Landmark Auckland deal to unlock city’s potential

Prime Minister Christopher Luxon and Auckland Mayor Wayne Brown have signed a landmark Auckland City Deal, marking New Zealand's first city deal and a new era of long-term partnership between Auckland and central Government.

The Deal sets out how Government and Auckland Council will work together to unlock our biggest city's potential, boosting economic growth and improving living standards across New Zealand.

Prime Minister Christopher Luxon says Auckland has huge potential for growth that the whole country can benefit from.

"Auckland is New Zealand's economic engine room. This Deal is about getting that engine room firing on all cylinders so that we can lift incomes, create more jobs and make Auckland, and therefore New Zealand, more prosperous."

Auckland Mayor Wayne Brown says it's another major win for Auckland.

"This is a new way of working that establishes shared accountability, recognising the size and significance of Auckland - we are more like an Australian state than any other local authority in New Zealand," says Mayor Brown.

"The Deal better reflects Auckland's contribution to the national economy. It's clear; when Auckland does well, New Zealand does well."

Infrastructure Minister Chris Bishop says exciting things are already happening in Auckland and the Auckland City Deal will keep the momentum going.

"The new world-class convention centre is now up and running, we are liberalising Eden Park's planning rules so it can host more concerts and events, and we are launching an investigation into planning rules holding Auckland's CBD back.

"When it comes to infrastructure, the Central Interceptor Project will be finished this year, the third main line separating freight from passenger rail is now open, funding has been confirmed to complete the Eastern Busway, the line to Pukekohe has been electrified, and the City Rail Link will open later this year.

"On top of this, eight projects in Auckland have been granted consent under our Fast-Track legislation representing thousands of jobs and billions in investment."

The Government already has a range of tools and groups that interact with local government, such as NZTA co-funding for local roads, Urban Growth Partnerships and Crown funding for significant projects.

"So, this Deal isn't about reinventing the wheel and creating another layer of bureaucracy. It's about coordinating across Government into one place so that it's easier to work together and invest together to get stuff done. The new Ministry of Cities, Environment, Regions and Transport will play a key role here."

Key commitments of the Auckland City Deal include:

• Establishing a long-term partnership between Government and Auckland Council, including regular meetings between the Prime Minister, Ministers and the Mayor. There will also be a senior official from both Government and Council who will be accountable for delivering on the Deal.
• Reviewing Eden Park's ownership and operating model, recognising Eden Park as the national stadium, and contributing $5 million each toward relocating Auckland Cricket to Colin Maiden Park.
• Investing in the redevelopment and roofing of the Auckland Tennis Centre to support international events.
• Developing a strategy for innovation precincts in areas such as the Fisher and Paykel precinct and around University of Auckland's flagship innovation centre in Newmarket (including MedTech-iQ); and strengthening Auckland's global trade and investment links.
• Jointly developing a destination and major events strategy to grow tourism, events, and hospitality in Auckland.
• Establishing a coordinated 30-year transport strategy for Auckland, with priority projects reflected in the Government Policy Statement on Land Transport 2027 including the North-West Rapid Transit project, Botany to Airport public transport, Mill Road, and CRL level crossings.
• Working together on the additional Waitematā Harbour crossing project, time-of-use charging, and more efficient transport network management.
• Introducing a new Crown uplift funding tool for mutually-agreed, high-priority projects. The Crown will consider contributing funding for projects where the Council raises new funding significantly above current Long-Term Plan and BAU funding levels (e.g., from council asset recycling or targeted rates).
• Working together on Predator Free 2050, Pest-Free Auckland, the Auckland Indigenous Biodiversity Strategy, and restoring the biodiversity of the Hauraki Gulf.

Mr Bishop says Deal highlights four particular growth areas where the Government and Council will work together to drive jobs and growth.

"In Drury, Government and Council will work with private developers on coordinated infrastructure planning to support major housing growth, including new schools and a hospital alongside local infrastructure investment.

"In the Maungawhau-Kingsland-Morningside corridor, Government and Council will collaborate on zoning changes, infrastructure planning and urban development opportunities associated with the CRL.

"In the city centre, a revitalisation plan will open up opportunities for housing and business growth, including further residential upzoning and a potential new primary school.

"At the Airport, Government and Council will work with Auckland Airport on a plan to improve surface access to this major trade, freight and employment hub."

Mayor Brown agrees integrated planning alongside transport is vital.

"We must build where we have already invested significantly in infrastructure, and not in flood plains. We must provide housing near where people work.

"We can't just build anywhere a developer wants to build. The Council has been clear greenfields developments are costly and don't pay for growth, so I'm pleased we will be able to work with the Government to determine where growth makes the most sense, through the Regional Spatial Plan."

Local Government and Auckland Minister Simon Watts says the Deal sets a new standard for collaboration between central and local government in New Zealand.

"This is about long-term certainty and better delivery. By aligning our long-term planning and focusing on the fundamentals - transport, housing, innovation and skills - we are building the foundations for a stronger, more prosperous Auckland.

"The Deal enhances Auckland Council's funding and financing tools rather than creating open-ended new spending."

The Auckland City Deal establishes the model for future agreements with other regions, with work underway on two further Deals in 2026, in line with the National-ACT Coalition Agreement to institute long-term city and regional infrastructure deals, allowing PPPs, tolling and value-capture rating to fund infrastructure.