Potential Nelson-Tasman councils merger presented to members

Marlborough mayor Nadine Taylor, Minister for the South Island James Meager and Nelson mayor Nick Smith at a strategy meeting held in Nelson. Photo: RNZ / Samantha Gee

A merger of Nelson City and Tasman District councils could soon be on the table again.

It was a point of discussion at a Nelson City Council strategy day held at the Waahi Taakaro Golf Course in the Maitai Valley on Thursday, where a report written for the Nelson Tasman Chamber of Commerce was presented to elected members about what one council could mean for the region.

It was authored by former Tasman District Council chief executive Janine Dowding and covered past proposals, current factors and different options along with Dowding's views and experience working in local government.

Tasman council chief executive, Janine Dowding. Photo: RNZ / Tracy Neal

"There are material differences between Nelson and Tasman districts which are resulting in tensions and undermining collaboration," it read.

"Financial sustainability is becoming a critical issue for many councils and reinforces the importance of taking measures to maximise efficiency and effectiveness."

Photo: RNZ / Tracy Neal

A merger was last considered in 2012 but failed after a referendum where more than 74 percent of voters in Tasman rejected the proposal and almost 57 percent of voters in Nelson supported it.

Dowding said a merger was likely to increase costs and require significant resources. But once fully transitioned, the cost savings in 2012 were estimated at up to 6.1 percent of total annual operating and capital expenditure.

The idea of a merger was floated again last year as the Future for Local Government review recommended significant reform of the sector.

Newly appointed Minister for the South Island James Meager dropped in on the event in Nelson, the first official visit in his new role.

He said while the region's mayors' had not spoken to him about merger and that it was decision that should be driven at a regional level.

"Central government's position is that locals should decide for themselves what their structure should be and if they want some support from central government to implement that, then it is probably a conversation worth having."

Nelson Mayor Nick Smith has been vocal about his support for a single council covering the region and said he intended to discuss it further with elected members in both Nelson and Tasman.

Smith had previously shared "a very clear public view" that the region would be stronger if served by one authority, and that it could save ratepayers millions.

An efficiency gain of 1 percent represented savings of $6.2 million a year based on Nelson City Council's spend of $288 million and Tasman District Council's spend of $329m last year.

He believed one of the reasons the merger proposal failed in 2012 was because it was too closely associated with then Nelson mayor Aldo Miccio.

"I do believe in a merger but this is not about me, in fact I've said I have a lot of faith in Tim King and if he wished to be the mayor of the combined district, I would not contest the mayoralty against him."

Tasman Mayor Tim King. Photo: RNZ / Samantha Gee

Smith said he planned to ask the government, possibly through the Minister for the South Island, to facilitate a discussion with the Local Government Commission about having a "sensible, rational, well-researched process" to determine the best form of local government to service the community.

"My view is that ratepayers and councils are under enormous financial pressure the messages I have had from the Minister of the South Island is that there is not gazoodles of money coming out of Wellington to help us. If there are ways in which we in Nelson and Tasman can do things more effectively and efficiently, then we need to be open to having that discussion."

Meanwhile, Tasman mayor Tim King had previously raised concerns about the representation of the rural voice in an amalgamated district with his preference to focus on finding efficiencies through shared services with Nelson.

The two councils currently cooperate in transport, sewerage, landfill, future development, pest management, emergency management, the Saxton Field sport complex, and more.

"There are plenty of other things we can continue to work on, providing jointly or collectively. If there are benefits on the financial side, that is where they're to be gained."

Marlborough mayor Nadine Taylor, who attended the strategy meeting in Nelson, also made her view clear.

"For the avoidance of doubt, Marlborough is doing very well on its own and we are quite happy to stay that way."

The report recommended the establishment a working group to test the options for shared services and a full merger between Nelson and Tasman and Smith said he would work to determine if there was a "willingness and appetite" from both councils to establish one.

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