Why Regional Deals Matter for New Zealand’s Future

New Zealand’s infrastructure approach is shifting and Regional Deals could be the catalyst. In this piece, Sean Haynes and Morgan Jones break down what these 10-year agreements mean, how they differ from past funding models, and why they could mark a turning point for how we plan and deliver in our regions.

Morgan is the Managing Director at Veros and sits on the board of Property Council New Zealand. Sean is also a Director at Veros and a member of the Tauranga Urban Taskforce.

Today’s signing of Memorandums of Understanding (MOUs) with Auckland, Otago/Central Lakes, and the Western Bay of Plenty marks the formal launch of New Zealand’s first City and Regional Deals.

At Veros, we’ve long supported smarter, long-term models for infrastructure delivery, ones that align national ambition with regional realities. This moment reflects a shift toward the kind of practical, strategic investment that regional New Zealand needs.

From stop-start to long-term planning.

The MOUs are not yet publicly available, but they represent a major step forward. They establish a 10-year partnership between central and local government focused on regional investment in infrastructure, housing, and economic development.

More importantly, these agreements aim to move beyond short-term, politically driven decision-making. Instead of the usual stop-start approach, they promise consistent, place-based investment that can last beyond election cycles at both central and local levels.

How Regional Deals differ from past approaches.

Unlike past one-off funding initiatives like the PGF (Provincial Growth Fund), Shovel Ready projects, or IAF (Infrastructure Acceleration Fund), Regional Deals are designed to co-design and co-deliver a region’s priorities. They give regions more certainty to plan for the long term, introduce new delivery tools, and support alignment with national reforms.

A clear need for change.

The need for change is clear. After decades of underinvestment and reactive planning, New Zealand faces a serious infrastructure shortfall.

The Infrastructure Commission’s draft 30-year plan calls for a steady, cross-party approach to funding and delivery. These first Deals are crucial because the regions involved face complex infrastructure challenges, and this model provides a smarter way to respond, with structure, funding certainty, and genuine community outcomes.

Lessons from across the Tasman.

From our own experience in Australia, we’ve seen how Deals like these have worked in places such as Townsville, Geelong, and Western Sydney. They’ve delivered real results thanks to shared governance and long-term funding commitments.

What's inside New Zealand's Regional Deals.

Some of the standout features of New Zealand’s new Regional Deals include:

Joint governance and spatial planning between central and local government
Access to innovative funding tools, like the Infrastructure Funding and Financing Act
Alignment with broader reforms in planning and water services
Support for councils to better use the assets they already own
Investment in high-growth sectors, such as clean technology and advanced manufacturing.

Reframing infrastructure as opportunity.

At Veros, we help regional communities shape and deliver the outcomes that matter most to them. These Deals are a chance to reframe infrastructure — not as a sunk cost or political football, but as a platform for long-term prosperity.

New Zealand has an inherent boom and bust property cycle that is hard baked in and hard to shake off. As a country we go through phases of super heated frenzied activity, followed by long periods of recessionary activity where we lose experience and capacity in our property and construction delivery system. If these Deals do what they are intended to do, it will provide a clear travel of direction supported by more consistency and long term funding. If this works we will get better bank for buck from our infrastructure investment and less boom bust in our markets.

Morgan Jones,Veros Managing Director

We have seen too many good projects derailed by political cycles, siloed funding, and short-term thinking. Regional Deals offer a chance to break that pattern by putting the region at the centre of decision-making. It is about having mature, long-range conversations and backing them up with the governance and funding to deliver. These Deals give local leaders the tools to plan with confidence and deliver what their communities really need, not just what fits the funding window.

Sean Haynes, Veros Development Director

These Deals mark a new chapter in how New Zealand delivers for its regions. If you’d like to understand what this means for your project, let’s talk.

Now’s the time to think long-term and deliver with purpose.

Get in touch or join the conversation on LinkedIn and let us know what you think.