Bigger doesn’t mean better – Canterbury and Waikato Supercities are a bad idea

The New Zealand Taxpayers’ Union says that proposals from Hamilton and Christchurch City Councils to create new supercities are a bad idea that would increase costs for ratepayers, undermine local control and reduce democratic accountability.

The Union is also calling on the Government to commission an independent review of the Auckland supercity that amalgamated the former Auckland Regional Council and seven district and city councils.

The proponents of amalgamation claim that that it will reduce overheads and lead to efficiency gains, but this is not borne out in the evidence. A report by the Infrastructure Commission last year, for example, found no evidence that larger councils are more efficient.

Taxpayers’ Union Local Government spokesman, Josh Van Veen, says:

“Aucklanders know from bitter experience that the roads are worse, rates are higher, and our public transport system is even less co-ordinated than it was under the old regional and district council model.

“At the same time, decision-making is further and further removed from local communities. Large Council-Controlled Organisations spend billions of dollars in ratepayer money but are kept at arms-length from democratic accountability.

“Recent centralisations of polytechnics and health have also been a complete mess. Rather than generate economies of scale, they have simple created additional layers of bureaucracy on top of what was there before. Creating more supercities is completely the wrong approach.

“It is time for the Department of Internal Affairs to do what it promised 12 years ago and give the public an honest appraisal of Auckland Council.”

The New Zealand Taxpayers’ Union congratulates Wētā FX on their success at the Oscars with Avatar: The Way of Water but is disappointed that it is tainted by the millions of dollars in taxpayer subsidies that franchise has received.

Taxpayers have forked out over $140 million in subsidies for the Avatar sequels, the first of which grossed almost $3.7 billion. In the five years to 2026, taxpayers will have paid more than $1 billion to wealthy film production companies, including one owned by Jeff Bezos – the world’s third richest man.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“The Government needs to explain why the film industry is special enough to receive favourable treatment over other industries. Every dollar taxed to fund these subsidies is a dollar that could have been spent improving public services or reducing the tax burden on Kiwis.

“James Cameron has publicly stated that the film is generating a profit so it is time for taxpayers to see a return on their investment.

“We urge the producers of Avatar to express their gratitude to New Zealanders by paying back the generous subsidies that have been provided by taxpayers over the years."