Environment Southland commissioned TDB to undertake a high-level review of the options for integrating its activities with other councils in the Southland region. The report prepared by TDB has now been published on Environment Southland’s website.

The report starts by analysing efficiency gains in local government from economies of scale. Next, the report investigates potential scale benefits from amalgamating water services. The report then discusses some of the transition costs that may arise in the process of amalgamating councils.

Five structural options for amalgamating councils in the Southland region were identified and assessed relative to the status quo. The conclusion is that one unitary council for the Southland region is likely to yield the largest net benefits, although the option of merging water services and potentially other network infrastructure services also ranks highly as these are the functions most likely to deliver economies of scale. The two unitary councils option is ranked the lowest.

The amalgamation of councils is likely to be a multi-year project. The report emphasises the need for Environment Southland to be proactive in formulating a proposal that maximises the chance of success, rather than being passive throughout the process. Important considerations include the representation arrangements which would promote local democracy and the participation of all communities including local iwi and Māori.