New ministry to handle transport

The Ministry of Transport is being merged by the government with a number of other departments to create a new mega-ministry.

The coalition has announced the Ministry of Cities, Environment, Regions and Transport (MCERT) is designed to support its reform agenda in housing, transport, urban development and the environment.

Under the plans, the new ministry will bring together the Ministry of Transport, Ministry for the Environment, Ministry of Housing and Urban Development and local government functions from the Department of Internal Affairs.

Chris Bishop, the minister responsible for transport, housing, RMA reform and infrastructure, says: “The new agency will be at the heart of tackling some of New Zealand’s greatest economic and environmental challenges – from housing affordability, our infrastructure deficit, and adaptation to climate change.

“The government has a series of ambitious and complex policy reforms under way across all of these areas, from Going for Housing Growth, a renewed emphasis on transit-oriented development, congestion pricing and the transition to electronic road user charges for all vehicles, Local Water Done Well, city and regional deals, and the national adaptation framework. Underpinning it all is planning and local government reform.”

Bishop, pictured, adds responsibility for many of these reforms currently spans multiple agencies and believes the change will reduce duplication and overlapping responsibilities.

“The Government has a clear agenda to drive growth and lift living standards for all New Zealanders,” he continues. 

“We do not believe the current structures of government can deliver effectively on this strong mandate and change is required. The system is too fragmented and too uncoordinated.

“Local government and communities rightly complain that dealing with central government on these important issues is difficult, bordering on impossible, because it is often not clear who they should be talking to and coordinating with. 

“The new agency will be the one-stop shop for local government and others to deal with on these complex challenges.”

MCERT is set to be fully operational by July 2026, with a chief executive expected to be appointed before then.

It is unclear how many public service jobs will go under the merger, which is set to affect about 1,300 full-time employees across the different agencies, but Bishop says no decisions have been made on a final headcount.

‘Unlocking potential’

Judith Collins, Minister for Public Service, joined Bishop and other ministers at the December 16 announcement about the changes and says the government is committed to delivering the best results for taxpayers in the most efficient way possible, “and this new ministry will do that”.

“We are investing to ensure its success and while it is not intended as a cost-cutting exercise, we do expect to see efficiencies in the medium to long term.

“The primary purpose of MCERT is to unlock the potential of New Zealand’s cities and regions. It will help boost growth and productivity by reducing duplication and complexity, and by creating a simpler and more responsive public service.”

Penny Simmonds, Minister for the Environment, adds MCERT will bring together the key levers for growth and environmental stewardship in one place. 

“With clearer accountability and integrated advice, we’ll deliver better outcomes for our communities – across housing, transport, water and the environment,” she says.

“Aligning the right tools in one agency will provide practical, integrated advice that protects our environment and lifts prosperity for every community.”