Media release
Auckland Councillor Cameron Brewer
20 September 2011

Auckland economic strategy will struggle with no money

The draft Economic Development Strategy, released today, sets out some ambitious economic goals and strives to make Auckland Council “can-do” and “business-friendly” but such aspirations will struggle to be realised as the strategy comes with no budget whatsoever, says Auckland Councillor Cameron Brewer – chair of the Auckland Business Advisory Panel and deputy chair of Economic Forum.

“If Auckland Council is really serious about being can-do and business-friendly the strategy needs to call for some budget backing, like the other strategies have with their collective wish-list of $5.5b for pet projects.

“Words alone will not make the unprecedented overhaul needed by this council around improving the likes of its regulatory processes and business services. It will take a massive shift for the bureaucracy to change as well as money to do things differently, and neither are forthcoming in this strategy.

“The draft Economic Development Strategy lists some very ambitious economic goals such as dramatically lifting regional exports, increasing our annual GDP, and growing productivity. Yes it will take a step change, but what the incremental steps actually are remains somewhat unclear. It seems we all know what we want, but we’re not quite sure on how to get there.

“I strongly believe that if this first-term Auckland Council hasn’t delivered some marked improvements on doing business in Auckland, then it won’t have delivered on the cornerstone reason for amalgamation, which was economic.

“The public was promised that one council would help reduce costs and improve economies of scale when it came to procurement, operational expenditure and capital works delivery. Ratepayers were also promised greater streamlining of often time-consuming and complex regulatory processes, so the expectations to deliver are high.”

Mr Brewer says nearly one year, and there are some encouraging signs and rest assured the council’s chief executive and his management team are singularly focused on making genuine improvements. However there is a growing realisation that the council now needs to be bold if it is to deliver on the structural and political promises of creating a can-do and business friendly council.

“Auckland Council’s draft economic development strategy was peer reviewed by Greg Clark who advises international cities on how to lift their performance. Mr Clark believes Auckland’s number one priority should be creating a “business-friendly well run-city, with enabling business and investment climate”.

Mr Clark points to what’s worked well in cities such as New York, Singapore, Zurich, Toronto and Hong Kong with business climate reforms supported by the likes of dedicated business customer phone-lines, contact programmes, a concierge service for major investments and projects, and constant business surveys to identify and get on top of any council blockages.

“These sorts of initiatives cost money to set up, but can pay big dividends in the longer-term. Unfortunately the absence of a budget shows the council is not overly serious about making life any better for business,” says Cameron Brewer.

ENDS

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