Assignment one:

A critical appraisal of the Auckland Councils Economic Development Strategies ability to effectively deliver the Auckland Plans intended urban planning outcomes

Tim Wright 6058318 University of Auckland

Introduction
The Auckland Council have produced two strategies, the Auckland Plan and the Economic Development Strategy in order to direct Auckland into the future. Both strategies include a vision and various ways in which the vision will be realised with differing degrees of detail. Certain implementation aspects of the strategies overlap and reinforce each other. This assignment will critic some of the relevant planning aspects of the Economic Development Strategy in light of the Auckland Plans objectives as well as planning objectives in general.

Economic Development Strategy Priorities

The Economic Development Strategy sets out a number of priorities to increase the performance of Aucklands economy. These priorities form the basis of the strategy. Out of the priorities, the key ones that urban planning has an influence are to: GROW A BUSINESS-FRIENDLY AND WELL-FUNCTIONING CITY; DEVELOP AN INNOVATION HUB OF THE ASIA-PACIFIC RIM AND BECOME INTERNATIONALLY CONNECTED AND EXPORT-DRIVEN; and ENHANCE INVESTMENT IN PEOPLE TO GROW SKILLS AND A LOCAL WORKFORCE. (Auckland Council, 2013a).

GROW A BUSINESS-FRIENDLY AND WELL-FUNCTIONING CITY In relation to urban planning this priority involves working towards a more integrated and efficient transport system. It is recognised that this will improve the speed and ease of people to move around the city, which in turn will reduce costs created by delays in traffic movement and idling traffic, making Auckland more business friendly and function better. (Auckland Council, 2013a). A key aspect of this priority will involve improvements to public transport system in Auckland. A well-functioning train, bus and cycle system can drastically speed up movements around the city while at the same time taking cars off the road. This will increase the certainty people have in how long a journey will take. Presently Aucklands congestion problems can cause dramatic delays in movement, this effects the efficiency of the city. If people are stuck in traffic they are not at work improving the economy or they may be late for important meetings. Congestion issues in cities in general can be off-putting to potential skilled immigrants and can in some circumstances be the difference between choosing one city over another to locate either themselves or their business. Improving the transport system and in particular public transport is consistent with one of the Auckland Plans intended urban design outcomes to provide transport orientated development. Although the Councils planning department may not have direct control over transport matters, it can have an indirect influence on transport. This involves situating more intense development in close proximity to transport infrastructure in a mutually beneficial effort to improve the economic viability of the infrastructure while at the same time improving how a large proportion of residents move around the city. (Auckland Council, 2012).

A criticism of the Economic Strategy as well as the Auckland Plan maybe the lack of clear definition about what parts of the transport system will be prioritised in terms of funding and timelines. If transport infrastructure upgrades are not aligned to the locations for redevelopment specified as centres under the Auckland Plan, then the ability of the strategies role in benefiting the aims of the Auckland Plan will be limited. Auckland has a history of focusing on road construction over public transport funding; therefore it would have been beneficial to have a clearer strategy in place to ensure this trend does not continue. Another key aspect of the priority involves the provision of high-speed broadband internet infrastructure. This infrastructure will be situated beneath street verges alongside other types of infrastructure, such as telecommunications, electricity and water. (Auckland Council, 2013a). Therefore the more streets that are constructed the more infrastructure provision necessary. Furthermore the more users of the infrastructure per street the more viable the infrastructure. In this regard, the strategy is consistent with the Auckland Plans aim to limit urban sprawl, in particular the construction of more streets on the fringe, which will require this infrastructure, and to increase densities so that the viability of the infrastructure is maximised. A criticism of the strategy maybe the lack of definition about which areas will be prioritised to receive the infrastructure first. An opportunity may exist for the Council to use the infrastructures provision as an incentive for developers to provide development in line with or over and above Councils expectations in return for prioritised high-speed broadband provision. For example an arrangement could be made whereby a developer develop a high tech research institution in a location favourable to Council in return for prioritised provision of high speed broadband that would complement the developed activity.

DEVELOP AN INNOVATION HUB OF THE ASIA-PACIFIC RIM AND BECOME INTERNATIONALLY CONNECTED AND EXPORT-DRIVEN Aucklands export potential is believed to consist of technology, innovation and human expertise rather than more traditional tangible products. Therefore while heavy infrastructure may have once been vital for export growth, such as port or airport expansions, Aucklands focus has turned to improving its knowledge economy. This is regarding as Aucklands and New Zealands best path for export growth considering the spatial disadvantages that Auckland and New Zealand has. Knowledge and ideas are not limited to spatial distances unlike traditional forms of exports. (Auckland Council, 2013a). A key aspect of these priorities for urban planning is the creation of clusters or precincts of activity that can enable innovation. Planning can influence this by specifying land-use zonings that will allow for this type of activity or precinct to develop. While the Auckland Plan specifies centres for intense growth, they do not seem to align to where existing areas of education, innovation or business locate. Aligning and locating centres in proximity to existing areas of potential innovation growth would reinforce the areas importance to the economy and provide the necessary ingredients, such as dense housing community facilities and services, commercial and retail support, to ensure their long-term viability. (Auckland Council, 2012).

An example of this is the Unitec area off Carrington Road in Mount Albert. This facility has the potential to provide innovation if industries that could feed of the institution and vice versa were encouraged to locate in and around the area establishing synergies for information sharing and development. Furthermore Mount Albert Train Station is located within 10 minutes walk of the campus. There is great potential for well-designed intense TOD development to occur in this area that could offer support to a potential clustering of innovative activity. A Metropolitan Centre Zoning under the Draft Unitary Plan linking the train station, New North Road with the campus and a business precinct could have been planned for the area to highlight its potential significance to Aucklands economy, however the Auckland Plan has not recognised this potential and little change is planned for the area.

ENHANCE INVESTMENT IN PEOPLE TO GROW SKILLS AND A LOCAL WORKFORCE There is a significant education and skills gap in Auckland between those who are highly skilled and educated and those who are not. Not surprisingly this aligns with levels of income and prosperity as well as a distinctive spatial organisation. Those with high levels of income and prosperity generally reside in the east and on the north shore, while those with low levels reside in the south and west. (Auckland Council, 2013a). In order to enhance investment in people Auckland needs to investigate ways to better disperse people evenly around the city despite levels of income or prosperity. This is not only a case of encouraging poorer people and marginalised communities into more affluent areas, but also making traditionally poorer areas more attractive to affluent residents and workers. So why is it important to have a better mix of cultures and affluence? Spatially organising people within certain social groupings leads to intolerance of other societal groups and cycles of wealth and poverty. Furthermore, there is less exchange of ideas and resources between groups. This leads to poorer education, poorer carrier and job expectations and deteriorating feelings of self-worth in the less affluent areas. These communities are not helping to grow the economy as efficiently as they could be. The lack of access to opportunities means that a high percentage of people will need to be supported by benefits, so generally the economy is worse off having to support communities who cannot support themselves. Urban planning can play a role in better dispersing where people live. By zoning land and changing rules, planning can increase incentives for people to live in other areas. Modernizing the public infrastructure in rundown areas, creating high-skilled/high-income employment opportunities, providing better community facilities and exclusive unaffordable housing options can act to provide a greater mix of people in less affluent areas. On the other hand injecting more affordable, social and typological housing options and can act to provide a greater mix of people and alternative job opportunities in affluent areas. In poorer areas in particular this would raise the local educational standard by encouraging more private investment as well as attracting a better standard of teachers, provide more local employment and raise self-worth. While there are programmes designed around addressing the issues facing some geographic areas within Auckland, such as the Southern Initiative, they are primarily about trying to inject resources (education, training and jobs) into underperforming areas and not about altering the demographic makeup and attitude of areas. While this may bring about short term rises in performances, it is questionable whether the initiatives will produce long term changes in culture and attitude. These

initiatives, such as the Southern Initiative, are highly dependent on funding, if a change in government occurs, funding may change or stop all together.

What else can be done?

Global Economic Climate One of the main overarching goals of the Economic Development Strategy is to achieve an average annual increase of regional exports greater than 6 per cent. However due to the current global economic climate, New Zealand currently has a high dollar value and our export markets are in poor shape, with the exception of some Asian countries. The economy faced considerable headwinds: global economic conditions remained soft against a backdrop of austerity measures and sovereign debt concerns in Europe, while a combination of liquidity injections by foreign central banks and rising world dairy prices contributed to a further appreciation in the New Zealand dollar, creating tough conditions for domestic exporters and import-competing businesses. (Auckland Council, 2013b, Pg 8). These factors make exporting and our 6% increase goal challenging. The figure below shows Aucklands exporting and importing trends reflecting the current economic climate.

(Auckland Council, 2013b, Pg 12).

The Construction Industry While the global economic climate is challenging, perhaps this provides an opportunity to focus inwardly, particularly in the short term. Another overarching goal of the Economic Development Strategy is to achieve an average annual real gross domestic product (GDP) increase greater than 5 per cent. This goal maybe more achievable in the short term due to current conditions that have produced opportunities particularly around housing. Aucklands housing market is gaining strength out of the slump felt by the Global Financial Crisis. Demand for housing is currently strong, reflected in growing house prices becoming increasingly unaffordable. the average annual median house price in Auckland rose 9.7 per cent over the year to March 2013, while median house prices in the March quarter were 13.5 per cent higher than the same quarter of 2012 (in nominal terms). (Auckland Council, 2013b, Pg 14). The demand for housing will continue to grow, which will attract investment in the construction sector. Employment opportunities will be created directly and indirectly as a result. An upswing in housing construction for Auckland will provide a considerable boost to regional output, as residential activity has significant multiplier effects for broader economic activity and employment, during both construction and fit-out phases. (Auckland Council, 2013b, Pg 15). Housing construction plays a major role directly and indirectly to Aucklands economy and it does with many economies. Construction is often referred to as the bread and butter industry and it dependable and stable. It also permeates directly and indirectly throughout the wider economy from builders and electricians to finance and insurance and everything in between. While it is particularly a hot topic now, it will play a significant role in the medium to long term as well. Therefore investment and intervention into the sector is warranted to get it moving. Planning can play a major role in housing. The current condition of housing in Auckland presents opportunities to resolve inefficiencies and health issues in the housing market through planning intervention. The current climate presents an opportunity to revitalise the construction industry as demand for housing is high, quality is poor and land shortages will become a reality, via RUB restriction policies. The low density sprawl that currently exists in Auckland is inefficient. Intensification measures detailed in the Auckland Plan will change the nature of housing in Auckland. Intense forms of housing are a rarity in Auckland and the construction industry is not use to undertaking this type construction. However, the industry will need to adjust to meet the demand challenge. While the Auckland Plan identifies areas for intensification, it can be argued that these areas do not go far enough. For the most part they are not located in areas, which are market attractive. This is mainly due to politics. Areas that are seen as being ideal for intensification from a market point of view are excluded for the intensification often under a reason or excuse of heritage character or even an argument that they are intense enough at present (the area of Ponsonby for example argues that the existing density is high enough and therefore additional intensification is not warranted). This is disappointing as these areas could provide the catalyst to ignite the intensification movement to fundamentally shift the construction industry on a positive course by producing products that will change the image of intensive housing in hearts and minds of the population as well as establishing and maintaining industry techniques, practice and experience for intensive housing delivery.

By over controlling where intensification is to happen via the Auckland Plans designated centres, the Auckland Plan jeopardises delivery and quality of intense built form delivery as developers will either choose not to develop or develop to a lower standard to make up for a reduced expected profit due to poorer locational factors. Auckland Council may presume that developers do not have a choice and that if they designate areas where intensification is to be then developers will automatically respond. However in reality developers do not work this way. They will often choose simply not to develop, creating a growing gap between supply and demand. The standard of housing also needs to be addressed. Currently home ownership in Auckland is low compared to the rental market. Due to the undersupply in housing, renters are forced to live in housing that is often insulated, mouldy, damp, and cold and generally in poor condition. This results in an array of health problems as well as additional energy costs. In Dunedin, a similar problem exists. A move to enforce a Warrant of Fitness idea, similar to vehicles, is underway to raise the standard of homes in the area, (Elder, 2013). A similar idea could be implemented in Auckland, which would have positive implications for the construction industry. The construction industry is, however, hampered by strong labour competition from Christchurch and Australia. However in regards to Christchurch the scale of rebuild there will produce positive spill-over effects for Aucklands construction industry as Auckland is an important centre for finance, business services, insurance and manufacturing. Therefore, the construction industry would benefit in a number of ways through new intense building construction, modifications and upgrades and retrofitting. All these ways would create synergies and strength within the construction industry. Laying a Built Foundation Due to the global economic climate as well as Aucklands current housing need and the timing of the Auckland Plan and Unitary Plan set for near release, the construction sector is considered an important economic priority, especially for the short-term but also future into the future. In a way it sets the foundation for other types of industry to flourish in the medium to long term, those that are more capable of strengthening our export market. If the initiatives that were discussed previously, that result from the built infrastructure in which construction can deliver are put in place, then ideally we will have a more dense living environment, healthier homes that are also cheaper to run and more even spread demographics, affluence and cultures. The impression the Economic Development Strategy gives is a strong focus on what can be described as the fashionable innovation and technology sectors as the way forward. These are less tangible industries that ultimately come with a higher degree of risk. This may be the right direction in the long term to boost export earnings, however there seems to be little mention or regard for the more basic bread and butter industries such as construction or manufacturing as the foundation of the economy. An Environment for Education leading to a focus on Exports As mentioned previously planning can play an important role in shaping the built environment. This can then lead to an environment that can foster better educational achievement for a greater proportion of the population.

A more even spatial spread of demographics, culture and affluence, in which planning can influence, will result in a more even spread in quality of educational establishments. In theory this should then raise the average educational performance of the population, which in turn should improve innovation technologies, which can then be exported.

Conclusion
In conclusion both the Auckland Plan and Economic Development Strategy fall short in a number of ways. They both seem to paint an overly aspirational image of where Auckland needs to be without much commentary of the fundamental elements that need to be addressed. Although the construction industry is not viewed as a fashionable industry that leads directly to a strong export market it is a fundamental industry that, particularly in the short term, needs to be the focus of the economy. In essence it is the necessary first step to implementing the longer term goals detailed in the strategies. However it seems to have been leap-frogged to the more fashionable services and knowledge industries. It would be easier to make such a swift transition in a more efficient and equitable city, however Auckland is not. It has fundamental problems of transport, low dense housing sprawl and spatial inequality. These are not issues that will go away without strong leadership and focus in the right areas.

References
Auckland Council, 2013a, AUCKLANDS ECONOMIC DEVELOPMENT STRATEGY, Auckland Council, Auckland, New Zealand.

Auckland Council, 2013b, Business and Economy in Auckland 2013, Auckland Council, Auckland, New Zealand.

Auckland Council, 2012, The Auckland Plan, Auckland Council, Auckland, New Zealand.

Elder, V. 2013, Students, council join forces on flat issue, Otago Daily Times, Otago, New Zealand.