Rodney Hide

Wellington, May 27 NZPA - The transition agency that is managing Auckland's change to a new local government structure will cost an estimated $94 million, Local Government Minister Rodney Hide says.

The Royal Commission which investigated the city's governance estimated the Auckland Transition Agency (ATA) would cost between $120m and $240m.

"The Royal Commission had projected the transition to take four years, but the transition to one mayor and one council for Auckland will now be completed in well under half that time," Mr Hide said.

The transition funding is a loan from the Government to the ATA and will be repaid by the new council by November 1 next year.

The council may decide to refinance the loan so as to spread the impact over time.