Prime Minister Christopher Luxon and Auckland Mayor Wayne Brown have signed a landmark Auckland City Deal, marking New Zealand’s first city deal and a new era of long-term partnership between Auckland and central Government.
The deal sets out how the Government and the Auckland Council will work together to unlock our biggest city’s potential, boosting economic growth and improving living standards across New Zealand.
The partnership will coordinate planning around issues such as infrastructure investment, housing, transport and economic development.
It was announced this morning in Wynyard Quarter.
Luxon said Auckland had huge potential for growth that the whole country could benefit from.
“Auckland is New Zealand’s economic engine room. This deal is about getting that engine room firing on all cylinders so that we can lift incomes, create more jobs and make Auckland, and therefore New Zealand, more prosperous.”
He admitted there had previously been a “parent-child relationship where things are done to Auckland”.
Today’s deal was about reaching “a different level of maturity” and moving the relationship to the next level.
Brown said it was another major win for Auckland.
“This is a new way of working that establishes shared accountability, recognising the size and significance of Auckland – we are more like an Australian state than any other local authority in New Zealand.
“The deal better reflects Auckland’s contribution to the national economy. It’s clear; when Auckland does well, New Zealand does well.”
Brown said he had a history of building things, unlike many Wellington politicians.
“The Government’s been doing its best but Wellington is not good at putting together big projects because there’s not a lot of engineers in Parliament.
“We want affordable infrastructure suitable for a small country.”
On his long-standing call for a bed tax to pay for Auckland events, Brown said he believed Deputy PM David Seymour was the “fly in the ointment”, but that the tax would happen eventually.
Infrastructure Minister Chris Bishop said exciting things were already happening in Auckland and the Auckland City Deal would keep the momentum going.
“The new world-class convention centre is now up and running, we are liberalising Eden Park’s planning rules so it can host more concerts and events, and we are launching an investigation into planning rules holding Auckland’s CBD back.
“When it comes to infrastructure, the Central Interceptor Project will be finished this year, the third main line separating freight from passenger rail is now open, funding has been confirmed to complete the Eastern Busway, the line to Pukekohe has been electrified, and the City Rail Link will open later this year.
“On top of this, eight projects in Auckland have been granted consent under our Fast-track legislation, representing thousands of jobs and billions in investment.”
The Government already has a range of tools and groups that interact with local government, such as NZTA co-funding for local roads, Urban Growth Partnerships and Crown funding for significant projects.
“So, this deal isn’t about reinventing the wheel and creating another layer of bureaucracy. It’s about coordinating across Government into one place so that it’s easier to work together and invest together to get stuff done. The new Ministry of Cities, Environment, Regions and Transport will play a key role here.”
Key commitments of the Auckland City Deal include:
Bishop said the deal highlights four particular growth areas where the Government and the council will work together to drive jobs and growth.
“In Drury, Government and council will work with private developers on coordinated infrastructure planning to support major housing growth, including new schools and a hospital alongside local infrastructure investment.
“In the Maungawhau–Kingsland–Morningside corridor, Government and council will collaborate on zoning changes, infrastructure planning and urban development opportunities associated with the CRL.
“In the city centre, a revitalisation plan will open up opportunities for housing and business growth, including further residential up-zoning and a potential new primary school.
“At the airport, Government and council will work with Auckland Airport on a plan to improve surface access to this major trade, freight and employment hub.”
Brown agreed that integrated planning alongside transport was vital.
“We must build where we have already invested significantly in infrastructure, and not in flood plains. We must provide housing near where people work.
“We can’t just build anywhere a developer wants to build. The council has been clear, greenfields developments are costly and don’t pay for growth, so I’m pleased we will be able to work with the Government to determine where growth makes the most sense, through the Regional Spatial Plan.”
Local Government and Auckland Minister Simon Watts said the deal set a new standard for collaboration between central and local government in New Zealand.
“This is about long-term certainty and better delivery. By aligning our long‑term planning and focusing on the fundamentals – transport, housing, innovation and skills – we are building the foundations for a stronger, more prosperous Auckland.
“The deal enhances Auckland Council’s funding and financing tools rather than creating open-ended new spending.”
The Auckland City Deal establishes the model for future agreements with other regions, with work underway on two further deals in 2026, in line with the National-Act Coalition Agreement to institute long-term city and regional infrastructure deals, allowing PPPs, tolling and value-capture rating to fund infrastructure.
BusinessDesk yesterday reported that Brown’s long-held wish for a bed tax to help fund city events was expected to feature in the deal, but only to investigate the tax, without a firm commitment around implementation.
The Herald’s former super city reporter, Bernard Orsman, reported in 2024 that Brown wanted the Government to pay more than 50% of the cost of the City Rail Link after the costs blew out by $1 billion.
He had threatened “to go feral” on Labour and National ahead of the general election if they didn’t deliver solutions for Auckland, outlined in his integrated transport plan and “Manifesto for Auckland”.
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