As Hutt City voters open their ballot packs this year, they’ll find more than just candidate names. A non-binding referendum asks whether councils should “explore amalgamation options with Wellington, Upper Hutt and Porirua City Councils, and the Greater Wellington Regional Council…”
This isn’t the first time the idea has surfaced in our region. Back in 2013, the Local Government Commission promoted a “Supercity” proposal. Despite significant time and expense invested in its development, the plan was scrapped in 2015 following overwhelming public opposition.
So why revisit amalgamation now?
Councils are about to lose responsibility for the largest part of their operations to the new “Metro Water” entity. Without this core function, some may lack the scale to operate efficiently. At the same time, many councils face mounting financial pressure due to high debt and concerns around rates affordability. For some, amalgamation is being seen as a potential solution.
Proponents often cite economies of scale and reduced costs. However, local and international evidence shows such savings are only achievable in limited circumstances. TDB Advisory Ltd recently compared per capita cost increases in Auckland under its Supercity model with national averages (Auckland’s supercity: where did the promised savings go?). Despite Auckland’s substantial scale advantage, cost increases were broadly similar over the past thirteen years.
More realistic benefits of amalgamation may lie in streamlining regional planning and optimising investment in network infrastructure. These gains, however, must be weighed against the high cost of merging organisations — and the potential loss of local autonomy and democratic engagement.
As in 2013, Hutt City Council’s approach will be guided by community preferences. At that time 80% of Hutt residents were against the idea of a Supercity for our region. I think that is unlikely to have changed significantly.
Be sure to have your say and vote before 11 October.
