Rotorua Mayor Tania Tapsell says the Government’s three-month deadline for proposals on sweeping local government reform is too short to properly consult the community.

Councils across the country are racing to respond to Tuesday’s ultimatum to develop reorganisation proposals within 90 days, with the Government warning it will step in if they do not.

Councils must work together to submit joint plans outlining how they would restructure, including merging services or forming unitary authorities – which have regional and city/district council functions.

Proposals must demonstrate they can be delivered quickly, improve efficiency and maintain local representation.

Local Government Minister Simon Watts said the Government’s Head Start pathway was an opportunity for councils to shape their own future.

“If councils don’t step up and put forward credible proposals, the Government will step in and make those decisions ... lead your own reform, or we will do it for you,” Watts said.

The urgency was also about setting councils up for planning system reforms set to become law this year, Resource Management Reform Minister Chris Bishop said.

“Fixing the planning system while leaving local government untouched would just lock in the same problems,” he said.

Past ‘monster mergers’ give mayor pause

Tapsell, the Rotorua Mayor, said while the changes could deliver benefits, the timeframe raised immediate concerns.

“That’s not enough to gauge a good view of what our community would support,” she said.

Tapsell said she had been involved in information discussions with mayors and chief executives in Bay of Plenty, plus an urgent online meeting last night with those mayors and the Bay of Plenty Regional Council chairwoman.

She was also speaking with Waikato leaders but had “given an initial indication it would be unlikely for us to lean towards the wider Waikato region”.

Tapsell described the reforms as a “massive moment” for local decision-making, with the potential to reshape how councils operate for decades.

“Done well, this has the potential to deliver real benefits for communities and ratepayers,” she said.

“But we are also mindful that previous monster mergers, such as in tertiary education and health reforms, haven’t always worked well.”

She said Rotorua Lakes Council was “a step ahead” and had committed to exploring becoming a unitary authority.

Rotorua Mayor Tania Tapsell at a July meeting. Photo / Laura Smith

“It is an exciting opportunity for councils that are ready to move faster and bring about change,” Tapsell said.

Functions including aspects of transport, waterways, stormwater management, environmental protection and biosecurity are currently overseen by Bay of Plenty Regional Council.

Tapsell said maintaining strong local oversight in these areas would be essential if reforms go ahead.

She also welcomed the Government’s confirmation that regional councillors would remain in place until 2028, saying it would have been “grossly unfair” to remove them early.

“The decisions we make now will have long-term implications for our communities and we are committed to working through this carefully to ensure we get it right for Rotorua,” she said.

She said she would be discussing the reforms with other Bay of Plenty mayors this week, as councils begin co-ordinating their response.

Rotorua Lakes Council chief executive Andrew Moraes said the council would “take direction” from elected officials.

“The work we have in front of us will be to find a solution that returns the best value for our community,” Moraes said.

“We are always open to new ways of working to deliver better value for our customers and ratepayers.”

Rotorua Lakes Council chief executive Andrew Moraes at a June 2025 meeting. Photo / Laura Smith

Bay of Plenty Regional Council chairwoman Matemoana McDonald said on Tuesday that early discussions are already underway, though no firm position had been taken.

“We have been working primarily through the Bay of Plenty Mayoral Forum, and the focus is on better understanding local government functions and improving shared services,” she said.

McDonald said the council was taking a “function before form” approach, focusing on what services need to be delivered before deciding on structure.

“Conversations have already started with our territorial council partners since the announcement,” she said.

Bay of Plenty Regional Council chairwoman Matemoana McDonald. Photo / Alex Cairns

McDonald said the reform process carried significant risks if not managed carefully, particularly around environmental oversight and community safety.

“No one would want to see the safety of communities and the environment compromised by local government reform,” she said.

McDonald said the council’s core responsibilities would continue to function throughout any transition.

“Ensuring these are well planned for and continue to be delivered effectively will remain a priority.”

She also acknowledged uncertainty among staff during this “unsettling time”, but said employees “remain focused” on delivering for communities.

“At this stage, many details, including potential impacts on staff, are still unknown.”

Councils have three months to submit proposals involving at least two city/district councils. Regional councils cannot make proposals.

The proposals will be assessed by officials, with Cabinet expected to decide in principle which to develop, ahead of final decisions in 2027 and implementation before the 2028 local elections.

Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.

– LDR is local body journalism co-funded by RNZ and NZ On Air.