Otago Central Lakes Regional Deal on hold

Central Otago District, Queenstown Lakes District, and Otago Regional councils have all this week approved to pause signing of the Regional Deal. This follows recent announcements that have a material impact on the exploration of an accommodation levy in 2027. All three councils are seeking clarification about what will be explored as an alternative to the accommodation levy, and what that means for the long-term ambitions of the deal.

Below is a joint statement from Otago Central Lakes Mayors & Chair.

The Otago Central Lakes councils remain committed to the Regional Deal and to the long-term partnership we have been building with central government over the past year.

However, we are disappointed to find ourselves in a position where we need to reopen discussions on an agreement that we believed had been completed and was ready for signing. The Regional Deal is the result of extensive negotiation, collaboration and good faith engagement from all parties. Our councils had approved the deal on that basis, and we understood that Cabinet had also agreed to the package that had been negotiated.

A key aspect of that agreement was the commitment to explore an accommodation levy policy in 2027. The recent proposal to replace that commitment with alternative wording understandably raises questions for our councils and communities about what will now be explored, and what that means for the long-term ambitions of the deal.

Our decision to seek further discussions should not be interpreted as a withdrawal from the Regional Deal. Quite the opposite. We remain committed to the vision, opportunity and partnership that the Regional Deal represents. We simply owe it to our communities to ensure there is clarity around the commitments being made and confidence that the partnership will endure long term.

We look forward to meeting with Ministers and officials as soon as possible to work through these issues and to put the Regional Deal back on a foundation that all parties can confidently support.

Mayor Tamah Alley, Central Otago District Council
Mayor John Glover, Queenstown Lakes District Council
Chair Hilary Calvert, Otago Regional Council