Public Sector Journal 39 (2)

PUBLICSECTOR Rangai Tumatanui

Journal of the Institute of Public Administration New Zealand Volume 39 : 2 • July 2016

THE AUCKLAND ISSUE

GROWING PAINS:

SOLVING THE PROBLEMS OF AUCKLAND’S RELENTLESS GROWTH

HOUSING THE CITY:

A PROBLEM FOR THE WHOLE COMMUNITY

REGISTRATIONS ARE OPEN NOW FOR HASANZ CONFERENCE 2016 Organised by the industry for the industry, this conference is great value for everyone with a direct interest in workplace health and safety.

Keynote speakers include: •

Dr Vincent Covello – Founder and Director of the Centre for Risk Communication in New York City – a world authority on risk and change management communication

•

Professor Drew Dawson – Director of the Appleton Institute in Adelaide – international expert on managing workplace fatigue – helping define the line between personal and employer responsibilities

•

Peter Biggs – Assignment Group CEO – one of Australasia’s leading marketing practitioners talks about “buying the why” as the key to transforming health and safety practice in the workplace

•

Gordon MacDonald – WorkSafe New Zealand CEO – the regulator looks at the journey from compliance to organisational culture change where “doing it right” is second nature

•

Rebecca Macfie – award winning Listener journalist – the author of the definitive book on the Pike River tragedy highlights how Pike is best viewed not as an extraordinary failure, but an ordinary one that all businesses can learn from

•

David Tregoweth – Melbourne Water GM Health and Safety – challenges workplace health and safety advisors to be more business savvy and focus on the commercial value of health and safety to businesses, not just regulatory compliance.

Participate in a Business Leaders’ panel discussion and an open session on worker engagement and participation, two masterclasses with international keynote speakers and more than 25 presentations inspiring new professionals, new practices and new possibilities.

Attend a special reception at Parliament hosted by Minister for Workplace Relations and Safety, the Hon. Michael Woodhouse.

Take away new ideas, practical knowledge and professional networks.

See the full programme and register at

www.hasanz.org.nz/conference

Are your regulators the best they could be?

Talk to us about Regulatory Compliance.

Image used originates from, and is attributed to, the New Zealand Customs Service

VOLUME 39 : 2

PUBLISHER

5

JULY 2016

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The Institute of Public Administration New Zealand PO Box 5032, Wellington, New Zealand Phone: +64 4 463 6940 Fax: +64 4 463 6939 Email: admin@ipanz.org.nz Website: www.ipanz.org.nz ISSN 0110-5191 (Print) ISSN 1176-9831 (Online) The whole of the literary matter of Public Sector is copyright. Please contact the editor if you are interested in reproducing any Public Sector content.

EDITOR John O’Leary: johntoleary@paradise.net.nz

Growing Pains

15

Focus on Transport

20

CONTRIBUTORS Dave Armstrong Carl Billington Shelly Biswell Sir Bob Harvey Bernard Hickey John Larkindale Margaret McLachlan The Policy Observatory John O’Leary JOURNAL ADVISORY GROUP

A Child’s Life

The World’s Most Liveable City?

Annie De’ath John Larkindale Karl Lofgren Len Cook Lewis Rowland Margaret McLachlan Ross Tanner

CONTENTS President’s Message by John Larkindale .........................................................

2

ADVERTISING

IPANZ News: Making it Work: Implementing Social Investment ........................................................................

3

Guest Editorial ..............................................................................................................

4

COVER STORY Growing Pains - Solving the Problems of Auckland’s Relentless Growth ........................

5-9

Focus on Housing: Housing the City: A Problem for the Whole Community ...............................................................

10-11

Inside Auckland: Facts and Figures .....................................................................

12

Focus on Transport: Travelling the Same Road Together: Central Government, Local Government and Auckland’s Transport Initiatives ...................................................................................................

13-14

SPECIAL FEATURE - A Child’s Life .................................................................................................................

15-19

The World’s Most Liveable City? .........................................................................

20-21

My Year of Living JAFArously ................................................................................

22-23

Point of View .................................................................................................................

24

Phone: +64 4 463 6940 Fax: +64 4 463 6939 Email: comms@ipanz.org.nz CONTRIBUTIONS Public Sector welcomes contributions to each issue from readers.

Themes for 2016 issues are: April: Education July: Auckland September: the future public service December: beyond the rhetoric of customer focus.

Please contact the editor for more information.

SUBSCRIPTIONS IPANZ welcomes both corporate and individual membership and journal subscriptions. Please email admin@ipanz. org.nz, phone +64 4 463 6940 or visit www.ipanz.org.nz to register online.

DISCLAIMER Opinions expressed in Public Sector are those of various authors and do not necessarily represent those of the editor, the journal advisory group or IPANZ. Every effort is made to provide accurate and factual content. The publishers and editorial staff, however, cannot accept responsibility for any inadvertent errors or omissions that may occur.

Public Sector is printed on environmentally responsible paper produced using ECF, third-party certified pulp from responsible sources and manufactured under the ISO14001 Environmental Management System.

1 PUBLIC SECTOR July 2016

PRESIDENT’S MESSAGE

It’s not just about AUCKLAND

By IPANZ President John Larkindale

In this issue of Public Sector we explore a number of angles about New Zealand’s biggest city. As has been said so often, Auckland is our only real “international” city, and as such it is increasingly important as the New Zealand node in the broader Asia-Pacific economic infrastructure network. As such, it is critical that it functions as efficiently and as effectively as possible. And, given its economic weight, it is critical not just for Aucklanders that this is so; all of us in New Zealand lose if Auckland doesn’t work properly.

Demographically, Auckland is an outlier with its population of nearly one-third of the nation’s total. No city in Australia, Canada or the UK is similar. Perhaps only Dublin is comparable. And that fact has very significant implications for New Zealand public policy.

First, the sheer numbers in Auckland translate into political weight; increasingly, elections are won or lost depending on the way in which people in Auckland vote. Second, the pressures of growth mean that more and more focus is having to be placed on addressing the consequences of that growth. The corollary is that there are fewer resources available to commit to the many other compelling issues requiring attention elsewhere in the country.

It’s not a question of “either or”, but rather one of “both and”. A balance needs to be struck. The public service has a very important role in contributing to finding what is the right balance. There is a huge repository of economic, social, environmental and legal expertise in the public sector that can (and should) be drawn upon to develop a long-term sustainable programme to take Auckland forward, while also recognising the impacts beyond the city’s boundaries of that programme.

This is not a proposal for some kind of Five Year Plan, but rather a suggestion that the

2 PUBLIC SECTOR July 2016

principles that lie behind the government’s plan for social investment and for other crosssectoral cooperation should apply also as we look to manage the problems faced by Auckland. Decisions later in the year on its Unitary Plan will be an important step forward for Auckland. It is a necessary step. But it is not sufficient in itself. Social, cultural, economic, demographic, infrastructural and labour market factors also need to be considered. In short, laissez-faire won’t cut it any more.

Housing, an issue that has been much in the news in the past few months, is a case in point. It is clear that there is no silver bullet to resolve this issue; nor is it one amenable to quick solution. A multi-faceted approach is required. Over time population density in the city within its existing boundaries will have to increase. And also the city’s boundaries will have to expand. Both elements have costs.

The first will result in the character of some existing residential areas changing, but utilises existing infrastructure such as transport networks to better effect. The second will incur the substantial cost of having to provide new infrastructure and is likely to increase Auckland’s carbon footprint by dint of forcing more people to commute over long distances.

THE DEMAND SIDE Focusing solely on the supply side is not enough. Attention needs also to be paid to demand. Rather than Auckland becoming ever larger and an ever more dominant proportion of the New Zealand economy, would it not be wiser to develop policies that spread New Zealand’s population growth more broadly around the country? Diversification lowers risk, and there are many communities that would welcome population growth that would draw on existing infrastructure and contribute to its ongoing maintenance. Just as New Zealand is finding new areas of competitive excellence

internationally because of new technologies, so can parts of the country outside Auckland compete with the metropolis. Considerations of quality of life will come increasingly to the fore.

We also need to think laterally about what the needs of the next generation and beyond might be. In Europe there has been a long tradition of people renting housing over the long term, even for a lifetime. Security of tenure is available. This hasn’t yet been a feature in New Zealand, but it could be. Should it be? Could the New Zealand Superannuation Fund and ACC invest some of their reserves in providing housing? While a component of this might be social housing, the bulk could be commercial rentals on longterm leases. The steady cash flow resulting from rentals would fit well with the payment streams that both funds will need to pay out regularly. If, say, 25%, of current assets were put into providing housing in Auckland (and elsewhere) what impact could that have on the current overheated market?

Housing is but one area where what happens in Auckland and how it is responded to impacts on the rest of the country too. It’s not just their problem; it’s ours too. And this is where the public sector as a whole comes in. We need to promote joined-up, whole-ofgovernment thinking to ensure that we have the right frameworks to support the longterm development of our country. National development is not a process that can be achieved successfully with an eye to a threeyear election cycle; we need to think more strategically and more holistically.

John Larkindale President, IPANZ

IPANZ NEWS

Dorothy Adams

Making it work: Implementing Social Investment The Government’s new Social Investment Unit wants to drive significant expansion of a social investment approach across the social sector, unit lead Dorothy Adams told an IPANZ audience recently.

“Our role is to identify what needs to occur… we don’t want to get in the way of what agencies are doing; we’ll complement rather than duplicate their efforts,” she said.

Dorothy said the role of the 30-staff unit was still being worked

out, and much will “happen by doing”. Its mandate included accelerating progress, providing tools and infrastructure and offering support.

We’ll test and learn as we go,” Dorothy said.

For Dorothy Adams’ slides see: www.ipanz.org.nz > resources > seminar presentations

“One of the gaps we see is the flow of data. People want to know what they’re doing is making a difference for their clients.”

The Unit would help facilitate data exchange for those involved with social investment, including NGOs, Government providers and support services.

Other focus areas were promoting the use of evidence in decision-making and investment advice.

“We want to see significant change in the sector. We have to be a bit confronting; we’re here to be positive disruptors. We’ve created a lot of noise and we need to come in behind with products.

CONTRIBUTIONS PLEASE Public Sector journal is always happy to receive contributions from readers.

If you’re working on an interesting project in the public sector or have something relevant to say about a particular issue, think about sending us a short article on the subject. While we will always look at well written pieces on any public sector subject, it would help if your article touched on or related to one of the journal’s quarterly themes.

Themes for 2016 issues are: APRIL: education JULY: Auckland SEPTEMBER: the future public service DECEMBER: beyond the rhetoric of customer service Contact the editor John O’Leary at johntoleary@paradise.net.nz

Wellington’s Premier Policy Recruitment Specialists Our policy recruitment specialists, Kirsty Brown and Kate Terlau are working with a number of government agencies on a range of exciting opportunities for experienced policy practitioners.

We are looking for strong generalists across all levels who have a solid understanding of the machinery of government and can draw on their depth of experience in policy development and analysis in the public sector. If you are a policy practitioner starting to think about your next role, then don’t delay – email kate.terlau@h2r.co.nz or kirsty.brown@h2r.co.nz to hear more about the great opportunities on offer!

Policy Contractors – We are still working with a variety of government agencies who are seeking experienced policy contractors to lead and be involved in significant policy programmes. If this sounds like you please contact our contracting specialist Georgina Makarios at georgina.makarios@h2r.co.nz

For more details, visit www.H2R.co.nz/policy or call us on 04 499 9471.

Kirsty Brown and Kate Terlau

NZ’s Leading Recruitment and Organisational Development Specialists

3 PUBLIC SECTOR July 2016

GUEST EDITORIAL

Sir Bob Harvey Former Mayor of Waitakere City

AUCKLAND DOES LEADERSHIP REALLY MATTER? Ten years ago I and a group of like-minded leadership addicts founded Leadership New Zealand and since that time we have graduated around 400 middle-management New Zealanders who have wanted to move up the ladder of success. Each year I make an effort to do a workshop with the new entrants and this year was no exception. Their questions focussed on what is needed to make Auckland a success.

Of course, they were groping for that elusive ingredient, asking if new, inspiring and visionary leadership could be the answer to all our woes and wondering where it would come from.

The question that really needs to be answered is, how has leadership failed to be delivered in local government? And, how hard is it to achieve a success rating?

I often think that good political leadership thrives in a time of crisis and chaos. At this time, a political leader is elected to solve the most complex and difficult problems. Auckland right now believes it is in the middle of the worst kind of housing and transport nightmare. This issue is partly true, but it is also media created. It is not because there is a vacuum of leadership.

Homelessness is also a repeated problem in the Auckland region. People have been sleeping in cars and in garages for the last 20 years but the problem has been exacerbated lately by New Zealanders not leaving for Australia and by the general growth of population.

Can a new leader elected in October solve these problems? Well, the right person, whether it be

a man or woman, might well be that miracle worker.

Leadership in politics, as Trump is showing clearly in the US, is a form of captivity in which the individual needs to seize the moment and work the emerging trends as they appear.

Despair, marginalisation and anger are the ammunition used; the candidate of ‘wacky rhetoric’ will suddenly seem to be making sense.

Certainly Trump has seized that moment, and I believe a mayoral candidate in Auckland could easily push the extremes of logic and enter the realm of shameless political rhetoric and get away with it.

POPULIST NONSENSE Local government in Auckland in election year tends to dredge up those who need a day job and those who haven’t a clue about the real issues of visionary leadership. We have seen that demonstrated around the Auckland Council, unfortunately, over the last six years. Mind changing and populist nonsense have damaged Council’s credibility with the stakeholders.

The truth, however, is that Auckland has done extremely well in picking itself up from being a collection of feuding suburbs and becoming a truly world-class city. I have been one of the Champions of the Lee Kwan Yew World City Prize in which Auckland receive a special mention this July. It is not first place, but is not a bad second. Along the way, we Champions had a chance to write ‘the Auckland story’ and it’s compelling. We looked objectively at the way Auckland has evolved as a truly international city. What I felt most proud about is that we have done assimilation better than most and maybe as well as any world city has achieved for

generations. We have welcomed people from all countries and they have entered the Auckland suburbs, found jobs, opened restaurants and sent their kids to school, and somehow it’s worked in a troubled world of migrants coming into unwelcoming countries - it is not a bad record.

Aucklanders tend to be the ‘worried well’, often envious of larger cities in Australia or the US, when the reality is that we are exceptionally blessed by good climate , good governance and an enormous amount of progress, something which may not be clear if you are stuck in traffic congestion for hours every day. Good leadership might stop 25,000 used cars a month being unloaded onto the Auckland wharves but the reality is that Aucklanders need to get out of cars and onto public transport which is now becoming quick, reliable and functional.

In Leadership BS, a book published last year by Jeffrey Pfeffer, a professor at Stanford’s Graduate School of Business, five virtues were identified that seem to be the blueprint for popular leadership. If anything, they show that good leaders often get elected on some of the worst human traits; they then are given their first few months in office, and they either sort out their future or die in the ditch, so to speak.

Most think they are getting elected to appear in the West Wing whereas in fact they are really starring in the House of Cards.

My hope is that Aucklanders will be delighted with the new mayor, whoever he or she turns out to be. As the Trump band wagon continues to fascinate and horrify us, they can only consider themselves lucky to be living down here in Auckland.

Let’s hope they are right.

Fletcher, David, 1952 - : ”The minister’s very cool on the idea of using light rail to fix the city’s transport problems”.

The Politician. 28 January 2015. Alexander Turnbull Library, Wellington, New Zealand.

4 PUBLIC SECTOR July 2016

GROWING PAINS

Solving the problems of Auckland’s relentless growth

Lewis Holden

Jim Quinn

Andy Asquith

Michael Barnett

Deputy Commissioner, Auckland

Chief of Strategy

Chief Executive, Auckland Regional

State Services Commission

Auckland Council

Senior Lecturer, School of Management, Massey University

Auckland – it’s rarely out of the news. If it’s not rocketing house prices, it’s massive traffic jams.

Auckland is growing like Topsy, and its growing pains are plain to see. So what is the public sector doing to help Auckland achieve its goal of becoming the world’s most liveable city? Confirmed Wellingtonian JOHN O’LEARY visited the Queen City to find out.

Walking down Queen Street, I feel the energy. It’s not like the gentle bureaucratic buzz of Lambton Quay – it’s louder, rawer. Looking at the faces around me, the rest of the world – especially Asia – seems much closer.

Auckland, I am beginning to understand, is different from the rest of the country – not just a little bit different, but a lot different.

My first stop is the Auckland Policy Office, the government’s policy and strategy HQ in Auckland which houses some 50 public servants from a range of public service agencies. Formerly known as the Government Urban and Economic Development Office, the APO was established because of a growing recognition that the opportunities and challenges presented by Auckland required a greater degree of central government engagement.

It’s a busy place. As I sit waiting in the reception area I spot Steven Joyce, the Minister of Business, Innovation and Employment, heading into what is doubtless one of many meetings he will have during the day.

“The APO is a policy capability beachhead,” explains Lewis Holden, Deputy Commissioner, Auckland of the State Services Commission, who is my first interviewee. “It brings central government agencies together to establish a policy presence in Auckland and make sure that policies developed by central government align broadly with Auckland’s needs.”

Chamber of Commerce

“Auckland, I am beginning to understand, is different from the rest of the country – not just a little bit different, but a lot different.”

The APO is not the only presence central government has in Auckland, he adds, but it’s an important one. “It works like a kind of voluntary club where agencies may have senior managers and analysts working for shorter or longer periods. Currently, we have over 20 people from MBIE, a dozen or so from both the Ministry of Transport and the Ministry for the Environment, and smaller numbers from agencies such as the Department of Internal Affairs, MSD, the State Services Commission and the Ministry for Pacific Peoples.”

When it comes to Auckland, says Holden, three facts stand out. “First, Auckland is a very big city in terms of the country of which it is a part.

Second, New Zealand has a very centralised form of government. Third, Auckland’s not the capital city – this makes it unlike Dublin, London, Paris and other cities that are dominant within their countries.”

“All this presents a challenge. How do state services ensure they are doing the right thing by Auckland? And not just by Auckland – but by New Zealand too? Because the fact is that Auckland’s success or failure is also New Zealand’s success or failure. Wherever we live in the country, we all have an interest in seeing Auckland become a successful, sustainable city.”

Central government has a real role to play in the development of Auckland, says Holden. “A successful city is made by things like good governance, a strong economy, good public transport, good healthcare, a high level of

5 PUBLIC SECTOR July 2016

DIFFERENCE

One of the main criticisms that has been made in the past by Aucklanders of the public service, says Holden, is that it doesn’t really understand Auckland. “I don’t think that’s true anymore, certainly not at the senior ministerial level anyway.”

Holden mentioned the Auckland Council several times in his talk with me, and it is to the Council’s offices in Albert Street that I next head.

safety and so on. Central government can help in all these things – in fact,

From several storeys up

its involvement is vital.”

the views over the city

CONNECTIONS “This is where the APO comes in. It’s a place for making connections between central and local government, and between central government and other stakeholders, such as in business and the voluntary sector. It’s a place where we can share ideas and perspectives and make sure we are not talking past each other.”

As an example of how the APO relates to local government, Holden points to his membership of the governance board of the Auckland Transport Alignment Project (ATAP), the year-long collaborative initiative begun in 2015 designed to speed up the development of Auckland’s transport system and so help combat the chronic traffic congestion that plagues the city. “I work with chief executives of the Auckland Council and Auckland Transport, along with the heads of the Ministry of Transport and NZTA. Transport is a major issue in Auckland, as you know, so co-ordinating central government policy with local government plans in this area is vitally important.

“ATAP is really all about breaking down the siloes between central and local government and achieving a better outcome as a result.”

Housing, of course, is another huge issue in Auckland, says Holden.

“It’s something which many APO staff are working on, making sure that government policy is aligned with local government and other initiatives.

And having MSD, MBIE, MfE and other government officials working on housing all in the same place helps ensure coherence within government as well as with Council.

“There are, potentially, a huge range of interventions that central government can make here, both on the demand and supply side. One of the APO’s roles is to ensure that the government receives informed, placebased advice and insights that will help lead to sound decision-making.”

It’s not all smooth sailing, says Holden. “There are differences in perspective, naturally, as well as fiscal constraints and varying regional needs that need to be taken account of. Often the APO is involved in complex negotiating processes – but the advantage is that we are now working more collaboratively with local government and other stakeholders in Auckland.”

toward distant Rangitoto are splendid. Thinking of the steep, narrow geography of Wellington, I am reminded again of how large Auckland is in comparison, and how widely it spreads across its hills and gullies and harbour front.

Auckland’s difference, indeed, is what Jim Quinn, the Council’s Chief of Strategy, focuses on as I begin our interview. “People have to understand how different Auckland is. In terms of sheer population size, for example, Auckland is far bigger than any other city in the country, and it’s growing fast. Currently, about 1.6 million people live in the greater Auckland area; by 2040 that figure may well have risen to nearer 2.5 million, of which some 1.8 million will be “new” Aucklanders. That’s roughly a Christchurch every decade; three in 30 years.

“The growth is off the charts, and we need to be thinking and planning well ahead so the city can cope with it.”

Another challenge, says Quinn, is understanding how different Auckland is in terms of its own diversity. “The population here is now superdiverse, and that superdiversity is only going to grow as more migrants make Auckland their home. We need to understand that such a diverse population has varying needs and expectations - the notion of an “average” Aucklander makes little sense these days, if it ever did.”

Fortunately, says Quinn, the use of things like big data can help the Council and central government understand the city’s population much better as it changes and grows. “This means services can be tailored and projects and initiatives designed more intelligently than in the past, with better resulting outcomes.”

Important to Auckland’s successful, sustainable growth, observes Quinn, echoing Lewis Holden, is collaboration between the Council and central government. “Here at the Council we work with the APO, and with government agencies directly at senior and lower levels. There’s space for good, robust debate about commonly held plans, but it’s not a contest for ownership – it’s about shared ownership. The question must be: what

One of the main criticisms that has been made in the past by Aucklanders

are we doing to build a common thought base – and therefore a common

of the public service, says Holden, is that it doesn’t really understand

action plan?”

Auckland. “I don’t think that’s true anymore, certainly not at the senior ministerial level anyway.”

“The APO plays an important part in fostering and furthering this understanding. Being here in Auckland really matters.”

6 PUBLIC SECTOR July 2016

As examples of current collaboration with central government, Quinn points to ATAP in the area of transport and to the Auckland Housing Accord in the area of housing provision. The Accord, which was agreed in 2013, provided for the establishment of Special Housing Areas (SHAs) and for fast-track consenting and approval processes.

ON THE MOVE My Friday interviews over, I spend a quiet night at my hotel digesting what I’ve learned, and the following weekend I take a look around the city. I walk down to the waterfront and am impressed by the development that’s taken place since I was last there. What used to be a dull area of wharves and warehouses, largely off limits to the public, is now the vibrant, busy Wynyard Quarter. I even attend a couple of Open Homes, to get first-hand experience of the Auckland housing market. The real estate agents, I notice, don’t even suggest a price - a reflection of how hot the market is.

Monday morning sees me in Mayoral Drive, at the offices of the Auckland Regional Chamber of Commerce, where I am to interview the Chamber’s Chief Executive, Michael Barnett. Across the road I see the corrugated iron roof of the pop-up CRITICISM

Globe Theatre, a recreation of the second Globe Theatre used by

I point out that the SHAs in particular have come in for negative comment,

Shakespeare’s company after the

with critics saying that very few new homes have been built in them. Quinn

first Globe burned down. The plays

admits criticism has been levelled at the SHAs, but he does not see this as

that have been performed here

a reason to stop or change tack.

have been selling out, with tens of

“With the SHAs, and with the other large collaborative infrastructure

the performances or visiting the

projects generally, we’re making progress. Of course it’s not as fast as many

theatre for tours. The pop-up Globe

would like, but my message would be that we’re getting there; we just have

– sponsored by, among others, the

to stick at it – the process from land to consent to liveable house takes time

Council’s CCO Auckland Tourism,

and momentum is building quickly.

Events and Economic Development

thousands of Aucklanders attending

– is one of a number of Council-led “Impatience is understandable but people have to understand that change

arts and culture initiatives which

doesn’t happen overnight.”

are helping strengthen the city’s

Are there things which the Council and central government aren’t doing which they should be? Or things which they are doing but which could be

reputation as a place of creative activity and experiment.

done better?

“Well, I think there could be some legislative improvement,” replies Quinn.

“I see a bright future for the city. But we need to get ahead and

“More generally, we need to acknowledge what’s working well and what

stay ahead of the curve, investing for the future. The worst thing,

isn’t. With particular projects like ATAP – now drawing to an end - we need

I believe, would be to underinvest and cause the city, in effect,

to consider the outputs and what they themselves are inputs into. The

to stall – this would damage not just Auckland but New Zealand

Auckland Plan as a whole will be refreshed with these sorts of outputs

as a whole.”

influencing the finished product.

“A major factor, of course, when it comes to housing provision is the

When it comes to central government and Auckland, Barnett believes

Unitary Plan, on which the independent hearing commissioners are

that the government has shown leadership in areas such as infrastructure

soon to report back. The degree to which densification is permitted will

investment, citing the various large transport initiatives that are under

be important in determining how well the city can house its growing,

way or planned in the city such as the City Rail Link and the East West

increasingly diverse population.

Connections project.

“Unfortunately, the range of views on densification are varied, as we’ve

“I also think the government has shown some leadership in the area of

seen.”

immigration, allowing entry of skilled migrants which has helped address

How does Quinn see the future unfolding for Auckland?

the chronic skills shortage employers face here. In the long term, though, we need to lift the skill levels of the local population – so education is

“I see a bright future for the city. But we need to get ahead and stay ahead of the curve, investing for the future. The worst thing, I believe, would be to underinvest and cause the city, in effect, to stall – this would damage not just Auckland but New Zealand as a whole.”

important, and central government of course has a role to play in that.”

Bennet has some concerns, however. “There’s too much duplication when it comes to central and local government. I mean, in relation to the question of transport infrastructure, why do we need both a central government agency (NZTA) and a local government body (Auckland

7 PUBLIC SECTOR July 2016

What it comes down to, thinks Barnett, is telling Auckland’s story better. “I don’t think we do that very well, frankly. It’s something we’ve all got to do – local Aucklanders, local and central government, New Zealanders generally.”

“In my opinion, these things are too little too late. The government should have anticipated the demands on housing stock that were going to be made by Auckland’s rapid growth. It could for example have increased the number of construction workers available by easing visa restrictions and cutting down on red tape.”

“As it is, there’s now considerable tension between central government

Transport)? How does having two separate organisations help?”

What more, I ask, could central government do to help Auckland grow successfully and sustainably?

“It could make it easier to attract investment, to do business,” says Barnett. “At the moment Auckland underperforms when it comes to attracting foreign investment. Government needs to operate as an enabler, helping to open doors for overseas companies that want to invest here.

“At the same time, Auckland needs to expand its export activity, especially to fast-growing, increasingly prosperous regions of the world like China and South-East Asia. We need to make sure people in Beijing and Jakarta know about Auckland and what it offers in terms of exports like high-quality processed foods and services like education and IT. Central government can operate as an enabler here, too.”

What it comes down to, thinks Barnett, is telling Auckland’s story better.

“I don’t think we do that very well, frankly. It’s something we’ve all got to do – local Aucklanders, local and central government, New Zealanders generally. And we’ve got to do it in a compelling way that people

and the Council around the issue of the urban growth boundary, which some politicians want substantially modified.”

Central government, says Asquith, has to think more deeply and positively about local government, especially about local government in Auckland.

“It can do this, if it wants to. The Council here is doing some good work in starting discussion about urban form and sustainability, from which future Aucklanders will reap a benefit in terms of a greener, more user-friendly city. Central government needs to come to the party.”

One thing central government is waking up to, believes Asquith, is the fact that a large part of the country’s leadership talent is to be found, not in the Wellington beltway, but in the Auckland CBD. “Government needs to draw on this talent, not ignore it, which is what it has tended to do in the past.”

ALL JAFAS NOW Asquith, as I have found out, has a rather different view of the central government/local government relationship in Auckland compared with my other interviewees. On one thing, however, he is in agreement with Lewis Holden, Jim Quinn and Michael Barnett: everyone in New Zealand has an interest in seeing Auckland succeed.

understand, not in policy speak.”

“The fact is, whether we like it or not, we’re all JAFAs now.”

Like Jim Quinn at the Council, Barnett sees the city as having a bright

I have a ‘plane to catch and Uber my way south from Albany to the airport.

future. “But we’ve got to up our game. We have to understand that we’re in a global competition for talent and investment, and that we’re up against the likes of Sydney and Singapore. People these days have a choice where they invest, where they live – we have to ensure they choose Auckland and not another city.”

The traffic flows freely and my trip is completed in less than an hour. Later, however, I learn that I only just missed getting caught up in a huge traffic jam on the Southern Motorway caused by a digger striking an overbridge and being knocked off its trailer onto two of the three southbound lanes.

Michael Barnett, whom I had talked to just a few hours before, was caught

LESS THAN PERFECT

up in the jam, commenting later that Auckland had suffered a “massive

I have lunch in the CBD’s pretty, prosperous High Street and then Uber

delivered and international visitors getting stuck. An AA member survey

my way across the Harbour Bridge to Massey University’s Albany campus,

a few days later reveals that nearly half the drivers questioned would

where I am to speak with Dr Andy Asquith, Senior Lecturer at the School

leave the city if they could, so sick are they of traffic delays. Worryingly,

of Management and Director of the Public Management Group. Asquith

predictions are that road congestion is only going to worsen, despite all

is a specialist in local government and has involved himself in local

the new transport infrastructure being put in place.

government affairs, serving as a member of the One Auckland Trust and making submissions on the subject of the city’s amalgamation of eight

loss of productivity” due to people missing meetings, goods not being

Auckland is growing, and its growing pains are very real. A lot is being

councils into one Auckland Council.

done by central and local government (among others) to address the

Asquith, I soon discover, believes the relationship of central government

catered for in the upcoming budget. The question is – is it enough? As my

with local government (especially in Auckland) is less than perfect.

‘plane begins its descent and I catch sight of small, compact, Wellington

“Frankly, I think central government is scared of Auckland and doesn’t

challenges posed by this growth, and no doubt further measures will be

below me, I conclude that on this question the jury’s still out.

know how to deal with it. Too often the response to an initiative from the Auckland Council is negative and knee jerk. A classic example is in the area of housing, where there’s been a lack of a sensible dialogue between central government and the Council.”

But what about the Auckland Housing Accord and its SHAs, not to mention the Tamaki Regeneration Company and other governmentbacked initiatives aimed at addressing the housing shortage?

8 PUBLIC SECTOR July 2016

“Frankly, I think central government is scared of Auckland and doesn’t know how to deal with it. Too often the response to an initiative from the Auckland Council is negative and knee jerk.”

TALENT UP NOR’

Nicky Jones Principal Advisor, Leadership and Talent Team, State Services Commission

Central government is taking steps to address Auckland’s runaway growth. But how is this growth affecting central government itself? How is a public service based mainly in

Soon, indeed, it may be possible to have a brilliant public service career – in Auckland.

Wellington re-shaping itself in response to the challenges and

Identifying, attracting and retaining leadership talent is especially important,

opportunities posed by Auckland? JOHN O’LEARY found out.

says Nicky. “Leadership is an important lever in creating a better, smarter public

In the past, if you wanted a high-powered career in the public service, you went to Wellington. Wellington, the capital, was where things happened; Wellington, indeed, was where public service talent was found, or was thought to be found.

The broader public sector was well represented in Auckland, of course, with its tens of thousands of teachers and police and frontline government agency staff, but for a bright future in the core public service you headed south to the windy

service. A leadership strategy has been developed out of the State Sector Act which has focused on establishing what kinds of leaders are needed in the public service. Do we need academically brilliant people? Or do we need people, rather, who are good at collaborating? More and more we see the value in having people who have a diverse range of experience and who come from a diverse range of backgrounds.”

city.

RESERVOIR

Things are beginning to change, however. Increasingly, central government is

Increasingly, says Nicky, the public service is looking to Auckland for this kind of

realising that much of New Zealand’s leadership talent lies north of the Bombay

leadership talent. “Auckland is a huge reservoir of such talent, which we want to

Hills. It’s taking steps to identify and recruit that talent. Soon, indeed, it may be

tap into. The question is – how do we do that?”

possible to have a brilliant public service career – in Auckland.

TALENT

One way is through the Auckland Career Board, says Nicky. This is a collective of senior leaders from across central government, Crown entities and Auckland

Identifying and developing leadership talent in Auckland is the reason why Nicky Jones, Principal Advisor in the Leadership and Talent team at the State Services Commission, was brought north to work in the Auckland Policy Office.

“The public service has always existed in Auckland,” says Nicky. “Currently, there are around 10,000 core public servants here, about a quarter of the whole. But it’s

Council who are collectively sponsoring the identification of talent, and facilitating opportunities for building the leadership capability of the Auckland cohort of leaders.

Will there ever come a time, I ask, when it’s possible to have a high-powered public service career outside Wellington?

fair to say that in the past making a career in the public service in Auckland was

“Many people will still go to Wellington,” says Nicky, “and having Wellington

thought to be something of a second best. We aim to change that perception,

experience will always be valuable. But the notion that you have to go to

and to raise the profile of the public service generally in Auckland, where to date

Wellington to have a first-class public service career will no longer be true.

it has been somewhat hidden.”

In future, it will be perfectly possible to do very well as a public servant in Auckland.”

YOUR FIRST CHOICE FOR PUBLIC SECTOR PROFESSIONALS

9 PUBLIC SECTOR July 2016

FOCUS: HOUSING

HOUSING THE CITY: A Problem for the Whole Community

Peter Jeffries

Chris Bunny

John Dunshea

CEO of Community of Refuge Trust

Acting General Manager, Building System Performance Branch, MBIE

General Manager, Programme Development Office, Auckland Council

In a typical week last year Auckland gained 819 new residents, requiring an additional 275 homes on average for each of those weeks, and a new street every two days . CARL BILLINGTON looks at what’s being done to address this major social challenge.

As Peter Jeffries, CEO of Community of Refuge Trust (CORT), explains, “Auckland is a small big city but we’re becoming a big big city. If we’re not careful, we’ll have ‘big’ big city housing problems.

“For a city to thrive you need to be able to house your population as it grows – and some people are going to need assistance.

“We need to consider housing as an infrastructure.

When it’s only understood as a commodity, it leads to significant blind spots in our thinking,” Jeffries adds.

“Auckland is now seen as the number one most unaffordable city for house ownership in the world, according to Fitch ratings. That has a lot of implications for our long term viability and sustainability.”

Dunshea adds.

“The council doesn’t build houses. We manage the

generations, a house is perhaps more a place you sleep than it is an investment.

zoning and regulation that enables people to build and

“Groups such as Generation Zero are far more focused

encourages development, but the rest is driven by the

on environmental implications. We are also seeing

market and what people want to buy.”

increasing interest in apartment living among baby

This issue of demand is the next key area where challenges, opportunities and tensions lie.

GREENFIELDS, BROWNFIELDS, AND GENERATIONAL CHANGE… There is a significant amount of ‘greenfields’ development underway – converting undeveloped land into residential housing, creating new developments and bringing the supporting infrastructure online.

boomers, as they downsize, and our ageing population has led to an explosion in retirement villages.

“Add to that the net migration and the many different cultures in Auckland and we are seeing many different ways of living that are changing the way people think about concepts of home and housing,” Bunny adds.

“One of the greatest things to occur in recent years has been Auckland’s Unitary Plan process. There is debate and there is tension in that, but we have an enormous

Increasing the density within the city (intensification

level of engagement in the discussion – Generation

through terraced housing and apartments), and ‘brown-

Zero, baby boomers, developers, investors, and our old-

In many ways, issues of infrastructure lie at the heart of

fields’ regeneration (converting areas previously zoned

er residents have all brought their voice to the process,”

the current housing challenge. Chris Bunny, Acting Gen-

for commercial use and regenerating them for residen-

Bunny adds.

eral Manager for MBIE’s Building System Performance

tial purposes) are two other options being explored.

IT’S COMPLICATED…

Branch expands on the theme.

“Auckland’s housing situation isn’t just a problem for

“It can’t just be about building on the edges,” Dunshea

the public sector. Government is a significant partic-

“Some argue we simply need to build more houses to

explains. “It needs to be out and up. However, there

ipant, but it’s not the only one. It’s a problem for the

solve the problem, but unfortunately it isn’t that simple.

are challenges regenerating over existing infrastructure

whole community and we need to balance the interests

that needs to be expanded or updated to cope with

of current and future residents and ratepayers, without

additional population. It requires careful planning.

privileging the interests of just one group.

also social infrastructure in terms of schools, recreation

“We also need to think about the difference between re-

“We are seeing an increasing maturity in our approach

and local amenities,” Bunny explains.

generation and gentrification – redeveloping properties

to tackling complex challenges collectively, despite

in a way that inadvertently moves them out of reach of

competing interests. That’s extremely encouraging,”

those they were intended to assist.

says Bunny.

key things we’ve already learnt is that you can’t have

“We need to avoid regenerating all these areas only to

MOVING FORWARD TOGETHER…

housing without infrastructure.

find those who live there can’t afford to remain there,”

“There are challenges in terms of obvious infrastructure such as housing, transport, water and waste; but it’s

John Dunshea, General Manager at Auckland Council’s Programme Development Office, agrees: “One of the

“There’s no point building houses if we there’s no water,

he adds.

“Over half of Aucklanders don’t own homes. The debate often centres on issues of home ownership and we

waste or power: you need all the infrastructure to come

Dunshea goes on to explain that there is a massive

neglect the implications for the renting population,”

online at the same time. On top of that, houses only

cultural change that goes with this: our population isn’t

Peter Jeffries argues.

get built as fast as the construction capacity allows and

simply increasing; it is also changing.

there’s already evidence they’re struggling to keep up with demand.

“Finally, once construction is complete, developers stagger the release of properties onto the market in order to avoid over supply driving their price down,”

10 PUBLIC SECTOR July 2016

“We aren’t going anywhere that other large cities hav-

“The future isn’t just ‘more of the same’ on a larger scale

en’t gone before us. The flow-on effects are greater over-

- and emerging generations want different things from

crowding, homelessness and increased health costs as

it,” he adds.

a result. We need to anticipate this now,” he adds.

Chris Bunny also agrees: “In previous generations, the

John Dunshea acknowledges these challenges but also

quarter-acre section was the default ideal. For emerging

points to some promising signs he feels are beginning

“Statistically, Māori are more highly represented than

they have limited capital resources, which prevents this

to emerge: “There’s been under-investment for a long

other groups in the community in social housing or

happening at the scale that’s required.

time and there is a lot of catching up that needs to be

community housing arrangements. As we plan for

done. We aren’t unaware of the problems that have

the future, it is essential that Māori are involved in the

arisen in other cities and we need to do a better job of

process and that it has regard for their distinct relation-

preparing for this.

ship with the land and their communal land holdings,”

“That’s part of the reason Auckland Council was set

Bunny explains.

“The most cost-effective housing you can build is terraced housing and units up to three stories. Yet, the current unitary plan limits terraced housing to 5% of Auckland and three story dwellings to just 15% of the total. Additionally their zoning lies in some of the most

up. We are in a much better position now to deal with

“Iwi and other Māori organisations have shown a real

expensive land directly surrounding the city centres. So

that gap and we have already begun forming strong

willingness to pitch in and take a seat at the table.

it’s not the solution it could be.

partnerships with agencies like MoE, NZTA and others,

Following a series of hui with iwi across the Tamaki

and initiatives such as Tamaki Regeneration,” Dunshea

Makaurau (Auckland) region, the Mahi Ngātahi (Working

explains.

Together) agreement was established.

“Watercare, Auckland Transport, the New Zealand

“Since then, MBIE and the various iwi and hapu groups

neighbourhood. We almost need a re-education process

Transport Agency and central Government have done

that are party to the agreement have identified a num-

– it’s a very individualistic view and it stops us realising

a huge amount of work towards identifying where our

ber of opportunities, often including their land holdings,

that, like it or not, we’re all in this together,” Jeffries

future infrastructure needs lie.”

that will make a real difference to housing in Auckland.

adds.

This has led to the development of the Future Urban Land Supply Strategy. This recommends the staging of

In addition some iwi, for example Ngāti Whātua Ōrākei Trust, have registered as Community Housing Providers

“Much of the controversy we see comes from a perspective of trying to protect my property and my house and keeping seeming undesirables out of my

LOOKING AHEAD…

– meaning their eligible tenants are able to access

The issues at hand are highly complex and inter-related.

Income Related Rent Subsidy,” Bunny adds.

It isn’t as simple as just building more houses.

should grow over the next 30 years, over six five-year

Similarly, the Community of Refuge Trust (CORT) - one

Equally, we are seeing a much broader kind of thinking

blocks, focusing on a distinct area in each block. The

of Auckland’s leading community housing providers - is

being brought to the discussion table and an increasing

strategy sets out a schedule for bringing the full infra-

currently involved in 290 home developments in South

number of collaborative partnerships forming to put

structure picture online together in each development

Auckland.

different options into practice.

development-ready areas in the North, North West and South of Auckland, setting out where and how Auckland

- not just drains and roads, but schools, parks and

“MSD has introduced a more collaborative scheme

It’s a space we all need to watch closely, with impli-

that aims to purchase 1000 further dwellings, with MSD

cations for all aspects of the public sector. It’s also

As Dunshea explains: “We are beginning with Whenu-

offering to put up some of the capital required and com-

one that received significant focus in the 2016 Budget

apai and the Northwest Area now. We expect to focus

munity housing providers needing to come up with the

announcements, with $200 million for social housing

on the Southern communities in the next cycle. It’s a

rest. I expect to see this being fully taken up, but it’s still

places, especially in Auckland, $100 million to free-up

multi-agency collaboration.”

only one piece of the puzzle,” Jeffries, Chief Executive of

further Crown land for new housing developments,

CORT, explains.

$41 million to support 3,000 emergency housing place-

community facilities.

In addition to this, Bunny and Jeffries also see unique possibilities for community housing providers and iwi to

“The community housing sector certainly understands

contribute in a strong way.

the issues and has the capacity to respond. However,

ments each year, and $36 million to see more families living in warmer, drier, healthier homes.

Ekers, Paul, 1961 -: Akl housing less affordable than Los Angeles. 20 January 2015 Alexander Turnbull Library, Wellington, New Zealand.

11 PUBLIC SECTOR July 2016

Here are the facts & figures of New Zealand’s biggest city.

Inside Auckland Auckland is home to over a third of New Zealand’s population: 2015

Top 5 iwi affiliations in Auckland: 2013

Auckland is diverse: 2013

Auckland total population

New Zealand total population

Ngäpuhi

50,580

1,569,900

4,595,700

Ngäti Porou

13,158

Waikato

13,011

Auckland is young Median age in Auckland compared with the rest of New Zealand

Ngäti Maniapoto

8,346

Ngäti Whätua

7,353

How Auckland compares with the rest of New Zealand

34.4 years vs 39.2 years

European

59%

vs

81%

Mäori

11%

vs

17%

Pacific

15%

vs

4%

Asian

23%

vs

6%

Other

3%

vs

3%

*Does not total 100% as people may be counted in more than one ethnic group.

Auckland is the destination of choice

Aucklanders and their homes: 2013

In the year ended June 2015, half of all migrants arriving in New Zealand moved to the Auckland region* *Includes only those migrants who stated an address on their arrival card.

61%

of households in Auckland own (or partly own) their own home

Labour market and income: 2015

66%

of households in the rest of New Zealand own (or partly own) their own home

Median weekly income How Auckland compares with the rest of New Zealand

Perceptions of housing quality: 2014

$640 vs $614

Auckland’s working-age population

1.2 million people

67.3% of people are in the labour force

75.2%

in full-time employment

18.7%

in part-time employment

32.7% of people are

60%

48%

32%

said their house or flat needs repairs or maintenance

said their house or flat is colder than they would like

said they have a problem with dampness or mould

not in the labour force

Proportion of household income spent on housing costs: 2014/15

6.2%

How Auckland compares with the rest of New Zealand

unemployed

18.8% vs 14.4%

Aucklanders have similar levels of well-being as the rest of New Zealand Overall life satisfaction: 2014 83% of Aucklanders rated their overall life

Loneliness: 2014 65% of Aucklanders did not feel lonely in the last

General health status: 2014 88% of Aucklanders said their health was

Disability: 2013 19% of Aucklanders are disabled. This is lower than

satisfaction as 7–10 (on a scale of 0–10)

good, very good, or excellent

four weeks

the national rate of 23%*

*Only includes adults and children living in households.

Thank you New Zealand. This infographic was made possible by everyone who completed Statistics NZ surveys and the census. Sources of data we used were: the 2013 Census, the 2014 New Zealand General Social Survey, the Household Labour Force Survey: September 2015 quarter, the New Zealand Income Survey: June 2015 quarter, the Household Economic Survey 2014/15, the 2013 Disability Survey, International Travel and Migration: June 2015, and population estimates (as at June 2015). Note: This data has been randomly rounded to protect confidentiality.

Source: Statistics New Zealand Visit our website for more information

www.stats.govt.nz

Source: Statistics New Zealand and licensed by Statistics NZ for re-use under the Creative Commons Attribution 4.0 International licence.

12 PUBLIC SECTOR July 2016

FOCUS: TRANSPORT

Travelling the same road together: Central Government, Local Government and Auckland’s Transport Initiatives

Jim Quinn Chief of Strategy Auckland Council

For many years one of the biggest areas of difference between the government and Auckland Council has been in the area of transport. There was disagreement over whether the Council was proposing the right infrastructure investment and how it would be funded. However, an alignment project currently underway has all parties working to achieve an agreed strategic approach. Will it be the answer to Auckland’s transport woes?

MARGARET McLACHLAN investigates.

“Both the Council and the Government are big investors in transport in Auckland,” says Barry Mein, Director of the Auckland Transport Alignment Project (ATAP). “The genesis of this project was to ensure we’re getting value for money and that the performance of transport is as effective as possible.”

and will test these alternatives to identify preferred solutions. The work includes transport modelling, technical analysis and research.

What does one of the key stakeholders think of this approach?

Automobile Association principal advisor infrastructure Barney Irvine says the alignment project takes a ‘helicopter’ approach in dealing with strategic issues. He says it will help restore public confidence in transport planning.

“We’ve had a clear sense from our membership of ebbing confidence in transport decision-making, accentuated by local and central government bickering. This project (ATAP) is a breath of fresh air; transport issues will always be political but now the political dynamics are not causing blockages.”

ALLIANCE

The year-long project, which began last August, involves Auckland Council, the Ministry of Transport, Auckland Transport, the NZ Transport Agency, Treasury and the State Services Commission.

Another transport planning project that’s more in the public eye is Transport for Future Urban Growth. Its 30-year infrastructure plans to meet demand in new ‘greenfield’ developments in Auckland’s North, West and South went out for public consultation from mid-April to mid-May.

Mein says that getting all these organisations involved is key to its success.

It’s another alliance, in this case between NZTA, Auckland Council and Auckland Transport, with input from KiwiRail.

PRESSURE

Auckland Transport’s strategic initiatives manager Matthew Rednall says the project came about because Auckland Council released its Future Urban Land Supply Strategy last November.

ATAP’s Foundation Report, released on 19 February 2016, outlines Auckland’s current and future transport challenges.

Over the next 30 years, Auckland’s population is expected to increase by more than 700,000 people, and freight volumes are expected to rise 78 percent. This growth will put significant pressure on the city’s transport system. Auckland will need significant investment in its transport system to provide for its forecast growth.

The report also sets out how possible transport projects, services and policies will be evaluated in the next stages of the project.

Mein says the project team will come up with packages of projects

“It became more urgent that we confirm costs for infrastructure, identify and secure new transport corridors,” Rednall says.

While most of Auckland population growth will occur within the existing urban area, 11,000 acres of greenfield (future urban) land has also been identified. These include: Warkworth, Wainui and SilverdaleDairy Flat in the north; Whenuapai, Red Hills, Kumeu, Huapai and Riverhead in the west; and Takanini, Opaheke-Drury, Drury West, Paerata and Pukekohe in the south.

Significant new infrastructure will be needed to support 50,000 new

13 PUBLIC SECTOR July 2016

jobs and at least 110,000 new houses in these areas in the next 30 years – all together bigger than urban Hamilton!

This project is identifying strategic routes including motorways, public transport, arterial routes and cycle-ways, as well as a highlevel land use plan.

Rednall says, “We’re asking ‘what are these areas going to look like over the next 30 years? It’s the equivalent of the North Shore in the 1940s when the authorities at the time proposed the harbour bridge. This is the opportunity to start that process now by having an integrated land use and transport plan.”

Priorities include public transport as well as improvements to the current motorway and good arterial road networks.

“These communities are currently experiencing road congestion and are not well served by public transport. Having these plans will give greater certainty and allow existing residents to make plans for their future.”

A COMMON VIEW There’s no doubt that funding the transport infrastructure to sustain Auckland’s growth will be hugely costly, and that it’s likely to be funded from a mix of taxes, rates and user charges.

“It’s impossible for us to do the right thing funding wise if we haven’t got the same view; all of us need to have a common view of the challenges and best interventions required to get the best long-term outcomes,” Quinn says.

Provide good information and advice and those responsible will make good decisions, he says.

Then you have to consider how it will be funded and what’s affordable, as well as appropriate funding mechanisms.

“If tax revenue isn’t the right way, then consider interventions such as tolling or another alternative.”

“Funding debates should be the last ones to be had,” he says.

Rednall says plans will include costings, timing and priorities.

The preferred network is due by the end of June; and it should be adopted by agencies by the end of the year. The work will also be used to inform the Auckland transport alignment project.

Clearly, how we’re going to pay for the transport system we want is a debate for another day. The Government Budget 2016 had a focus on regional roading projects, the SuperGold card scheme and capital funding for KiwiRail.

The Government had already formalised funding for Auckland’s City Rail Link and for the East-West Connection between Onehunga and Mt Wellington (considered to be a

NEXUS So there’s a lot of transport planning underway - but how do all these plans mesh together?

Jim Quinn, Auckland Council’s Chief of Strategy, says, “We’re reaching a nexus where a lot of things are coming to fruition. For example the Auckland Unitary Plan and the Auckland Transport Alignment Project that are converging on mid-August deadlines.”

project of national significance).

The Government isn’t likely to commit more transport funding for Auckland until 2017.

Quinn says work currently underway will inform a range of documents (the Auckland Plan, Government Policy Statement, Long Term Plan, Integrated Transport Plan etc.) that all lead to delivered projects. These documents are critical pieces of work that will inform future decisions.

Is there concern that transport planning, without consideration of funding, merely becomes a wish list of desirable projects?

“However, this is a long-term game, not a short one.”

“We would like to see much more clarity around the trade-offs involved with different projects; what will people need to pay for, and what to forgo, to get the benefits of transport projects?”

He cites future cars – connected and automated – that may change the way we use transport infrastructure. “We don’t know when they will be pervasive so we have to make the best assumptions at the time and continue to refine and make changes in future plans.”

“For this reason the models that have been used in the ATAP can be re-run and used to re-test assumptions if they change – whether this is the result of large disruptions or renewed clarity of the key assumptions, for example the finalisation of the Unitary Plan.”

He says it’s important for the Council to inform the community “well, and repeatedly”. “The public want to see [central and local] government attuned and flexible; they should see us working together.”

Quinn says this doesn’t preclude a healthy debate, particularly around different views on the investment required.

14 PUBLIC SECTOR July 2016

Barney Irvine of the AA says a wish-list approach in recent years has stood in the way of a discussion about trade-offs.

However, Irvine says ATAP is right to concentrate on the strategic level, with costs and benefits to come later.

A preliminary report on ATAP was released on 21 June. It recommends a range of interventions.

While ongoing investment in new road and public transport projects will be needed, greater use of technology and in the longer term road pricing will be part of the toolkit.

The final stage of ATAP will look at what additional projects could be brought forward in the next ten years to support Auckland’s growth.

The Government and Auckland Council may make extra funding available. It’s a good start.

A Child’s Life

Dr Russell Wills

Dame Paula Rebstock

Anne Tolley

Outgoing Children’s Commissioner

Chair, Expert Advisory Panel

Minister of Social Development

This year, Public Sector examines several “wicked” problems that central and local government, researcher providers, non-governmental organisations and communities are working to address. In this issue we look at New Zealand’s appalling record on child abuse. SHELLY BISWELL talks to social workers, healthcare workers and decision-makers about what needs to be done to better protect our children.

There are the facts: 1) On average one child is

where they aren’t being talked with, played

killed every five weeks in New Zealand. 2) About

with, fed, or nurtured.

9000 children born in New Zealand each year are born “at risk” (1 out of every 30 children).

“In these cases, blaming parents gets us

3) For the last half of 2015, Child, Youth and

nowhere. We need policies and systems in

Family (CYF) reported 8800 cases of proven child

place that better support these families. We

abuse and neglect.

need earlier interventions, which are more likely to be effective, and strong networks. We

There are also the children behind the statistics

need to provide our social workers, healthcare

– Moko, Nia, Coral-Ellen, Chris and Cru.

providers and educators with the training and resourcing they need to do their jobs well and

As outgoing Children’s Commissioner Dr Russell

have the knowledge and space to know when

Wills says, “New Zealand’s record on child abuse

children and families are at risk, and the ability

is our shame. It is a national disgrace.”

to take action. We need to make it a priority that

Comparatively, New Zealand is not a very safe place for children. Out of 31 OECD countries we have the fifth worst child abuse record.

University of Otago Associate Professor Nicola

children in these situations are growing up in a safe and nurturing environment, and as much as possible are able to retain healthy contact with their birth family.

“Many people use the quote ‘it takes a village to raise a child’, but we as a society need to be asking the questions: What kind of village?

What kind of skills are required in that village?

What role do I play within that village?”

or agreed definition of neglect.”

As the researchers note, “There must, however, be clear definitions of neglect for the practical purpose of providing a realistic basis for recognising and responding to neglect and prevention of harm.”

In other words, it’s hard to fix a problem that you can’t define.

IDENTIFYING VULNERABLE CHILDREN

Atwool notes that child abuse is only part of the

“Many people use the quote ‘it takes a village

story.

to raise a child’, but we as a society need to be

In the Prime Minister’s Chief Science Advisor’s

asking the questions: What kind of village? What

2011 report, Improving the Transition: Reducing

kind of skills are required in that village? What

Social and Psychological Morbidity During

role do I play within that village?”

Adolescence, Gordon Harold, Centre for

“Research suggests that neglect can be equally or even more harmful to children than even some types of abuse, but it receives far less attention. Because it can be less well defined, it

For decision-makers and those working

can be more difficult to report,” she says.

with children (teachers, social workers,

Russell Wills says it’s known as the “neglect of neglect”. He adds thousands of families in New Zealand struggle with mental illness, addiction issues and poor family support. “In many of these cases, this means that because of the needs of the parents, the needs of the children are not being met. These children live in homes

healthcare providers) neglect often lies in an ambiguous area. As the 2010 Ministry of Social Development report Recognising and

Research on Children and Families, University of Otago, identified a number of risk factors for child maltreatment, including child factors, parent/caregiver/family factors, and community and societal factors.

responding to child neglect in New Zealand

That same year, the Government released

states, “Many interviewees reported that their

a Green Paper on Vulnerable Children to

agencies did not have an official definition of

encourage a national conversation on this issue.

child neglect … This reflected the findings of the

Following that consultation, a multi-agency

literature review, which also found no common

team was tasked with developing the White

15 PUBLIC SECTOR July 2016

Paper for Vulnerable Children. Chapter four of

outcomes. The additional consideration

There may be some scope for change in the

the White Paper discusses how the government

of other risk factors that commonly cluster

Government’s National Drug Policy 2015 to 2020,

will improve how it identifies and takes

with young maternal age (such as maternal

which acknowledges that New Zealand has high

action on behalf of children who are at risk of

relationship status, education level, smoking

rates of alcohol and other drug use that impact

maltreatment. It outlines “better processes for

during pregnancy and receipt of an income-

on individuals, families and communities. In

identification, reporting and assessment, and

tested benefit) may help to stratify the potential

fact, one of the contributions to social sector

improved processes for sharing information

risks for children and better identify those

outcomes identified in the policy is “supporting

among professionals” as ways this aim is to be

mothers in need of the greatest support from

vulnerable children” with the overall goal of

achieved.

before their children are born.”

minimising alcohol and other drug-related

Beyond the challenges of developing better

In terms of risk factors, Nicola Atwool says that

processes and improving information sharing,

there are also several areas that we as a society

there is also a knowledge gap about what

need to address.

harm and promoting and protecting health and

makes a child vulnerable in New Zealand.

Growing Up in New Zealand, a University of

well-being.

Another driver Nicola Atwool says is family violence. “As a society we are starting to tackle

First on her list: “Our high tolerance towards

family violence, but the link between child

alcohol availability and consumption.”

maltreatment and intimate partner abuse

Auckland-led longitudinal study following over 6800 babies born in 2009/10 across three district

In recent years the government has focused

health boards (Auckland, Counties Manukau

on alcohol harm through the Sale and Supply

and Waikato) is one study underway to better

of Alcohol Act 2012, reducing the blood-

determine what factors may predispose

alcohol limit for driving and increasing alcohol

children to being at risk. A better understanding

screening and brief interventions in primary

of these factors could assist the government,

care.

means that this needs to continue to be a national priority. We also need to better address how children are affected by family violence. We know if children are exposed to violence it can significantly compromise their development.”

A third area of concern is that the system is

communities and families in developing

extremely fragmented. “The

preventative strategies to reduce child

CYF reforms announced in

maltreatment, and improve the well-

April 2016 discuss a ‘single

being of our children.

point of entry’ for children within the system. This could

The research team first identified a set

be a positive change, but

of risk factors associated with poor

it’s going to require a shift

development outcomes in various

in determining thresholds

studies from around the world, and

of abuse and neglect across

tested those factors in a New Zealand

government agencies and

context.

community organisations.

Right now the threshold

The researchers note that there is

is very high, which means

already an evidence base that suggests

interventions are often too

targeting a single risk factor, such

late. We need to get better

as being a teenage mother, through

at supportive early attention

intervention does not “reduce the

and prevention.”

burden of outcomes that result from early vulnerability”. Their analyses

TAKING ACTION

suggest that it may be possible to use “clusters” of risk factors to determine

As part of the White Paper,

where interventions could reduce the vulnerability of children.

a Children’s Action Plan However, as Sir Geoffrey Palmer, who led the

one of the key actions was the drafting of

Law Commission’s 2009/10 review of alcohol

the Vulnerable Children Act 2014. The Act

As the researchers write in their 2014

legislation, said in his opening address to the

makes chief executives of five government

Vulnerability Report 1: Exploring the Definition of

5th Annual Conference on Alcohol Action New

departments (Police, Ministry of Health, Ministry

Vulnerability for Children in their First 1000 Days,

Zealand, more could be done in this area. “A

of Education, Ministry of Justice and Ministry of

“The use of such clusters of risk factors, instead

combination of factors has caused political

Social Development) accountable for protecting

of single, independently-considered risk factors,

timidity in this field, and the public interest

and improving the lives of vulnerable children.

has considerable advantage. For example, not

is not being well served by the law that was

all children born to teenage mothers experience

passed by Parliament in 2012.”

the same level of risk of poor developmental

16 PUBLIC SECTOR July 2016

The Act also gives more power to the Courts in determining the guardianship rights of birth

parents in extreme cases. Children removed

kids have the option of remaining in full

“front-door services” to vulnerable children and

from their parents due to severe abuse and

care until 21, and maintaining support to

their families. “The hubs are also proving to be

neglect can be placed with Home for Life carers

25.

a good path for neighbours, family members

to provide greater stability for the child. In

and others to help at-risk families connect with Establishment of an independent youth

services. With a focus on prevention, we’re

children now need to prove they are safe to

advocacy service that will be developed

already finding in some communities that

parent if they go on to have another child.

in partnership with independent

people are more willing to get involved before

organisations.

family situations deteriorate.”

addition, parents who seriously abuse their

•

A National Children’s Directorate is responsible for coordinating the

Another area of change

implementation of the Act. With

within the system is better

a child-centred approach, the

determining what type of

directorate has established local,

follow-up is required on cases.

cross-disciplinary Children’s Teams.

“The new legal framework,

The first Children’s Teams were

Approved Information Sharing

established in 2013 in Rotorua and

Agreement, that’s supported by

Whangarei with eight more coming

the electronic record-keeping

on line since that time.

Vulnerable Kids Information System gives social workers

Early feedback suggests there have

and others a comprehensive

been some good results in earlier

overview of at-risk families and

interventions and more community

vulnerable children. The point

engagement. The model is still

is to develop a robust early alert

being refined, however, with the

system, so we can get children

December 2015 progress report on

and their families the support

the Children’s Action Plan stating

they need before there is a

that “a nationally-supported,

crisis,” Tolley says.

locally-led initiative has proved difficult to manage at times for both

When asked what her personal

local and national-level managers”.

goal is for the transformation, •

RETHINKING STATE CARE In 2015, Social Development Minister Anne Tolley announced a review of CYF to be led by

Stronger partnerships with iwi to address

Minister Tolley says matter-of-factly, “That in

the over-representation of Māori children

20 years the minister sitting in this chair won’t

in care.

need to hear the horror stories I’ve heard from the young people who have gone through the

•

More financial assistance and access to

an independent expert advisory panel. Chaired

system. That we’ll have created a system that

support services for foster carers, along

by Dame Paula Rebstock, the panel provided

meets the needs of every child.

with nationally standardised monitoring

an interim report in September of that year that

requirements.

called for a complete overhaul of CYF. The final report from the panel was released in April 2016.

“I’m not naïve, I know it’s going to be difficult, but I know we can do better. We as a society

•

Direct purchasing for specialist services for

must do better.”

children.

Minister Tolley says what became clear through

Dame Paula Rebstock says what she was

the panel review process is that transformation

Tolley says prevention will have a new focus.

reminded of by the young people who spoke to

was required. “I told the panel to be bold in its

“Part of that is working within communities

the panel about their experiences in state care is

review. We didn’t want tinkering, we wanted a

where we can reach vulnerable children, young

that what vulnerable children need and want is

vision for the future.”

people and adults. It’s also ensuring we design

often quite simple.

a framework where we can see at what points The accepted recommendations of the panel

families are coming into contact with the system

are sweeping and include:

and what kind of support is required. The

•

CYF overhauled with a focus on five key areas: prevention, intensive intervention, care support, youth justice and supported transitions in adulthood.

•

Raising the age of care from 17 to 18. CYF

“Children want a loving, stable family,” she says.

Children’s Teams are doing good work in this

“That doesn’t mean the solutions are simple,

area, so we know it’s possible, but it will take

in fact, they can be complex, but as part of the

time to fully implement.”

review we tried to start with what the needs of these children are. What many who had gone

Tolley adds that Vulnerable Children’s Hubs

through state care told us is that they wanted

already operating in some areas are offering

things like: knowing what had happened to

17 PUBLIC SECTOR July 2016

“We need to look at the whole child – including their living circumstances. We cannot continue to negotiate case by case, incident by incident, silo by silo.”

siblings who they had been separated from. That if they were placed in a caring foster home they could be assured of some stability – that they wouldn’t be moved again and again. That they wouldn’t be out on their own at aged 17 with nowhere to go. Reasonable and important things that were going to require system changes to achieve.”

Rebstock says that the panel looked at the investment approach to see how early social investment might lead to different outcomes.

“We need to look at the whole child – including their living circumstances. We cannot continue to negotiate case by case, incident by incident, silo by silo. While people have had the best of

“Children who have faced abuse and neglect are

satisfactorily for many – perhaps most – New

going to carry that with them through their lives.

Zealanders. We re-examined where the system

There’s a cost to that for the individuals, for their

was failing most – for those people with

families, and for their wider communities.”

multiple, complex needs and little capacity to access services... We concluded that it was not

A SOCIAL INVESTMENT There’s the social cost, but there’s also the financial cost of child maltreatment. Child abuse and neglect is estimated to cost about $2 billion each year (nearly 1% of our GDP) according to a presentation which Massey University Psychology Clinic Director Ruth Gammon gave to The Treasury in 2015.

investment in September 2015, Finance Minister Bill English gave the following example: ...there is a group of one per cent of five year olds, that’s about 600 children each year, for whom we can expect that: •

three-quarters will not achieve NCEA level 2 or equivalent,

•

those working with our vulnerable children the

four in ten will have been on a benefit for more than 2 years before they are 21, and

direct purchase approach outlined in our

•

a quarter will have been in prison by the time they are 35.

New Zealanders. This approach will require a major shift in thinking and structures. It is both achievable and realistic, but implementation will take time and persistence.”

approach, particularly with quality of the data used to underpin this approach and the robustness of the actuarial tables that will sit behind how decisions are made. Derek Gill and Bill Rosenberg provided insights into both sides of the social investment approach in the September 2015 issue of Public Sector.

Even those who fully support the changes to CYF and the social investment approach caution that And as Children’s Commissioner Russell Wills notes, it must be fully implemented. “This can’t be a piecemeal approach.”

On top of that, issues like the current housing crisis and New Zealand’s concerning child

recommendations aims to make it easier to do this.”

a real difference for the most disadvantaged

the programme of work must be well resourced.

ability to make decisions and get the support that the child needs when they need it. The

better. A new approach is required to make

There are concerns with the social investment

In his guest lecture to The Treasury on social

intentions in the past, we need to move beyond best intentions and give social workers and

enough to just make the current system work

Each of these children will cost taxpayers an average of $320,000 by the time they are 35, and

poverty rates (with just under 1 in 3 children now living in income poverty according to a 2015

some will cost more than a million dollars...

report by the Children’s Commissioner) suggest

several years to implement. We cannot afford to

The result of this is a loss of human potential and

New Zealand is grappling with may increase

think that in six months everything will be ‘fixed’.

long-term harm to families and communities.

the number of vulnerable children and families

Still, the recommendations include a number

And there are big costs for taxpayers .

needing support. How are these wider issues

She cautions that some of the changes will take time. “It’s a huge undertaking that will take

of actions that once executed will bring about positive change for many of our most vulnerable children.”

1

that some of the related complex issues that

to be calculated and addressed in the social The social investment approach is being used

investment approach?

in other areas and, in fact, the Government has established a Social Investment Unit to identify

Complex issues often require multifaceted

One of those recommendations is putting

what parts of social investment should be

solutions. As Wills says, “I strongly believe that

tools in place for first responders as quickly as

centralised. This along with the changes to CYF

we can restructure the CYF system to be one of

possible so they are able to take appropriate

could have huge implications for how we protect

the best in the world. That change on its own,

action.

our most vulnerable children. The investment

however, won’t be enough. We need a major

approach was highlighted in the Productivity

societal change in reducing violence, particularly

Rebstock says the social investment approach

Commission’s report on more effective social

men’s violence towards women and children.

means making a significant investment early in a

services, which stated in the report summary:

We are afraid to have these conversations, but we need to. These can’t be private matters

vulnerable child’s life.

“Clearly the [social services] system worked

anymore.”

A data visualisation has been developed by Statistics New Zealand and The Treasury to make information on children and youth at higher risk of poor outcomes more accessible to New Zealanders. Information on the tool can be found at: https://shinyapps.stats.govt.nz/sii/

1

Further information about child abuse is available from the New Zealand Family Violence Clearinghouse, nzfvc.org.nz. The Clearinghouse is the national centre for research and information on family and whānau violence. The Clearinghouse is based at the University of Auckland and funded by the Social Policy Evaluation and Research Unit (Superu).

18 PUBLIC SECTOR July 2016

The First 1000 Days

Plunket National Advisor - Well Child and Parenting Karen Magrath says that evidence supports focusing on the first 1000 days of a child’s life.

Plunket works with 91% of New Zealand families. It’s an organisation with a 107-year history, but it also continues to evolve to meet the needs of today’s families. Part of remaining relevant means introducing new ways

“We know that the first 1000 days of

of doing things, such as the recently

a child’s life are crucial to their long-

released electronic Plunket Health

term well-being,” she says.

Record that has been created to support a joined-up service and connect

“Plunket‘s focus is on the first five

families more quickly with the ser-

years of a child’s life. We partner with

vices they need.

families to support positive parenting supportive relationships.

in the home. The welfare of the child

“Families come in all shapes and siz-

is paramount in our work and that

es, but we find there are some com-

includes consideration of the health

mon issues most people face as par-

“Parenting is rewarding, but it can

and social issues families are facing.

ents and that’s where Plunket comes

also be extremely challenging. What

We recognise that we have a privi-

in. For example, as well as all of our

we have found is that most people

leged position to be invited as guests

services for children and their families

need some support along the way –

into people’s homes to support them

from zero to five years, we have a fo-

our role is to be there when parents

with all the joys, as well as the stress-

cus on antenatal parenting education

need it.”

es, worries and challenges that come

to help people prepare for parenting,

with being a parent.”

which also helps build long-lasting

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19 PUBLIC SECTOR July 2016

THE WORLD’S MOST LIVEABLE CITY? It’s been over five years since Auckland’s local councils were unified into one, with the aim of creating a better governed city. How have things progressed? Is Auckland on course to become the world’s most liveable city?

Here are some conclusions from AUT’s Policy Observatory.

Five years after local government in

goodwill of staff working in uncertain and

and it directly undermines the growth

Auckland was amalgamated into a unitary

unchartered waters.

potential of the regional economy.

on the aims of the reforms? In answering

The establishment of Auckland Council

When it comes to the new governance

this question we refer back to the reform’s

meant inheriting both assets and debts

framework there are both strengths and

foundation documents, the report of

from its legacy councils including an

weaknesses. The leadership role of the

the Royal Commission on Auckland

Auckland-wide infrastructure deficit. It

mayor of Auckland, and the statutory

Governance (2009) and the government’s

is a deficit that stems not only from the

provision for an Office of the Mayor, are

Making Auckland Greater (2009).

previous fragmentation of governance

in our view appropriate for the unitary

across the region, but from the short-term

structure. We make no comment on

This report, commissioned by the

focus of central government’s approach

‘right-sizing’ the Office of the Mayor. The

Committee for Auckland, focuses on

to infrastructure investments over some

governing body consisting of the mayor,

the structure of the Auckland Council

decades. When this is combined with

elected at-large, and 20 councillors elected

encompassing the mayor and councillors

population growth in Auckland it has put

from local wards is essentially a regional

(the governing body), the local boards, and

enormous pressure on the resources of

council in that it decides a region-wide rate

Council-Controlled Organisations (CCOs).

the region. Over the past three decades

and plan, with local decisions devolved to

Although the council administration plays

there has been a major transformation

local boards. The ward representation of

a vital role in guiding and implementing

in the population of Auckland and while

the governing body sometimes conflicts

decisions, it was not feasible to examine

much has been said about positive aspects

with the need for councillors to cast their

this aspect of governance in any depth.

of diversity, the scale of the population

votes according to the interests of the

However we do examine questions such as

increase and the neighbourhood

region as a whole. There are good reasons

representation and engagement including

differences in terms of age and

for retaining wards, but local voters may

Māori representation, and the historically

socioeconomic status has repercussions

not always understand this regional

‘inadequate’ relationship between council

in access to housing, employment and

focus for their elected councillors. Some

and central government.

participation in the economic and social

councillors think regionally – and the LTP

life of Auckland.

process encourages this – but a few are still

council, has the new structure delivered

very parochial and not all work well with

The progress of the new council must be SOCIAL DEFICIT

their local boards.

council with a single, integrated plan

The social deficit referred to in this report

In creating local boards, the government

for the region, encompassing land use,

highlights deep-seated inequalities

diverged from the Royal Commission’s

transport, infrastructure and housing to

between different socio-economic groups

recommendations. We consider this the

guide investment in the region is a major

in the region with some households

right decision as the creation of such

achievement. In this respect the new

and communities facing obstacles to

a large, regional government needed

structure successfully addresses one of the

social mobility emanating from a lack

grassroots input into decision making.

Royal Commission’s concerns: that under

of accumulated assets, income, housing

However, the local board model has yet

the old system, regional governance was

and a range of public services such as

to achieve its potential. The establishing

weak and fragmented. This is no longer

education and health. The combined

legislation (s7 of the Local Government

the case. The way in which the disparate

deficits (physical and social) continue to

(Auckland Council) Act 2009) describes

council structures have been integrated

present a major challenge for both the

decision-making between the governing

into a coherent functioning administration

Auckland council and central government

body and local boards as ‘shared’, but

speaks volumes of council management,

in that it represents a failure to develop the

in practice it is not. Real power lies with

human resource processes and the

capacities and potential of the population

the governing body and local boards lack

judged in context. The integration of eight local government entities into a unitary

20 PUBLIC SECTOR July 2016

profile and respect in the governance

based economic and social initiatives are

system. This also applies to Māori who

essential in responding to the economic

were excluded from the governing body of

and social conditions of different

council and whose contribution today is

neighbourhoods across Auckland.

through the Independent Māori Statutory Board which is a ‘clip on’ mechanism

UNREALISTIC ASSUMPTIONS

independent of the structure of council.

There is some concern that the restructuring of Auckland’s governance has removed geographic silos, creating instead – with the CCO model – functional silos, where assets and services operate independently from the rest of the council structure.

In establishing the Auckland Council there There is some concern that the

was an assumption at least from some

restructuring of Auckland’s governance

sectors of the population that a unitary

such conversations that the vision of ‘the

has removed geographic silos, creating

council could solve inherited problems

world’s most liveable city’ emerged and as

instead – with the CCO model – functional

that have long constrained the region’s

illustrated in this report it has long been

silos, where assets and services operate

development such as lack of investment

assumed that Auckland is a great place to

independently from the rest of the council

in the physical infrastructure and utilities,

live, work and do business. There is a risk in

structure. This is particularly the case

sorting out a city with a second rate

our view that the vision is currently limited

with Auckland Transport and Ports of

public transport system and addressing

to a brand or a platitude; while it may be

Auckland Ltd which are further removed

the social deficit that has been incurred

a reality for some residents, for others

from council oversight than other CCOs,

because of increasing inequality between

Auckland is far from being the world’s most

and whose scale and scope of operations

different population groups and different

liveable city.

are vital to the ongoing development

communities throughout the region. These

of Auckland. That said the CCO model

assumptions were clearly unrealistic and

This article is taken from “The Governance

has meant that council has been able to

thus it is evident that conflicting views

of Auckland: 5 years on”, a report

draw on commercial and professional

and debates concerning priorities on

commissioned by the Committee for

expertise in managing these assets and in

the policies and services of council will

Auckland from The Policy Observatory. A

delivering crucial regional services, and

continue. That in essence is the nature

full copy of the report is available at: http://

the CCOs have been able to focus on their

of democracy. At least Auckland now

ourauckland.aucklandcouncil.govt.nz/

core mission shielded from daily political

has a unitary structure in which those

media/6143/the-governance-of-auckland-5-

concerns.

debates can be conducted. It was from

years-on-full-report.pdf

Another problem the Royal Commission identified with the legacy model was poor community engagement and this is still a problem. Because of its sheer size, the new Council structure may undermine the public’s sense that they can get involved with or influence Council. The tension between ‘the region’ and ‘the neighbourhood’ is exemplified in ATEED, the CCO tasked with advancing the economic well-being of the region.

While Auckland was in need of a regional strategy to advance its development as a regional economy, the focus of ATEED has placed primary emphasis on tourism and the hosting of regional events and in the process significant forms of local development have been undermined. These locally

21 PUBLIC SECTOR July 2016

MY YEAR OF LIVING

JAFArously

Non-Aucklanders love to opine about the city, even if they have never lived there. Playwright and satirist DAVE ARMSTRONG did live there once upon a time.

Here are his thoughts…

When they offered me the job it was a no-brainer. It was glamorous, fascinating, well paid and the chance to do something I’d always dreamed of – working fulltime as a television writer. There was only one drawback for me, a born and bred Wellingtonian. The job was in Auckland. People warned me about the traffic, the difficulty of getting accommodation and, well, Aucklanders. But I couldn’t have cared less. The few times I’d visited Auckland I’d really enjoyed it. I signed my contract with enthusiasm.

“It’s not a city, it’s a collection of villages,” said my father, who had grown up in Devonport, and ‘escaped’ to Wellington when he was 20.

In a way he was right. Auckland is one of the most spread-out cities in the world, its many suburbs nowhere near as intensively settled as they could be. Many – Swanson and Devonport spring to mind but there are many others – really were once little villages. It was easy for those of us outside of Auckland to reject the idea of amalgamation, but given the collection of councils that became the Super City, some sort of amalgamation had to happen.

I had family with whom I could stay in an ‘inner-city’ suburb, which meant that it was only about a 25-minute trip to the central city. On the Sunday I arrived I took some stuff out to my new office on the

WELLINGTON LIBERALS COMPLAIN But during that year I discovered there was an Auckland outside the places that out-of-towners usually visit. I found myself in fascinating places like Onehunga, Glen Eden, Mangere Beach, Mt Roskill, Glendowie and Kohimarama. That Auckland was diverse and interesting. When Wellington liberals complained about snobby Aucklanders living in wealthy suburbs I could tell them all about the Otara Markets.

A few years later I found myself again in Auckland covering a general election. A trip up Mount Eden on a mountain bike saw me stupidly trying to cycle down the extremely steep hillside. The resulting broken collarbone rendered me unable to drive and as I covered meetings from Pakuranga to Mangere to Herne Bay to Orewa, all by public transport, I gained an insight into a) how bad Auckland public transport was and b) how difficult it must be to survive in Auckland if you don’t own or drive a car.

Today, even though I visit the great city less regularly, I am reminded of Auckland’s problems almost daily. The rest of the country seems obsessed with Auckland’s erupting housing market, its transport challenges and its local politics. We love to pretend that a few clogged motorways and overpriced houses make Auckland an economic basket-case when the opposite is true. It’s our only truly international city and it plays a big part in our economy.

WELL AND TRULY SCREWED

North Shore and it only took about 30 minutes. Great. The next day,

We can make all the JAFA jokes we like but New Zealand would be

just getting from the inner-city to the harbour bridge took a good half-

well and truly screwed without Auckland. We would be like the U.S.

hour and the trip to the Shore another 30. That was over two decades

without California. New Zealanders and skilled overseas migrants flock

ago. I shudder to think of that commute today.

to Auckland, not because they love the idea of buying a million-dollar,

So how did my Year of Living JAFArously go? I know that it’s fashionable for Wellingtonians like me to diss Aucklanders, but apart from the commuting, I really enjoyed it. Aucklanders work long hours

two-bedroom house or having a one-hour daily commute, but for the same reason I went there when I first wanted to work in television – it’s where the jobs are.

and I did, too. It helped when I discovered that leaving the office at

As Auckland continues to grow, some hard decisions have to be made

7.00 pm didn’t get me home that much later than leaving the office at

by its local government. Already its Unitary Plan, due to be finalised

5.00pm.

in September, has divided the community. Many younger Gen X, Gen

Auckland has amazing restaurants, especially Asian ones, so I found myself eating late, well and cheaply. Today a trip to Auckland for me means visiting food halls to sample the very best of Asian food.

Up until I lived in Auckland, the city meant Queen Street, Mt Eden and Herne Bay. Like many middle-class Wellingtonians I could easily navigate my way around Ponsonby but when I got back to Wellington I’d have to use a map if my sports team had a game in Lower Hutt.

Y and Gen Zeros (if you don’t know what I’m talking about then you’re probably not one of them) want an intensively settled, green, cyclefriendly city with good public transport. Their solution is a liberal, left-wing one of the sort favoured by Labour and Green politicians.

That desire is not necessarily shared by car-driving baby boomers and older Aucklanders, some of whom have watched rampant, out-of-control market forces inflate their properties by as much as a grand a week, who don’t want housing to intensify. Their solution is a more laissez-faire, right-wing one of the sort favoured by National politicians.

We love to pretend that a few clogged motorways and overpriced houses make Auckland an economic basket-case when the opposite is true. It’s our only truly international city and it plays a big part in our economy.

Auckland has found itself sitting on a volcano, up until recently quite dormant, of rancour and discontent between left and right and old and young. There have been some well-attended but fractious meetings on the Unitary Plan, with accusations of NIMBYism on one side and eco-extremism on the other.

22 PUBLIC SECTOR July 2016

watchers as a complete disaster. Yet he has presided over a Super City

Our view of a ‘typical’ Aucklander being a skivvywearing, café-dwelling architect from Herne Bay or a Metro-reading society dame from Remuera is both inaccurate, outdated and unfair.

that has persuaded not just local bodies but central government to invest billions into rail transport to an extent few would have believed possible even five years ago.

I recently attended a meeting in Wellington that was attempting to address that city’s worsening traffic congestion when a light-rail advocate got up and said, “what Wellington needs is a Len Brown”. The

BLOODY JAFAS ARGUING AGAIN The rest of us can disapprove of “bloody JAFAS arguing again,” but we should take notice, as the debate that Auckland is currently having is the exact debate that the rest of the country will be having in the future.

deafening silence was broken only by the odd snigger, but he made an interesting point.

Much of the focus on Auckland is quite rightly on transport, housing and other infrastructure, but what about its people? Aren’t they even more important? When some upstart Wellingtonian like me says “typical JAFA”, who am I actually talking about? Is it the blue-

And what about central government in all this? If Auckland takes the

collar worker of Pacific Island descent who works in Wiri? Is it the

liberal left/green route will the National Government try to stop them

Māori mechanic from Henderson, the Fijian-Indian taxi driver from

or be truly ‘laissez-faire’ and leave them to it? And if our government

Papatoetoe or a locum recently arrived from South Africa working on

changes but Auckland doesn’t want to, would a left-wing government

the North Shore?

impose its solutions on the city?

Our view of a ‘typical’ Aucklander being a skivvy-wearing, café-

What is certain is that both central and local government will

dwelling architect from Herne Bay or a Metro-reading society dame

determine how Auckland will look in the future. Will its inner city

from Remuera is both inaccurate, outdated and unfair.

become more intensively settled, with continued high immigration and more high-rise inner city apartments? Won’t that push property prices up even more and push poorer people out of the inner city? Will Auckland perhaps become a more European-style city with efficient public transport but also with higher rates to pay for it, along with restrictive planning laws to ensure the city doesn’t sprawl?

I once had the pleasure of running a day-long writing workshop for some Auckland secondary students. I wanted to reach a cross-section of students so the foresighted organisers invited just two students per school, but from all around Auckland. In my little class were well-to-do Pākehā girls from elite central city private schools and two Pasifika kids from Otara. The students from East Auckland were children of

Or will the already sprawling city become even more like Los Angeles

Asian and South African immigrants and there was a Māori kid from

of the 60s, with little regulation, LA-style spaghetti junction freeways,

out west.

and with the ‘haves’ and ‘have-nots’ living in distinct, sometime racially based, urban areas?

From an ethnic and socioeconomic point of view, my little class was an almost perfect representation of Auckland. The kids were polite

When you drive from Auckland to Hamilton, you encounter built-up

and talented, and whether they were from Epsom or Otara, they loved

areas most of the way. Could Auckland expand into a single, vast

meeting kids from the ‘other side’. Yet, amazingly, they were that

conurbation – with commuters travelling in from as far south as

very rare thing one finds in Auckland – a true cross-section. I find it

Hamilton and as far north as Whangarei? That’s a nightmare scenario

incredible that such a rich multicultural city has such mono-cultural

for some transport planners, though a couple of really fast trains and a

suburbs and schools, be they in Epsom or Manurewa.

London-style congestion tax could make a cheap 40-minute commute by train from Hamilton far more enjoyable than the expensive 60-minute journey I used to make by car to the North Shore each day during my Year of Living JAFArously.

Let’s hope Auckland successfully manages to decide what sort of city it wants to be, and meets its many challenges in housing and transport.

Let’s hope central government plays a helping not a hindering hand. If Auckland manages to harness the diverse talents of its population and

Yet although Auckland’s problems are as numerous and diverse as

stop the separation into rich exclusive suburbs and poor ghettos, then

its population, solutions are also being found. Super City mayor Len

a smart, well-planned multicultural City of Sails, with all its diverse

Brown has copped an enormous amount of flak from those car-driving

elements working together, could be a world beater.

baby boomers I mentioned above, some of whom front their own high-profile TV news shows.

A COMPLETE DISASTER Thanks to issues more to do with his very Auckland personal life than his policies, Brown’s mayoralty has been seen by some media-

I find it incredible that such a rich multicultural city has such mono-cultural suburbs and schools, be they in Epsom or Manurewa.

23 PUBLIC SECTOR July 2016

POINT OF VIEW

Bernard Hickey

If there’s one problem Auckland has that receives particular attention, it’s the lack of affordable housing. Here BERNARD HICKEY unpicks the Gordian knot of Auckland housing supply.

It is the problem everyone wants to fix, but just can’t seem to find a way through to a solution.

Auckland’s housing supply shortage is now dominating the national conversation in so many ways that it’s rare now to watch a news bulletin or pick up a newspaper and not find something about housing.

Firstly, there’s the barely suppressed glee of home owners in Auckland who have felt the value of their houses rise by almost NZ$1,400 a day through March and April. The average Auckland house price is due to hit NZ$1 million by September at current growth rates.

Secondly, there is the growing exasperation of first home buyers who are watching the prospect of getting on the property ladder receding into the distance as they are outbid by rental property investors who are buying nearly half of all the homes for sale in Auckland and as much as 80% of those for sale in cheaper suburbs. Generation Rent now feel they are trapped in Landlord Nation.

Thirdly, the Reserve Bank is being forced to bend over backwards to meet its twin objectives of targeting inflation of around 2% and keeping the financial system stable. Inflation has been below that 2% mid-point of the banks’ 1-3% target band for four years and the bank should be cutting the Official Cash Rate more aggressively to get it back up there, but it can’t because yet lower mortgage rates will just pour more petrol on the Auckland ‘halo’ effect that is now burning brightly around the country. The Reserve Bank is now considering limiting debt to income multiples, given over 60% of investors are now borrowing more than five times their income.

Fourthly, the social costs are now reverberating across the city and through the country. More than one in 10 garages across South Auckland are now occupied by families and rents are rising three to four times faster than wages.

And finally the fiscal costs of Auckland’s housing failure are increasingly acute. Finance Minister Bill English regularly points out the Government is now spending NZ$2 billion a year on accommodation supplements and income-related rent subsidies, and that the Government is forced to subsidise 60 per cent of rental properties. And then there’s rising health and education costs as

24 PUBLIC SECTOR July 2016

thousands of kids grow up in unhealthy homes or are bounced from school to school as they transition from one unaffordable rental property to the next. Turnover in some South Auckland primary schools is approaching 50 per cent.

The scale of the crisis is clear and the central Government is now applying intense pressure to the Auckland Council to at least try to solve the problem with increased housing supply, given the demand side measures announced by the Government and the Reserve Bank in May last year and implemented in October and November only slowed the momentum of Auckland house price inflation for four months.

The Government has framed the debate this year as land supply shortage caused by a toxic mix over 20 years of Resource Management Act restrictions on development allied with reluctance

by Councils and voters to either build out or up.

The Government’s latest tactic is a National Policy Statement directing the Auckland Council to release more land if land prices rise too fast.

And this is where the Gordian knot of Auckland’s housing crisis is the tightest. The Council says it would need to invest NZ$17 billion over the next 30 years to pay for the infrastructure needed for all the new land being opened up on its fringes, but is up against its debt limits needed to retain its AA credit rating. It cannot borrow more under its agreement with the Wellington-controlled Local Government Funding Agency, and its own ratepayers are reluctant to pay higher rates to service the debt needed for all the new roads and pipes and public transport needed to underpin new housing developments on the fringes.

Meanwhile, ratepayers are also reluctant to allow new more intense apartment developments anywhere near the CBD. CAN’T PAY, WON’T PAY So the Gordian knot looks like this: Auckland needs to build out and up to house an extra one million residents over the next 40 years, but Council and the Government can’t or won’t pay for the infrastructure to support those houses. Meanwhile, record low interest rates and record high migration push house prices and rents ever higher, along with the accumulated shortage of houses.

Generation Rent now feel they are trapped in Landlord Nation.

So who will unpick this knot and how? A Labour proposal to allow the Council to service new infrastructure bonds with targeted rates was rejected as “creative accounting” by Housing and Building Minister Nick Smith, but has been welcomed cautiously by English as “constructive and interesting.” Meanwhile, the Council will have to consider and in theory approve a Unitary Plan proposal by August 19, just weeks before elections that will be decided by voters reluctant to grow either out or up. Labour’s other proposal for unpicking the knot is for the Government to simply step in and build tens of thousands of houses over the next decade, which the Government rejects as it continues to try to outsource social housing to community groups and fund managers.

Meanwhile, Auckland has built just half the houses it needed to build in 2016 just to keep up with net migration, let alone natural population growth.

In the end, problems in the political economy are ultimately resolved at the ballot box. The first indications will come in the Auckland Council elections in October. The next will come in the General Election in late 2017, where the Auckland Housing crisis/challenge/celebration/mess will take centre stage.

Bernard Hickey is the publisher of Hive News, a daily economic and political email newsletter for subscribers in the public and private sectors.

Email him at bernard@hivenews.co.nz for a corporate subscription.

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26 PUBLIC SECTOR July 2016