Tāmaki Makaurau Auckland’s slower than anticipated rebound from the COVID-19 pandemic, the January 2023 floods and price inflation are all factors in the city slipping slightly backwards against nine international peer cities according to the second annual The State of the City: Benchmarking Tāmaki Makaurau Auckland’s international performance report.
The report acknowledges the challenges of the city’s recovery and the considerable development work and planning underway in Auckland across the 10 pillars measured by the report.
Mark Thomas, Director of Committee for Auckland who commissioned the report to assess how the city is performing on the world stage, says it’s encouraging Auckland has improved in three pillars – Opportunity, Place and Resilience – driven by stronger corporate demand, the city’s amenity and work-life balance advantages, and its ability to handle crises.
“Auckland is seen as an important and reliable gateway for corporates and a popular location for investors. Also, our growing and diverse population provides the foundation for a more inclusive city. Comparatively, Auckland’s social cohesion, trust and confidence is a strength which is critical to crisis management as well as coping with future environment changes.”
However, progress in these pillars has been offset by declines in the report’s Connectivity, Experience, Prosperity and Sustainability pillars. “Auckland’s concerning decline in Prosperity points to the city’s higher cost of living, stubbornly low productivity, increasing unemployment and widening inequalities,” says Thomas. “All these damage Auckland’s reputation for liveability.”
Gaps in Auckland’s urban experience are reflected by declines in the Connectivity, Experience and Sustainability pillars. “We are not yet addressing our transport infrastructure deficits, progress on decarbonisation is slow, and housing affordability and persistent safety concerns all emerge as competitive challenges for the city to address to improve its position.”
Auckland Mayor Wayne Brown agreed with the report’s finding that there must be a better national and local strategic consensus and plan for Auckland’s infrastructure needs using regional deals, and funding models capable of enabling essential infrastructure projects.
“The report strengthens the case for a fundamentally different relationship between Auckland and the central government. We are a third of the country, the powerhouse of New Zealand’s economy, and more like a city state than a local council. Any Auckland Deal must recognise this fact. The Manifesto for Auckland, which I published last year, outlined the basis for such a deal. What is good for Auckland is good for New Zealand, but Auckland solutions made by Aucklanders are needed for Auckland problems.”
Minister for Auckland Simeon Brown said the Government knows that for New Zealand to be successful, Auckland must be successful. The report highlights both the challenges and opportunities facing Auckland, and why the Government must focus on economic growth and lifting productivity if our city is to remain internationally competitive.
“While 33 per cent of New Zealand’s population lives in Auckland, the city accounts for 38 per cent of our GDP. The Government is focussed on ensuring Auckland is able to grow and prosper, while reducing the cost of living for Aucklanders. The Government has delivered tax relief for hardworking Kiwis and has abolished the regional fuel tax so Aucklanders aren’t penalised at the pump. We have also established a financially sustainable model for Watercare that keeps local control of water while enabling Watercare to invest in the critical water infrastructure which will unlock housing growth and clean up our harbours.
“This is a Government that is ambitious for Auckland and will deliver the projects and policies needed to unlock this city’s potential. I would like to thank Committee for Auckland, Tātaki Auckland Unlimited, and Deloitte for commissioning this forward thinking and thought-provoking report.”
Tātaki Auckland Unlimited Director of Economic Development Pam Ford says the report finds Auckland punches above its weight considering its just inside the top 400 cities by size and that global audiences recall Auckland as interesting but may not remember its unique offerings.
“Auckland’s competitor cities have strengthened their brands, and Auckland’s business and innovation brand must be developed and prioritised if the city wants to attract investment into new industries.
“Our trajectory in successfully growing innovative and investable businesses is broadly positive. We have advantages in fintech, software and creative industries, as well as promise in the food sector. However, innovation enablers including infrastructure, talent and funding are barriers, compared to peer cities.
“But, according to the report, we need to improve planning around our economic, spatial and infrastructure developments to better guide where and how future jobs in advanced sectors will cluster, what specialisations will be built up, and what growth and talent settings will support innovative firms.”
Deloitte Partner Anthony Ruakere says Auckland is one of the world’s top five most indigenously populated cities and one of the most ethnically diverse, something the report identifies we need to draw more on.
“Auckland has a culture and diversity advantage that can be used more purposefully to promote Auckland, remind people of the city’s special qualities, and crystallise the unique value Auckland presents which separates it from other places.”
Mark Thomas says the report outlines that Auckland is now in the second of four cycles of city development with three key implications that need priority action if it is to move into the third cycle.
“We need new jointly developed local and central government policies that enable scale, speed and coordination in how infrastructure is delivered in Auckland. We have to build up Auckland’s competitive position in key industries, and we need conscientious and collaborative leadership about the city’s direction, appeal, and identity development.”
This year’s The State of the City report includes deep dives into Auckland’s innovation ecosystem, brand identity and diversity.
Read the State of the City 2024 report.