Better Hawke's Bay representatives Rebecca Turner and Brian Martin presented to the Local Government Select Committee supporting the proposed reorganisation section of its reform bill.
Mr Martin said the group wanted to improve local government performance.
"We represent scores of individuals who frequently interact with local government who experience first-hand our multi-body structure of four territorial authorities and a regional council.
"This system generates inefficiencies, opportunity costs, mediocre outcomes and diluted and often conflicted leadership on important strategic issues."
Mr Martin said an independent report commissioned by the five Hawke's Bay councils, The Winder Report, concluded that of all the issues and opportunities the region faced, the most important critical success factor was the need for "regional leadership and vision".
"This will simply not emerge under our current structures."
Mrs Turner said the group believed Hawke's Bay was not achieving to its potential in social and economic terms.
"Our present structure inhibits those individuals, businesses, organisations and institutions striving to do more. We welcome this legislation because it gives the community the means to initiate what is needed, and it will enable changes in local government to be made democratically, by a majority of all voters affected."