Bill English is optimistic the Auckland Council will make good decisions when final recommendations for the city's new rulebook, or Unitary Plan, are given to councillors next week.
The Finance Minister said the council has a pretty good understanding of the importance of its decisions for Auckland and the wider economy.
"It also understands the need to enable more supply and I am optimistic it will make good decisions."
The comments are a softening of English's previous warnings that the Government could step in if the council does not accept a Unitary Plan that allows supply to meet demand.
The panel yesterday handed over its recommendations to council chief executive Stephen Town. They will be released to councillors and made public next week. Councillors will meet next month to make final decisions on the plan.