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Auckland's mayor John Banks wants to sell investment bonds to pay for the planned super city.
On Monday, both he and North Shore Mayor Andrew Williams presented their oral submissions to the select committee hearing on the proposed super city structure.
Banks says an extra $75 billion will be needed over the next few years to improve Auckland's infrastructure, especially its roading, rail and public transport network.
He sees this being funded through central and local government as well as private investment.
Banks wants to spend three billion dollars on Auckland's infrastructure, every year for the next 25 years. And he'll pay for it with council bonds.
"Very shonky finance companies have in recent years raised hundred and hundreds and hundreds of millions of dollars. I think it would be a very easy proposition for an infrastructure bond for Auckland to be raised from people's savings," says Banks.
Bonds are seen as a relatively safe investment. They offer fixed interests rates over a fixed term.
"It should be for a longer term than term deposits so because of that the rates should be high and also the level of security will also be very high because it's secured by the ratepayer base," says Grant Hassell AMP Capital's Head of Fixed Interest.
Banks says the region has been waiting 100 years for Auckland to be represented by one body, but Williams does not want local communities pulled apart.
He says the efficiency of the Auckland area as a whole should not be allowed to compromise communities.
"Auckland's role in the future of this country is critical & without bold ideas and without brave leadership this nation will never lift its living standards back to the top half of the OECD," he said.
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Add a Comment:
Post new commentnztifosi said on 2009-09-04 @ 17:45 NZDT: Report abusive post
As a pakeha Aucklander I am very concerned that there will be no Maori seats - indeed I believe with such a diverse cultural mix there should also be room for Pacific or ethnic representation as well. Instead we are losing almost all meaningful representation in our city. As with the change to MMP - so should the supercity system go to a vote by all of Auckland - if not all of NZ. After all if they pass it here what is to stop them from deciding on a Southland or Wellington Supercity as well?
OneVoice said on 2009-07-14 @ 21:57 NZDT: Report abusive post
The new structure is still far from clear!. Are there going to be heads of main municipal functions appointed from the 20 councilors (like ministers in cetral govt) and each municipal function will be reposible for the greater Auckland regeon merged from the current seven different cities ?
AucklandAndrew said on 2009-07-14 @ 09:43 NZDT: Report abusive post
While co-ordination at a higher level is necessary, local governance should be grass-roots up, not top down. The proposal has fewer councilors per head of population than MPs, and the people who will be elected in will be the kinds of people who are rich and famous enough to get publicity, not the people who are right for Auckland - hardly democratic. Banks wants us to live off a loan from his rich buddies for the next 25 years, and pay them interest? No surprises there.
magrafil said on 2009-07-13 @ 22:55 NZDT: Report abusive post
bonds proposal interesting, whose going to invest, international funds will be wooed by US treasury notes (their unstable economy means potential for a bigger return), NZ investors surely don't have any money left after the property developers took their money and ran ... however, its a fairly good idea, interested he mentioned rail ... was that an anomoly, what Auckland authority actually wants to build transport infrastructure apart from motorways?
AnonymousJoe said on 2009-05-25 @ 16:01 NZDT: Report abusive post
I think that a Moari only seat is racist. Seriously, does this mean that Maori people are not allowed to run for the regular seats on the Council? Of Course not because that would be racist. I think this country needs to get a grip... If they want Maori representation on the Council... then Vote for a Maori Candidate. But heaven forbid we get democratic.