Roger Blakeley

The Planning Framework for Auckland ‘Super City’

The governance changes to Auckland an insider’s view The Royal Commission on Auckland Governance was established by the Auckland Council was launched five years ago, on Labour-led government in October 2007 in response to growing concerns about 1 November 2010. This article examines the planning the workability of local government arrangements in Auckland. Its report framework set in place to enable the growth of Auckland identified two broad systemic problems over the next 30 years. The author was chief planning officer in the existing arrangements: regional governance was weak and fragmented, of Auckland Council from its inauguration until mid-2015. and community engagement was poor (Royal Commission on Auckland It therefore gives an insider’s view on the framework, which Governance, 2009). The commission may aid wider understanding in the policy community. The recommended that a new, single unitary authority called Auckland Council replace author has also had the opportunity since leaving the council the Auckland Regional Council and seven to reflect on what has been learned, and the hurdles still to be territorial authorities, and that six elected local councils operate within the unitary cleared. The premise that Auckland’s success is critical to council; the government amended the latter proposal to 21 local boards. Further, New Zealand’s success underpins this article. it recommended that the council be led by The article examines the governance on urban form and planning rules, a mayor elected by all Aucklanders, and changes to Auckland, and describes the housing, transport and economic growth. with greater executive powers than those planning framework and the development The final section covers the features of the provided under the Local Government strategy in the Auckland Plan. It then planning process, independent reviews, Act 2002: to chart and lead an agenda analyses the difficult challenges that lessons for other regions, policy lessons for Auckland. All policy would still be still confront Auckland: its housing and conclusions. approved by the full Auckland Council. affordability crisis, and measures required The commission recommended that Auckland Council immediately prepare a Roger Blakeley is a consultant and Fellow of the School of Government at Victoria University of regional spatial plan and an infrastructure Wellington. He was chief planning officer, Auckland Council from its inauguration in November 2010 to mid-2015. investment plan, and develop one

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 3 The Planning Framework for Auckland ‘Super City’: an insider’s view

Figure 1: Auckland’s Strategic Planning Framework

MAYOR’S VISION

LOCAL BOARD AUCKLAND PLAN PLANS TION UA

AREA CORE FINANCIAL AN AL STRATEGIES AN PLANS STRATEGIES

ASSET ARY PL PRECINCT/ POLICIES MANAGEMENT UIT

CENTRE PLANS & PLANS PLANS/ ONG TERM PL LOCAL BOARD ACTIVITY PLANS L AGREEMENTS MONITORING & EV

OTHER STAKEHOLDERS’ AUCKLAND COUNCIL IMPLEMENTATION PLANS IMPLEMENTATION PLANS

district plan for the Auckland region. previous councils, with 8,000 staff, an is the requirement for a ‘spatial plan for Changes should be made to the Resource annual budget of $3 billion and assets of Auckland’, not just Auckland Council. Management Act 1991 to remove the the value of $36 billion, and consolidating For the first time Auckland has a single, right of appeal to the Environment several thousand computer systems. integrated plan for the region, covering Court from regional policy statement The change went remarkably smoothly, land use, transport, infrastructure and decisions by Auckland Council, and to which is a tribute to good leadership housing, to guide investment by council, allow Auckland regional policy statement from the elected members, good change government, the private sector, iwi and submissions to be heard by independent management from the executive and staff, communities. commissioners. An urban development and goodwill from the public. The council decided that the agency with compulsory land acquisition Auckland Plan would be shaped by the powers should be created, reporting to The planning framework European Regional/Spatial Planning council. Figure 1 shows the strategic planning Charter, also known as the Torremolinos The commission recommended that framework under the new Auckland Charter (Council of Europe, 1983). two Mäori members be elected to the Council (Auckland Council, 2012a). The Torremolinos Charter has four Auckland Council by voters listed on The mayor’s vision ‘to be the world’s fundamental objectives: balanced socio- the Mäori electoral roll. Instead, the most liveable city’ was adopted in the economic development of the regions; government established an Independent Auckland Plan after wide consultation improvement of quality of life; responsible Mäori Statutory Board. (Auckland Council, 2012a). This is management of natural resources and The National-led government in 2009 the 30-year strategic spatial plan, with protection of the environment; and largely agreed with the recommendations statutory weight, as recommended by rational use of land. That decision by of the commission. An Auckland the royal commission. Under section council ensured a broad, integrated Transition Authority was formed to 79 of the Local Government (Auckland and values-based approach, not just a manage the changeover, under the Local Council) Act 2009, ‘The Auckland population-based strategy, which had Government (Auckland Council) Act 2009 Council must prepare and adopt a spatial been the legacy of previous regional and the Local Government (Auckland plan for Auckland. The purpose … is to growth strategies. Transitional Provisions) Act 2010. The contribute to Auckland’s social, economic, The Auckland Plan is the overarching new mayor and members of Auckland environmental and cultural well-being plan for all other Auckland plans. Two Council were sworn in on 1 November through a comprehensive and effective major plans bookend all others: the 2010. The scale of organisational change long-term (20- to 30-year) strategy for Unitary Plan, the council’s principal is perhaps unprecedented in Australasia: Auckland’s growth and development.’ The land-use planning document, prepared creating one new organisation from eight important distinction in the legislation under the Resource Management Act

Page 4 – Policy Quarterly – Volume 11, Issue 4 – November 2015 1991; and the long-term plan, describing Court on a point of law. Those provisions the housing market, because lower-priced council’s intended activities, key projects were included in the Local Government land is more often found further out on and programmes, and budget for a ten- (Auckland Transitional provisions) the fringes of cities. year period (currently 2015–25), prepared Amendment Act 2013. The MUL was usually located adjacent under the Local Government Act 2002. to the existing urban area and could only Local board plans set the priorities The Auckland development strategy be expanded through a plan change to and projects for each local board and Figure 2 shows the composite map which the regional policy statement. The rural inform both the Auckland Plan and the incorporated the development strategy urban boundary (RUB) is completely long-term plan. Local board agreements within the Auckland Plan. Areas shaded different from the previous MUL. The on budget are made annually with the in pink fall within the metropolitan RUB removes the binding constraint, governing body. urban limit (MUL) when the council thereby relieving land price pressures Figure 1 shows how the various was formed in 2010. The red broken lines caused by the MUL. The RUB is usually plans interact: core strategies such as show areas for investigation for greenfield located well away from the existing the economic development strategy development. urban area and is designed to provide (Auckland Council, 2012b); place-based The policy of controlling the outward for 30 years’ growth. Greenfield land plans such as the City Centre Masterplan spread of Auckland through MUL- between the RUB and the existing urban (Auckland Council, 2012c), the type mechanisms has been a policy area will be zoned ‘future urban’ until Waterfront Plan (Waterfront Auckland, in regional planning documents for a staged release of that greenfield land 2012), area plans, precinct plans and centre plans; financial strategies; asset management plans; and implementation We live in a rapidly urbanising world: by plans, such as the Integrated Transport Management Plan prepared by Auckland 2025, 75% of the world’s population Transport, which delivers the high-level transport strategy outlined in chapter 13 will live in cities. Globalisation and the of the Auckland Plan. knowledge economy have made city- Consistent with its overall approach to planning and implementation, council regions the engines of growth of nations. wanted to deliver the Unitary Plan at pace. It did not want to repeat the experience of some cities and districts, which have taken up to ten years until more than 50 years (Hill, 2008). The occurs to meet demand. By that time it adoption of district plans. The council reasons for its use have changed over will be rezoned urban and bulk services proposed to the government that it add time. Initially it was mainly to sequence infrastructure will be in place. The RUB an additional step of engagement with growth, so that infrastructure could be will be confirmed through the Unitary the community on a draft Unitary Plan provided more efficiently. Then, under Plan process. at the front of the process, in return for the Auckland regional policy statement The development strategy provides limited appeal rights at the back. The of 1994, developed under the Resource for an extra 1 million people (400,000 quality of the plan would be enhanced by Management Act 1991, the main dwellings) in Auckland by 2041, as per the extra engagement step at the start, and objective became to protect rural and the Statistics New Zealand high-growth time would be saved by avoiding years coastal environments from peripheral projection. The ‘quality compact city’ of appeals to the Environment Court. growth and achieve containment and strategy provides for development both It recommended that an independent intensification. The region has absorbed up and out, based on a range of up to hearings panel hear submissions on the over 300,000 more people in the last 20 70% of future population growth being notified Proposed Auckland Unitary years without significantly extending the located within the existing urban area Plan. The government agreed to the MUL. and up to 40% in new greenfields: a 70/40 changes. The independent hearings panel Studies have shown (Grimes and split. Providing for an orderly release and will hear and consider submissions, and Liang, 2009) that the metropolitan urban development of greenfield land lowers make recommendations on the final plan limit has had a significant impact on land infrastructure costs. Studies on Australian to council for decision. An appeal to the prices in the city, with the price of land cities (Trubka, Newman and Bilsborough, Environment Court is allowed only on just inside the MUL around ten times 2013) have shown that total costs of any matter where council disagrees with higher than that of land just outside greenfield development are approximately the panel’s recommendation. Where the MUL. More recent research (Zheng, twice those of brownfield development the council agrees with the panel’s 2013) has concluded that the impact of (particularly for infrastructure provision recommendation, an appeal on that the MUL on housing affordability is most and transport) for the same quantum of matter can only be made to the High pronounced for those at the lower end of population increase.

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 5 The Planning Framework for Auckland ‘Super City’: an insider’s view

Figure 2: Development strategy from the Auckland Plan

Page 6 – Policy Quarterly – Volume 11, Issue 4 – November 2015 Why Auckland has a housing affordability a housing market that is not support for a ‘quality compact city’ crisis functioning can have a significant strategy. This strategy was incorporated One dominating question is central to the effect on the macro-economy … into the Auckland Plan in 2012, and planning framework: why does Auckland The point is that when the supply subsequently the draft Unitary Plan in have a housing affordability crisis? of housing is relatively fixed, shocks March 2013. There was pushback from The population pressure in Auckland to demand – like migration flows the Auckland 2040 lobby group and other is part of a global trend affecting all big increasing sharply as they have current property owners against greater cities. We live in a rapidly urbanising world: recently – are absorbed through height and density in suburban areas. by 2025, 75% of the world’s population higher prices rather than the supply These groups often expressed support for will live in cities. Globalisation and the of more houses. (English, 2015) action to reduce urban sprawl, but ‘not knowledge economy have made city- in my back yard’ (NIMBYism). Council regions the engines of growth of nations. Auckland Council and the government responded to this public pressure by Cities reduce the distance between have introduced several significant reducing height limits and reinstating people, and so reduce the costs of moving measures to increase supply of housing density controls in some areas, notified in people, ideas and goods throughout the in Auckland, which are discussed in the the Proposed Auckland Unitary Plan in economy. That agglomeration effect is following sections. The government has September 2013. The decision to rescind why the centre of Auckland has higher introduced a range of measures to reduce the proposed removal of minimum lot labour productivity than the rest of New demand. sizes in the mixed-housing suburban Zealand (New Zealand Productivity Commission, 2015, p.28). It makes cities more attractive, generates higher wages The deputy governor of the Reserve Bank and more opportunities, and explains why Auckland is growing so rapidly. commented on the high cost of the land Statistics New Zealand projects that component (60%) in house prices in between 2026 and 2031, 65% of New Zealand’s total population growth will Auckland, and noted that the council occur in Auckland. Between August 2014 and August 2015 has the opportunity ... to allow greater median house prices in the Auckland numbers of dwellings per unit of land, metropolitan area jumped by about 20%, from $635,000 to $765,000 (Real Estate and therefore more affordable housing .... Institute of New Zealand). The median house price in metropolitan Auckland is now about nine to ten times higher than Auckland’s median annual household There are four major issues within zone (40% of the Auckland urban land income of about $80,000. ‘Affordable’ the planning framework: urban form and area) significantly reduced the flexibility housing is generally taken to be housing planning rules, housing, transport and for developers to provide greater supply, costing three to four times the median economic development. Discussion on choice and affordability of housing units. household income. The difference each of these follows. Provisions in the Proposed Auckland is a measure of Auckland’s housing Unitary Plan which require minimum affordability problem. Auckland’s house Urban form and planning rules apartment floor areas of 30–50 square prices have been on a different path from The Auckland Plan and the Proposed metres (depending on the zone) and the rest of New Zealand’s since 2012. Auckland Unitary Plan have specifically minimum balcony areas of 8–10 square Many factors contribute to the addressed the need to ensure adequate metres have aroused public debate. extraordinary growth in Auckland house land supply. The plans have provided for Studies (MRCagney, 2014) concluded prices. These include demand drivers supply through additional intensification that these proposed apartment and (such as a net gain of 60,000 migrants to within the existing urban area, as well as balcony size rules are unlikely to generate New Zealand in the last year, low interest through staged release of greenfield land improvement in well-being that exceeds rates, and increasing investor presence in within the rural urban boundary to meet their costs. However, such studies have the market), and supply drivers (lack of future demand over 30 years. In addition, not included the costs and benefits to the land supply, fragmented land ownership, their target is that there will always be at wider Auckland community: for example, restrictive planning regulations, least seven years’ forward supply of land if no private open space is provided, then constraints in provision of infrastructure, zoned for future development, with bulk the council and ratepayers may need to and low measured productivity in the infrastructure services available for a provide additional open space in urban building construction sector). As the developer. areas. deputy prime minister said in a speech Auckland Unleashed (Auckland The New Zealand Productivity on 29 September 2015: Council, 2011) received strong public Commission in its draft report Using

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 7 The Planning Framework for Auckland ‘Super City’: an insider’s view

Land for Housing recommended curtail- and called for a housing action plan to an independent housing fund agency ing councils’ ability to set rules in district be developed and implemented urgently. to philanthropic investors: an action in plans relating to balconies and private The housing action plan was completed the housing action plan. This enables open space requirements and minimum with multi-sector input within six months community housing providers to access floor areas of apartments, and leaving and released in December 2012. It sets out finance at cheaper rates (about 5%). Third, the market to respond to consumer the tools the council can use to influence the council has replaced two existing preferences (New Zealand Productivity housing supply and affordability. Most council-controlled organisations with a Commission, 2015, p.120). Auckland of the actions are now well advanced or new organisation, Panuku Development Council in its response said that local completed. Auckland. It will lead brownfield government, with its local democratic The Auckland Housing Accord, agreed redevelopment (residential, commercial mandate, should be able to tailor local between the government and Auckland and mixed), develop underutilised rules, taking account of all benefits and Council in September 2013, provided for public land holdings and leverage private costs. Other rules, such as ceiling heights, the establishment of special housing areas sector development, at scale. Panuku have aroused similar debates. The council (SHAs) and for fast-track consenting Development Auckland will redevelop has decided to provide an incentive and approval processes. It set a target areas in partnership with private sector regarding balconies by decreasing the of 39,000 consented dwellings and sites developers, iwi and government. minimum floor areas of apartments by the end of three years, and specified Fourth, in the 2015-25 long-term plan if a balcony is provided. This is for requirements for affordable housing. The and budget a new council infrastructure fund was established, providing $35 million per annum for the next ten years [Under The Auckland Plan, the transport to local infrastructure for SHAs and other residential growth areas. It is financed by ... network] will require an additional $12 Auckland Transport, and money can be billion over the next 30 years to invest in recouped from development contributions paid by property developers in the local roads, rail, ferries, busways and cycleways. area as each of their developments is completed. There have been some difficulties in putting all of these measures in place. consideration in the mediation conducted accord was supported by the Housing While there were initial public differences by the independent hearings panel. Accords and Special Housing Areas Act between the government and council, the The deputy governor of the Reserve 2013, which also applies to other cities. agreement on the Auckland Housing Bank commented on the high cost of Auckland exceeded the target of 11,000 Accord has provided the basis for a the land component (60%) in house consented dwellings and sites in the first collaborative relationship. There were also prices in Auckland, and noted that the year of the accord. By the end of June concerns from council about adequate council has the opportunity (through 2015 Auckland had established 97 SHAs, infrastructure funding to support increasing the designated areas for high- with the capacity to yield more than SHAs, which the council infrastructure density residential development) to allow 47,000 homes over ten years. fund (described above) has addressed. greater numbers of dwellings per unit Another target in the Auckland Plan Issues with timing of provision of bulk of land, and therefore more affordable is to ‘[i]ncrease residential dwelling infrastructure are not fully resolved. housing (Spencer, 2015a). The council construction consents from 3,800 in 2011 Difficulties have also arisen in working must recognise that a decision in favour to at least 10,000 on average per annum with local boards on SHAs because of of stricter planning and land-use controls from 2020’. In 2014/15 new dwellings in the very limited time for community involves a trade-off against lower house Auckland were built at a rate of 8,300 per engagement, given that delivery has prices and the greater productivity and annum (compared with fewer than 4,000 to be at pace. It is demanding for local economic growth that comes with greater per annum in 2010/11). boards when SHA requests must remain density. Other initiatives by the council help confidential for commercial reasons, The independent hearings panel on housing supply and affordability. First, since boards want to be open with their the Auckland Unitary Plan is currently Auckland Council and the government communities. Another challenge has considering the submissions received are joint shareholders in the Tämaki been the development time lag. It takes on the residential zone rules, and is Redevelopment Company, which aims 12 months to two years, depending on mediating with all parties. to create 6,000 homes over a 20-year location, to get housing on the ground. period, with associated economic and On 24 August 2015 the deputy Housing social development benefits. Second, governor of the Reserve Bank said: Housing is the second, related, issue. The in 2015 Auckland Council agreed to ‘There are good reasons to think that Auckland Plan referred to a housing crisis provide guarantees on bonds issued by the Auckland market poses an increasing

Page 8 – Policy Quarterly – Volume 11, Issue 4 – November 2015 threat to financial stability’ (Spencer, Economic growth future. Several factors contributed to this 2015b). Auckland Council, with The fourth issue is economic growth. The successful planning. The inaugural chief government and the development sector, Auckland economy has largely relied on executive, Doug McKay, and the author is working on a range of supply and supplying goods and services to the New made an early agreement about the pace demand measures to reduce this risk. Zealand domestic market. To grow at the of planning. The maxim for plans was rate Auckland needs it must add a much ‘simple, fast, bold and innovative’. One Transport stronger export focus, while also retaining reason was for Auckland to be able to move The third issue is transport. The Auckland its role in the domestic economy. The quickly from planning to implementation. Plan contains a transformational shift: export focus requires developing and The Auckland Plan was adopted after ‘Move to outstanding public transport selling high-value goods and services to 17 months; in comparison, the London within one network.’ It will require an high-growth sectors (e.g. food technology) spatial plan took four years. Some district additional $12 billion over the next 30 years of rapidly growing economies (such as plans in New Zealand, for much smaller to invest in roads, rail, ferries, busways China). This will require a fundamental and less complex cities, have taken up and cycleways. The plan prioritises the change to the Auckland economy. to ten years to adoption of the plan. In City Rail Link and notes that new funding The council-controlled organisation contrast, the Proposed Auckland Unitary tools will be needed to pay for the required Auckland Tourism, Events and Economic Plan, which is a combined regional $2.4 billion capital cost. Development (ATEED) has taken policy statement, regional coastal plan Significant investment in the public responsibility for implementation of and district plan, took only 18 months to transport system, including electrification of the rail network and new electric trains, has seen passenger patronage increase The Auckland Plan was adopted after from 60 million trips in 2010 to 76.5 million trips in the 12 months to January 17 months; in comparison, the London 2015. Rail passenger numbers reached spatial plan took four years. 13.8 million in the year to January 2015, an increase of 20% over the previous 12 months. The draft 2015-25 long- term plan invited feedback on whether the economic development strategy. develop for notification. This rapid pace the public supported a basic transport Initiatives have included investing in an may have shaken the former planning network or preferred further investment innovation hub and technology precinct paradigm in New Zealand. to deliver the proposed Auckland Plan in the Wynyard Quarter, which is bringing The plans were evidence-based. transport network. In submissions and together technology firms, business start- Comprehensive data-gathering informed an independent public opinion survey, up incubators and research institutions the plans around, for example, the the Auckland Plan transport network – encouraging exchange of ideas, product demographic change covering the was supported over the basic transport development, commercialisation and export projected regional population growth network at a ratio approaching 2:1. The expertise – in one place. This approach of Auckland, its ageing population, and feedback also showed that the public is being replicated in other sectors: for the rapid change of Auckland as a super- supported a motorway user charge example, food innovation, health services diverse city with 40% ethnic migrants. option over an increased fuel taxes and for export, clean technologies, and screen The levels of community engagement rates option. The response provided a innovation and production. were unprecedented. The Auckland clear mandate to council to raise the extra The Auckland Plan target is 5% per Plan, Proposed Auckland Unitary funds needed. annum GDP growth over 30 years. In Plan and 2015-25 Long-term Plan The next step for the council is to 2014/15 Auckland’s GDP grew at 3.7%, each involved tens of thousands of work with central government to agree creating 37,000 new jobs. This compares Aucklanders through public meetings, on how Auckland can raise the required with Auckland’s GDP growth in 2010, as website visits, submissions and social transport funding to deliver the Auckland it came out of the global financial crisis, media, including Facebook, Twitter and Plan transport network. This is likely to of –1.2%. online panels. Interactive digital models require legislative change and could take The final section of this article covers gave the public the opportunity to help some years. In June 2015 the council the author’s reflections, with the benefit of shape their city and its ten-year budget. agreed to an accelerated transport hindsight, on the features of the planning These innovations involved citizens in programme with extra investment of $523 process; independent assessments; lessons the co-design and delivery of planning million over the next three years, derived for other regions; and policy lessons. and policy. This engagement directly from a three-year interim transport levy addressed one of the two systemic on residential and business ratepayers, Features of the planning process problems in Auckland identified by the central government contributions and Auckland’s new planning system has given royal commission, that ‘[c]ommunity additional council borrowing. the city-region a clear blueprint for the engagement was poor’.

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 9 The Planning Framework for Auckland ‘Super City’: an insider’s view

A bold approach was taken to for her book Transforming Auckland, and able to build a single comprehensive setting visions, goals and targets, and observed: strategy: ‘The Auckland Plan’, focusing on game-changers such as the produced only 17 months after transformational shifts in the Auckland As noted by David Shand amalgamation. The Council’s services Plan. Innovative policy responses were (former member of the Royal and activities are delivered by applied to persistent, wicked problems. Commission),‘There is now a Council-controlled organisations – One such example is the Southern feeling in Auckland, and across the corporate entities with board Initiative. Cross-sectoral collaboration – rest of New Zealand, that there is members appointed for their business joined-up thinking and action involving an Auckland Council that matters’. acumen. (Clark and Moonen, 2015) council, central government, iwi, business, (Chen, 2014, p.6) universities, community organisations, Auckland’s rating in the world’s most interest groups and the wider public – The international advisory committee liveable cities surveys in 2015 included: was core to all plans. Implementation for the fourth New York regional plan • Mercer Survey: 3rd (up from 4th in strategies were fully integrated into all the compiled a report on current global 2010) plans, and the 2015-25 long-term plan was thinking and practice about how leading • Economist Intelligence Unit: 9th (up explicitly aligned to the Auckland Plan metropolitan regions are addressing from 10th in 2010) for prioritisation of strategic resource long-term challenges. This was based on • Monocle magazine (UK): 17th (up allocation. case studies of 12 global city-regions: from 20th in 2010). The recognition of Auckland’s achievements through international ... there are some lessons from and national awards is also based on independent assessments. Auckland Auckland’s experience ... [w]rong was rated the third best sporting city in information about Auckland was put in the world in 2014, behind London and Melbourne, by the SportBusiness Ultimate the public domain as part of campaigns Sports City award. Lonely Planet’s 2014 Best in Travel guide named Auckland as against amalgamation in other regions. one of the top ten cities in the world to visit. Auckland’s waterfront won the top award for ‘excellence on the waterfront’ at the 30th annual Waterfront Centre Independent reviews of the Auckland London, Paris, New York, Tokyo, Hong Conference in Washington DC in 2012, ‘super city’ Kong, Singapore (the ‘big six’); Auckland, and other top international awards. The Auckland planning framework has Sydney, Barcelona, Vienna (four ‘new’ Numerous national awards have also been assessed by several independent world city-regions); and Moscow and Sao been given to the Auckland Plan, City reviews. The controller and auditor- Paulo (two ‘emerging’ global city-regions). Centre Masterplan, Waterfront Plan and general, in her review of the transition On the challenge of regional planning Proposed Auckland Unitary Plan by the and first two years of Auckland Council, and governance, they listed Auckland and New Zealand Planning Institute, New commented on the Auckland Plan: Paris as top of the 12 city-regions, with a Zealand Urban Design Institute, New ‘single, integrated regional plan delivered Zealand Institute of Landscape Architects We heard from everyone we spoke by a regional authority’: and the Institute of Public Administration to about the unifying and focusing New Zealand. benefits of the Auckland Plan. Recognition of the regional dimension The Plan has provided a coherent of growth is a vital step in Lessons for other regions strategic regional direction, including many institutionally fragmented It would not be appropriate for this article a sense of purpose, a sense of regions. Auckland made a decisive to comment on what other regions may regional identity, and recognition of step in 2010 with the choose to do regarding amalgamation. Auckland’s national significance. This merger of its region’s eight councils However, there are some lessons from direction has a lot of organisational, into one ‘super city’ under a new Auckland’s experience that other regions stakeholder, and public support. executive mayor. The organisational may consider. Wrong information about (Controller and Auditor-General, transformation required Auckland was put in the public domain as 2012, p.25) transformational governance and part of campaigns against amalgamation management changes, but was in other regions. In fact, there have Mai Chen interviewed people involved managed smoothly. Mayor Len been clear benefits to Auckland from in the creation of the Auckland Council Brown, the first mayor of the new the amalgamation and the planning regional Auckland Council was then framework.

Page 10 – Policy Quarterly – Volume 11, Issue 4 – November 2015 Rates City-regional planning and implementation Special role of Auckland in the New Zealand Auckland Council inherited from the eight Auckland has a single, strategic spatial plan economy legacy councils an average rates increase for the region – the plan for Auckland, not Auckland is New Zealand’s only city of of over 9% in 2010/11, and a proposed just Auckland Council. For the first time, international scale. Auckland is competing average annual rates increase of 6% in regional investment planning by council, in the global marketplace for talent and following years. The council has lowered government, infrastructure providers, iwi, investment with cities like Sydney and these figures considerably. In the 2015–25 and commercial and housing developers Melbourne. The success of Auckland is long-term plan, adopted in June 2015, the over 30 years is aligned. This is a major critical to New Zealand’s success. That budget includes an average general rates improvement over the previous eight is why central government might want increase of 2.5% for 2015/16, followed separate councils’ strategic plans, based to seriously consider intervention if it by a rise of 3.2% in 2016/17 and 3.5% for on historic local government boundaries believes ‘bad’ planning decisions are each of the remaining years in the ten-year which bore no particular relationship to jeopardising national objectives. There budget. the regional economic ecosystem. could have been a better policy dialogue between council and government about Efficiency savings Working with central government what Greg Clark called ‘the natural The council predicts $2.64 billion of Under the previous regime government tension between a global city and the efficiency savings during the ten years of had to speak to eight councils with nation state’ (Clark and Moonen, 2015). the 2015-25 long-term plan, or an average potentially eight different points of view. There are still big challenges for Auckland of $264 million per year.

Debt Redevelopment opportunities in inner The value of council’s assets will grow at a much faster rate than debt over the next suburbs under the Proposed Auckland ten years: average annual debt will increase Unitary Plan were set to remain low. by $466 million per year, but assets will grow by an average of $1.7 billion per However, they are likely to increase year. The council runs a disciplined debt management strategy based on prudential following council’s revised position on ratios aligned with maintaining an AA residential zoning to allow for more credit rating (stronger than that of all New Zealand banks). density.

Local boards Local boards have real power to negotiate local service standards, manage local facilities and parks, host local events Government leaders can now pick up the to meet the target of 5% per annum GDP and prepare local board plans. Local phone and speak to one council leader. growth. It involves a shift from city-region leadership can propose local bylaws, Councillors meet with Cabinet ministers to successful global city. and provide input to council-controlled annually; the State Services Commission organisations and economic development has recently created a deputy commissioner Tackling the housing affordability crisis plans. Their budgets are real, and they have role in Auckland to strengthen the working head-on autonomous decision-making authority partnership; and the government and The council has been at the forefront of over one in every four dollars of council’s council have successfully collaborated on thinking on ways to address housing supply core budget spent in their local areas. several partnerships, such as GridAKL, Te issues, with its work on the Auckland Plan, Papa South, the Auckland Housing Accord housing action plan, future urban land Council-controlled organisations and SHAs, the Auckland Co-design Lab, supply, Auckland Housing Accord and Auckland Transport, ATEED, Watercare, a single intergrated transport network, special housing areas (with government), Panuku Development Auckland, major sporting events such as the Rugby the Proposed Auckland Unitary Plan, Regional Facilities Auckland and World Cup 2011 and Cricket World Cup and promoting quality urban design. Auckland Council Investments Ltd 2015, and the Maunga Authority. The mayor and deputy mayor called deliver major infrastructure and for council to take a more front-foot services across Auckland. The council- Policy lessons approach on broader supply and demand controlled organisation model has been On reflection, the following policy lessons issues, and the council’s chief economist very successful in delivering major emerge from the planning process. was commissioned to lead an economic infrastructure and services. report on housing supply, choice and affordability. The report calls for the

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 11 The Planning Framework for Auckland ‘Super City’: an insider’s view council and government to work together priced in the lowest quartile, and 30% The recent OECD report (to to achieve a home-buyer’s price-to- in the upper quartile. Today only 5% government) made this recommendation income ratio of 5:1 by 2030 (it is currently of new homes are priced in the lowest on planning issues: 9–10:1) (Parker, 2015). The report is not quartile and nearly 60% are priced in the council policy, but it will inform council’s upper quartile. Prices and rents are rising Provide guidance to regional ongoing strategy for action and advocacy. disproportionately at the bottom end of authorities in the implementation the market due to lack of supply. Planning of environmental and planning Becoming a high-quality urban city rules are seen to be adversely affecting regulations, including the Resource Population densities generally increase as the poorest and most vulnerable people. Management Act. Reduce their one gets closer to a city centre. However, The weighing of distributional impacts economic costs and scope for vested Auckland’s population density, at some against community interests should have interests to limit competition or 32 people per hectare in inner suburbs, is been brought into the analysis earlier, but thwart rezoning and development low by international measures. Auckland is being considered now. that would be in the wider public does not have an urban area as such, as interest. (OECD, 2015) suburbia is adjacent to the city centre. NIMBYism and intergenerational equity Auckland’s current low population density In the community meetings and media NIMBYism has been identified as in its inner suburbs can be attributed to commentary on the draft Unitary Plan, one of the reasons for a bias towards the legacy council planning regulations groups such as Auckland 2040 argued the present at the expense of longer- term future thinking (Boston and Stuart, 2015). Auckland could follow Vancouver’s When the Auckland Plan committee example and adopt the alternative acronym QIMBY (quality in my back made decisions on the notification of yard). That is, there is no reason to fear the Proposed Auckland Unitary Plan in intensification in suburbs, provided it is based on quality urban design and August 2013, local board chairs were amenities. Indeed, that is the principle in the Auckland Plan and Proposed present in the council chamber and able Auckland Unitary Plan. This would to speak to matters under debate, but require a shift in thinking, from NIMBY did not have a vote. to QIMBY. Section 32 analysis The provisions of section 32 of the Resource Management Act require for the isthmus area. Redevelopment strongly against intensification in the cost–benefit analysis of proposed rules. opportunities in inner suburbs under the low-density inner suburbs. Their voice For example, the council’s analysis of Proposed Auckland Unitary Plan were set was influential in the council’s decision minimum car parking requirements to remain low. However, they are likely to tighten up proposed changes to density in Auckland showed that the costs of to increase following council’s revised provisions in the notified plan. That the existing planning rule exceeded the position on residential zoning to allow for decision benefited current homeowners, benefits by a factor of at least six. Changes more density. To ensure adequate supply, but reduced affordable choices for current have now been made to this rule, but it choice and affordability of housing, or future first-home buyers, or people from raises the question of how it was adopted Auckland needs to shift from being a lower socio-economic groups wanting to in the first place. The local government suburban city to a high-quality urban city locate closer to the city centre. It acted as a sector needs to build its economic analysis (Parker, 2015). transfer of wealth from future generations capability. At present such analysis is often to the current generation. Another group, handed to consultants. If a standardised Distributional impacts Generation Zero, articulated this point land-use evaluation methodology was Poor urban planning is seen as one of well, but did not get much traction in available, it would reduce barriers to good the drivers of inequality (English, 2015). the debate. A higher quality of public economic analysis by reducing costs. Regulations that drive up the price of debate could have better informed the housing, such as the current urban limits, community that a ‘quality compact city’ Role of local boards in regional policy and minimum lot sizes which prevent strategy could deliver greater density The Auckland governance reforms made subdivision below a certain size, reduce and more affordable housing while also a clear distinction between the role of opportunities to build affordable homes. achieving quality living through good the governing body in setting regional Twenty-five years ago around 30% of urban design. policies, and the role of local boards in new homes coming into the market were local services, such as facilities and parks,

Page 12 – Policy Quarterly – Volume 11, Issue 4 – November 2015 local service standards, local board plans, to support economic growth and increase Auckland’s housing crisis; allowed more and representing their communities’ productivity by ensuring improved access time for consideration of the feedback on views. In order to fulfil those different to employment; improve congestion; the draft Unitary Plan; avoided an election roles, local boards were involved directly in improve public transport’s mode share; year for decisions on the proposed Unitary providing policy advice: for example, local and ensure that any increases in financial Plan; put more early time and resources board chairs were members of the Unitary costs will deliver net benefits to users of into the section 32 cost–benefit analysis Plan committee. When the Auckland the transport system. The challenge is a of rules, including how to quantify the Plan committee made decisions on the shift from congestion to accessibility. benefits for the wider public good; made notification of the Proposed Auckland more use of research, photographs, and Unitary Plan in August 2013, local board Incentives to grow real examples of quality intensification chairs were present in the council chamber The revenue incentives for growth to to address NIMBYism; and created more and able to speak to matters under councils are limited. When Auckland opportunities for the younger generation’s debate, but did not have a vote. These grows the council takes on more transport voice to be heard. arrangements were appropriate given the and other infrastructure demands, to be respective regional and local decision- funded from a limited revenue base from Conclusions making roles of the governing body and rates. Councils are under pressure not to These reflections and analyses lead to five local boards. invest if they think a growing city is going conclusions. First, the Royal Commission to push up rates for existing ratepayers. on Auckland Governance identified two Transport There were initial public differences between the government and council ... Auckland has been recognised on government funding support for the City Rail Link. A contributing factor internationally as a top city-region was substantial differences between in the world for regional planning council officers and government officials regarding the calculation of the wider and governance, for having ‘a single, economic benefits of the link. In 2013 the government agreed to cost-sharing on the integrated, regional plan delivered by a City Rail Link, and timing issues are being regional authority’ .. resolved. The early stages of the rail tunnel are proceeding in 2015 as part of the downtown development project. Another issue of public disagreement related to Various parties, including the OECD, the broad systemic problems in the existing road pricing that involved charges on the New Zealand Productivity Commission, Auckland local government arrangements: use of existing motorways. Road pricing, the New Zealand Initiative and Local regional governance was weak and such as London’s congestion charges Government New Zealand, have argued fragmented, and community engagement and Singapore’s electronic variable road that local government needs to share was poor. Both have been resolved, pricing system, is accepted international in a revenue base which benefits from through the governance reforms and practice as a demand management tool. increased economic activity, to help pay unprecedented community engagement Auckland Council’s strategy to address for increased infrastructure and services. in the plans for Auckland. Second, the congestion has been clear: to put in place Examples could be greater use of targeted Auckland Plan, Economic Development an efficient and accessible public transport rates to capture some of the uplift in value Strategy, City Centre Masterplan, system, then to apply demand management that benefits a whole neighbourhood from Waterfront Plan and Proposed Auckland tools to incentivise motorists to shift new infrastructure, or road pricing tools Unitary Plan, adopted by council within from private cars to public transport, such as congestion charges, which serve its first three-year term, have together and encourage mode shifts to cycling and as a demand management tool and could created the platform for the growth of walking. On 27 August 2015 the minister provide a revenue source for funding Auckland over the next 30 years. of transport and the mayor of Auckland infrastructure for housing supply. This Third, Auckland has been recognised announced the Auckland Transport could provide incentives for communities internationally as a top city-region Alignment Project, a year-long joint that want to grow. in the world for regional planning project between government and council. and governance, for having ‘a single, The scope encompasses roads, rail, public With the benefit of hindsight, some things integrated, regional plan delivered by a transport, personal mobility devices, might have been done differently regional authority’ (Clark and Moonen, walking, cycling, new technologies such as The council might have: provided more 2015). Fourthly, there are still major driverless cars, network optimisation and clarity to the public from the beginning issues to be resolved, in particular so that demand management. The objectives are about the fundamental drivers of Auckland will achieve four major shifts:

Policy Quarterly – Volume 11, Issue 4 – November 2015 – Page 13 The Planning Framework for Auckland ‘Super City’: an insider’s view from city-region to global city, and a major shifts above will need sustained effort by are due also to Geoff Cooper, Auckland attractor of investment and talent; from council, government, private sector, iwi Council’s chief economist (currently on suburban city to high-quality urban city, and communities, for Auckland to deliver sabbatical), and Chris Parker, Auckland with increased intensification in the inner on that vision for its citizens and for its Council’s current chief economist. I would suburbs and on the isthmus; from NIMBY contribution to the future success of New also like to acknowledge John Dalzell, (not in my back yard) to QIMBY (quality Zealand. former chief executive of Waterfront in my back yard), with increased supply, Auckland and now interim chief executive choice and affordability of housing; from Acknowledgements of Panuku Development Auckland, who congestion to accessibility, with the best I would like to acknowledge my managers led the development of the Waterfront mix of investment in public transport, who led the development of respective Plan. Thanks are due in particular to roads, cycling and walking, and demand plans – Ree Anderson, Auckland Plan; Stephen Town, chief executive of Auckland management. Harvey Brookes, Economic Development Council. The views expressed in this article Last, while the governance reforms Strategy; Ludo Campbell-Reid, City are those of the author. and the planning framework have laid the Centre Masterplan; Penny Pirrit, Proposed foundation for Auckland’s quest ‘to be the Auckland Unitary Plan – for their helpful world’s most liveable city’, the four major comments on a draft of this article. Thanks

References (Note: all documents referenced to Auckland Council can be found at: Grimes, A. and Y. Liang (2009) ‘Spatial determinants of land prices: does www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/ Auckland’s metropolitan urban limit have an effect?’, Applied Spatial theaucklandplan/Pages/theaucklandplan.aspx.) Analysis and Policy, 2 (1), pp.23-45 Hill, G. (2008) ‘The effectiveness of the Auckland metropolitan urban Auckland Council (2011) Auckland Unleashed: the Auckland Plan limit-ring-fencing urban development’, paper presented at the discussion document, Auckland: Auckland Council Environmental Defence Society conference, 11–12 June Auckland Council (2012a) The Auckland Plan, Auckland: Auckland MRCagney (2014) The Economic Impacts of Minimum Apartment and Council Balcony Rules, Auckland: MRCagney Auckland Council (2012b) Auckland’s Economic Development Strategy, New Zealand Productivity Commission (2015) Using Land for Housing, Auckland: Auckland Council draft report, Wellington: New Zealand Productivity Commission Auckland Council (2012c) City Centre Masterplan 2012, Auckland: OECD (2015) OECD Economic Surveys New Zealand June 2015: overview, Auckland Council Paris: OECD Auckland Council (2013) The Proposed Auckland Unitary Plan, notified Parker, C. (2015) Housing Supply, Choice and Affordability: trends, 30 September, Auckland: Auckland Council economic drivers, and possible policy interventions, Auckland: Boston, J. and S. Stuart (2015) ‘Protecting the rights of future Auckland Council generations: are constitutional mechanisms an answer?’, Policy Royal Commission on Auckland Governance (2009) Report: Royal Quarterly, 11 (2), pp.60-79 Commission on Auckland Governance, vol. 1, Auckland: Royal Chen, M. (2014) Transforming Auckland: the creation of Auckland Commission on Auckland Governance Council, Wellington: LexisNexis Spencer, G. (2015a) ‘Action needed to reduce housing imbalances’, Clark, G. and T. Moonen (2015) ‘International background report for the speech to the Chamber of Commerce, Rotorua, 15 April New York fourth regional plan: global city regions: case studies and Spencer, G. (2015b) ‘Investors adding to Auckland housing market risk’, good practice – how are the world’s leading regions tackling their speech to the Northern Club, Auckland, 24 August long term challenges?’, unpublished Trubka, P., P. Newman and D. Bilsborough (2013) Assessing the Costs Controller and Auditor-General (2012) Auckland Council: transition and of Alternative Development Paths in Australian Cities, Fremantle: emerging challenges, Wellington: Office of the Controller and Auditor- Sustainability Policy Institute, Curtin University General Waterfront Auckland (2012) The Waterfront Plan 2012, Auckland: Council of Europe (1983) ‘European Regional/Spatial Planning Charter Waterfront Auckland – Torremolinos Charter’, adopted by the European Conference of Zheng, G. (2013) The Effect of Auckland’s Metropolitan Urban Limit on Ministers Responsible for Regional Planning, 20 May at Torremolinos Land Prices, research note, Wellington: New Zealand Productivity English, B. (2015) ‘Housing affordability’, speech at Victoria University of Commission Wellington, 29 September

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