ANNUAL PLAN

We have started what will be the last review of our council’s annual plan. Because of the establishment of the new Auckland Council our budget for 2010/11 will cover only a four-month period, taking in the budget we committed to through our 10-year Long-term Council Community Plan agreed last year.

As ever, the city continues to grow apace with the needs and expectations of the community. There will be some changes to the projected capital development programme, in particular to reflect a desire to tidy up around our communities.

We will be addressing long-standing issues in some of our sports, art and culture clubs and organisations as well as some work within our reserves, libraries, pools and recreation centres.

MAINSTREET MAKEOVER

We are about to begin the second mainstreet makeover – this time in Old Papatoetoe.

At the time of writing, we were one commercial retailer short of the required number to start the project, which will begin with a community clean up of the Old Papatoetoe main street. Following that will be a paintover and serious spruce up of all the shops and frontages in the town.

We want this project to be community oriented, so we are calling to all staunch and proud Papatoetoe residents, that this is an opportunity to get out and do something. So when we set the date for cleaning we want all the seniors, the kids, the churches, sports clubs and community organisations present for a massive effort. It will be a great day.

THIRD BILL

We have completed and sent to Parliament, our council’s submission on the Third Bill for the establishment of the new Auckland Council.

This Bill mostly reflects on issues relating to the establishment of local boards and council controlled organisations or CCOs, as well as representation issues for Maori, Pacific and other ethnicities into the council.

We continue to feel the Government needs to be clearer in its statutory prescription for the powers and authorities of the new local boards.

When I am out in the community I am reminded how critical well-empowered and funded boards will be to give our community confidence that their townships will continue to be looked after, their concerns heard and acted on under this new Auckland structure. Invariably in my public meetings such as a recent one with the Weymouth Residents and Ratepayers, the issue is “So where will we fit in under the new council?” as well as “Who will look after us?”

Deputy Mayor Gary Troup and I will present our submission to the Select Committee, that will include this and other matters of critical commercial importance in the new council.

A number of Council Controlled Organisations (CCO’s) are being established which will in effect look after 75 per cent of the assets and monetary operation of this council.

I was recently at a Howick U3A meeting when the question came from the floor as to what sort of control we would have over CCO’s and the directors, given the commercial nature of the new council structure.

My reply was that we needed to ensure the government-appointed directors only be appointed for 12 months, and that all directors would be appointed from council after that. Secondly, we would be able to ensure good accountability through strong reporting between the CCOs, their directors and the Mayor and council through the Statement of Corporate Intent, which in effect is an agreement on the strategy, policy and direction of the CCO with the council overseeing that process.

I am not happy with the extent of the CCO development and certainly not the establishment of the Transport CCO. However, neither our council or any of the Auckland councils are in charge of this process. The Government is making its final determination. What I have constantly reiterated is that after the election in November, this matter will be back to the council and the community to finally resolve the best way forward.

PAULY FUEMANA

We recently lost musician Pauly Fuemana, at only 40 years of age. Pauly was an integral part of the Otara Millionaire’s Club (OMC) who won acclaim for their global hit single “How Bizarre”. Although he was much loved for the cheekiness, Pauly was never an over the top character but had a distinctive style. His success was and will continue to be inspirational for so many youngsters in our community. He led out into the international market, New Zealand ‘s Pacific Urban Hip Hop sound, in the most spectacular fashion. It is poignant for Pauly to ask to be farewelled at the PIC church in Newton, the original Pacific Church for Auckland – his grandparents’ church. It was a fitting farewell to one of our favourite sons.

Have a good week.

Many people talk about how Auckland has to be an international city, but what does that mean? In part it means our city needs to build relationships with different countries, cities and businesses around the world. And councils have a part to play in developing those connections.

The new Auckland Council will need to build on current councils already strong international relationships. Indeed if I am elected mayor of Auckland I’ll be looking to put an international strategy in place that tells the world – Auckland is a great place to live, work, play, learn and invest.

Let’s look at the policy objectives of our international linkages:

Civic – demonstrating Auckland as a vibrant and diverse global city. We need to be recognised internationally as a committed, responsible and active member of the global community. Overseas links are established and leveraged to raise the profile of the Auckland brand, as well as to improve organisational and business capability.

Economic – our city benefits economically from global partnerships. Auckland’s international partnerships help businesses fast track their entry or expansion into overseas markets. The partnerships are utilised in the attraction of inwards investment, tourism and education.

Cultural – Auckland’s communities are strengthened through greater understanding and appreciation of different cultures. International relationships create opportunities for Aucklanders to share experiences with other cultures. These include education, arts, youth and sports activities.

During my time as mayor I have been involved in a trade delegation to the South Pacific that delivered tens of millions of dollars of new contracts to businesses in our city

Currently I am travelling to Utsunomiya, Japan, which is the only city Manukau has a sister-city relationship with. We have now been partners for 27 years. The first delegation visited Utsunomiya from Manukau City in September 1982 and included Sir Lloyd Elsmore, members of the Manukau City Council, and citizens of Manukau City. The visits were carried out on the principle of “home stay” in both cities and the mainstay of the relationship has been the regular student exchanges that are carried out between the cities each year.

Cultural, sporting, and music groups from both cities have also visited each other, especially in the early years. Those delegations saw around 50-60 people in each delegation. Some may attack me for continuing this relationship – so in the interests of openness our delegation includes Manukau CEO Leigh Auton, the mayoress and two council officers, totalling approximately $16,000 (economy flights and some expenses).

I have been open about my travel – having talked about it in my Letter to Manukau and after our Policy & Activities committee endorsed the exchange. Overall around 10,000 people from both cities have been involved in the relationship. As mayor I haven’t met with our sister city yet. As we transition into the new Auckland Council it was important to make contact and discuss our future.

Manukau’s relationship with Utsunomiya links us to New Zealand’s third largest export destination and fourth largest trading partner overall. Our relationship has been based on cultural exchange with the city and I hope to develop stronger economic links with the city.

The Auckland region has 30 international partnerships. The new Auckland Council will be in a unique position to leverage these relationships and put our city on the international map. Auckland City Council undertook a study that showed about $55 million of GDP is added annually to Auckland’s economy from their relationships alone – and we have a chance to build on that. The cost of our travel is far outweighed by the benefits we get back.

People from around the world are interested in our local government amalgamation and we will need to reach out to investors around the world to demonstrate our city’s new confidence.

John Key put it best in a speech called Making Auckland Greater:

“New Zealand needs Auckland to do well. All Kiwis stand to gain from a world-class city…Not only must Auckland be very local, but it must be very national, and very international. And these objectives should be reflected in the way the city is run.”

As mayor I’m proud to present our confident face to the world.

Last week the Salvation Army released its Into Troubled Waters – a state of the nation report. The report highlighted the need to do something about the serious issue of lack of housing in our city.

The report states that in Manukau city alone the shortage is around 1200.

Overcrowding in Manukau homes is a known fact, which increases the pressures on families, makes it difficult for children to learn, and also impacts on the fabric of a dwelling. A home built for a family of six cannot easily accommodate 12 people. There is a compelling need provide housing which people can afford and is developed at a pace to meet demand.

Our council has identified sites and prepared work for new housing to be built. We are now awaiting decisions by the government as to if and when this can take place.

Councils around the region are committed and ready to work with the government and Housing New Zealand Corporation to deliver affordable housing outcomes. Manukau Council is working on a significant housing development of mixed tenure, which will provide affordable housing in the Weymouth/Waimahia areas.

While there has been some progress made already, we still need to do more.

All our communities deserve access to affordable housing and I will continue to advocate for greater progress as we look to address this serious housing shortage.

It was also concerning to see in the report state that some 13.6 per cent of the 9,080 children born in Manukau in 2007, were born to families in the two lowest decile areas.

Our council is looking at doing something about it. Education and employment are key ways of tackling the issue. We’re looking at launching a new youth initiative aimed at some of the 3,500 to 4,000 students who leave school each year.

There are a large number of young people who have left school prior to 2010 who are not in further education, training, employment, or other meaningful activity. Potentially, there are 1200 to 1500 young people each year that would need or appreciate transition assistance, which is what we are seeking to do.

I believe all Kiwis deserve an adequate standard of living. Delivering adequate housing, education and employment are issues, not just for Manukau, but for the whole region.

Manukau City Council has put in its submission on the Local Government (Auckland Law Reform) Bill. It’s the third bill that has to be passed to reform Auckland’s governance. In our submission we clearly said that the voice of local communities should be reflected in the new governance structure.

It was our council’s overriding concern, and responsibility, to ensure that the each community’s unique nature and needs are understood and reflected in the new governance structure.

I believe it is vital that the local boards have meaningful powers, funding and support. However the council is not confident, as the legislation is currently framed, that local boards will be adequately empowered to deliver for their communities.

The legislation needs to be strengthened to allocate powers and functions of local boards. This will lessen the conflict local boards will have with the council and stop the council stripping local communities of their voice.

If I am elected mayor I want the new Auckland Council to quickly get to work with the boards on how their responsibilities over and above the legislated requirements (or ATA’s draft roles and responsibilities) will reflect their distinctive local communities of interest.

In Manukau, for instance, we have successful initiatives such as the City of Manukau Education Trust (COMET) and the John Walker Find Your Field of Dreams, which are distinctly Manukau. These need the space to continue their work, and other such initiatives should also be given the room to develop and grow.

Around the region we need to find the best parts of what is happening now, and allow communities to build on those successes. There is a big threat that if the new council is not focused on delivering for local communities – that local people will miss out.

Our council was also concerned that the Bill provides for council-controlled organisations to be established or disestablished outside the normal democratic decision-making processes.

It’s highly unusual that the Government should establish CCOs by legislation, rather than through consultation with the community under the provisions of the Local Government Act 2004.

The fact is that the people of Auckland are being treated differently to the rest of New Zealand, and are therefore not being given the opportunity to have the choice in whether they should have their services delivered through CCOs.

The establishment of CCOs should be left to the Auckland Council, to allow for public consultation and input.

I’ve already blogged my thoughts on the Transport CCO here. I want to make sure that local democracy under the new governance structure is accountable and responsive to the needs of the community.

Change is inevitable, but it is our responsibility to ensure that a collaborative approach to partnership with government and non-government agencies to contribute to the community’s well-being continues at local board and council level.

We need to know that under the legislation in its final form, the council, local boards, advisory boards, CCOs and other subsidiaries will be closely linked and be working towards the same goals.”

Other substantive issues in the council’s submission include:

Local Boards

- The ability to general additional revenue could lead to inequalities in service delivery. The council notes that generating additional revenue sources should not impact on existing levels of service.
- The timing for local board plans are impractical, with the adoption of Local Board Plans by 30 April following the triennial elections resulting in rushed consideration of board and community preferences. The council recommends a change to 30 September for adoption of plan, to allow the local board time to consult adequately with its local communities and other interested parties, and to assess if the existing local board plan needs amending.

Council controlled organisations

- CCO board appointments shouldn’t be made by Ministers. The council proposes that the legislation should allow for the relevant Ministers to appoint interim boards for CCOs for set time period.
- There is no requirement for integration with the Auckland Council’s strategic goals. One of the reasons stated for establishing the Auckland Council is to have the region working towards one strategic direction. The council proposes that the legislation should require CCOs to give effect to the strategic direction of the Auckland Council and reference the four well-beings.

Spatial Plan

- There is no direct reference to sustainable development and the four well-beings in the Bill. The council proposes the Bill reflects the four well-beings of sustainable development.

You can read our full submission here.

We all know that Manukau has held its airport shares since the inception of the amalgamated city in 1989 and we inherited at that time just over 9 per cent.

We increased our shareholding four years ago to a little over 10 per cent to ensure we would need to be referred to in the event of a takeover bid and secondly, it assisted us in acquiring a seat at the directors’ table.

Two years ago the airport company was involved in a process of dealing with two or three potential bidders for a shareholding in the company. The last and most serious bid came from a Canadian pension fund. The government of the day intervened to stymie the finalisation of a potential share interest offer from the Fund.

Our council indicated it was not happy with the proposed bid.

We were keen to encourage a shareholder to purchase something between a 20 to 30 per cent interest in the company, on the basis that two strategic benefits might eventuate from the shareholding investment.

First, the potential investor would have a strong airline/airport history and therefore be able to add a significant intellectual and commercial property horsepower to the company from their experience. Secondly, the investor would be able to help expand routes into new markets and encourage new airlines to access New Zealand through this airport.

What the airport company proposed in this most recent commercial venture is to open up, through its purchase of a shareholding in two airports in Queensland , Australia , the possibility of new route development into Asia and China . This would also encourage the growth of the number of airlines coming into our country. In other words, achieve what we wanted two years ago.

One of the risks of being a shareholder in a publicly listed company is that these companies move quickly to preserve their commercial viability.

We had to make a fast decision on whether we would take up our share rights issue to approximately $12,6m. If we did not, our airport shareholding would have reduced to 9.4 per cent.

We have a standing council resolution not to allow our airport shareholding to diminish below 10 per cent. On the basis of that resolution and the strong public support for our shareholding in the airport company, we decided to take up our share rights.

The debate in council followed similar lines as in the past. One point was reiterated more than any other– and this was the need for us to show confidence and support in the Auckland Airport Company – located in our back yard, employer of many of our people and generator of so much economic activity.

It was critical that we support the Auckland Airport Company as a corner keystone shareholder. Our share will join Auckland City ‘s, amounting to nearly 23 per cent as a primary shareholder in this key utility and strategic asset for our city and country.

The offer was at $1.65 per share, which was a discounted rate. The closing price on the day of announcement of the offer was $1.92. We made our decision on the basis that there was sufficient dividend income to meet the interest cost on borrowings required to take up the shares.

We have always appreciated the element of a strong upside in the airport with potential commercial growth at the airport as well as the opening in the not too distant future of the second runway. This will see a potential doubling of the 13.5 million people who come in and out of the airport every year to 25 to 30 million by 2020.

Enjoy your week.

I put out a statement today stating that Auckland transport decisions will need to be driven by the Mayor and Council, not the unelected, appointed board of the transport agency that is currently being established by the government.

Transport is a key issue for Aucklanders. I am campaigning on a strong commitment to public transport, delivering a CBD rail loop, an airport extension, a second harbour crossing, and completing the roading network.

Auckland needs a 21st century transportation system. The Mayor has a statutory responsibility to provide a vision for transport, and Aucklanders will expect the Mayor to deliver on that.

One of my first priorities, if elected, will be to appoint new directors of Auckland Transport, and to rewrite its statement of intent. I would insist on there being a direct report into the Mayor’s office, and a close relationship with the new Council’s transport committee. As Mayor, I will expect to be seeing all reports and all board papers.

Transport in Auckland has long suffered from a lack of funding and a lack of long-term planning and commitment. We have the opportunity to make decisions which will result in a transport system worthy of New Zealand’s largest city.

Auckland’s ratepayers will be holding the new mayor and council to account for the commitments which will be made around transport.

It seems obvious that if the mayor and council are going to make good on the commitments they make, they will need direct oversight.

Auckland has one of the world’s finest inner city harbours. We need a waterfront worthy of it.

Events of the past six months confirm how important it is for the new Auckland Mayor and Council to treat as a priority the development of a master plan for the Auckland waterfront from Wynyard point to Bledisloe Wharf.

First, the government and the Auckland Regional Council bought Queen’s Wharf. The Prime Minister announced that it would be ‘party central’ for the Rugby World Cup. A cruise ship terminal was also proposed. A design competition was established. When the designs were deemed inadequate, the competition was canned. Meanwhile the government and officials have since come up with a new plan for a $100 million cruise ship terminal which they want built in time for the Rugby World Cup.

Some have criticised me for showing the government the courtesy of giving the new plan due consideration. It is clear that the government wants us to drive something through before the World Cup and they believe they can get something useful built in time. They have come to the region with a serious new design and I believe as responsible leaders we owe them the courtesy of considering it. The new design should be put in front of the people, all the facts should be put on the table, and we should decide the best way forward

Like Mike Lee, Bob Harvey and Andrew Williams, I actually think the new design looks quite good. I like the way it slopes down to the water, I like the open public spaces, and I think the building looks quite striking while retaining the functionality we are going to need.

But, as I added to media, a nice design is not enough. To proceed, in the absence of any waterfront blueprint, there needs to be compelling reasons, and a really strong economic case. Contrary to reports, I haven’t said I simply support building it in time for the Rugby World Cup, only that I’m happier with the new design and that all of Auckland should have a say about what should be developed.

I can see why some of my colleagues support the proposal. And I congratulate the government for the work and effort it is putting in. But while I have a lot of sympathy with the view that we should just get on with it – that Auckland is too slow to move – the waterfront is Auckland’s jewel, and it needs a striking plan developed involving the community.

Unless there were compelling reasons to the contrary, the Auckland region’s ratepayers funds shouldn’t be spent until a comprehensive strategy has been developed. I haven’t seen sufficient evidence that would make me decide to support this proposal before we have developed a comprehensive plan. Moreover, I suspect that if it was to proceed, the Auckland ratepayer would be paying over and above in order for the building to be completed in time. A $100 million building is no small project.

Nonetheless, I strongly support a cruise ship terminal and there will be one built on Auckland’s waterfront. But while it will help to will attract more ships, we do not have to rush it. We will still see plenty of cruise ship traffic visiting Auckland, as they have up until now.

And in the interim, it seems most likely that the Auckland City Council, the ARC and the government will end up developing a temporary venue which will provide a central venue for fans during the Rugby World Cup. I intend, to offer that my full support.

Meanwhile, I am baffled as to why some people are proposing developments on Bledisloe Wharf. That’s not to say it might not be the right place. It might well be. But, equally, Queen’s Wharf might be the right place. But until we have done the hard work designing a waterfront blueprint, we need to forget about ad hoc proposals.

What I do know is that wherever I go around Auckland, the locals tell me they are sick of politicians playing divisive political games with a part of their waterfront.

They want the grandstanding, bickering and posturing to end. They know this kind of politics isn’t going to deliver a great Auckland. Indeed it’s one of the reasons we need a change of direction in this city.

I have said before and I’ll say it again – I believe all of Auckland’s communities deserve a say about what happens on Queen’s Wharf because all of Auckland’s ratepayers will be carrying the bill.

What we need is a coherent plan for the development of the harbour. The waterfront is too important to Auckland’s future to be held ransom to political agendas or a take-it-or-leave it approach. The construction of a beautiful mixed-use cruise ship terminal and a public building on Queens Wharf has to be seen in the context of developing the Wynyard Quarter and Tank Farm, Te Wero bridge, the Marine Events Centre, North Wharf, the finger wharfs and the new harbour crossing.

We don’t need Wellington to be seen to be telling us what do to. We do, however, need to work with the government and not shout at them.

Auckland has one of the world’s greatest harbours. We need to develop it in an inclusive coordinated manner that delivers a waterfront we can all be proud of.

I wish you all the very best for a peaceful and prosperous 2010.

This is a bitter sweet year – the last of the civic life in Manukau city as we know it and the first of a united Auckland.

The establishment of Manukau city in 1965 was heralded in New Zealand with much hope and expectation of a bright future, strong development and caring outward-looking communities for the new city.

A clear vision of economic growth and community development, innovation and commitment has built this city. Our civic pride is the product of all those great virtues. I want us to hold that pride high, embellish it, strengthen it and deliver our community to the new Auckland Council in its very best state.

Pride has been a central theme of my leadership as mayor of this city.

I have encapsulated it in a simple vision for our communities’ revitalisation and progress – ‘Clean, tidy, proud’. To achieve this vision we focus on what Rudy Giuliani, former Mayor of New York City, referred to as “sweating the small stuff”. This was coined to specifically get on top of some of the old community challenges that had confounded us over the decades, one of the most prominent being graffiti.

Under this council’s leadership – and I acknowledge Councillor Dick Quax in particular and the passion and hard work of the Manukau Beautification Trust – we have focussed on this problem. We have succeeded in that we have reduced the incidence of graffiti across our city by 70 per cent in the last two and a half years.

Behind this drive to rid ourselves of graffiti and to be clean and tidy is a more important community theme. We are defining our community’s boundaries of responsibility. We are making it clear what we will and will not accept in our community and that united we can deal with these problems, overcome them, and add to our pride and our positive perception of our city. These boundaries also set social parameters for our young people to see, acknowledge and accept.

We have complimented these boundaries of behaviour by stating a clear vision for achievement for our young people based around a number of aspirational markers. We have taken a whole of community approach by emphasising education and working with the educational community in ensuring the very best of opportunities for our children.

I acknowledge Councillor Colleen Brown for the strength of her work in leading the increasing provision of early childhood care centres, where there are shortfalls in our community, to ensure that we lift our Pacific and Maori attendances for youngsters at pre-school.

We have been working closely with the tertiary sector to ensure that we not only have the excellent service of MIT and Te Wananga o Aotearoa, but also the development of the new university under the leadership of AUT. A new tertiary campus built above and around the new train station at Manukau’s city centre, will see MIT leading the initial development, with the possibility of other university entities being included on the campus.

We regard as central our community’s health and physical well-being. The Find Your Field of Dreams project, under the leadership of Councillor Sir John Walker, is putting a simple vision of hope and action before our young people – that every young person should be active and involved in sport and recreation.

We have supported our musical community through the Manukau Symphony Orchestra, the Manukau Youth Orchestra and the contemporary sound of Dawn Raid, Malford and Savage, sharing with our young people their musical talent, encouraging it and presenting it as a pathway for a potential glittering career. To watch the flowering of the creative design talent of our young people though the Villa Maria Cult Couture Awards has also been inspirational.

We have attempted through our educational, sporting, cultural and artistic goals to provide the optimum platform for our young people to go on to tertiary education, training, employment, or business and to create great careers and lives for themselves.

So, I am pleased, but not surprised that following recent trends, criminal activity in our city was down nine per cent overall during the last three months of 2009. As a community we are accepting no less and offering more alternatives.

I want to acknowledge the great effort of Counties Manukau Police District Commander Mike Bush and his team, complimented by our wardens, ambassadors, youth workers and community crime patrols. Together, they are the guardians of our civic pride.

In Manukau, our hopes, dreams and our future have been nothing but blue sky. Through this year, we want to continue that path to affirm our strength, our pride and celebrate our achievements. I am confident that we can take the very best of who we are and of what we have become through to Auckland with pride.

Tomorrow, I will be attending Waitangi Day celebrations at Barry Curtis Park in Botany and in other parts of the city and region. It is a wonderful opportunity to celebrate what is widely regarded as our national day. I hope to see some of you at the various events and bring you some of my thoughts on this special day, in my next letter.

Enjoy your week.