Auckland is NZ's ‘primate city', but its potential remains caged in by poor planning and vision
Auckland is hampered by car dependency, low-density housing and "weak economic performance", a recent report found.
Photo:
123RF
The recent report comparing Auckland to nine international peer cities delivered an uncomfortable truth: our largest city is falling behind, hampered by car dependency, low-density housing and "weak economic performance".
The
Deloitte State of the City analysis
was no surprise to anyone who has watched successive governments treat the city as a problem to manage, rather than an engine to fuel.
The report's findings were stark: Auckland rates 82nd out of 84 cities globally for pedestrian friendliness, and its car-dependent transport system is more carbon-intensive and slower to decarbonise than peer cities.
This is the direct result of decades of planning failures, including what urban researchers call the 1970s
"great down-zoning"
which halved central Auckland's housing capacity.
This isn't just Auckland's problem. When we mismanage what geographers call a "primate city," it reveals our fundamental misunderstanding of how modern economies work.
The concept of the primate city was
formalised by geographer Mark Jefferson in 1939
. Such cities are defined as being "at least twice as large as the next largest city and more than twice as significant".
Auckland fits this definition perfectly. With more than 1.7 million people, it is more than four times larger than Christchurch or the greater Wellington region. The city accounts for
34 percent of New Zealand's population
and is projected to hit 40 percent of the working-age population by 2048.
Auckland
contributes 38 percent of New Zealand's gross domestic product
and its per-capita GDP is 15 percent higher than the rest of the country's. Its most productive area, the central business district, enjoys a 40 percent productivity premium over the national average.
To economists, these numbers represent the
"agglomeration benefits"
research shows primate cities generate. It is the economic effect of combining businesses, talent and infrastructure.
Yet New Zealand systematically underinvests in the very place generating this outsized economic contribution.
Auckland's infrastructure deficit follows a predictable pattern. The City Rail Link, while progressing, has grown from an initial budget of NZ$2-3 billion to $5.5 billion, with
opening delayed until 2026
.
Light rail was cancelled entirely after years of planning. A second harbour crossing has been studied for decades without a shovel hitting dirt. Each represents billions in opportunity costs while congestion worsens.
This goes well beyond project mismanagement. It is a deep structural problem.
The
Infrastructure Commission-Te Waihanga
identifies a $210 billion national infrastructure shortfall, with Auckland bearing a disproportionate burden despite generating a disproportionately high level of revenue.
International
research by the OECD
shows successful countries treat metropolitan regions as engines of national growth, not a burden.
Public policy expert Ian Shirley
called it the "Wellington Problem"
: the way Auckland's governance became an obsession for politicians and bureaucrats based in Wellington.
The tension dates to 1865 when the capital was
moved from Auckland to Wellington
, establishing a pattern where political power was deliberately separated from economic power.
Auckland loses an estimated
$415.35 million annually in GST collected on rates
. This goes to Wellington and into government revenue rather than being reinvested locally. Central government properties in Auckland, worth $36.3 million in rates, are exempt from payment while still using Auckland's infrastructure.
When Auckland speaks with "one voice" through its unified council, Wellington responds with legislative overrides.
The recent National Land Transport Programme, for example,
cut Auckland's transport funding by $564 million
. Mayor Wayne Brown said the government's transport policy "makes zero sense for Auckland".
The contrast with international approaches reveals just how counterproductive New Zealand's approach has been.
London has an
integrated Transport for London authority
with congestion charging powers, generating £136 million annually for reinvestment. Paris is investing more than
€35 billion in the Grand Paris Express
transit project.
Japan's
"Quality Infrastructure Investment"
principles include ¥13.2 trillion in regional infrastructure investment. Australia's
A$120 billion infrastructure programme
explicitly recognises its largest cities contribute more than 50 percent of GDP and require proportional investment.
Research has shown excessive urban concentration in one country
can create problems
. But denying the primate city resources only leads to a "deterioration in the quality of life" that drags down the entire national economy.
The solution lies in making strategic investments that maximise the benefits of agglomeration while managing any negative costs to the national economy.
Auckland isn't a problem to be managed, it is an asset to be leveraged. Every successful developed economy has learned this lesson. Paris generates 31 percent of France's GDP and gets treated accordingly.
Seoul produces 23 percent of South Korea's output and receives massive infrastructure investment. Tokyo drives Japan's economy.
The international evidence is unambiguous: countries that strategically invest in their primate cities achieve higher productivity growth and maintain competitive advantages.
Auckland doesn't need sympathy or special treatment. It needs what every primate city in every successful economy gets: infrastructure investment proportional to its economic contribution, governance structures that reflect its scale, and political leadership that understands agglomeration economics.
The question isn't whether Auckland is too big. The question is whether New Zealand is big enough to nurture its primate city.
* Timothy Welch is a senior lecturer in urban planning, University of Auckland, Waipapa Taumata Rau
This article was first published by
[https://theconversation.com/auckland-is-nzs-primate-city-but-its-potential-remains-caged-in-by-poor-planning-and-vision-261176
The Conversation].
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
2 hours ago
- RNZ News
Kiwi workers wanted: 'The north of Australia is a really good option'
Northern Territory industry leaders were hunting for Kiwi workers at an Auckland job expo over the weekend. File photo. Photo: AFP Australian companies say they are not trying to poach NZ's workforce, but anybody who does fancy upping sticks for 'Straya's Northern Territory is being fair dinkum promised a chunk a' change that would make your Kiwi colleagues mad as a cut snake. Northern Territory industry leaders were at an Auckland job expo over the weekend to extoll the virtues of the vast region of Australia. There were stalls looking to recruit police and corrections officers, hospitality workers, health professionals, tourism operators and construction and infrastructure workers. A number of Kiwis visiting the expo told Checkpoint the better pay and better work opportunities were tempting. But what will it mean for New Zealand's already declining workforce if they take up the offer? For Kiwis across the motu, it can be a dispiriting daily grind: apply for jobs, often receive no reply and when they do land an interview, queues of people are lining up for the same job. It can take hundreds of applications, and often many months, before something finally comes through. The unemployment rate in New Zealand is at a four-year high at 5.1 percent, so it is very competitive out there. But in Australia's Northern Territory, they are desperate for people to join their workforce and they have got Kiwis in their sights. On Saturday morning at Auckland's Manukau Due Drop events centre, the expo was bustling with hundreds of students, job hunters and people just looking for a change. They told Checkpoint finding a job in Aotearoa has become increasingly difficult. "I'm looking for other work at the moment and there's literally nothing out there, thousands of people applying for jobs that I wouldn't usually apply for. "A lot of people have applied for jobs you see 150 people have applied, 200 people and you'll still be waiting for an answer." The Northern Territory's allure lies in its higher salaries, more job opportunities and the possibility of buying a home there. "I'm renting a two-bedroom house here for $550 at the same time when I see my sister she's in Alice Springs she's renting a two-bedroom house for $350. "I feel really bad going into a job that pays so little, and I've studied so hard, where there's like a $20,000 difference if I start here or if I start there." Damien Charles from the Northern Territory Information and Communication Technology and Digital Services industry said there was a wider range of opportunities in the sector. A $30-40,000 pay bump also did not hurt. "Having listened to a number of people come through they're quite downcast about ICT and digital sector here in New Zealand, it's quite hard to get into the market even for people with existing skills and experience." Andrew Craven from the Northern Territory Police said they were looking for new recruits to join the police and experienced police who might want a change in scenery. First-year constables earn a salary of $111,000 compared to $83,000 here. After five years in the force that increases to $121,000 in Northern Territory, compared with $91,000 here. There is also a housing allowance of up to $34,000 for officers jumping the ditch. Craven said there were many similarities between the Northern Territory and New Zealand police forces. "We speak to the New Zealand Police a lot because we interview experienced police, particularly in the Northern Island, I think they have very similar problems." Dr Tanzil Rahman - Member of the Parliament of the Northern Territory for Fong Lim in Darwin's east - made the trip to New Zealand to help snag some Kiwi workers. He said the Northen Territory offered a different lifestyle, better pay, a higher quality housing market and a warmer climate. "We know that New Zealanders are keen on Australia and do move to Australia and if you're looking for meaningful work opportunities that are well remunerated than again the north of Australia is a really good option." But for some Kiwis, the grass was not greener. "Australia's way too hot and there's too much drama there," said one. "People don't realise that in New Zealand we look after our retirees a lot better than they do in Australia." "I was offered about 1.7 times about what I would earn here in New Zealand. But what I love here about people in New Zealand is the people and the culture. We moved here when I was young from South Africa, so I call New Zealand my home and I'll stay," said another "We've got the most beautiful scenery in the world, great people and a wonderful future I'd stay here," said a third. The Northern Territory job expos were held in Christchurch and Auckland over the past two weekends hosting jobs and information sessions for Kiwis keen to get a glimpse on life and work. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
7 hours ago
- RNZ News
Australian expo to recruit Kiwi workers hits Auckland
It appears Australia could be coming for our cops and other skilled workers. Industry leaders from the Northern Territory were at an Auckland expo over the weekend extolling the virtues of working over ditch. There were stalls looking to recruit police and corrections officers, hospitality workers, health professionals, tourism operators and construction and infratructure workers. Bella Craig reports. To embed this content on your own webpage, cut and paste the following: See terms of use.
RNZ News
8 hours ago
- RNZ News
One year, 27,850 jobs gone Stats NZ latest data shows
Photo: 123RF New data shows there were 27,850 fewer jobs in New Zealand in June compared to the year before, and young people are feeling the impact of the weak labour market . Stats NZ's latest data shows the number of filled jobs was up 0.1 percent month-on-month but down 1.2 percent year-on-year. Compared to the year before, construction had lost 12,169 jobs, or 6 percent, manufacturing 5850 jobs, or 2.5 percent, professional, scientific and technical services 5150 jobs, or 2.7 percent, and admin and support services 4860 jobs, or 4.7 percent. Education and training and primary industries added jobs. People aged 15 to 19 had 10 percent fewer jobs, those 20 to 24 had 3.5 percent fewer and those ages 25 to 29 had 3.9 percent fewer. Hugh Hawkins, 23, has been looking for a job since finishing an honours degree last year. "Now we're in late July and I've managed to find a tiny bit of casual work through connections of people I know. Otherwise I've been serially ghosted with absolutely no success." Hawkins had set a target of 10 applications a week. "A couple of jobs I was excited for, I felt genuinely directly qualified for, I've gone for and not reached the interview stage. The rejection email often comes with a total of applicants they've had and one I was qualified for had 630 people apply." It seemed a widespread problem, Hawkins said. "Chatting to my coworkers they're virtually all in the same situation. They have to rely on the benefit to pay rent with casual work on the side. People from different walks of life, most young and very qualified…I worked hospitality roles through uni and took volunteer roles and internships relevant to my degree to set myself up as well as possible… if I'm struggling it must mean terrible things for what other people are also going through." Infometrics economists noted that May's month-on-month increase in filled jobs had been revised down in the latest data to a decline. "June's narrow rise could also be revised to flat or negative growth in future releases." Auckland had a 1.9 percent year-on-year fall in filled jobs and Wellington was down 2.3 percent. Canterbury was up 0.1 percent. ASB senior economist Mark Smith said it had been noticeable in the last year or so that young people were being most affected. He said there were likely to be more job losses than the data indicated because some businesses would have added roles during the year. "This is normally a cyclical phenomenon. The hope is that some will go into training if it's available but it's not available for everyone. "The labour market tends to be the last thing to move." He said it was concerning that the revisions in the data in recent months had all been down. "The trend is still falling. It has dragged on… Covid was huge and there are hangovers from that." He said the unemployment rate was likely to move higher in the coming months. Some people who had lost work had dropped out of the labour market, which meant the participation rate fell. The unemployment rate only counts people looking for work. "If that participation rate did not keep falling we would have a much higher unemployment rate, it would be closer to six. "Really the primary sector and the South Island are the good news stories. There is weakness still in the goods sector and the major centres." BNZ chief economist Mike Jones said he still expected the "mid-year activity air pocket" would pass. "The underlying drivers of the recovery remain in place and should reassert themselves in coming quarters. "But the recent weakness does push back the likely timing of the eventual labour market recovery. We doubt the current undershoot of firms' labour requirements relative to worker availability will change appreciably this side of Christmas. Our forecast peak in unemployment has been shunted out to 5.4 percent in the final quarter of the year. Wage growth should thus continue to slow through to the middle of next year." Green Party spokesperson for social development and employment Ricardo Menendez-March called on the government to "take charge and create jobs that help us build a better future". He said the Green Job Guarantee in the party's alternative budget would create 40,000 jobs to rebuild infrastructure, restore nature and build state housing. "We know people out there need opportunities, instead they are being punished and pushed into poverty."
