Grant Frear: Better, worse, or more of the same?

Opinion

Do we want better, worse or more of the same? This is the critical question business should be asking around Auckland's super city. Though in recent times it has been a little quiet at a detailed level, plans are under way that will lay the foundation for how the new Auckland Council will operate over the next decade. But Auckland businesses need to have a perspective on what "better" looks like for them. Without this clarity they will simply have to accept what becomes of the super city - and the real risk here is that nothing changes and Auckland business gets more of the same.

The recession has provided plenty of reasons to sit back and reflect. Although Auckland's super city will not provide any immediate solutions to the current woes of the wider downturn, it will have an important role to play in supporting the recovery of businesses and the general competitiveness of Auckland. When businesspeople set about defining what "better" means for their organisation, some thought should be channelled in the direction of the key business inputs and identifying where local government has a role.

Top of the list for many businesses will be transportation and transport infrastructure. We are not short of economic studies linking congestion in Auckland to economic measures, nor are we short of plans from our councils. Where there does seem to be a dearth is around funding and decisive action.

While the jury is still out on the most appropriate model for managing transport in Auckland, businesses need the confidence that there is an openness to address the issues, a willingness to consider alternative funding models (such as congestion charging schemes), and a desire to prioritise projects that work in unison.

Investments zeroing in on particular locations are unlikely to bring the rewards that businesses need. In most Aucklanders' experience, such "point investments" solve one bottleneck by pushing it to another or in the case of current structure maybe even into another council's jurisdiction.

Close to the top of the list one would expect to see the plans and regulations that guide investment in the city. As the recession abates, the population will continue to increase. New migrants, whether domestic or international, will need to be housed, transported, entertained and employed. The council has a critical role in defining where and how the city will develop. Businesses need clear direction on development zones, as well as plans for public amenities and facilities. This degree of certainty will serve to underpin the confidence that is critical in making long-term business investment decisions.

Tourism can't be far from the top. Auckland is the primary hub for inbound tourism, but does not capture its rightful share of tourists' dollars as visitors move through the region. On entry to New Zealand, visitors are presented with plenty of advertising for the national museum in Wellington, Te Papa, and embark on their New Zealand experience largely unaware of the Auckland Museum. An effective regional approach is critical to ensure the tourist experience is managed optimally - and economic potential is maximised.

The fourth area at the top of the list should be people. Some cities have a magnetic energy: Auckland's businesses need engaged, motivated, innovative and talented people. They need to arrive at work energised and have a rich and rewarding life. The city council cannot forget the role it plays in creating a sense of place which is more than physical. Success in this arena should focus on what needs to be done to foster the business environment and make Auckland a destination for talent - a critical element of business success.

Will the super city make things better, worse or just the same? The answers will lie with the Auckland Transition Authority, the elected representatives of the Auckland Council, and teams within the council responsible for delivery.

The challenge to business people is to set priorities around what needs to be done to support the environment their business is operating in.

Without a view, Auckland's businesses will simply get what they are given and that would be a massive wasted opportunity.

* Grant Frear is a consulting partner with Deloitte, based in Auckland