Rates alone cannot provide the level of finance needed for many of the key projects vital for the city. Alternatives need to be found. Central government is also absolutely critical to those funding alternatives.
The recent announcement that Auckland Council Property and Waterfront Auckland will be merged to create a new urban development agency is also significant. The new entity, Development Auckland, in our view will need to look at alternate funding mechanisms, particularly through private sector alliances.
In February this year, the Committee for Auckland held a symposium titled Enabling Future Auckland. The symposium broached Auckland's funding problems. International cities expert Greg Clark spoke of the need to make better use of assets, revenues and programmes, raise additional resources through new instruments and deals, and become more attractive and visible to external capital.
These alternatives need to be investigated to achieve growth and economic prosperity, with an open mind from central and local government and citizens. A lot of progress has been made, and a lot said about the various funding options so I don't need to go into detail. All I would say is that it is easy to find reasons not to do things and to say "no". A better approach is to embrace the possible, work from there on detail and ensuring fairness, and communicate in a way that creates momentum for success.
Alongside governance, the Royal Commission's report highlighted the issue of "social well-being". It recognised that the social make-up of Auckland is significantly different from the rest of the country. It is the most culturally diverse city in New Zealand and the place where most immigrants settle. Areas of considerable deprivation exist.
The report indicated that if the issues of social cohesion and poverty were addressed it would enhance the success of the city: "Every citizen must have the opportunity not only to reach their potential and to lead a fulfilling life, but also to contribute to Auckland's growth and prosperity."
The report included recommendations aimed at dealing with these concerns, for example, establishing a Social Issues Board specifically designed as a governance body for social issues. This would have been a joint local and central government initiative, responsible for developing a social well-being strategy and an implementation/funding plan. This board, however, was never progressed. Some of the combined local and central government initiatives currently underway do deal with the social issues identified by the Commission. For example, the Tamaki Regeneration Plan and the Southern Initiative will impact historically deprived areas.
In some senses, Auckland is the engine of New Zealand. As the Committee for Auckland has observed, "It is difficult to imagine how New Zealand can succeed economically unless Auckland does."
To get the most effective and efficient outcome for the city, both funding and social inequality need to be addressed.
Earl Gray is an intellectual property partner at Simpson Grierson and a director of the Committee for Auckland.
