Bernard Hickey’s curious opinion piece in the Herald this week reminded me of a famous quip from Star Trek. “It’s life Jim, but not as we know it.” Normally I enjoy Hickey’s rants, because he frequently questions the boring, unimaginative style of economic management and fiscal policy that we currently have to endure in New Zealand. The new Reserve Bank governor shows little sign of demonstrating any more initiative than the previous incumbent, so it’s important that the media stand up and heckle occasionally. But I’m going to call out Hickey on his stance regarding Auckland’s housing crisis, which sits a world apart from the situation across rest of New Zealand.
Advocating for high rise, in-fill housing in central Auckland is a bit like shooting the goose that laid the golden egg. The lack of housing in the region is because large numbers of economic migrants have been increasingly attracted to Auckland due to it’s unique lifestyle and are arriving at a faster rate than can be accomodated at a time of low investment in housing. However, if the Auckland CBD is transformed into downtown Kowloon, with row upon row of identical, tasteless concrete apartments, the city will presumably become somewhat less attractive to migrants intent on escaping the very same kind of environment. There is a more obvious solution.
Even us Wellingtonians understand that Auckland is (currently) the economic centre of gravity for New Zealand and we certainly endorse the assistance provided as Christchurch struggles to rebuild. Furthermore, with most of the present government senior cabinet members originating from either Auckland or Christchurch regions, it’s been clear for some time where the chief investment focus lies. In the meantime Wellington is languishing with one of the lowest economic growth rates of any region, despite its diverse economic base.
Business activity here in our region powerfully leverages a creative workforce and increasingly invigorates high value, knowledge based export businesses. Provincial areas such as Northland, Gisborne and Wanganui have mild climates and vast tracts of land available, yet are also struggling. Other areas such as Manawatu and Taranaki have held their own, thanks to the dairy boom. But the economic benefits of those returns are no longer shared throughout the community, because of the increasing trend towards corporate farming and centralised processing. What can be done to redress this imbalance?
Surely, if Auckland is bursting at the seams and Christchurch is still awaiting re-building, would it not make sense to actively redirect economic investment and migration to less favoured provincial areas, where it could do most good? Or is that too obvious to contemplate?