New Zealand is a unitary state rather than a federation—regions are created by the authority of the central government, rather than the central government being created by the authority of the regions. Local government in New Zealand has only the powers conferred upon it by Parliament. These powers have traditionally been distinctly fewer than in some other countries. For example, police and education are run by central government, while the provision of low-cost housing is optional for local councils. Many of them used to control gas and electricity supply, but nearly all of that was privatised or centralised in the 1990s.
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