Muldoon, ever the populist, promoted local autonomy as the key to communities sorting out their own patch. It was a politically smart move, being that the amendments ensured many white farmers, who already dominated councils, attained even more control over their local areas, which bolstered Muldoon's popularity.
However, Piggy's changes weren’t all that revolutionary; being more tinkering than transformative, but they gave councils enough rope to manage local roads, water, and planning without Wellington breathing down their necks. Fast-forward to 2025, and the current National-led coalition government under Christopher Luxon is trampling over that legacy with a bulldozer, while proving without a doubt that their campaign promises on decentralisation were completely false!
Yesterday, the Herald reported:
PM Christopher Luxon open to scrapping regional councils amid RMA reform
Prime Minister Christopher Luxon says he wants to explore the possibility of scrapping New Zealand’s regional councils as the Government reforms the Resource Management Act.
NZ First minister Shane Jones told a local government forum last week his party does not see a compelling case for maintaining regional government.
Speaking to Newstalk ZB today from Belgium before the Nato leaders’ summit in The Hague, Luxon was asked whether he supported disestablishing regional councils.
“I have a personal view that I think that’s something that we can explore as part of that Resource Management Act legislation that Chris Bishop is driving through,” he responded.
Muldoon’s era, for all its faults, saw councils as partners in governance. Piggy's amendment's let councils tweak rates to fund local priorities and clarified united councils’ roles, giving locals a say in regional transport and civil defence matters. Contrast that with today’s coalition of chaos, which is itching to override council decisions and even muttering about scrapping regional councils altogether.
Local Government Minister Simeon Brown’s 2024 edict forcing councils to hold referendums on Māori wards or ditch them entirely shows Wellington’s contempt for local democracy. Talk of axing regional councils, which handle critical environmental and transport planning, isn't just another pig-headed decision, it’s anti-democratic and amounts to economic sabotage.
New Zealand Councils are already drowning in debt, and the coalition’s bullying makes things even worse. If regional councils face closure, who’s going to lend to a sinking ship? Banks and the Local Government Funding Agency will tighten the purse strings, leaving councils unable to fund infrastructure or services. They might not even be able to service the debt they already have.
Another light bulb flashing: doubtful that most territorial councils have the capacity to do what regional councils d0 in managing natural resources, supporting biodiversity, public transport, building climate resilience. Guess those aren’t govt priorities https://t.co/oubo3G9Kfu
— Helen Clark (@HelenClarkNZ) June 22, 2025
With spiralling infrastructure costs such as ageing water pipes bursting faster than budget forecasts can be revised upwards, councils are already on their financial knees. They can’t afford the chaos of more financial uncertainty...uncertainty that Chris Luxon's government is currently providing.
National’s 2023 campaign was all about promising to empower communities to chart their own course. Yet here they are, bullying councils into submission with a centralist iron fist. From stripping councils of water management control through the Local Water Done Well framework, putting additional costs onto ratepayers, to overriding local housing intensification plans, National’s meddling in local matters is relentless.
They’ve also gutted council input on resource management by fast-tracking consents under the Fast-track Approvals Bill, sidelining local environmental protections. Transport’s another casualty, councils face slashed funding unless they ditch cycle-ways and bow to Wellington’s car-centric priorities. And let’s not forget the Māori wards fiasco, where Minister Simeon Brown’s 2024 decree demanded referendums or outright abolition, trampling councils’ rights to decide their own governance. This isn’t decentralisation; it’s dictatorship masquerading as reform, and local democracy’s paying the price.
Muldoon must be turning in his grave at what Luxon's authoritarian government is doing. The 1970's National government, for all its right-wing tendencies, at least made some improvements to local control. Luxon’s crew, meanwhile, breaks election promises with gusto, risking council insolvency while threatening the livelihoods of democratically elected council members, many of whom were likely National Party supporters. If regional councils vanish, expect rates to skyrocket, services to crumble, and communities to lose their voice.