Auckland's infrastructure deficit is hindering its prosperity and global connectivity, according to a report. Photo / Brett Phibbs
Auckland's infrastructure deficit is hindering its prosperity and global connectivity, according to a report. Photo / Brett Phibbs
Opinion by Sarah Sinclair
Sarah Sinclair is Chair and Partner, MinterEllisonRuddsWatts.
THREE KEY FACTS
Auckland’s infrastructure deficit is hindering its prosperity and global connectivity, according to a report.
A regional deal between central and local government could address this with a long-term plan.
Prioritising transport and housing infrastructure is essential for economic growth and affordability.
A large infrastructure deficit, lagging behind our global peers and no money in the tin – what should Auckland do? Let’s start with making the most of a regional deal.
Auckland has the opportunity to be a thriving city that looks after its people, attracts and retainstalent and is connected to global markets. But our infrastructure deficit is holding us back. The State of the City benchmarking report commissioned by the Committee for Auckland shows Auckland is lagging behind its global peers in prosperity and connectivity and identifies infrastructure investment and funding as one of the key pillars to turn this around. The coalition Government‘s regional deal framework gives us an important opportunity to make progress.
To make real progress, however, we must have consensus. Solving the infrastructure deficit in a way that supports economic growth and prosperity for all in our city necessarily relies on both central and local government. We can no longer accept changing political priorities or the argument that “you can’t get politics out of infrastructure decisions”. We simply must have an agreed long-term infrastructure plan. We can’t expect the private sector to invest if the public sector keeps changing its mind as to what rules will apply or what enabling investment it will make.
This is where a regional deal can help – a deal between central and local government, engaging early with private sector and iwi, based on a 30-year vision with a 10-year strategic plan focused on economic growth, connected and resilient infrastructure and affordable, good-quality housing.
Good-quality housing involves a long planning and construction timeframe, which a regional deal's long-term certainty of planning and funding would assist, Sarah Sinclair writes. Photo / Michael Craig
We know having a long-term plan with political consensus works in other countries (Denmark’s Infrastructure Plan 2035 and Ireland’s Project Ireland 2040 are good examples) and we know regional deals with clear outcomes and committed long-term funding have unlocked growth and catalysed private investment for cities in Australia and the UK – so let’s have it here.
What do we want out of a regional deal? If we are to get on with being a thriving city, there are two key questions that may sound obvious but need answers: What infrastructure do we want (and here we mean prioritise knowing we can’t have it all now)? And how are we prepared to pay for it?
In considering what infrastructure to prioritise, the State of the City benchmarking report identifies what must feel obvious to any Aucklander: that our housing affordability and transport infrastructure “remain well behind” – two inextricably linked issues. Where does a nurse or cop (who we desperately need) with two kids and a job in central Auckland actually live affordably, including transport costs?
This feels like a good place for an Auckland regional deal to start – with transport and enabling housing. These issues each take time to plan and deliver – longer than our election cycles – so we need the long-term certainty of planning and funding that a regional deal can lock in.
Sarah Sinclair.
A regional deal can be about what we build (transport, utilities, schools, hospitals) and also how we put tools in place for funding or to manage demand to defer building. It can reflect our priorities of decarbonisation and climate resilience in our urban planning. All this is valuable to everyone in our city. It not only contributes but is essential to a thriving economy. And when Auckland thrives, the nation benefits, the perfect recipe for a regional deal.
But remember this is a two-way deal, so as a city we need to be up for a frank discussion of what we bring to the table, including how we are prepared to pay. There’s no particular magic to this: what do we think is a fair way to pay for the infrastructure we need?
Is the fairest way to pay through user charges, tolls, land sales, asset sales, targeted rates, levies, normal rates and yes, some contribution from national taxes? The chances are it will be a mix of these in a way that reflects the value to our communities and the benefits that infrastructure brings, both directly and indirectly, including to the rest of the country.
Part of the regional deal is the opportunity for the Government to show its trust in the council by giving it the right funding tools such as congestion charging, visitor levies and targeted rates. We also need to be very clear how decisions are to be made to deliver on the deal and who represents us – all of us – to make those decisions. And then get out of the way and let them deliver.
The private sector and iwi need to be in the heart of the conversation from the beginning. Let’s be clear where there is a role for them that leverages their capability and capacity, which can unlock investment, bring forward delivery of infrastructure and contribute to growth and employment.
Anything less than political consensus on these issues is no longer an option, across political parties and between central and local government. This doesn’t just lie with the politicians, we all need to make sure we play our part. Business leaders, community organisations, education institutions, investors and users all need to take responsibility in speaking up for what is needed, what we want and how we are prepared to pay for it. It shouldn’t be left to a noisy few. Once we decide what we want, it is the responsibility of all of us to support it, even when we may have some doubts from time to time.
Infrastructure is not an end in itself but it is key to enabling for us a good quality of life, economic growth and prosperity, education, health, housing, employment and connectivity. These fundamentals must be in place in Auckland if we are to attract and retain talent and investors in intensely competitive international markets – and for our kids to want and be able to build their lives in this fabulous city. It is a building block for delivering the economy and community we aspire to. With determination and perseverance we can catch up with our global peers – so let’s get on with it.
