Annual Budget update

The past month has been the key month for Auckland Council’s annual budget decisions were made June 1st in a long but lively meeting.

In this process I have been sure to listen to the feedback that the people of Orakei have given me through the submission process and the two consultation events in the ward.

Some key points from the budget include;

1.       2.5% rates rise for residential ratepayers ( the lowest rates rise for our Ward rise since amalgamation).

2.       A rise in UAGC of 2.5% ( which lowers the proportion of the rate that is based on capital value)

3.       $30 million dollars of savings ( it’s worth noting that Council has found enduring annual savings of $224m per annum since amalgamation, but we still have more to find)

4.       Accommodation targeted rate to save the ratepayer having to fully fund tourist promotion

5.       Living wage was adopted in a refined form

 

There are obviously other key budget items which I’m happy to share with your Residents associations if requested and which I will put up on my website this month

Auckland Council increases support for access to sporting facilities

Earlier in May, I was part of the Environment and Community committee which voted to increase council’s support for community access to the ASB stadium via the East City Community Trust to $90,000 per annum, an increase of $10,000.

The same meeting also endorsed the continuing support for the Auckland Netball Centre in St Johns with a grant of $150,000 per year for community access and participation .

This spending ensures that the community has access to indoor sports facilities to fill the geographic gap where council does not have its own facilities available for public use.

Hyundai Marine Sports Centre ( RAYC site on the Landing)

I was honoured to participate in the sod turning for the soon to be built Hyundai Marine Sports Centre on April 12th on the site of the RAYC at the landing. This is a project that has taken a few years to get underway and I am pleased that the Orakei Local Board has been a committed supporter of this over the past six years. When it is completed it will be a great asset for the community and an example of how public funding can combine with business to create real wins for the community.

Making sure Elected members receive quality advice

It’s important that elected members receive all the information they need before they vote and/or make a decision. Quality of reports presented to me in the past have caused me to take a stance on trying to improve this. This month I have taken on the role to chair the Quality Advice Political Advisory Group. The title is a mouthful, but the work of this group is important. Auckland's elected representatives need accurate information to help form their decisions and this group is tasked with making sure that the organisation is providing top quality advice. At present external ratings rank Auckland Council as 3rd in New Zealand for quality advice and I want to see this rise to being the best in NZ.

ANNUAL PLAN-What did Aucklanders think?

Thank you to all those who submitted on the Auckland Council’s Annual Plan. It’s important for elected members to listen to their communities and then advocate, vote and do their very best to deliver on that feedback. By way of background, the Annual Plan is a legislative process that Auckland Council must consult on. It has 2 main components, We request feedback from residents and ratepayers on the regional mayoral initiatives for the year, and secondly on whether local boards have their key priorities and advocacy in line with community views.

Every household was sent a copy of the Annual Plan submission form in the March edition of Our Auckland. In addition to this, Auckland Council put on, or was present at, seventy events around the region where Aucklanders could ‘Have their say’. The Orakei Ward is fortunate to have a resident’s association representing each of its ten suburbs. One of their key objectives is to assist communication between Council and communities. To that end, I asked each residents association if they wished me to speak to their members on the key regional proposals. Those who took me up on my offer were accommodated, with one public meeting in St Heliers hosting over 80 people. Feedback on the annual plan was via email, in writing, verbal and via social media channels. We received double the number of responses on the Annual Plan than last year, which was heartening.

This year, we consulted on more than just the level of rates - we also asked for your views on the relative level of business rates, paying for tourism promotion, housing infrastructure and paying council staff a living wage. Whilst not every Councillor agreed with every aspect of the mayoral initiative, we all supported asking Aucklanders for their views before making a decision.

 So what were the results, and were the views within the Orakei Ward shared by those living in other parts of Auckland?

Rates increase

54% of Orakei submitters thought that a 2.5% rates increase was the right level.

18% thought the rates should be raised by 3.5 Those that thought it should be higher preferred that additional funds be spent on transport

27% thought the rates should be raised by no more than 2%.

 Regionally 56% supported a 2.5% rates increase. 16% supported higher rates, again with transport being the focus for extra spending

Rating Stability

72% thought that business and residential ratepayers should have the same increase

Regionally 65% supported business and residential ratepayers having the same increase.

Paying for tourism promotion

72% thought we should raise a targeted rate on the accommodation sector to pay for tourism promotion.

Regionally 65% supported the proposal.

Paying for housing infrastructure

75% agreed with the initiative for housing developments to include a targeted rate to pay for the infrastructure costs incurred by that development.

Regionally 66% agreed with the initiative

Living wage

61% of Orakei submitters agreed that Auckland Council should pay a living wage to its employees

Regionally 71% supported the implementation of a living wage policy

Of course there is still much work still to be done before the Annual Budget can finally be adopted, so the next few weeks are packed with meetings for Councillors and the Mayor before final decision making at the Governing Body meeting on 29 June.

As for my vote on the above. Whilst my personal view does not always match the feedback, I did stand on an election platform of listening to locals. The results speak for themselves and those who took the time to feedback, should in my opinion be given the respect of being listened to.

Desley Simpson: Ateed beating drum for Auckland

The below column appeared in the New Zealand Herald on Friday 28th of April, 2017.

 

Just about everywhere I go, people ask me the same question: with huge infrastructure, transport and housing issues affecting the region, why does Auckland Council spend ratepayers' hard-earned money on its tourism, events and economic development agency Ateed?

As industry, commentators and the public debate who should pay the bill for promoting Auckland's visitor economy, the question has become "Do we even need an Ateed?"

I have spent time looking at why the agency exists, what it does, and - most importantly - what benefit it delivers to Auckland and its ratepayers.

It's become clear to me that regional economic growth is a complex dynamic. Every major international city has some form of tourism promotion and economic development agency.

Cities compete in a demanding global environment. It's cheaper and easier than ever before to visit different destinations, and for investors, skilled migrants, students and companies to cross borders.

Unless we make Auckland's voice heard and secure the best for our region, investment and ultimately jobs and prosperity will go elsewhere.

Before Auckland Council came about in 2010, promoting Auckland was piecemeal. Central government promoted destination New Zealand, but not specifically Auckland, which was only positioned as a gateway.

The legacy councils did their best, but a single agency was needed to deliver the crucial strands of regional economic development.

Since then, Auckland's visitor economy has grown from less than $5 billion to more than $7.4b and 2.5 million international visitors a year. In 2016, the tourism industry employed 55,670 people in Auckland, up 5.6 per cent on the previous year. The sector is now our 8th biggest employer.

The major events work, and tourism and business events promotion undertaken by Ateed has played a major part in that growth.

Ateed's major events portfolio investment on behalf of council adds enormously to the vibrancy and excitement of Auckland and has generated new GDP of about $250m and nearly 1.5 million visitor nights to date.

Independent research shows incremental spending by visitors attending Ateed-secured major events alone has averaged $50m a year.

For example, the 2017 Downer NRL Auckland Nines brought in more than $8m with new incremental accommodation spend of $2.7m. Last year's Pop-Up Globe yielded $1.6m with nearly half a million dollars spent on accommodation.

Ateed pitched for and won a second rugby test match at Eden Park during the upcoming DHL New Zealand Lions 2017 tour. This means that our region will benefit twice by hosting the estimated 17,000 travelling Lions fans.

The World Masters Games 2017 has attracted 25,000 competitors - more than double the number of athletes at an Olympic Games. The games will bring nearly 250,000 extra visitor nights.

From a tourism marketing perspective, Ateed's long-term collaboration with Flight Centre to promote Auckland in the Australian market has fuelled a $30m increase in accommodation, transport and attraction packages.

The 30 international conferences Ateed has helped to attract to Auckland will add more than $35m to the regional economy. The agency's work has seen Auckland's cruise ship economy grow from $100m in 2011 to more than $250m in 2016.

The agency also does some great work supporting the growth of selected industries where Auckland is globally competitive, and is helping the city become an Asia-Pacific innovation hub.

Ateed has supported the development of the new Kumeu Film Studios and plays an important role in bringing international productions worth tens of millions to Auckland.

A key target growth sector identified in Council's Economic Development Strategy, production activity alone generated more than $900m annual gross screen production revenue in 2015. One recently completed production generated more than 13,000 visitor nights alone.

Assessing the real added value of each dollar spent through Ateed initiatives is not easy.

The consultancy PWC estimates the return on such work to be on average $4.40 for each $1 spent.

This council term we have strengthened the accountability mechanisms for all council-controlled organisations.

I want to see Ateed put more effort into showing their worth to ratepayers and I'll be expecting to see more tangible measures and results when they next report.

Which brings me back to "do we need an Ateed?" I say yes. But more importantly, should it be funded by the residential ratepayer?' I say no.

Auckland is challenged by its own success with a great need for infrastructure to support the growing number of people visiting and doing business here.

My challenge to Ateed is for them to use ratepayer funds as a last resort not a first resort, and work towards becoming Auckland's first essentially self-funded CCO.

Auckland needs Ateed because it adds so much more to our city than it takes. Having it pay its own way would make it even more of an asset.