New Zealand, Auckland Council float new financing tools
- Sydney (10 April)
The New Zealand Government and Auckland Council have agreed that infrastructure and investments supporting new Auckland developments should be funded through targeted levies and charges, rather than general rates.
Potential infrastructure financing options could include growth charges, development and infrastructure levies, and project developer contributions, the national and local governments agreed in a City Deal on 10 April.
Auckland Council and the New Zealand Government may also allow developers to provide some public services, provided they meet agreed standards, according to the deal.
“[Transport] Minister Chris Bishop and I agree that growth should pay for growth… but it never does,” Auckland Mayor Wayne Brown said at a press conference. Developers build roads and footpaths, but the government needs to pay for other services like schools, libraries, and swimming pools, Brown added.
Auckland Council’s deal with New Zealand’s government does not include many direct development funding commitments. It outlines potential funding mechanisms but does not outline spending plans.
“[Central government is] not committing to fund [infrastructure] projects upfront, in this deal. We’re not doing that,” Bishop added at a press conference.
The New Zealand Government’s deal with Auckland Council is not limited to financing reforms. Rather, it includes a range of mutual economic development, planning, and environmental commitments.
Both governments plan to strengthen trade and tourism relationships between Auckland and cities across Asia and South America.
Auckland Council has committed to forming a tech-centred relationship with an Indian city under the deal, while the New Zealand Government will help create and promote a direct flight route between Auckland and India.
A little under four months ago, New Zealand and India inked a free trade agreement to remove tariffs on 95% of exports over time and promote mutual investment. New Zealand has agreed to promote Indian investment opportunities under the deal, including through trade trips.
The New Zealand Government negotiated its deal with Auckland Council under a City and Regional Deal framework announced in 2024. City and regional Deals are designed to guide collaboration between local and national governments over multi-decade periods.
Councils in Otago and the Bay of Plenty are in talks with the New Zealand Government over regional deals. Those deals will involve multiple councils – at a district and regional level – unlike Auckland’s, which involved just a single body.
By Avinash Govind