Auckland Council’s budget includes $5 billion in operating expenditure and nearly $4b in capital investment.
The council found over $200 million in savings, keeping rate rises to half the national average.
Key growth areas identified are technology, housing and the visitor economy, with a focus on economic growth.
A couple of weeks on from the Government’s Budget Day, Auckland Council has passed its own budget.
The planned spend includes a total of $5 billion in operating expenditure and nearly $4b of capital investment while still keeping debt at only 17% of assets, like a family witha million-dollar home only owing $170,000. Compare this to the $184b that Wellington is forecast to burn through this year.
Unlike central government, our annual budget must be publicly consulted on – and we don’t have the luxury of printing money or changing the law to suit us on a whim. We must work within tight fiscal parameters and a long-winded process that feels like a bureaucratic tick-box exercise.
Despite all of that, I am proud of what we’ve delivered. Nobody likes it when their rates bill goes up, but under my leadership, the council has found over $200 million in savings and kept rate rises to half the national average. I’ve also introduced new spending rules for capital projects that will result in even bigger savings over time.
When compared to other cities, Auckland ratepayers still have it pretty good. But there is still a lot more work to be done to ensure Aucklanders get the most out of their council. A big focus for me now is on using the council’s policy and planning levers to support economic growth.
My new Manifesto for Auckland outlines how Auckland can lead New Zealand on a path to prosperity. The message is simple: if the Government is serious about “going for growth”, then they can’t keep treating us like any other city. Fortunately, they have promised legislation to give us back control of our unloved Auckland Transport.
With rates below the national average, Auckland’s budget bets on tech, housing and tourism.
We are key to lifting the country’s economic success. We can’t keep relying just on our excellent farming sector, and Auckland needs to do better. Trade is happening more and more between cities, and when Auckland wins, New Zealand wins.
I’ve identified three key areas where the opportunity for growth is most apparent. This means the least amount of effort for maximum gains. This is important if we are going to make improvements fast.
The first of these is technology and innovation. New Zealand is one of the least productive countries in the OECD. We need to harness the cutting edge of technology to produce more and create real value. Auckland has a growing tech sector, but we’re not innovating enough, and the focus on opportunities in new technology is too low.
There needs to be more co-ordination between the private and public sectors if we are to see Auckland become a global tech hub. That is why I recently announced the establishment of a strategic alliance between council and the tech sector. This initiative isn’t about picking winners and corporate welfare. It’s about removing the barriers to innovation and driving more private investment.
The second area we must focus on is housing. We are working with the Government to change planning laws so we can enable new homes to be built in the right places. But we desperately need more funding and financing tools to support more development. We also need to ensure council investment can keep up with population growth.
Auckland’s population is forecast to reach 2.3 million by 2050. With much of this growth driven by Government policy settings, it would make sense for the Government to work with us on developing an Auckland-specific immigration policy to ensure population growth really helps.
Finally, the visitor economy offers a big opportunity for short-term growth. Auckland is the gateway to New Zealand and the most obvious place to host big international sporting events and concerts. But these kinds of events need local investment. The council’s 2025 annual budget has a plan to close the $7m funding shortfall for major events, but this is a one-off. There needs to be a long-term solution, and I will continue to advocate to Government for a bed night levy.
Such a levy would fairly share the cost with those who profit from tourism and could raise up to $27m a year to fund major events in Auckland. This would be a huge boom to the national economy – and won’t cost the Government anything.
We need all this to grow Auckland, and it doesn’t cost the Government – I remind the ministers involved in this decision-making that elections are won and lost in Auckland.
