'Mega ministry' announced

Chris Bishop believes the current system is too fragmented and uncoordinated. Photo: RNZ

The government has announced a mega ministry to take on the work of housing, transport and local government functions.

The Ministry of Cities, Environment, Regions and Transport (MCERT) will bring together the ministries of environment, transport, housing and urban development and the local government functions of the Department of Internal Affairs (DIA).

Housing, Transport, RMA Reform and Infrastructure Minister Chris Bishop said today that much of the government's reform work spanned multiple agencies.

"For example, solving our housing crisis is impossible without fundamental planning reform, which is currently the responsibility of the Ministry for the Environment [which looks after city, district and regional plans].

"It is also impossible without reforms to infrastructure funding and financing [currently split across HUD, DIA and Transport]."

Bishop said the current system was too fragmented and uncoordinated.

"New Zealand is very well served by outstanding public servants in all of these agencies doing their best to serve ministers and the public in difficult circumstances.

"My experience is that they are often as frustrated as ministers are by the duplication, overlapping responsibilities and lack of coordination."

Public Services Minister Judith Collins said the new ministry would deliver the best results for taxpayers.

"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."

A chief executive will be appointed in the first half of 2026, with the MCERT fully operational by July next year.