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One Otago: the reform conversation is moving and Business South is in it

Last week the Otago Mayoral Forum's commissioned analysis from Morrison Low Advisory was released publicly. Business South has read it carefully. Here is what it means for the reform conversation and for our position.

 

The numbers are consistent

Media coverage focused on the finding that financial efficiencies across all structural options sit in the single digits. Business South is not surprised by that. Our own analysis arrives at the same order of magnitude. What that means in practice: savings in the range of tens of millions of dollars per year, permanently, every year, achieved not by reducing the number of mayors, but by consolidating the duplicated back-office and operational machinery that currently runs six times over across the region. Six finance teams, six consenting processes, six IT systems, delivering the same services under the same legislation at unnecessary cost to ratepayers.

 

The commissioned analysis recommends what Business South proposed


The more significant finding in the Morrison Low report has received less attention. The consultants conclude that for any multi-council model, a shared regional entity delivering services across the whole region is recommended — to remove duplication and fill capability gaps. Without that shared entity, costs actually increase. That shared regional entity is precisely what the Business South operating model proposes. The Forum's own advisers have arrived at the same design conclusion Business South reached in its June submission.

 

The strongest finding of all


Business South has now compared the commissioned analysis directly against our operating model. The finding is clear. The Morrison Low analysis shows that a single Otago council delivers the strongest outcome on regional planning, catchment management, and financial efficiency, but faces the greatest challenge on local voice and community acceptance. More council options perform better on local voice but weaker on planning and efficiency, and still require a shared regional entity in any case.

 

The economic development case still needs to be made


The Mayoral Forum's community survey found that economic growth ranked 11th out of 12 priorities, cited by just 25% of respondents. The reform conversation has been largely about cost and local identity. Those are legitimate concerns. But they are not the whole picture.

Otago is one of New Zealand's strongest regional economies. Export earnings have tripled in two decades. The region has world-class businesses competing globally, a wine industry with international recognition, a visitor economy that draws investment from around the world, and a primary sector that continues to grow. Business South's own May 2026 survey shows 62% of businesses are still planning to invest and 67% are confident in their ability to manage disruption. This is a resilient region with genuine momentum. It deserves governance built to match its ambition — and that economic argument needs to be part of the reform conversation.

 

One Otago


Business South's preferred outcome remains a single Otago council; one economic strategy, one investment proposition, one voice in Wellington. For those where full amalgamation feels too large a step, our operating model delivers most of the same benefit through a design that keeps local communities genuinely empowered. Either way, the destination is the same: a governance platform that works for the businesses, communities, and environment of this region.

The next Mayoral Forum is 31 July. The Head Start deadline is 9 August. Business South is actively seeking a co-design role in the reform process and will be in Wellington ahead of the deadline to put the case directly to Ministers.

Business South members can access the full submission through the member app. We welcome your feedback, this is your region and your governance, and your voice matters in this conversation.