Local Government Reform: How Prepared are Sport, Recreation and Community Services for Change?
Authors: Richard Lindsay , Bryce Pomfrett , Robyn Steel – RSL Consultancy
Release Date: June 2026
Article Context: This article is the first in a series produced by RSL Consultancy to offer support and insights to the wider sport and recreation sector on local government reform.
Introduction
Central Government’s ultimatum to Councils to either propose an approach to amalgamation or face a forced alternative is creating understandable anxiety. At times of change like this, reassurance can be found in focusing on what can be controlled and not spending too much time on things that will fall to political whims.
There are a range of areas that may well be within your control, which, if action is taken now, can ensure the new local government entities can look to operate fair and equitable offerings across their (broadened) area. The following guidance areas are our suggestions on how sport, recreation and community practitioners can start to prepare for change:
Leveraging Regional Scale and Retaining Localised Communities
A strong concern we’ve heard is that important local voices and needs will be lost in regional decision-making. Many regions have in place network planning, strategies and guidance, and also recognised aspirations to address inequities in provision and participation. This is a great start point.
16 years on from amalgamation, Auckland’s “super city” is still wrestling with balancing funding and local decision-making between regional governors, 21 local boards and co-governance with iwi. This is extremely hard to do retrospectively. Clearly arranging and thinking about the place of regional plans to identify service gaps and support network efficiency is critical. Equally, delegating and funding local decision makers to make the right decisions for communities is just as critical. Establishing clear(er) levels of service (that separate regional standards and local flexibility) and identifying communities where provision is not meeting these levels is a practical planning step that can be taken now.
Economists (and those who think like economists) will argue that the proposed reforms for local government make economic sense, and the term economies of scale is thrown about as a primary benefit of change. However, it is important that the economics do not override the need for community-level provision; therefore, we propose that achieving communities of scale is an equally important outcome.
To illustrate, there will also be quick wins that can leverage new “communities of scale”. As an example, ensuring library collections can be borrowed and returned anywhere in a network can ensure these resources are more quickly accessible and better utilised than they are now.
Preparing for a Rate Cap Environment
The current government has announced that from 2027, local government will need to keep rates increases under a suggested target of 2%-4% annually. Being able to achieve this in a sector that relies heavily on people to deliver, energy to warm/cool facilities, and a range of other inputs outside local governments’ control is going to be extremely challenging. If this occurs, it is likely we will see a forced reduction in levels of service. Developing anything new in areas without growth to support this will require new funding models.
Looking for opportunities to achieve multi-use and integrated services, proactively decommissioning old and no longer useful assets, and discovering new partnership models all offer ways to begin to factor in this impact. Addressing pricing, procurement and operating contracts will likely also be immediate areas of focus in new amalgamated Councils.
Ensuring Equitable Provision
Local government across New Zealand is a significant contributor to the provision of play, recreation and community services that add greatly to the liveability of places. The role Councils play in this provision occurs because the market does not see a financial return in these areas - yet the broader societal returns are obvious. Such examples include the contribution to drowning prevention aquatic facilities support, the mental health benefits of parks and open spaces and the digital equity enabled by libraries. Without local government provision, a significant portion of communities would not have the opportunity to access these services, connect and have a sense of belonging. Frankly put, a worst-case scenario would see inequities being far greater and communities poorer for that, and also quite dull.
The levels of service offered by each current council will most likely differ from each other. Like a blended family, different councils will bring different factors to the table. This will need to be an early consideration to ensure the levels of service are not reduced unnecessarily, and that efforts to address haves and have-nots are reflected in regional plans.
How services are currently offered will also differ. Looking at opportunities to address legacy arrangements, like in-house provision, contracted management, operating grants to community trusts or a mix of these approaches can be taken through an amalgamation process. This is another area that will require attention; balancing what is best for the entire council area, while also considering what best meets the needs of the local communities.
Re-defining Networks
Most participants who attend sport, recreation or other community activities do not necessarily consciously ask themselves, “Which local government area am I participating in today?” There are many instances across Aotearoa where regular participation comes from those outside the existing council boundary. In most instances, any subsidy required to run that service is borne by the host council.
Ensuring community infrastructure is part of growth planning through infrastructure strategies and development contributions is also an important task that can be prioritised through the coming Long-term plan processes.
Maximising the Value from Within New Teams
Opportunities will arise for teams from multiple councils to come together and maximise the experiences they all have. There will be uncertainty around future roles, which will require empathy and careful communications. The rhetoric is that reform will reduce headcount. Therefore, it is critical that the value of what is done across teams is well articulated to ensure that reasonable levels of service are retained.
So, how prepared are you?
At a council-by-council level, the impacts on sport and recreation are unknown at this point; however, we can draw encouragement from some of the work that has been undertaken over the last 10-15 years that may position sport, recreation and community services as “reform-ready”. There are many parts of the sport, recreation and community sectors that have a good base for these newer, larger council areas. Several examples of an engaged, ready system include:
The previous development of various across-boundary strategies and plans to guide regional (which is to become local) decision making, such as Play, Active Recreation and Sport Strategies, Spaces and Places Plans and specialised plans such as Aquatic Facility or Sports Field Network Plans. At the very least, these are plans that can form the basis for initial discussions, and when reviewed in the new context, provide solid evidence to inform decision-making.
The existence of regional sports trusts (RSTs) across the country that serve an apolitical, all-of-sector leadership role. RSTs also have a solid understanding of the wider voluntary sector within each area and seem to be well placed to assist local government even further.
Equally, regional sports code organisations (RSOs) who currently operate across multiple council areas will be able to collaborate with fewer entities to deliver their sport or recreation activity.
A shifting culture of organisations in sport, recreation and community services, from stand-alone assets and delivery to shared use, hubbing of assets and combined delivery.
At the same time, there are multiple opportunities to increase both efficiency and effectiveness in a reformed sector. If your local government entity, or entities, want to proactively position sport, recreation and community assets and services, then it is key that a clear purpose, strategy and priorities are developed.
Finally, and arguably most importantly, have you got the ability and insights to tell the story of the value and power that your work brings to the community you serve?
Key tasks to Consider:
Align clear regional and local levels of service for network planning and provision
Factor in positive opportunities to achieve “communities of scale”
Identify early priorities to integrate multi-use facilities, decommission assets that are no longer of community value, and shift a focus to collaborative partnership models
Prepare to tell the story of the benefits and the equity community facility networks already enable
Factor community infrastructure into upcoming Long-term planning processes
Identify strengths of current culture and workplace connections you want to retain
Article Two will be released next month, focusing on lessons learned from other reform processes, both within New Zealand and internationally. We will bring valuable insight to the conversation from www.slc.uk.com and others.
As a New Zealand-owned and operated company, with a deep understanding of local government context, RSL Consultancy proposes to support local government and the wider community sector in a number of ways:
Further articles from RSL Consultancy on the sport, recreation and community impacts and opportunities coming about due to local government reform
The option of an online discussion forum for interested practitioners to meet and confidentially share learnings.
Customised support to individuals or organisations involved in reform.
If you are interested in any of the above services or simply want more information, then email info@rslc.nz to be added to our mailing list, or follow our LinkedIn page for future updates
