SOTC Herald Summer Series
Over the summer break, the Committee partnered with the NZ Herald in a series of insightful articles exploring key State of the City issues. We asked six prominent Aucklanders including Sir Peter Gluckman and Carrie Hurihanganui to provide their perspectives on Auckland’s current challenges and the opportunities.
With the Herald’s permission, the full text of each article is also included below – together with the links to the paywall articles:
03.01.2025: The deal to solve Auckland’s infrastructure crisis (Sarah Sinclair)
02.01.2025: City Mission call for action as food insecurity affects Auckland’s future (Helen Robinson)
01.01.2025: How to harness Auckland’s Māori and superdiverse soon to be majority (Mai Chen)
31.12.2024: Confidence in Auckland’s future fuels major infrastructure projects (Carrie Hurihanganui)
30.12.2024: Auckland start-ups drive 500m in investment, boost economy (Robbie Paul)
23.12.2024: To move forward Auckland needs to foster innovation and economic growth (Sir Peter Gluckman)
The deal to solve Auckland’s infrastructure crisis
Sarah Sinclair, Chair and Partner, MinterEllisonRuddsWatts
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 retains talent 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 quality housing.
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 that 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 – 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.
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 central government to show its trust in Council by giving it the right funding tools like 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 that 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 then it is all of our responsibility 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 our 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.
An Auckland where everyone can thrive
By Helen Robinson, Manutaki – Auckland City Missioner
As we envision Auckland’s future — a city that competes on the global stage, attracts investment and talent, and thrives economically—we need to ask: who is being left behind? Auckland is an exciting place, full of promise and opportunity, but for too many of its residents, the reality is very different. While the city flourishes, many residents face daily challenges, including a lack of access to sufficient food, appropriate housing, and other essential services, which keeps people from participating fully in our collective success. Until we address this issue, can we truly say we’re a thriving city?
The recent State of the City report offers a valuable snapshot of Auckland’s strengths and challenges. On one hand, we see a city that continues to grow economically, is culturally vibrant, and increasingly connected to the world. On the other hand, we see deep inequalities threatening the city’s long-term prosperity.
At Auckland City Mission – Te Tāpui Atawhai, every day we see the impact of people not having enough. We see their exclusion from homes, work and community. We see their hunger. We know their mental health struggles and the reality of trying to live on too little money.
More than half of the people who come to us for support with housing, food and healthcare are Māori, disproportionately represented compared to the national population. We are working hard to honour our responsibilities under Te Tiriti o Waitangi and ensure equity of both access and outcome for Māori.
Food is where we see the greatest volume of need. It is a key factor in inequality; a symptom of broader social challenges and a barrier to the kind of collective success we want to build.
Recent data paints a worrying picture: over 1 in 4 children live in households that don’t have enough to eat. When families are forced to choose between paying rent or feeding their children, it impacts their health, education, and ability to contribute fully to society. It also impacts their productivity, something we need more of as a nation and a city.
Thousands of people rely on our and other food relief services each week, including families, children, elderly people, and individuals facing homelessness. Many of these individuals are working multiple jobs, yet they still cannot afford to put enough food on the table. To support them, we provide boxes of food as well as other options including portable veggie gardens.
With the cost of living rising across Auckland, food insecurity is growing – and it’s not something that can be solved through charity alone. We need a coordinated, systemic approach that addresses the root causes of poverty and inequality with government, private sector and social service agencies all involved.
What we do distribute currently, we do primarily through the generosity of Auckland. We have received a one-off grant from government that will last until early in 2025. This funding is both inadequate and uncertain. I am pleading with government for more support, otherwise what we and other food relief agencies in Auckland can provide, will dramatically decrease. This leaves more of Auckland hungry and those already there, become more desperate. It is the total anti thesis of a thriving city.
Beyond, immediate food relief we need long-term investments in social infrastructure – affordable, appropriate housing, accessible healthcare, mental health services, and access to living wages. When these needs are met, food insecurity naturally decreases.
Auckland’s future depends on our willingness to create a city where all residents have the opportunity succeed and a community that works for everyone.
Economic success cannot only be about growth in GDP or global rankings. It must also be about ensuring that every Aucklander, regardless of background, has access to the resources they need to live with dignity and contribute meaningfully.
In the year ahead, we have an opportunity to make a meaningful shift. We must prioritise tackling food insecurity, and work towards a future where no one goes hungry, where people are not held back by poverty, and where every Aucklander has the chance to thrive. We must provide more suitable social housing and access to basic services that everyone deserves. By addressing these issues, we build a city that is not only economically competitive but also compassionate, inclusive, and just – a city where everyone can thrive.
How to harness Auckland’s Māori and superdiverse (soon-to-be) majority
Mai Chen, Barrister, LLB(Hons) (Otago) LLM (Harvard) CMinstD HonLLD(Otago)
It has been 12 years this month since I moved to Auckland with my family, after many years in Wellington. I did so deliberately because, in many respects, Auckland is like a different country within Aotearoa New Zealand. The makeup of the population is so different here with almost 50 per cent of the population Māori, Pacifica and Asian (and this is growing as Māori and Pacifica in particular are younger and have higher birth rates). Census 2023 found nearly a third of people in New Zealand were born overseas (the superdiverse) from over 200 different birthplaces, identifying with a wide range of ethnicities and speaking more than 150 languages.
The big idea is the impact when Māori and the superdiverse are half or more of the population due to Auckland’s growth, they aren’t minorities anymore.
The State of the City Report identifies Auckland as one of the most diverse cities in the world, but the report’s “deep dive” into diversity highlights the underrepresentation of minority groups in leadership positions, governance, and business as well as challenges in achieving equity in economic and social outcomes. While Auckland’s diversity is a key strength, systemic barriers prevent its full potential from being realised, especially in areas such as employment, education, and civic participation. The State of the City Report finds Auckland lags behind in indicators of innovation and the knowledge economy compared to its peer cities, such as Vancouver and Copenhagen.
Key reports I wrote for the Superdiversity Institute of Law, Policy and Business, found at htps://www.mai.chen.nz, may identify the reasons why Auckland isn’t doing as well when half its population is Māori/superdiverse.
- The customers have changed and knowing the culture and language of those you are doing with business with, or want to win a pitch with, matters to Māori and to superdiverse immigrants. You are also less likely to be inadvertently offensive if equipped with this knowledge. In the “Cultural Capability and Business Success Report: five top business leaders making cultural capability a cornerstone of their success” 2022, Māori leader Shayne Walker said “Half the investors who approach us haven’t done their research and don’t know anything about us other than we have cash. They’re not interested in a partnership. They’re just interested in a transaction, so they get a black mark.” Rob Hennin, CEO of nib said “If you want to distinguish yourself in the marketplace, culture matters – to your customers and to your staff. It matters every single day.” See the report “How to grow a culturally competent organisation: Case study of nib’s CQ Tick journey” from 2021.
- The “Superdiversity Stocktake: Implications for Business, Government and New Zealand” 2015 Report found that the “1.5 migrant generation” candidates in the talent pool are particularly valuable – defined as those born overseas but coming to New Zealand at a young age and thus having good English and understanding Kiwi culture. They understand the business culture in New Zealand and the rule of law, resulting in less risk of inadvertent illegal conduct. However, they can still connect with diverse customers and retain contacts with their home country useful for export businesses.
- The “Diverse Thinking Capability Audit of New Zealand Boardrooms” 2018 Report confirms that the ethnic diversity of a boardroom is one predictor of diverse thinking capability which better equips boards for the ever-changing business environment. However, it also shows that many diverse thinking directors leave because they experience marginalisation by other board members for being challenging and having left field ideas.
- Discrimination is still an issue preventing Māori and the superdiverse from achieving full productivity and maximising their potential. https://www.ethniccommunities.govt.nz/our-communities/our-communities-in-the-data/ethnic-evidence-summary/
- Superdiversity also has implications for New Zealand workplaces. In health and safety, for example, the incidence rate of work-related claims for injury and illness are impacted by collectivist cultures that frown on whistleblowing, experience the need to ‘save face’, have taboos about admitting to mental health issues, and also face the impact of discrimination and language barriers. “National Culture and its Impact on Workplace Health and Safety and Injury Prevention for Employers and Workers” 2019 Report.
My day job is still law so having a majority superdiverse population in Auckland in particular has implications for access to justice in the courts for those who do not speak English or do not come from a rule of law culture. They tend to opt more for self-representation and don’t settle out of court due to ‘big face’. “Culturally, ethnically and linguistically diverse parties in the Courts: a Chinese case study” 2019 Report.
Auckland – Confidence is contagious
Carrie Hurihanganui, CEO, Auckland Airport
Tāmaki Makaurau Auckland is a city still being developed. Transformative projects including the City Rail Link, the International Convention Centre, the Central Interceptor wastewater tunnel, and Auckland Airport’s own new domestic jet terminal and airfield developments come onstream in the next one to five years.
Confidence in Auckland’s future is at the heart of all these projects.
Britomart, the Wynyard Quarter, the Waterview Tunnel and smaller projects such as the beautiful Myers Park sculptural installation and the splendid Te Wānanga public space connecting land to the edge of the Waitematā Harbour are all outcomes of this confidence. We all acknowledge Auckland has infrastructure deficits but let’s pause for a moment over these holidays to congratulate the city and its leaders past and present, the Government, and private companies on what has been achieved.
The Committee for Auckland’s 2024 State of the City is a candid report on the strengths and weaknesses of this city: strong in our sense of place, its resilience and social cohesion; but with a major need to improve our productivity and prosperity. In other words, we need to sharpen our mahi, our work, to sustain our community. We need more people with a mindset to take on the world to win.
Confidence is what fuels Auckland Airport’s (AKL’s) infrastructure build to deliver the economic capacity for Auckland and for Aotearoa for decades to come. AKL’s transformation is among 200 airport upgrades happening throughout the world right now. Global connections are the lifeblood of our economy. Currently 400,000sqm of aeronautical-focused infrastructure is in development at AKL across major airfield, transport, and integrated terminal projects. These developments will create climate resiliency, expand airfield capacity, speed processing for travellers and their baggage, and provide greater experiences for everyone who travels through our aviation precinct, especially for airlines, our 50/50 partners in making travel happen.
AKL’s expanded capacity will be positive news for everyone who invests and works in tourism and trade. Currently AKL contributes $35.1 billion of economic output from international and domestic travel and tourism, and handles over $26 billion in annual trade. Greater capacity brings airline competition, better fares and greater access to the bustling cultural vibrancy within our Hauraki Gulf. Auckland Airport works hard in partnership with Tātaki Auckland Unlimited to attract leisure travellers from Australia, business travellers from China, and a mix of both from the United States. Tourism generates over $4 billion of Auckland’s GDP in the form of events, attractions, hotels and restaurants, arts and culture, conferences, and our incredible regional parks. We should be unequivocal in our support of the role that tourism plays in New Zealand’s economy.
Investment in our country’s gateway airport will unlock even more economic potential. By 2032 our expansion will mean AKL will support around $55 billion in economic value from travel and tourism and $41 billion in trade.
My observation from leading a 24/7/365 operation is that Aotearoa has a fantastic cohort of innovators who come through our doors to do business in the world and with New Zealand. One of my joys is seeing Kiwi exporters filling the bellies of aircraft bound for the world with their irresistible products, and travelling the world seeking distribution and deals. AKL is New Zealand’s second largest export port by value after the Port of Tauranga, with $9.2 billion of high-value exports handled by a medley of freight forwarders, airlines and airport teams ensuring access to markets in the US, China, Australia and dozens of other destinations.
When you see a wide body aircraft land at Auckland, it isn’t just bringing people, it is driving economic opportunity for all of us. Over the course of a year just one of these aircraft will transport half a billion dollar’s worth of high value airfreight in and out of New Zealand.
An example is the story of Kaynemaile, a Wellington company with its origins in The Lord of The Rings that makes lightweight architectural mesh gracing building facades in Australia, the US, Middle East and Asia. In 2024, Kaynemaile made 24 airfreight shipments through AKL to markets in the world. Another is the stone fruit producers in Central Otago who are preparing for Chinese New Year – in 2024 they shipped 3,500 tonnes of produce through AKL for the festivities.
Like Auckland Airport, Auckland City is the sum of multiple moving parts and a bigger eco-system, each seeking productive outcomes and a harmonious experience for everyone, whether they be visitors to the city, exporters, community members, or teams involved in delivering services. Auckland’s future needs will be achieved through collaboration and confidence around common goals. It is up to us. Mahia te mahi. We make it happen here.
Entrepreneurs are the answer. What was the question?
Robbie Paul, CEO, Icehouse Ventures
It would make for a great episode of Border Patrol if every passenger on this morning’s Air New Zealand flight from San Francisco arrived with bags full of $100 bills.
This would also reflect the more than $500 million that arrived in Tamaki Makaurau this year thanks to the sale of two obscure startups: Kami and Tradify.
It may come as a surprise that collaborative learning tools (Kami) and job management systems for plumbers (Tradify) could generate so much value. But that’s just the start. Approximately $100,000 will continue to arrive every day to fund the salaries of their Auckland-based employees.
Entrepreneurs do a lot more for Auckland than fly in bags of cash.
They create international connectivity. Audacious Auckland entrepreneurs have attracted money and support from the likes of Open AI founder Sam Altman, Google founder Larry Page, and eBay founder Pierre Omidyar. They have established offices across Dallas, Dublin, Dubai and Delhi.
Icehouse Ventures’ annual No Barriers founder retreat – hosted on Aotea Great Barrier Island each year in November – attracted visitors this year from San Francisco, London, Seattle, and Denver. They travelled at their own expense for the opportunity to connect with Kiwi entrepreneurs.
The international connections formed by entrepreneurs have resulted in hundreds of millions in investment in Auckland technology startups. Examples include smart-collar company Halter (funded by San Francisco-based VC Bessemer), architecture platform ArchiPro (funded by New York-based Tiger), and commercial property management software Re-Leased (funded by London-based JLL).
Although the State of the City Report noted we may be losing the immigration battle for talent to cities like Sydney, we are winning when it comes to venture capital flows. Australian venture capital funds like Square Peg, Blackbird, Airtree and OIF have pumped millions from Australian retirement funds into innovative Auckland startups.
Companies like Joyous, First AML, Tracksuit, and LawVu have used Australian capital to fund the development of software they then sell to Australian companies. Seems like a great approach for Auckland!
Entrepreneurs also elevate the ambitions and possibilities for Aucklanders. Crimson Education is enabling droves of Aucklanders to attend the world’s best universities. Alimetry and Kitea Health employ dozens of Aucklanders who care deeply about delivering better health outcomes for those in need. And Rocket Lab empowers hundreds of Aucklanders to aim higher with world-leading rocket technology.
Finally, entrepreneurs develop technologies that address significant global issues. A visible example around the Hauraki is Vessev, the world’s first electric hydro foiling passenger ferry (now operated by Fullers). Vessev’s boats can reduce energy requirements by nearly 90% – and arguably seasickness by up to 100% – thanks to their silky-smooth foiling.
Every corner of Auckland has entrepreneurs working on important missions. Parnell-based Tend is developing a digital-first healthcare provider to help New Zealanders be the healthiest people in the world. Mount Wellington-based Mint Innovation is developing technology to extract precious metals from electronic waste. Albany-based Nilo is transforming plastic waste into binding agents for everything from furniture to roads.
Auckland is poised to become a technology utopia. Talent and capital from companies like Kami and Tradify will be recycled into the next wave of startups. The impact of Mint and Nilo will teach the world how to live more sustainably. The success of Rocket Lab and Halter will attract more and better international investors.
The best part: global trends will accelerate our progress. The combination of better technology and cultural acceptance of remote work means Auckland-based companies can hire teams, raise capital, win customers, and even sell companies without getting on a plane.
How will we get our bags of cash in if no one is flying? Ask an Auckland fintech entrepreneur.
Can we create Team Auckland?
Sir Peter Gluckman, Director Koi Tū: the Centre for Informed Futures
Aucklanders are quick to celebrate sporting success when we have it – whether it be the Blues or Auckland FC. But while our teams generally thrive under pressure and adapt to win, the same cannot be said for our city’s approach to fostering innovation and economic growth. The benchmarking exercises carried out by the Committee for Auckland over the past two years show Auckland ranks poorly relative to its nine benchmarking cousins on issues of innovation, connection and knowledge. It’s time to ask: why are we falling behind in the competitions that really shape our future?
Lists of the most innovative countries are dominated by small, advanced economies including Finland, Denmark, Ireland and Singapore. This is reflected in their economic performance – they hold their share of GDP despite much changing around them. But New Zealand does not even rank in such lists – we remain a disappointing outlier. If we look in detail at these countries and even at much larger countries including China and the USA, it is cities that are the core units of innovation.
Auckland has the substrate to do much better – we have three universities, several Crown Research Institutes (CRIs), the largest concentration of researchers in the country, we are the business capital of New Zealand and we have some highly innovative global companies including the superstar Rocket Lab. As New Zealand’s global gateway, home to a diverse population nearing 2 million, economists think Auckland should be punching above its weight in productivity. Yet, despite this potential, we’re falling short.
If Auckland fails to show greater productivity as a hub of innovation, New Zealand will fail. We can blame the government – it does not invest as much as other countries in higher education, research and innovation. But that is an inadequate excuse. In other countries business, academia and city leaders work hard and closely, making the case to government to support an innovation ecosystem which cannot occur without knowledge and connection – the other domains on which benchmarking shows we rank poorly. When comparing cities of innovation such as Geneva, Copenhagen or Helsinki, our missing connectivity is immediately apparent. Civic leaders value academic and business partners, business partners advocate for universities and technology infrastructures, universities reach out for partnerships and understand their critical role in human capital development and in creating a vibrant globally relevant intellectual and innovative culture.
But after focusing on the issues of science and innovation for more than 20 years, and despite my general skepticism for selective benchmarking, the benchmarking conclusions feel correct. We have too many local barriers. Our civic leaders focus on roads and infrastructure – not on productivity and innovation. Our innovation agency is being constrained. Culture, entrepreneurship and creativity matter. Business stays talking to business, academia is not as connected to the city as it could be and collective approaches to shifting the national understanding of Auckland’s role are not obvious. Our impressive cultural assets are isolated from our potential in science-based innovation.
Do we really celebrate our successes? Did we really understand that the America’s Cup is actually a world-class competition in engineering? When the Emirates Team New Zealand was based here, we had one of the globally most exciting research groups in reinforcement AI working to support the Cup which could have been leveraged in something much more. In downtown Auckland we have a globally significant research and development centre for Apple, built out of intellectual property that arose decades ago in the University of Auckland. We have successful gaming, MedTech and Fintech sectors. We have isolated innovation pockets but they are not integrated, packaged and promoted.
There are green shoots, but the overall strategy is random and largely isolated from policy development – in marked contrast to cities elsewhere. The lack of coordination, advocacy and celebration is what distinguishes us from Geneva, Tel Aviv or Copenhagen. When did the business community advocate for intellectual vibrancy or for the city to take innovation seriously? When has our philanthropic community recognised it can invest for the future of the whole city when it supports innovation? Philanthropy has played a key role in how cities evolved elsewhere.
In 2022 at the request of Tataki Auckland Unlimited, Koi Tū undertook work that led to our report Reimaging Tamaki Makaurau – harnessing the region’s potential [Ed note: https://informedfutures.org/auckland/ ]. Identifying nine domains where we could reinvent and reinvigorate Auckland over the coming decades, the report gained a positive response from many business leaders. We argued that Auckland needs a real vison as a city not just a marketing slogan – having good infrastructure and getting rid of orange cones is not enough. Aucklanders need to feel they belong in a vibrant, ambitious city that values its diversity and its natural and social, intellectual and cultural assets. A city that builds off these assets so everyone can thrive. That report remains cogent today, arguing for greater social cohesion and quality education for all, while promoting the region’s culture and creativity, sustainability and resilience, connections, its place as a global gateway and an economic engine and turning our unique physical environment into a real asset.
These are easy aspirational words to write but will only become reality if the different sectors of the city come together with a common vison. The rest of New Zealand needs to understand they will win when Auckland wins. Knowledge, connectivity and innovation are key – let’s properly fertilise the green shoots and demand more from our leaders in local government, academia, business and civil society. There is not yet a sense of a real team Auckland, yet we need to be one.