Mark Thomas: Covering off Auckland’s future needs

A retractable roof is proposed for Eden Park to allow all-weather concerts and events at Eden Park. Image / Eden Park Trust

Opinion

Covered stadiums such as Eden Park is proposing are uncommon internationally, although cities that Auckland looks to for inspiration such as Copenhagen, Melbourne and Vancouver do have them.

What is common is a city successfully using a Commonwealth Games as a catalyst for significant infrastructure development, including new or redeveloped stadiums, new rail and other transport assets, and thousands of new homes.

With Labour and National supporting an investigation into New Zealand hosting the 2034 Commonwealth Games, the opportunity now exists for Auckland and other likely venue sites to see what else in our significant infrastructure deficit we can cover off.

Auckland ratepayers and New Zealand taxpayers already face an extensive list of committed or hoped-for infrastructure projects. Aucklanders have already started paying for their share of $65 billion of infrastructure spending in Auckland Council’s 2021-2031 budget, with the vast bulk of this on transport and water projects.

Illustration / Rod Emmerson

Much more will be added to cover the Auckland city rail project blow-out, the Auckland floods and Cyclone Gabrielle repair costs, and the potential light rail and new harbour crossing support costs.

The Finance Minister says New Zealand’s overall infrastructure deficit means the country should be paying $33b per year on new projects.

The New Zealand Infrastructure Commission says New Zealand’s “just-in-time” and just-enough infrastructure approach is inadequate. It says New Zealand projects also often end up costing more than comparable overseas projects and a much better infrastructure planning approach is essential.

I attended the 2018 Gold Coast Commeonwealth Games as part of a trade delegation and witnessed the benefits that can come from using a catalytic event well to fast-track infrastructure needs.

On the Gold Coast, this included creating what became Queensland’s largest multi-residential project, housed in a health and knowledge precinct created out of the athlete’s village. They doubled their investment in light rail investment, spent $380 million on road improvements and created eight new transport hubs. They even built a multi-purpose arena and sports centre.

The Gold Coast Games cost $1.6 billion but delivered a $1.9 billion economic boost to the region out of a total $2.5 billion benefit to the Queensland state.

This followed the successful history of the Glasgow, Manchester and Melbourne games.

The most recent Birmingham Games also cost $1.6b and contributed more than $1.8b. They rejuvenated their stadium, improved the rail network and helped create 5000 new homes. In Birmingham, 75 per cent of the public funding for infrastructure came from central government. The city contributed the 25 per cent public balance. However, an additional $375 million came from the private sector and other partners.

An Ernst and Young report produced after the 2014 Glasgow Games indicated a subsequent “halo effect” from the event had contributed to higher investment levels in Scotland.

Bridget McConnell, a key executive involved with the Glasgow Games, said last year a key benefit of the games was allowing existing plans to be brought forward to deliver facilities earlier for the people of the city.

Mark Thomas. Photo / Supplied

Not all Games succeed on all measures and Delhi in 2010 was found to have suffered from a “complete management failure”.

But in 2021, PWC produced the most comprehensive report ever on the impact the games have had. Analysing multiple games since Manchester in 2002, it concluded the event consistently produces around $2b in economic benefit and a host of environmental and social benefits - including a big infrastructure dividend.

Auckland’s perennial struggle is to find the funding to make progress on an expensive legacy of underinvestment. This leads decisions makers to a “one at a time” approach to infrastructure projects. The repeated consequence of this in Auckland is rework, extra cost and many, many orange cones.

The cost-of-living crisis facing many will seem an unlikely context to consider investing more than $1b to secure a sporting event. But this will look quite different in 11 years, and the Infrastructure Commission emphasises New Zealand and its cities must do a better job planning and delivering for growth.

The investment opportunity a Commonwealth Games presents has to be assessed against the much greater costs being faced by Aucklanders in transport congestion, housing and high-priced infrastructure.

A Commonwealth Games in New Zealand in 2023 could be a chance to cover much more than just a stadium.

- Mark Thomas leads a smart cities and technology business. He is a director of the Committee for Auckland and was previously an elected member of the Auckland Council.