Well, that's Canada, right? We have a provincial level of government. In many cases, municipalities are nothing but a creature of statute, so they don't have any legal status. It's difficult for the federal government to do an end run in those circumstances.
Quite frankly, the model, with all its complexities, works pretty well. There are some places where improvement can be had, but given our multi-government levels, it's surprising we get anything done at three levels.