A city deal for Wellington?

City Deals
Written By Linda Meade

On 17 November 2023 Wellington City’s Mayor Tory Whanau announced that “agreement had been reached on the future of Wellington transport”.  On a statement posted to LinkedIn she said:

‘…construction of the Golden Mile will continue…Wellington City Council will take over delivery of the revitalisation project…Let’s Get Wellington Moving will be dissolved…ensuring we [WCC] can still continue work on the Golden Mile and explore options for more housing and urban development is the best outcome possible and means progress can continue.’

As she noted, it is pleasing to have enhanced clarity over what happens next – and from adversity (the dissolution of Let’s Get Wellington Moving (LGWM)) can perhaps come greater opportunity.  Looking at this turn of events through a positive lens, what could a new city/region deal for Wellington look like?

Much of the rhetoric around city/region deals across New Zealand centres on the problems faced through decades of under-investment in infrastructure – whether that be water or transport. But with this announcement comes the opportunity for Wellington to take a step back and contemplate what sort of city/region deal would deliver the best long term outcomes for its people and communities.

Of course, it is well known Wellington is far from immune to infrastructure problems – leaking water pipes, earthquake prone buildings, congestion choke points, and unaffordable housing being at the top of many people’s lists.

But city/region deals, done well, must be more that a mechanism to fund a wish-list of capital investments. Their start point should be how to fund and deliver projects and initiatives that will drive the greatest rewards; whether that be measured in terms of more jobs, enhanced economic growth or improved community wellbeing.

LGWM was born out final decision of the Environmental Protection Authority to decline the Basin Bridge Proposal in 2013. Perhaps inevitably therefore, its central focus was on improved access from central Wellington to the eastern (and more latterly) southern suburbs. 

But what if the defining objectives of a new city/region deal were to be spun around – as it appears the Mayor suggests they should be? What if the focus was on jobs, prosperity and quality of life? On urban development and access to housing, close to jobs and education institutes, for the benefit of ALL suburbs and cities in the wider Wellington region? What might a city deal look like including investment in projects most likely create or attract new jobs; things like education, affordable housing for workers and students, and inner city revitalisation.

To stimulate debate, here are three big ideas:

  1. Let’s start with tertiary education: the decision to wind back the Te Pūkenga reforms provides an opportunity to create in its place a new regionally focused structure for ALL tertiary and vocational education, leveraging off Wellington’s natural advantages including Crown Research Institutes, tertiary teaching hospital and strong digital, creative and advanced manufacturing sectors. 
    Imagine a world where Victoria University and Massey University merged, working closely alongside a new Wellington Institute of Technology, charged with engaging with industry to support new jobs and inward investment.

  2. Then, finish the job properly on State Highway 1, and in the process remove all cross-town traffic from Te Aro.  This would provide the impetus for wide-spread urban rejuvenation and large scale inner city housing redevelopment. The key to this is most likely a new long tunnel connecting The Terrace Tunnel to Kilbirnie.
    It would create New Zealand’s most walkable and dynamic inner city, the closest thing we will ever have to a Euro style city in this country.

  3. Finally, implement a small “area” congestion charging scheme for Wellington bounded by SH1 to the west and south and Cambridge Terrace to the east (SH1 and Cambridge Terrace would be free to use).
    This would substantially free up city streets, allow for serious improvements to public and active transport modes, reduce emissions, and free up parking. Best of all it would be entirely complementary to items 1 and 2, while contributing some funding as a value capture mechanism.

Look out for future articles on City Deals coming soon:

  • Better economic outcomes from city deals

  • Better public transport through city deals

  • Better urban liveability as a key focus for city deals

  • A focus on industries and global economic advantage for NZ city deals

  • Lessons learned from city deals in Australia and the UK

Linda Meade

Linda leads Kalimena’s infrastructure investment advisory work. Linda established Kalimena after a career spanning over a decade respectively at Deloitte and PwC, including time spent in London, Geneva and Wellington. Up until 2020 she was lead partner in New Zealand for Deloitte Access Economics, and the partner in charge of the Infrastructure, Economics and Business Modelling team. Linda’s areas of expertise are in designing and applying investment systems and processes, tailored to the type of infrastructure, the sector, and the desired outcomes. Linda specialises in social infrastructure (education, health, housing) and transport.  She is most interested in projects where there is a clear understanding of the desired outcomes for people and communities in New Zealand, working mostly with public sector clients. 

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