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Simon Wilson's Love this City: Talkfests and Auckland's bad case of Fonterra Syndrome

Simon Wilson's Love this City: Talkfests and Auckland's bad case of Fonterra Syndrome

NZ Herald18-07-2025
Fonterra moved into brand-new custom-built Greenstar premises in the Wynyard Quarter in 2016. It's the city's premium commercial and upmarket residential precinct. The streets are beautifully planted and limited to 30km/h. The design standards of all new buildings are tightly controlled and some of those buildings even house tech companies, both large and small.
Wynyard has the waterfront, a series of parks and play areas, a theatre, a seawater pool, events centre and outdoor events venues, and it's home base for some major water sports. It connects directly to trains, buses, ferries, boardwalks, cycleways and the motorway.
It's central Auckland as its movers and shakers want it to be: lovely, highly functional, a drawcard day and night for locals and visitors, humming with achievement and with potential for more. A fully modern precinct in a city that says it really, truly does want to be modern.
And Fonterra? In May last year, this export-led company announced it would ditch its value-added strategy and focus instead on commodity sales.
Even though it's a tech-driven company, Fonterra has reverted to a bulk, low-value approach to making money.
Head office is in the Wynyard Quarter (great modern company!) but the business model is mired in the 19th century. And don't even start me on methane.
There is some good news in that State of the City report. Auckland is a leader among other comparable cities in its cultural appeal, environmental commitments and climate-disaster resilience. Strong rankings in these areas are a testament to Auckland Council's targeted environment rate, to the Making Space for Water plans and to its cultural and community programmes, all of which enjoy strong public support.
Whether or not you think they're part of the 'basic' spending the Government wants councils to focus on, they make a difference to our lives.
The Fonterra headquarters on Fanshawe St in the Wynyard Quarter. Photo / Grant Bradley
But then there's the rest of the report. Mark Thomas of the Committee for Auckland, which initiated it, says 'inadequate skills and innovation development, and disjointed and delayed planning are causing Auckland to lose ground, with the risk of falling further behind'.
Auckland ranked 99th globally for productivity, which according to the report means we're about 15-20% behind where we should be.
There are seven peer cities we're directly benchmarked against: Copenhagen, Fukuoka, Vancouver, Austin, Tel Aviv, Dublin and Helsinki. Among them, our productivity ranking is last.
The report's author, Tim Moonen, says; 'Other cities internationally have now moved in some cases quite substantially ahead on investment, business appeal, job outcomes, wages versus costs. On balance, more capital, more talent is consistently flowing out to larger and better places'.
Mayor Wayne Brown says the State of the City report 'highlights an urgent need to lift Auckland's economic performance and competitiveness'.
But does he take this seriously?
Brown has announced a 'Leadership Group' for the Auckland Innovation & Technology Alliance, a body he set up in May after an Auckland Innovation Forum attended by more than 130 tech and innovation leaders.
The leadership group is led by Simon Bridges, chief executive of the Auckland Business Chamber.
'This isn't another talk shop,' says Brown.
'It's a delivery-focused team of proven Auckland leaders who know how to cut through and get things done.'
A cynic might wonder if they're all talk shops: State of the City reports, Innovation Alliances, the works.
Brown's announcement was full of jargon and didn't propose anything specific.
Sir Peter Gluckman, who's on his leadership group, said; 'If we want to build a future-ready economy, we must ensure Auckland's innovation system is better aligned, better resourced, and globally connected. Cities are the primary units of innovation internationally'.
It's true. It's obviously true. But how much does it help just to keep saying it?
Auckland Mayor Wayne Brown: a "leadership group" but it won't be "another talkfest". Photo / Alex Burton
The former head of Business NZ, Phil O'Reilly, is just back from a trip to Europe and he's been saying the same thing too.
In EU countries, he told RNZ, the best business opportunities are shifting from agriculture to high-tech, logistics, infrastructure and digital sectors.
You might almost think he was having a dig at Fonterra. But are we geared up for it?
There's enormous scope for Auckland to apply tech-driven solutions to some of its biggest problems. Transport, freight management, flooding, housing, healthcare, addressing the long tail of failure in education.
But perhaps we have to stop thinking that 'tech' means RocketLab.
Relatively cheap modern tech solutions abound. Why are we still not building thousands of prefab houses?
Where's the commitment to experimenting with mass transit like overhead services. Why is it taking forever to introduce congestion charging?
This week we learned that most students in South Auckland have failed their literacy and numeracy tests. One of the reasons is said to be the tests are conducted online and many students from low-income homes don't have access to a computer. There'll be a lot more to it than that, but this looks a lot like the city not only has an IT gap, we are now punishing people for being on the wrong side of it.
Do we want the city to thrive or not? Give them a computer!
Postscript: On Friday the Government announced it would fund a new Institute for Advanced Technology (NZIAT), to be based in Auckland, to the tune of $231 million over four years. We'll learn more about this soon.
More diesel ferries on the way
A pair of diesel ferries run by Fullers on the Waiheke route. Photo / Jason Oxenham
You read that right. The board of Auckland Transport, acting on advice from its executive, has decided to buy more diesel ferries for use on the Waitematā Harbour.
This was revealed in a council meeting on Thursday, shortly after chief executive Dean Kimpton had assured councillors; 'We're committed to reducing emissions'.
'But,' spluttered councillor Shane Henderson, 'we've given you a clear direction to buy electric ferries and yet the AT board had made a decision contradicting that'.
'I understand that 70% of new ferry orders around the world are for electric ferries,' said councillor Richard Hills. 'Why would you not be part of that?'
AT actually has bought two new electric ferries, made here in Auckland, and they'll soon be in use. It also has two hybrid electric-diesel ferries on the way and it's been rolling out the charging network to service all four boats.
But, AT's Stacey van der Putten told the council, more ferries will be needed by 2028 and 'modern diesel' offers the best option for cost and reliability, at least for now. Especially as the Government will not help fund electric ferries.
AT board chair Richard Leggat added, 'It comes down to dollars'.
Then he said it comes down to reliability.
'If we have a ferry out [of action], we lose consumer confidence.'
Both appeared to worry that e-ferries may be less reliable, although neither produced any evidence for this.
The first of two fast ferries that will be used by Auckland Transport. Designed by EV Maritime, they're being built at the McMullen & Wing shipyard in Auckland. Photo / Dean Purcell
Councillors all around the table were sceptical of the cost and reliability arguments and asked to see the evidence.
Michael Eaglen from EV Maritime, which designed the new e-ferries Auckland is getting, told me after the meeting that a comparative analysis of electric and diesel was a good idea and most of the work had already been done, by his company and by AT.
'Life cycle analysis shows that carbon-fibre electric ferries have much lower emissions intensity on a whole-of-life basis than any form of aluminium ferry, or any form of diesel or hybrid ferry,' he said.
He didn't think there was any substance to the suggestion e-ferries are less reliable.
Some councillors suggested the new diesel ferries could be made 'electric-ready': able to be converted at some point in the future.
Eaglen doubts the value of that, too.
'EV Maritime, and I think both Fullers and AT, have all looked at this and all found it to be demonstrably unattractive. Simply put, you wind-up building bad diesel boats, which later become bad electric boats.'
Hills reiterated his point, mentioning 'New South Wales, Brisbane, British Columbia, Seattle' and 'many Chinese cities' as places where electric ferries are running successfully. His '70% of all new ferries' figure comes from Clean Technica, a clean-energy information service.
He could have added Norway: it has about 70 highly functional e-ferries.
Or spelled out that in Sydney they've committed to a fully electric ferry fleet by 2035. Given all this, Hills wondered, why would AT think e-ferries are less reliable than diesel ferries?
Who's AT been talking to that it would suddenly back away from electric ferries? More to come on this.
Falling in love with ferries again
Ferry popularity in Auckland compared with other public transport modes.
In better ferry news, they've become Auckland's most popular form of public transport. Stacey van der Putten produced a graph at the council meeting showing that in the March 2025 quarter, ferries enjoyed 92.3% customer satisfaction. It's the highest mark they've reached for at least 10 years.
Buses were at 91.3% and trains at 88.1%.
The graph makes the benefit of improving services very clear. The rail network had low and erratic support until electrification was completed in 2015, after which its popularity soared. The rollout of new bus services the following year had the same effect.
Ferries, meanwhile, endured years of instability from 2017 until the end of 2023, but then their popularity rose sharply too. Trains, on the other hand, took a dive during the maintenance closures and major disruptions of recent years, before bouncing back a bit this year.
AT also reports the ferries currently have 96.4% punctuality and 96.8% reliability.
Restaurant Month menus are live
Meals for different price points and special drinks to accompany them: all part of the fun in Restaurant Month. Bookings are open. Photo / Supplied
Restaurant Month is less than two weeks away. The special menus of participating restaurants are available to view online and Heart of the City reports that bookings are up 88% on the same time last year.
This year's theme is 'Don't Try This At Home'. The full programme, with options for meals at $35, $45 and $55+ price points and a whole lot of special one-off events, is here.
The great Karanga-a-Hape rethink rethink
On the streets around the Karanga-a-Hape Station, the original pedestrian-focused plans will now proceed. Photo / Simon Wilson
Last week Auckland Transport (AT) announced it had revived its original plans for a pedestrian-focused precinct around the new Karanga-a-Hape railway station, part of the City Rail Link.
On Tuesday, the Waitematā Local Board endorsed the decision, 4-3, with the City Vision members and independent chair Genevieve Sage voting for it and the C&R members voting against.
This overturns a decision to abandon those plans in favour of a more car-focused approach, and brings to an end a remarkable episode of urban planning of the city.
The original plans included a pedestrian mall on Mercury Lane, between Karangahape Rd and the station entrance just past the old Mercury Theatre. The revised plan made it easy for cars to pass through.
The original has now been largely restored, although in a slightly peculiar way. Bollards will be in place at each end of the block, but technically it will be a shared space, with vehicles still able to enter and exit the street, by triggering the bollards to be lowered.
AT calls this 'consultation by doing': if the street is used overwhelmingly as a pedestrian mall, that will lead to it becoming one.
But if it's not, then the bollards might stay down. Once the CRL opens next year, the theory goes, the users of the street will vote with their feet, or their car horns.
On Cross St, which runs east from the station entrance, the original plan reduced the parking and widened the footpaths. The revised plan removed almost all the pedestrian-friendly features and made it a street for vehicles. The final plan ensures there is enough parking for service vehicles while restoring the footpath extensions and adding better lighting.
The original also retained the cycleway and north-only roadway on East St. The revised plan removed the cycleway and made the road two-way for cars, but the final plan reverts to the original.
The Karangahape Rd Business Association and the City Centre Advisory Panel both told AT they would prefer a 'modal filter': a barrier halfway up the street, so vehicles could drive in and out from either end, but could not drive through.
This is a way to support local traffic while stopping rat running.
AT couldn't see their way to allowing that. But the council and its new Urban Development Office have both expressed interest, which means it could happen later.
When the original plans were consulted on in 2023, more than half of submitters 'strongly agreed' they would improve the precinct and their own lives, and that rose to about three quarters when the 'agreed' numbers were added. That indicated strong public support.
These views reflected a larger issue: that after all the investment in the CRL, catching the train and using the railway station should be a safe and rewarding experience.
But earlier this year, due to opposition from some retailers and some residents in a nearby building, AT withdrew the proposals. It then faced a barrage of complaints from people wanting the original plans and the original consultation process honoured. After all, what's the point if it's just going to be ignored?
This week, after more 'stakeholder engagements', AT accepted that logic and largely restored the original plans.
Inside the new Karanga-a-Hape Station, part of the City Rail Link. Photo / Auckland Council
'We take feedback from the community seriously, which is why we took time to revisit the design and engage widely,' said Jane Small, AT's group manager of rail infrastructure.
'In a public project like this, it is challenging to satisfy everybody completely.
'We have worked hard to balance the different perspectives in the local community, and ensure the project aligns with plans and aspirations for Auckland's city centre, maximising the positive impacts of the City Rail Link.'
Councillor Richard Hills led the effort inside the council to push AT into a rethink.
He says; 'This result is so much better than where we were a few months ago. It's not perfect but it's a good result if everyone sees it as a compromise.
'It will encourage safe entry and exit to and from the new world-class station for the thousands of people who will use it each day, which will also help invigorate the Karanga-a-Hape business and residential areas'.
Greater Auckland's Connor Sharp, who led the public campaign, says; 'It's vital to remember the key lesson here. We don't have to accept plans and promises being watered down, backed away from, and broken.
'When we choose to speak up, we can make a difference and change things for the better'.
Bus drivers who go above and beyond
Auckland Transport has a reward scheme for drivers who go above and beyond. Photo / Dean Purcell
Deputy Mayor Desley Simpson told her colleagues on council a story this week about a bus driver who had helped every passenger in the pouring rain get safely off the bus and into covered shelter.
'Going above and beyond,' she called it.
She said Auckland Transport has a scheme to reward drivers who go above and beyond, and anyone who sees it happening might like to let them know.
Aucklanders like Government most
We like him in Auckland: Christopher Luxon, local lad and Prime Minister. Photo / Mark Mitchell
Aucklanders are much fonder of the Government than the rest of the country is, according to a Freshwater Strategy poll released this week.
Nationally, a mere 29% of us think the country is 'heading in the right direction', but in Auckland it's 48%.
This mirrors the result of the 2023 general election, where the National Party was more popular in Auckland than in the rest of the country.
The unfavourability ratings are similar: 54% of the country thinks we're heading in the wrong direction, but only 38% of Aucklanders think that.
Prime Minister Christopher Luxon is also more popular in his home town than elsewhere. His net favourability rating is –1% here, but –27% nationally.
No word yet on whether there's a settled view of who should be playing in jerseys 6, 11, 13 and 14 for the All Blacks.
Midtown programme update
An artist's impression of what Victoria St will look like after the completion of the Midtown upgrade.
Midtown, the central city area around the Civic and stretching a block or two down Queen St, is still disrupted by roadworks.
Some of them are because of the City Rail Link and some are because Auckland Transport is giving Victoria St a makeover, but perhaps the biggest disruption is caused by Watercare, which is replacing some very old pipes.
They have a tunnel boring machine down there and it's a tough, complex job.
Queen St used to be Te Waihorotiu stream, which became more or less an open sewer as the city started to grow. Then the stream was walled off and over a hundred years of pipes, cables and other paraphernalia were buried beneath the road.
Putting in new pipes means they have to work their way through all that, digging out what's not wanted and taking care not to disrupt what's still in use.
In the meantime, with Queen St, Quay St and Victoria St more pedestrianised, and with Wellesley St destined to become the main crosstown route for buses, Auckland Transport has produced a map showing the easiest ways for cars from the east to get across the city.
Auckland Transport's map of the best routes to use to drive across the city centre.
Essentially, it suggests drivers should not try to use Wellesley St, Victoria St or the western end of Quay St, but should take Customs St or Mayoral Drive and Nelson St. Going round is quicker and easier than trying to go straight through.
At the council meeting where this was discussed, councillor Mike Lee complained that the roadworks 'are doing a great deal of harm to the city centre'.
Councillor Chris Darby responded that those roadworks are 'future facing work for the city centre for generations to come'.
'Dystopia!' shouted Lee.
Councillor Richard Hills told him there's a pipe being replaced on Victoria St that's 13m deep, and that the work was necessary because there are 18 development projects in the central city and they need good infrastructure.
'Remember Quay St?' he said.
'Everyone complained when that work was being done, but we needed to do it. A 100-year-old seawall was replaced, basically the front of the city was falling off.
'But look at how good it is now, look at how popular it is. Midtown will be the same.'
Councillor Andy Baker said he had just one word to say to everyone who complains that Auckland is fixing its infrastructure: 'Wellington'.
To sign up for Simon Wilson's weekly newsletter, click here, select Love this City and save your preferences. For a step-by-step guide, click here.
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Mediawatch: Media milking butter battle
Mediawatch: Media milking butter battle

RNZ News

timea day ago

  • RNZ News

Mediawatch: Media milking butter battle

Big money for butter - as seen on TV on 1News on Tuesday, reporting the bitter butter battle turning political. Photo: screenshot / TVNZ 1News "How much is a block of butter?" a reporter from Stuff asked as things wrapped up the prime minister's post-Cabinet media conference on Monday. The tension was palpable. This was a high-stakes moment. "About $8.40 in New Zealand at the moment," Christopher Luxon responded. Close enough, thankfully for Luxon. Woolworths' in-house salted butter is $8.50, and you can get 500g of Rolling Meadow at PaknSave for $8.29. The consequences for getting it wrong would undoubtedly have been dire. In case you've been living under a rock inside a cave on the planet Venus during a solar storm - while wearing a blindfold and noise-cancelling headphones - our entire nation and nearly all of its media organisations have been fixated on the price of 500g of pure concentrated uncut dairy. The price has risen nearly 50 percent in a year and that's caused quite a few conniptions back home on Earth. Stuff actually ran a story on Luxon getting the price of butter right. Meanwhile journalists accosted Fonterra boss Miles Hurrell out in the open with questions about the cost of his company's yellow gold. First he had to fend off TVNZ political editor Maiki Sherman , not once but twice, ahead of a heavily-promoted meeting with finance minister Nicola Willis at Parliament. Hurrell got away, only to encounter RNZ's political reporter Giles Dexter afterwards - and by then he was pretty fed up. "I'll talk to media in the morning," he replied tersely to Dexter's enquiries. (Two more days passed before he actually did). But the media's intense interest in that meeting was understandable. It had been billed as a kind of 'please explain' and the finance minister told RNZ's Checkpoint she would grill Hurrell on the price of butter. "Sometimes we're seeing cheaper prices in British or Australian supermarkets and I'm interested to understand how much of that is about the lack of supermarket competition here - and how much is about the prices that Fonterra is passing through," she said. But that tough talk got the goat of Newstalk ZB morning host Mike Hosking during his weekly interview with the prime minister on Monday. "No she's not," he responded, after Luxon said Willis was doing a good job on food prices. "She's off to Fonterra this week to meet who? Miles. And what's she going to talk to Miles about? She's going to talk about the price of butter. I can tell you why the price of butter is the price of butter, and I don't know why we have a finance minister who doesn't know. We get the international price for butter." "Nicola has this penchant for saying stuff that might lead you to believe she could produce an uzi out of a handbag and blitz the room," he said later in a two-minute-long Mike's Minute . The following morning Willis was keen to tell RNZ's First Up her meeting with Hurrell was just a regularly scheduled catch-up. But the Fonterra boss was pursued around Parliament and the streets of Wellington nevertheless. It didn't deter our media from delivering blanket coverage of the meeting and post-butter discussion analysis - and the price of butter more generally in news bulletins, commentary and explainers . The Herald 's Liam Dann implored the media to have a little bit of perspective in his weekly column in the Herald on Sunday last weekend. He said high butter prices are actually only costing many families about $4 a week and other price rises hit harder. He told Mediawatch we might be overreacting to the incredible cost of a spreadable product. "If you're going to get worked up about a food product in New Zealand, it's going to be dairy. There's a sort of cultural connection to dairy and this feeling that we produce so much of the stuff that it's not fair that it costs so much." Dann said high dairy prices were a net positive for the country's economy, with the current spike expected to bring in an additional $10 billion in export revenue over this year and next. Politicians - including former Fonterra employee Nicola Willis - were well aware of that. But he acknowledged those gains were less tangible and visceral than the sight of a $10 block of butter in the supermarket aisle. The high price of butter was also emblematic of the wider cost of living crisis, he said. "I'm certainly not downplaying the cost of living crisis... but if you actually do the maths and crunch how much discretionary income's coming or going based on your butter consumption, we're talking cents." "Perhaps it is just that we need something to focus on, to channel that anger around what's happening to the overall supermarket sector." Dann has pleaded with politicians to " raise the quality of debate " and focus on structural economic issues rather than the price of butter. But surely that goes for the media as well? Liam Dann didn't want to blame the media, but said the wider issue of New Zealand's low wage and under-productive economy was far more important and worthy of analysis than individual commodity prices. "How do we organise the system so we've actually got a thriving domestic economy, people are paid more and can afford to eat these products that we've grown up culturally seeing as our own?" Good question. For now though, the media is firmly focused on butter. The meeting between Hurrell and Willis, in particular, would have been a friendly one rather than the adversarial encounter some stories suggested. But that reporting was driven by the intoxicating allure of thousands of clicks. "We see that the butter story is what everybody's clicking on... and it becomes a topic that gets momentum. We start asking economists about the butter, and then that gets into people's heads," he said. "We get a sort of a media spiral going where it just becomes a bit of a phenomenon in its own right." That may not be as edifying as a discussion of the economic conditions behind our lagging wages, but it's certainly a lot more clickable. In the end, just like Fonterra, the media is a business too - and it also follows the money. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Heather du Plessis-Allan: We are being irrational about the price of butter
Heather du Plessis-Allan: We are being irrational about the price of butter

NZ Herald

time2 days ago

  • NZ Herald

Heather du Plessis-Allan: We are being irrational about the price of butter

Unless you're into commercial scale baking, butter is not the thing putting the most pressure on household budgets. Try power. This winter power is costing the average household almost a block of butter every day. Or rates. That's costing the average Wellingtonian more than a block of butter every day. Those expenses have no alternatives. You have to pay them. With butter we at least have alternatives. If we don't like the price we can do a swap. I don't want to be Marie Antoinette but at least we have the option to switch to margarine. Not only have we abandoned logic, but also facts. Even the Finance Minister briefly took to complaining that butter is cheaper in Australia than in the very country that produces it. Except that's not true. At the time of writing, if you take Woolworths' salted butter, which is available both sides of the Tasman, adjust for currency and the fact the Australian Government does not charge their equivalent of GST on butter, we actually pay 30c less. Discounting butter domestically is impractical, as it would require subsidies, impacting farmers and shareholders. Actually, the price of butter is a good news story for New Zealand. Because if we're paying our farmers more, the world is paying our farmers more. And they're buying a lot more blocks of butter than we are. So that means they're paying a good chunk towards our tax take, our health, our roads, our schools. It's become slightly fashionable to suggest the solution is to discount butter domestically. That's a nutty idea. A discount is a subsidy. A subsidy has to be paid by someone. Who? Fonterra? The shareholders will probably object to that. Maybe, if this drama runs on long enough and there is enough reputational damage to Fonterra, it might be in the business' interest to cut the price to make the pain stop. That would not be a good day for farmers and shareholders. Miles Hurrell attributes the 46.5% rise in butter prices to global demand and supply issues. Photo / Alyse Wright The Government? Again, bonkers. If New Zealand is too broke to afford the full Dunedin hospital build, we're too broke to help commercial bakers afford their butter. The truth is there is no fix to the price of butter that isn't stupid or temporary. We simply have to pay the price that we pay. And the Finance Minister knows this. She knows this because she is a very clever woman. And because she worked for Fonterra for six years. Finance Minister Nicola Willis has turned butter into the cost-of-living symbol. Photo / Mark Mitchell So, she should never have turned butter into the cost-of-living symbol she has. This really started with her in April when she visited Costco and was taken by the fact it could sell butter for about half the price mainstream supermarkets were selling it for. It became her evidence that supermarkets were ripping us off. But then somehow, Fonterra got dragged into it and one of their regular ministerial briefings became a please-explain. And then the TV news was chasing the CEO Miles Hurrell around the forecourt of Parliament and going live to air while the meeting was under way. And there were expectations. And then nothing happened. And it has become yet another example of the Finance Minister, disappointingly, talking big but doing nothing. Just like with the retail banks. And just like with the supermarkets, so far. Spare a thought for Hurrell. The man is one of the most impressive Kiwi CEOs of his generation but had to spend his week cast as the villain of the butter story. There is no story. It's not even the biggest pressure on our weekly bills.

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