"Run out of runway": Govt puts council amalgamation plans on hold

RMA Reform Minister Chris Bishop says amalgamation plans have become a tougher picture than initially planned. 

Some local mayors are frustrated with what they call a waste of time and money after being pressured to submit amalgamation proposals, under a tight deadline last month. 

Cabinet's now said it won't make decisions on the proposals until next year after more analysis and development. 

Bishop told Mike Hosking the Government's run out of runway ahead of election. 

He says of the 18 plans, some were really good, while others were too complicated. 

Speaking of the election, National is also questioning where Labour will get the money to fund its latest pledge. 

The party's promising to fund new state homes, school and hospital upgrades, as well as housing subsidies and operating costs. 

Leader Chris Hipkins says the $4 billion would come from the Government's capital allowance.  

But Bishop told Hosking they live in a fiscal fantasy land. 

He says the money has to come from somewhere, whether that's borrowing or future tax revenue. 

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