Western Bay rejects Tauranga merger proposal

Western Bay of Plenty Mayor James Denyer (left) and Tauranga Mayor Mahé Drysdale supported the councils working together on forming a new subregional unitary authority, but the Western Bay council voted overall to reject the plan. Photo / Ayla Yeoman

Tauranga City Council has been left at the altar by its proposed amalgamation partner, the Western Bay of Plenty District Council.

But resistance to the union may prove futile, with Tauranga agreeing to push ahead with a proposal without its neighbour’s support.

The two councils held a five-hour joint meeting in the Western Bay chambers today to discuss submitting an outline proposal through the Government’s Head Start local government reform process.

The application deadline is Sunday.

Tauranga councillors first voted in favour of pursuing the creation of a new joint unitary authority covering the Tauranga and Western Bay areas, as part of a wider Bay of Plenty application.

A unitary authority includes district/city and regional council functions.

Their Western Bay counterparts then voted 6-4 against this, opting instead for the Government-led Backstop reform process.

Tauranga reconfirmed, in an 8-2 vote, that it would stick with its plan.

Tauranga Mayor Mahé Drysdale said the city would join other Bay of Plenty councils in proposing to create three new subregional unitary authorities: Eastern Bay (Whakatāne, Kawerau and Ōpōtiki); Western Bay (Tauranga and Western Bay); and Rotorua.

“As of today, five of the six councils support that, and Western Bay will be dragged into it,” Drysdale told the Bay of Plenty Times.

He said it was always going to be a close vote for Western Bay: “That’s democracy for you”.

Drysdale believed forming a unitary council was the right thing for the subregion and would “deliver significant benefits for all that live here”.

He understood Bay of Plenty was the first region to find a solution that “works for everyone” and expected the application would be well-received by Cabinet.

Western Bay Mayor James Denyer and Deputy Mayor Margaret Murray-Benge backed the proposal.

Denyer told Local Democracy Reporting he was disappointed his council’s vote ultimately went the other way.

“It is inevitable that we’ll end up with Tauranga in one way or another.”

Murray-Benge told the meeting she deeply regretted “that it has come to this”.

“This is a complete failure on the part of Western Bay.”

The debate: What Tauranga councillors said

Steve Morris said not coming to an agreement and going with Backstop would fail the community.

Drysdale said the application was “a start line”.

“Let’s redesign it, let’s build it from the ground up.”

Hemi Rolleston said it was an opportunity to “build a new whare” and create something new together rather than focusing on merging.

Glen Crowther abstained from the initial vote on merging to see what the Western Bay decided.

He said the two councils did not trust each other.

Crowther and Kevin Schuler later voted against going ahead without Western Bay’s support.

What Western Bay of Plenty councillors said

Rodney Joyce said forming an arrangement has been painful, comparing it to “laying an egg”.

He said the Government’s 90-day Head Start application deadline was too short, adding “we don’t know what the Backstop would bring”.

Graeme Elvin said he wore a black suit to show his concern for the demise of democracy.

He said he favoured amalgamation but not how the Government was doing it.

He did not support agreeing to form a partnership now and figuring out the details later on.

“The devil is in the detail. I want to sit down and work out the issues.”

Murray-Benge said she wanted to see the councils build trust in each other.

Western Bay of Plenty councillor Tracey Coxhead (left) and Deputy Mayor Margaret Murray-Benge. Photo / Ayla Yeoman

“We’re all equal round this table.”

Standing to address the two councils, she said this was the most important decision they would make.

“We have a responsibility to our ratepayers.”

Denyer said the community supported a subregional unitary authority.

He believed the biggest issues, debt and representation, could be resolved.

He preferred the councils to be in charge of their own destiny.

Tracey Coxhead said she was not comfortable with feedback she had heard or the city council’s high debt levels, and was concerned smaller communities would lose their voices.

“Our two councils are not entirely aligned in our values and objectives.”

Shane Beech said the 90 days was not long enough to do meaningful community engagement.

He said the two councils had differing priorities, including urban versus rural priorities.

“I do not believe the council should be making decisions out of fear of government intervention.”

Laura Rae said she struggled to see how a merger benefited ratepayers.

“Bigger doesn’t always mean better.”

Allan Sole said he did not agree with shaping an organisation then trying to make all the details fit.

He said the two areas had little in common “besides geographically”.

“We need to dot a few more i’s and cross a few more t’s. Honestly, I think we’re so damn close.”

Darlene Dinsdale said she would vote in favour as it set a plan and direction.

Other Bay of Plenty councils

Kawerau, Whakatāne, Ōpōtiki district councils each voted this week to pursue creating an Eastern Bay subregional unitary council – though with reluctance.

Whakatāne Mayor Nandor Tanczos, Kawerau Mayor Faylene Tunui and Ōpōtiki Mayor David Moore – the Eastern Bay councils are pursuing their own unitary authority.

Rotorua Lakes Council will meet today to finalise its approach, but has backed the three-unitary model.

Bay of Plenty Regional Council cannot participate in a Head Start application.

It was set to discuss its response to local councils’ plans in a meeting yesterday, but elected to wait for the Tauranga/Western Bay meeting to finish.

What’s next?

Cabinet will assess Head Start applications and announce which ones will progress next month.

Final proposals would be due March 2027, with subsequent decisions expected in May.

If proposals were declined or a council opted for the Backstop pathway, this process would begin after the 2028 local elections.

Ayla Yeoman is a Local Democracy Reporting journalist based in Tauranga. She holds a Bachelor of Arts majoring in communications, politics and international relations from the University of Auckland, and has been a journalist since 2022.

Additional reporting by Samantha Motion of the Bay of Plenty Times and Mathew Nash of Local Democracy Reporting.

LDR is local body journalism co-funded by RNZ and NZ On Air.

13 comments

Overit

Posted on 07-08-2026 12:47 | By overit

Quite right Tracey, beware of Tga's debt, & yes Shane whats the hurry. Bigger is not better. Take yr time on this because its costly & a huge undertaking.


I guess….

Posted on 07-08-2026 13:05 | By Shadow1

…. I don’t blame Western Bay for not wanting to amalgamate with Tauranga, our $1.6 billion dollar debt is bound to disadvantage any council joining with us.
Of course W/Bay’s rural roading network leaves a lot to be desired as well.
Personally I think that any council that lies back and lets Central Government ravage them without any sort of public protest deserves to be voted out next time.
How can they believe that $millions can be saved by amalgamation without looking at their own dismal performance.
When all this is recent history, the incumbent councillors are going to have to build trust from ratepayers, not sure many will survive the next election.
Come on guys, you were elected as Tauranga City Council. To change the game now is a departure from democracy.
Shadow1


Wrong, Margaret

Posted on 07-08-2026 14:51 | By Astoreth

The rejection by Western Bay is great news.
TCC is a disaster, as it has been for the last 30-odd years. Why on earth would any council want to merge with that?
More to the point, why haven't councils generally banded together and told Wellington where to stick their amalgamation ideas? The last round showed beyond all doubt that bigger is not better. Every merger results in higher overheads, bigger corporate structures and poorer results for ratepayers.


Wake Up Mahé + Minions.

Posted on 07-08-2026 15:21 | By Yadick

Who in their right mind would want to merge with a bankrupt business that is daily, going deeper and deeper into debt and cannot, no, will not stop their blatant, frivolous spending.
To merge with Tauranga City Council would be to sign your death warrant.
You'd expect this response from Western Bay would be a slap in the face, wake up call, but no . . . they just keep running around with their umbilical cord in their hand trying to find somewhere to plug it into.
Have a sit down and a coffee Mahé - on us, your ratepayers.


The Master

Posted on 07-08-2026 16:20 | By Ian Stevenson

Congrats to WBOP, a very good decision.

Tauranga Council is a disaster, who would want to be linked up and join that lot?

Tauranga is an absolute cot case, from top to bottom the dictatorship (so called "Public servants") are the last bunch anyone would want anything to do with.

Pre-commissioner the place was a decades long disaster... the commissioners made the outfit MUCH-MUCH worse, not better

I would strongly suggest that WBOP go and join up with the Eastern BOP councils merger agreement, the chances of success would be millions of time better there and some.


I agree

Posted on 07-08-2026 17:12 | By Kancho

I agree with the comments thus far. Why would anyone want to merge with Tauranga as it stands . They steadfastly refuse to get their own house in order . No apparent proper structuring or real cost savings and hiking up rates as ratepayers are treated like a bottomless money source . Highest rates in the country and a big song and dance act with not charging 9 percent but climbing up nearer 30 percent in recent years. Becoming unaffordable to live here, rates levies, insurance . If i could and younger I would leave


TRUST

Posted on 07-08-2026 18:47 | By Moneywise

I simply cannot believe Western Bay doesnt trust Tauranga Councilors....look at thier last 15 months 'performance'!!!!
They have done so much in such little time....and still box on making Tauranga ' beautiful'.
And BTW...did they let that Marine Precinct deal go through, costing the ratepayer?....was it $40m?..and who is paying the $300m for the publicly voted against museum..and isnt there a $100m swimming pool on the way?....and we worried about the $5m spend on the almost non accessable playground on The Strand!......more to come I suspect from 'our friends' in council.


Borrow more

Posted on 08-08-2026 06:43 | By Kancho

So bigger means more assets and ability to borrow more. We are already heavily in debt causing rates to go sky high and continuing to make it worse will never stop. How about being a more lean organization doing better without truly crippling debt


merger

Posted on 08-08-2026 09:24 | By terminal

you are so right ... tell the Biship to go stick it.. its election year National are a bunch of dictators so band together and tell them so ..... oh this does take some bottle and theres not a lot around


remember

Posted on 08-08-2026 09:32 | By terminal

the same dictatorial govt did the same thing some years ago,, thats how western bay was formed and the results speak for them selves yuck.. and now they want us to go bigger?????? Tell the Bishop to go jump in a big hole...councils all over need to grow some gonads they have the rate payers behind them .... the voting public


Tauranga city council is a disgrace

Posted on 08-08-2026 09:29 | By jed

The problem with TCC is they don't build what ratepayers can afford, they build what council employees would like to build.

Platinum plated roading projects and monuments to themselves. TCC mistake council failure for market failure, and spend ratepayers money to correct their false perceptions.

The best Mayor council had in 20 years was Tenby Powell -- evidenced by the fact that he was so disliked by the same council establishment at fault for today's financial mess.



It looks..

Posted on 09-08-2026 10:22 | By Shadow1

….as if not many councils are happy with this order from the Minister of Local Government. Some like Hamilton won’t participate at all. Also, the Minister has claimed that participation is voluntary!!! So why on earth is Tauranga spending money on what’s bound to be an unpopular scheme. We are probably the most indebted council in NZ so who will want to play with us? The fact that our debt is so high is a result of handing power to an unsympathetic commission. That’s an indication of what’s to come.
Shadow1.


Debt

Posted on 09-08-2026 18:51 | By Kancho

TCC debt
Tauranga City Council carries a net debt of approximately $1.3 billion, which is projected to rise toward $1.84 billion. Enough said share that out with poor ratepayers approximately 64,497 projected rateable rating units.


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