Stalemate on bed tax must be resolved with new approach to drive growth

Auckland’s city centre is at a crossroads and it’s time for central government to come together with local government and the private sector to chart a clear path forward. After a decade of disruptive public construction, the harshest Covid impacts in the country and lingering social issues, the city centre’s recovery is being held back by differing views on how to do so.

 With June quarter results again showing the pain felt by street traders, Heart of the City Chief Executive Viv Beck says: “People have suffered enough. The State of the City report shows huge potential ahead for the city centre, but without a clear strategy and united action, it won’t be achieved fast enough.”

“Despite relentless advocacy, many small businesses have experienced years of severe impacts with inadequate support. A new approach is needed urgently, before more businesses go under. Events have proven their power to draw people in, and Auckland Council has proposed a visitor bed tax to help fund them. But central government has said no. They can’t wash their hands of the issue and expect the City Rail Link to miraculously solve the damage that has been done from a project that has taken far too long and cost far too much” says Ms. Beck.

“Last week, I met with Ministers Brown and Bishop to raise key concerns ahead of the City Rail Link opening. I’m hopeful we’ll see progress on safety and social issues around the new stations.  But reviving the economy and attracting investment demands a more coordinated approach than what we are seeing. All parties must come together urgently, and the needs of street trading businesses must not be ignored as a vibrant city needs successful cafes and retail. As our country’s international gateway that provides 20%  of Auckland’s GDP, this cannot be left to chance.”

Other action is needed locally to make it easier for people to come and enjoy the city centre and we are addressing this at a local issue. But without collective action, Auckland’s city centre faces further closures.

-ENDS-