Greater Manchester's 2014 devolution agreement included powers over transport, housing and skills, with matching funding.
 
That was my model for New Zealand two years ago, in a research note for The New Zealand Initiative. I urged the Government to strike City and Regional Deals that live up to the name.
 
New Zealand's centralisation leaves councils with weak incentives for growth. Wellington takes much of the tax revenue, while councils and ratepayers bear infrastructure costs. Devolving powers and sharing revenue would help.
 
The Government, to its credit, has pursued deals. In November 2024, it promised three by October 2026. Last week's signing with the Otago Central Lakes councils delivered the third, after Auckland in April and the Western Bay of Plenty in May.
 
This sounds great, but if you read the agreements, you will see a pattern. Each is a ten-year partnership with a thirty-year vision, an oversight board and an implementation plan yet to be developed. Each lists sensible priorities, but then commits the parties to 'explore', 'investigate', 'examine' and 'support' them.
 
No additional Budget funding is expected in their first three years. In the meantime, councils are encouraged to make greater use of their existing suite of targeted rates, development contributions and infrastructure financing levies.
 
Longer-term, the deals offer hope of possible Crown co-funding, congestion-charging revenue arrangements for Auckland, tourism funding and sharing of royalties from mineral exploration for Otago Central Lakes. These deserve acknowledgement but fall well short of giving councils independent control of substantial new revenue.
 
Auckland's deal promised to explore an accommodation levy. Four months later, Christopher Luxon ruled it out. Otago Central Lakes' deal does not provide for one.
 
Partnership and coordination have value. Regular meetings of ministers and mayors to agree on priorities are better than surprise announcements and reversed decisions. But agreements that leave councils dependent on Wellington's approval for new funding and powers are lopsided partnerships on Wellington's terms.
 
Whoever forms the next government should finish the job. A share of growth-generated revenue must flow back to the councils that enabled that growth, whether through secure shares of GST revenue or mineral royalties. Councils must have greater local discretion over visitor levies and road pricing, with enhanced accountability for how the money is spent.
 
Real decision-making power belongs with the people who live with the results. Greater Manchester secured that commitment in 2014. Surely, we can too.