure and Transport. He is also the Associate Minister of Finance and responsible for RMA Reform. Looking at the professional background that these characters have doesn’t suggest they have previous expertise in all, or even many, of the areas they are responsible for. For instance, what could Watts possibly know about Climate Change or Bishop about infrastructure. But I digress.


In the broadcast several reasons were stated for the need for reform. These same reasons are also stated in public documents. More specifically, in the broadcast the following is asserted without proof:


‘The government does not think that local government is currently serving New Zealanders well. Local government is meant to serve communities, not confuse them. But right now, the system is tangled in duplication, disagreements, and decisions that defy common sense.’

‘The government's belief is that local government has lost the social license and that New Zealanders have lost faith in local government. This is borne out by the fact that over half don't bother to vote in local elections. We have thought hard about what to do about this in central government.’


Since the most important reason given was about reduced voter turnout at local body elections, I decided to take a look at the numbers.


We all are aware that voter turnouts for local body elections are significantly lower than for general elections. This makes sense to me because Government has a more direct impact on people’s lives. On average we pay about ten times more tax to government than to local government (rates). That makes it pretty clear who counts the most.




So I pulled all available numbers I could find on voter turnout as a fact checking exercise. For general elections I found numbers from 1879. I was surprised to find that from about 1980, voter turnout at general elections was on downward trend. In 1984 about 95% of eligible voters cast their ballots. By 2023 voter turnout had dropped to 77.5%. That’s a significant decline in a relatively short period of time, which is not too flash at all.


Voter turnout for local body elections over the same time period has also been dropping at a roughly comparable rate. That is, the trend is similar. You would have to conclude that if LG has lost social license as borne out by declining voter turnout, as the gentlemen asserted, then so too has government itself.

It should be pointed out that in NZ voting in general elections is optional, unlike in Australia where it is compulsory. And yet even in Australia the turnout has dropped slightly over time.


So I have to ask, if government wants to totally reform local government because people aren’t voting in local elections, then shouldn’t government get its own act together as well.



My advice to the current Government and/or their policy wonks is to evaluate the evidence thoroughly before making public policy and properly justify what they do.


For anyone wanting a more thorough discussion of why New Zealanders are less inclined to vote in local elections I would recommend the following free ebook: McNeill, J. & Cheyne, C. (eds) Candidates, voters & voting in New Zealand’s 2022 local government elections. Tītipounamu Press, 2023.




References



McNeill, J. & Cheyne, C. Candidates, voters & voting in New Zealand’s 2022 local government elections. Tītipounamu Press, 2023.





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