Weekend Times


The Times

Business News

‘City deals’ are coming to NZ – let’s make sure they’re not ‘city back-room deals’

  • Written by Tom Baker, Associate Professor in Human Geography, University of Auckland, Waipapa Taumata Rau
‘City deals’ are coming to NZ – let’s make sure they’re not ‘city back-room deals’

As local and regional councils struggle with inadequate infrastructure and unsustainable costs, New Zealand will be hearing a lot more about the potential solution offered by so-called “city deals”.

These deals are relatively long-term agreements between different levels of government (and sometimes other parties) about deciding, delivering and funding economic development and infrastructure initiatives within a defined local area.

Already, Wellington and Auckland councils are working towards regional deals with central government aimed at giving them more options for funding and managing their affairs. The National-led coalition is expected to announce[1] a framework for city deals later this year.

National flagged its intention to implement city deals before last year’s election. Since then, think tanks[2], global[3] and local[4] consulting firms, Infrastructure NZ and Local Government NZ[5] have all been having their say on how these might work.

A recent meeting[6] of New Zealand mayors and local government chiefs heard from Greater Manchester Mayor Andy Burnham about the UK’s first city deal over a decade ago. He extolled the virtues of a “place first” approach that involves and engages citizens more in the future of their cities.

Manchester Mayor Andy Burnham: ‘place first’. Getty Images

In the UK, city deals signalled a shift away from a conventional one-size-fits-all model of regional development. Each deal is bespoke, reflecting local priorities. Beginning with Greater Manchester in 2011, there are now more than 30 city deals in the UK[7].

Australia has arranged ten city deals since 2016[8].

Their experiences suggest there are two general varieties of city deal. One revolves around mechanisms for funding infrastructure. The other goes further and involves devolving budgets and responsibilities from central government to newly created regional or city authorities.

City deals offer potential circuit-breakers for stalled and stagnant urban and regional progress, but New Zealand needs to take stock of the lessons being learned elsewhere.

Infrastructure deals

Infrastructure deals offer a co-operative mechanism for addressing deficits in local infrastructure. It’s a problem most wealthy countries are facing after decades of under-investment.

Filling the funding gap has been hindered by various factors: central government reluctance to borrow or tax more, short-term thinking based on electoral cycles, and different priorities within levels of government.

This has all primed politicians to look favourably on seemingly longer-term, co-operative ways to approach infrastructure development.

Australia has opted for infrastructure deals between federal and local governments. These have been praised[9] for providing local governments with formal channels of engagement and extra funding from federal government.

But the deals have also been criticised for commercial secrecy and lacking a coherent national direction[10]. Eight years in, it’s still hard to say whether Australian city deals have really improved infrastructure problems.

Devolution deals

UK city deals have involved devolving limited budgets and responsibility from central government to new sub-national governments, called combined authorities.

At a national level, right-leaning political parties have tended to take up the devolution agenda. But at the local level, politicians of all stripes want more autonomy in what is a highly centralised country.

Greater Manchester is the poster child of devolution deals, with its Mayoral Combined Authority seen as a model for others. It retains 100% of its business rates tax revenue, has developed an active travel strategy, re-municipalised[11] the regional bus system, and improved health and social care[12].

This “trailblazer[13]” deal was extended in 2023. But “devo deals”, as they are known, have been criticised for their lack of transparency[14] (they’re negotiated in private, with no public consultation) and the absence of any attached statutory powers.

For instance, Greater Manchester has yet to gain approval for a spatial plan, which is key to setting the context and tone for economic and social development across ten local authorities. House building in the region has stalled as a result.

Manchester city centre: its Mayoral Combined Authority is seen as a model for other city deals. Getty Images

The art of the deal

City deals have become popular, in part, for politically symbolic reasons. Put simply, making a deal sounds sexier than “arranging a long-term inter-governmental agreement”.

Maybe not surprisingly, governments that favour city deals have been on the right of the political spectrum, with strong affinities to business. Former Australian prime minister Malcolm Turnbull and current New Zealand prime minister Christopher Luxon also came to politics after corporate careers. City deals align neatly with their public images.

Beyond the symbolism, though, the experiences of Australia and the UK suggest such deals are not in themselves a quick fix for governing cities.

Negotiations often involve little or no reference to an overarching strategy, which can compound social inequalities and lead to unco-ordinated patchworks of projects. Governance has also tended to be opaque, risking the perception they are really “city back-room deals”.

They also call for capacity building in local government, which requires time and resources. UK central government demanded the establishment of a new level of administration – the mayoral combined authority – to oversee delivery of deals.

This entails significant bureaucratic and political manoeuvring. Yet even the largest and best-resourced local government bodies in Australia and New Zealand struggle to mobilise the bureaucratic power and expertise they need, routinely outsourcing to the private sector.

None of these challenges are impossible to overcome. But with city deals set to expand into New Zealand, there is room to refine the art of the deal itself.

References

  1. ^ expected to announce (newsroom.co.nz)
  2. ^ think tanks (newsroom.co.nz)
  3. ^ global (assets.kpmg.com)
  4. ^ local (www.martinjenkins.co.nz)
  5. ^ Local Government NZ (www.lgnz.co.nz)
  6. ^ recent meeting (newsroom.co.nz)
  7. ^ more than 30 city deals in the UK (commonslibrary.parliament.uk)
  8. ^ arranged ten city deals since 2016 (www.infrastructure.gov.au)
  9. ^ been praised (theconversation.com)
  10. ^ commercial secrecy and lacking a coherent national direction (theconversation.com)
  11. ^ re-municipalised (www.greatermanchester-ca.gov.uk)
  12. ^ improved health and social care (www.manchester.ac.uk)
  13. ^ trailblazer (assets.publishing.service.gov.uk)
  14. ^ lack of transparency (journals.sagepub.com)

Authors: Tom Baker, Associate Professor in Human Geography, University of Auckland, Waipapa Taumata Rau

Read more https://theconversation.com/city-deals-are-coming-to-nz-lets-make-sure-theyre-not-city-back-room-deals-228599

The Weekend Times Magazine

Baking Tools and Equipment Your Bakery Needs

It can be hard to resist the smell of fresh bread or devouring a freshly baked cake. Fortunately, some people have a knack for kneading dough and baking up a...

Buy Tyres Online: A Smarter Way to Choose Performance and Value

The way people shop for automotive essentials has changed significantly, and tyres are no exception. Today, many drivers prefer to buy tyres online because it offers convenience, a wider choice, and...

The 29-year-old Australian Revolutionising The Edible Collagen Market

Known as ‘Nature’s Botox’, scientific research shows collagen is not only anti-ageing and good for skin, but also optimises health, ligaments, muscle recovery, the gut, and helps heal the digestive...

Prime Minister Press Conference Australian Parliament House

PRIME MINISTER: Good afternoon everyone. Today's meeting of the National Cabinet came during a week of what I'd describe of increased hope. This was a week of hope. We were...

Understanding Root Canal Treatment – What You Need to Know

For many people, hearing the term root canal treatment brings immediate anxiety. It’s one of the most feared dental procedures, often associated with pain and discomfort. However, this perception is outdated...

Trading With Quantum AI: A How-To Guide

Quantum AI can be used in any country where retail CFD trading is legal. The site does warn that registration spots are limited, so your first try might not be successful. If...

Why Choosing The Right Sleep Apnea Mask Can Improve Your Daily Life

Sleep is the body’s reset button, but for individuals dealing with interrupted breathing, nights can feel restless and incomplete. This is where a sleep apnea mask becomes an essential part of...

Ensuring a consistent Australian foreign policy - Scott Morrison

The Morrison Government will introduce new legislation to ensure the arrangements states, territories, councils and universities have with foreign governments are consistent with Australian foreign policy.   The Commonwealth Government has exclusive...

Building Designer in Melbourne: Crafting Innovative, Functional, and Sustainable Spaces

In a city celebrated for its architectural excellence and diverse urban character, the role of a building designer Melbourne has never been more important. Melbourne’s built environment is a dynamic blend...

hacklink hack forum hacklink film izle hacklink testNon GAMSTOP Casinosbeste online casinonon GamStop casinos UKNon GamStop Sitesjojobetonline casinos australiaonline casinosonline casino australiacasinos not on GamStopzlybrarypadişahbet güncelDeneme bonusu veren siteler 2026Galabetjojobetjojobetjojobetjojobetjojobetjojobetjojobetjojobetjojobetjojobet