Auckland 'needs innovative financing tools'

The New Zealand government will help Auckland to develop new financing tools as a solution to help the city meet its needs caused by increasing growth.

Housing and Urban Development Minister Phil Twyford has said that Auckland cannot expect to receive large amounts of money from central government, at the expense of other parts of the country, and therefore new ways of funding infrastructure will be required.    

Speaking at the launch of the Project Auckland publication, an annual report from local newspaper the New Zealand Herald, Twyford said the government is interested in providing new financing tools.    

He pointed to infrastructure bonds, targeted rates and land value capture to help deliver new schemes.    

Value capture is becoming an increasingly popular approach for public authorities, with Infrastructure Australia having reported on its benefits and London in the UK looking to develop the concept for its Crossrail 2 programme, as it also faces funding challenges from central government not wanting to be seen pouring money into one city to the detriment of others.