Increasing local government amalgamations are forecast by Tauranga Mayor Stuart Crosby – with not all of them politically driven.

In his state of the city address to a breakfast meeting of Tauranga City Partners today, Stuart says economic factors are already driving increased cooperation and costs sharing among regional territorial local authorities.

Mayor Stuart Crosby giving his state of the city address at TECT Arena at Baypark.

This cooperation is manifested in the creation of Bay of Plenty Local Authority Shared Services Ltd.

BOPLASS is owned by the Bay of Plenty Regional Council, Rotorua District Council, Western Bay of Plenty District Council, Kawerau District Council, Tauranga City Council, Opotiki District Council, Whakatane District Council, Taupo District Council and Gisborne District Council.

It promotes shared services between local authorities in the Bay of Plenty/Gisborne regions and elsewhere.

Savings are made through joint procurement by two or more councils and through cost sharing in the provision of common services.

'The next phase of the operation will be more challenging,” says Stuart.

'They will require in some cases giving up individual sovereignty related to some of these councils.”

Core council management and databases can be rationalised so that one council in the group can handle the payroll for all, another can maintain all the building related data bases, similarly with the libraries, and so on.

'We have got all the low hanging fruit, the next step will require some political involvement,” says Stuart.

He said earlier that Tauranga's growth and development during the 2010/11 year is again influenced by the impacts of the global financial crisis and the ongoing stress this places on local and national economies.

Tauranga's growth is still slowing, bringing reduced development contributions and forcing the need to make savings, reduce debt and defer capital projects.

On the political front, Stuart says Tauranga is keeping in close contact with Auckland mayor and deputy mayor, Len Brown and Penny Hulse, over how the government enforced amalgamation is working out.

He also mentioned the city's decision this week to join the upper north island strategic alliance agreement, an inter regional club with a membership including the Northland Regional Council, Waikato Regional Council, BOP Regional Council and the regional metropolitan councils; Whangarei, Auckland, Hamilton and Tauranga.

The alliance's priorities include economic development, and identifying common priorities regarding transport, ports and tourism.