Taupō exit sinks merger plan

Tania Tapsell at a recent Bay of Plenty mayoral forum in Rotorua. Photo: Mathew Nash

Rotorua has been left without an amalgamation partner after a previously “locked in” agreement with South Waikato fell apart weeks before councils must submit their proposals under the Government’s local government reform programme.

By Mathew Nash – Local Democracy reporter

The Government launched its ‘Head Start’ process in May, giving councils three months to voluntarily propose new unitary authorities combining regional and district council functions. If not, they face mandatory amalgamations under the Government’s “Back Stop” programme.

On Thursday, Rotorua Mayor Tania Tapsell told elected members at a Te Arawa 2050 Vision committee meeting that an agreement was in place for an amalgamation with South Waikato and the door was also open to Taupō should it decide to change its wait-and-see approach.

On Friday, she told Local Democracy Reporting the same, with the proposal set to be recommended to Rotorua councillors at tomorrow’s meeting.

But South Waikato has now decided to pursue plans for a Western Waikato unitary authority based on the Waikato River catchment, alongside Waikato District and Waipā District councils.

The move leaves Rotorua facing the prospect of going it alone in its own Bay of Plenty-based model, despite weeks of work by Tapsell and council staff to find neighbouring councils willing to join forces.

South Waikato council staff described the proposal involving Rotorua, South Waikato and Taupō as “less viable” without Taupō, according to documents prepared for its Thursday meeting.

Speaking to Local Democracy Reporting today, Tapsell said South Waikato was now “off the cards” for Rotorua.

“We’re looking like we’re going to do it alone,” she said.

Tapsell said the deal with South Waikato appeared to be “triple locked in” but a “plot twist” had left Rotorua without an amalgamation partner.

“I’ve had a good conversation with [South Waikato Mayor] Gary [Petley] about this, basically asking, ‘Bro, why?’”

“But if they prefer to go elsewhere, we just need to let them go.”

Under the Head Start rules, Rotorua could include South Waikato in a proposal without its support because Rotorua is the larger territorial authority.

However, Tapsell said this was off the table.

“One of the principles I’ve had through this whole thing is we can’t and shouldn’t force or push unwilling partners.”

With South Waikato no longer an option, Tapsell said she still believed there were benefits to a merger with Taupō.

Tapsell blamed the reform process for the last-minute change, saying councils had been given too little time to assess their options properly.

“We’ve only had three months to figure this all out,” she said.

“It’s only in the final weeks that we’ve been in a position where we’ve kind of known the financials and what that would mean.

“If we had more time, I reckon we could have come out with a really good result, and I bet you are likely to hear that from Taupō and South Waikato as well.”

South Waikato Mayor Gary Petley was not available for comment.

However, council documents show the shift came after a series of discussions between South Waikato, Rotorua and other councils.

South Waikato councillors were told on July 16 that a Waikato River catchment proposal was effectively unworkable because no partner councils had signed on.

But at a July 23 workshop, new information from Waikato District and Waipā councils suggested a Western Waikato unitary authority could meet the Government’s eligibility requirements.

Council staff subsequently concluded the South Waikato-Taupō-Rotorua proposal had become “less viable” once Taupō signalled it was not ready to commit.

The Western Waikato option was consequently identified as South Waikato’s preferred pathway.

The decision has left Rotorua facing a different proposal from the one Tapsell was promoting days ago.

Rotorua councillors are expected to now consider a proposal for Rotorua to pursue its own unitary authority as part of a wider Bay of Plenty approach under Head Start.

The proposal would involve Rotorua remaining separate from neighbouring councils, rather than proceeding with the South Waikato and Taupō amalgamation.

Other options include rejecting the Head Start process and falling into the “Back Stop” programme or pursuing reorganisation under the existing Local Government Act provisions.

South Waikato will look to finalise the shape of its Head Start proposal at a council meeting on Thursday.

The Government has set August 9 as the deadline for councils to submit Head Start proposals.