China Business Summit 2023: Prize draw
Prize draw courtesy of Air New Zealand with Auckland Business Chamber’s Live and Digital events coordinator Katy Riddell.
Prize draw courtesy of Air New Zealand with Auckland Business Chamber’s Live and Digital events coordinator Katy Riddell.
MC: Tim McCready
MC: Tim McCready
FUTURE OF CONSUMPTION – SESSION ONE from Auckland Business Chamber on Vimeo.
FUTURE OF CONSUMPTION – SESSION TWO from Auckland Business Chamber on Vimeo.
The future of consumption is constantly evolving, with new technologies and innovative practices transforming the way we consume foods to the sustainable practices we adopt. From sustainability and vertical farming to cell-based cuisine, the future of consumption is full of exciting developments.
To help you stay ahead of the curve and gain valuable insights, you will learn about the impact of sustainability, vertical farming, and cell-based cuisine on the future of food, as well as how these practices are being implemented in the industry.
Join the Asia New Zealand Foundation and the Auckland Business Chamber for two sessions delivered digitally on the 20th of June. These sessions will take a deep dive into these seismic changes with business leaders from the Asia region to discuss the forces, the opportunities, and the challenges that are shaping the future of consumption.
It’s clear that the capital markets will continue to face significant headwinds, with many of the same pressures and external forces that have shaped the sector in recent years still in play.
Persistently high inflation remains a top concern. While it remains stubbornly elevated, there are encouraging signs that it may have peaked after a considerable effort from central banks to rein in spending.
Much of the supply chain disruption caused by Russia’s invasion of Ukraine has stabilised, but persistent geopolitical tensions and fragmentation, particularly between China and the United States, continue to pose a risk to economic and financial stability.
Adding to the complexity, the pandemic-induced global talent shortage is still acutely felt in multiple sectors, including certain areas of the capital markets.
Gaining momentum are several megatrends that have become entwined with the capital markets sector. These include the rapid technological evolution, the growing need for robust cybersecurity measures to protect against digital threats, and the ever-increasing demand for sustainable investment options.
Against this backdrop, here is a wrap of some of the key issues that are likely to shape the capital markets over the coming year.
Despite a challenging global economic environment, the Asia-Pacific region is expected to offer some hope for the coming year.
Earlier this month, the International Monetary Fund (IMF) released a report on the region, noting that despite weakening external demand — such as the downturn in demand for tech exports — domestic demand has remained strong. China’s reopening is providing fresh impetus to the region and a glimmer of optimism for the rest of the world.
The IMF projects Asia-Pacific’s GDP to increase this year to 4.6 per cent, after growing 3.8 per cent in 2022 and contributing around 70 per cent of global growth. This will be driven primarily by the recovery in China as a result of its reopening and surging consumption, along with resilient growth in India.
It said the near-term economic impact of China’s recovery “will likely vary across countries, with those more heavily reliant on tourism likely reaping the most benefit,” and expects the rise in China’s imports to be most strongly reflected in services.
But despite its optimism for the region, the IMF downgraded its projections for Japan, Australia, New Zealand, Singapore and South Korea.
“Stronger external demand from China will provide some respite to advanced economies in the region, but is expected to be largely outweighed by the drag from other domestic and external factors,” it said.
A few months ago, ChatGPT was launched publicly and has quickly disrupted diverse sectors.
Analysts at Goldman Sachs believe artificial intelligence (AI) algorithms could ultimately replace 300 million jobs, and with its ability to interpret vast amounts of data and identify patterns, AI is expected to significantly disrupt the capital markets.
Recently, the University of Florida analysed the accuracy of ChatGPT in predicting whether a news item would affect stock prices positively or negatively.
The results showed AI could make accurate predictions on stock performance and demonstrated that traditional models did not provide any further predictive power over ChatGPT.
Since AI algorithms can process market data in real time, they can react to changes faster than ever before. This will inevitably lead to more algorithmic trading, where machines are able to make trades at the appropriate time without human intervention.
Financial firms are already using AI to understand their customers better. As this tool is refined, it will be able to assist in developing more personalised products and services based on customer behaviour and potentially other public data, such as social media activity.
AI-driven technologies are also being used to detect fraud and money laundering. By analysing large pools of data and identifying suspicious patterns, AI can help financial institutions prevent fraud far more quickly than before.
While AI offers an exciting future for the capital markets, there are some concerns that its increased use could have negative consequences, such as creating market bubbles or amplifying financial instability. But despite that, the rapid introduction of AI tools means that by this time next year, they will undoubtedly have had a significant impact on the sector, offering faster and more accurate decision-making and analysis.
Investing with ESG principles in mind has become a hot topic and the fastest-growing segment of the asset management industry.
ESG principles consider environmental, social and governance factors alongside financials.
Ethical investment principles saw companies unwind their investments in Russia last year and the pandemic highlighted the need to consider societal impacts alongside investments. Locally, the recent climate events highlighted the importance of integrating ESG factors into investment strategies.
Despite growing interest in sustainable investing, the number of new sustainable fund launches has declined this year, according to financial services firm Morningstar. Regulatory uncertainty and increasing concerns about greenwashing are likely contributing to this trend, highlighting the need for greater transparency and accountability in the ESG space.
But while major investors continue to emphasise the importance and performance of ESG investing, some of Wall Street’s largest asset managers, private equity firms and brokers have warned that a backlash against sustainable investing has become a significant risk.
Larry Fink, CEO of BlackRock — one of the world’s largest asset managers — was one of the early and vocal supporters of ESG and stakeholder capitalism. However, in his annual letter this year, he de-emphasised ESG investing and entirely avoided using the three-letter acronym.
ESG has become a complex and challenging topic, particularly in the United States, where anti-ESG sentiment has gained momentum. Republican governors from at least 19 US states have pledged to resist ESG investing, and high-profile Republican figures Mitch McConnell and Ron DeSantis have campaigned against the use of strategies that penalise fossil fuel producers.
According to Fink, Republican state treasurers withdrew around US$4 billion ($6.3 billion) from BlackRock last year.
There are indications that US investors’ interest in green investing is waning due to repeated attacks on “woke capitalism”.
Scepticism towards ESG investing is likely compounded by the poor performance recently by technology stocks — a sector that green funds typically favour.
Alternative investments, or “alts”, are gaining popularity and finding their way into the portfolios of everyday investors.
These investments, which include hedge funds, private equity, venture capital, cryptocurrencies, commodities and rare collectables, have little or no correlation with traditional asset classes like stocks and bonds, providing investors with more diversification options.
The alternative investment industry gained momentum and accessibility after the economic downturn in 2008. With last year’s volatile stock market and the anticipation of slower growth and persistently high inflation, demand for alternative investing continues to rise.
Previously, alternative assets were only easily accessible to sophisticated investors. However, the growing number of alternative exchange-traded funds (ETFs) and managed funds are making them more mainstream, as investors look beyond conventional asset classes for returns in an unpredictable year.
The coming general election is poised to have a significant impact on New Zealand’s capital markets.
Current polling suggests Labour v National could be one of the closest contests in some time, and likely to hinge on the decisions of kingmaker coalition parties — potentially Te Pāti Māori or New Zealand First.
Elections are viewed as significant risk events for market participants due to the potential changes in government policy and associated uncertainty.
It is already clear that wealth inequality, tax and inflation will feature prominently in the upcoming political debates and investors will be closely assessing the policies, platforms, and “bottom lines” of parties, and their wider implications for the economy and capital markets.
In the lead-up to October 14, the stage is set for a period of increased fluctuations in share prices and currency value, and uncertainty in the capital markets.
The Australian Securities Exchange (ASX) has been pursuing a strategy over the past five years to increase the diversity of stocks available.
Diversification is a central tenet of well-balanced portfolios, and that means companies in the technology and life science sectors are in high demand. Institutional investors, in particular, seek additional investment prospects beyond the long-standing dominance of mining and financial firms on the ASX.
Blair Harrison, head of New Zealand Listings at ASX, says investors are also looking for diversity in geography, and for that reason they also like to see New Zealand companies in the mix.
New Zealand’s burgeoning tech sector already has a formidable presence on the ASX.
Until recently, 10 of the 65 New Zealand companies listed on the ASX were technology companies, two of which were included in the ASX All Tech Index (earlier this month church donation company Pushpay was delisted after being sold to a consortium linked to a Melbourne-based private equity firm).
Xero has achieved “unicorn” status on the ASX as a technology company with a valuation or market cap of over $1 billion. With a market capitalisation of more than $10b, the New Zealand-founded accounting software company is now one of the largest on the ASX, the fifth largest company by market capitalisation in the All Tech index and a constituent of the ASX 50.
Harrison says from an investor standpoint, New Zealand tech companies are well respected globally.
“They tend to exhibit an entrepreneurial approach, demonstrate good governance, and possess a global mindset right from the outset,” he explains.
“This is largely due to the challenge of geographic distance. Being a country that is far away, these companies are aware they must target international markets and adopt an international perspective from the very beginning, which companies in Australia don’t necessarily have to do.”
The large investment community and significant number of companies in Australia mean that New Zealand technology stocks have greater scope to be covered by analysts. The ASX has close to 250 technology companies and around 200 companies that come under the umbrella of life sciences.
Harrison explains that this means that Australia has fund managers, researchers and brokers who can specialise and have greater familiarity with the sectors.
“Rather than one analyst who covers a range of sectors — from industrial to consumer products to technology — you can have a team of people focused on a particular sector, which means they have a very good understanding of how a company is performing.”
That research, in turn, raises the awareness of emerging New Zealand companies among Australian and international fund managers.
These companies can also be compared against similar ASX-listed healthcare and technology companies, which helps analysts determine company valuations and provides economies of scale in research.
Harrison says there is a robust pipeline of technology companies looking to list, and he expects to see New Zealand tech continue to thrive on the ASX over the next few years. This is driven by investor appetite, both from Australia and New Zealand, and further afield.
Beyond tech, other New Zealand sectors that are in demand from the ASX investor base are infrastructure stocks including airports and ports which are not common on the ASX. New Zealand’s aged-care sector is another of interest.
Looking ahead, Harrison says the scale of superannuation funds across Australia and New Zealand will have an impact on investment choices and companies that come to the stock exchange.
By 2041, the total superannuation assets of Australia and New Zealand combined are expected to approach A$10 trillion.
“We know that a lot of that superannuation fund money goes into the stock market,” he says. “That means there will be a huge demand for companies to come to the ASX, and in particular, demand for companies that meet the attributes that the demographic are looking to invest in.”
He points to the rise in economies focused on climate change and the future of food as an example of this.
“ESG is having a huge impact because investors are becoming more powerful. We are all becoming investors — either directly or indirectly — through our superannuation, which is growing exponentially.”
When volatility and uncertainty sweep across global economies, the volume and value of initial public offerings (IPOs) on share markets fall. IPOs were down around the world in 2022, attributable to volatility in the markets brought on by significant macroeconomic events, including Russia’s invasion of Ukraine and surging inflation.
While this was also true for Australia, the ASX still managed 107 listings in 2022. Almost all these listings were in mining, particularly for battery materials like lithium, copper, nickel and gold, which are in high demand.
This figure is close to its annual average of around 135 per year, but down from a phenomenal 2021 that saw 241 companies debut on the ASX fuelled by the cash that was injected into the economy.
“We continue to engage with companies and stakeholders in the ecosystem,” says Harrison.
“Those conversations haven’t slowed down at all, and once the level of volatility returns to a normal level, we expect a lot of these listings to come to market.”
The ASX tracks volatility through the S&P/ASX 200 VIX, a real-time volatility index. This enables interpretation of investor sentiment and market expectations. Notably, the ASX tends to witness higher IPO activity when the VIX value falls within the 10-15 zone.
Despite the decrease in listings last year, the ASX saw higher activity in follow-on offerings as ASX-listed companies raised capital. Follow-on offerings, which include placements, rights issues and share purchase plans, can also be used to bring new sophisticated and institutional investors into a share register and help increase liquidity in a company’s shares.
ASX was the top-ranked exchange globally for the volume of follow-on capital offerings in 2022 with 1060. This was more than double the comparable volume on the Nasdaq exchange in the United States, more than triple the volume on the London Stock Exchange and was higher than any exchange in Asia-Pacific.
This is the third consecutive year that ASX has led global rankings for follow-on offerings by volume. By value of follow-on offerings, ASX was the fifth-ranked exchange globally in 2022. More follow-on capital was raised on ASX last year than on the London Stock Exchange or Hong Kong Stock Exchange.
Some industries were hit hard through the pandemic and needed to raise finance to shore up their balance sheets and get through, but Harrison says that other raises were more opportunistic.
“For example, a company might have taken the opportunity to raise capital for an acquisition of a company at a good valuation compared to in 2021 when valuations were very high,” he says.
Blair Harrison
Blair Harrison is the Head of New Zealand Listings at the Australian Securities Exchange (ASX) and heads the ASX New Zealand office, based in Auckland.
Since its borders reopened in January, Hong Kong has been focused on re-establishing itself as a prominent business hub and a connector between mainland China and the global financial community.
This was evident at Hong Kong’s Asian Financial Forum, held in person early this year, where it was noted that despite the need for Hong Kong to navigate macro-economic challenges on many fronts — including rising interest rates, the adjustment in the local housing market, and the global economic slowdown — its strong institutional frameworks and substantial capital and liquidity buffers have allowed the financial system to remain resilient and continue to operate smoothly through multiple shocks over the past few years.
Almost 70 per cent of attendees polled expressed a “neutral to positive” sentiment towards the global economic outlook. The upbeat attitude was likely bolstered by the border reopening just days before the conference.
Indeed, the International Monetary Fund (IMF) recently reported that Hong Kong’s recent lifting of Covid-related restrictions, including border controls that lasted nearly 1000 days, has helped to normalise its economic activity.
The resumption of cross-border travel has seen services exports expand significantly, and domestic private consumption has experienced considerable growth as pandemic restrictions have eased. The IMF projects a real GDP growth for Hong Kong of 3.5 per cent in 2023 and 3.1 per cent in 2024.
Hong Kong’s isolation from the rest of the world has created space for competition from Singapore to become Asia’s top financial centre. Singapore was one of the first countries in Asia to reopen its borders during the pandemic.
As well as losing its position as the region’s busiest airport to Singapore, Hong Kong was also overtaken in the Global Financial Centres Index, with Singapore becoming the third-largest financial centre, after New York and London.
But Hong Kong remains well ahead of Singapore in capital markets activity, with stock market turnover and market capitalisation more than seven times larger. At the end of December 2022, its stock market capitalisation reached US$4.6 trillion ($7.3 trillion) — around 13 times its GDP.
This year’s Asian Financial Forum placed a significant focus on Hong Kong’s efforts to stay at the forefront of the evolving global economic landscape in an effort to expand beyond traditional financial growth.
It is establishing itself as a leading global hub for green finance, reflected in the US$80.5 billion ($128 billion) in green and sustainable debts it arranged or issued last year, along with the world’s first government-tokenised green bonds, trialled last month, worth US$102 million ($162 million).
It is also courting fintech and greentech companies, with growing funding sources and regulatory reforms that allow new economy firms to list on its stock market and access capital.
Hong Kong’s position as a global financial hub remains strong, handling over 70 per cent of the world’s renminbi settlements. By focusing on emerging areas of financial services and leveraging its status as a financial gateway to China, operating unencumbered by the mainland’s more restrictive regulations, there is optimism in the sector about its prospects.
· Tim McCready was a guest of the Asian Financial Forum.
Project Auckland panel: Simon Bridges, Viv Beck & Mark Thomas
NZ Herald’s Tim McCready leads Heart of the City CEO, Viv Beck, Auckland Chamber CEO, Simon Bridges and Committee for Auckland Director, Mark Thomas in a discussion on the pain points plaguing Auckland’s infrastructure.
Project Auckland: Lessons come flooding in from three Auckland councillors
Tim McCready asks three Auckland councillors what they have learnt after recent floods.
Desley Simpson became the public face of the crisis when she stepped forward to support mayor Wayne Brown by providing emergency updates and responding to media queries.
The Ōrākei councillor, who is a clear communicator, reassured Aucklanders that a coordinated response was in place — although she acknowledges getting the information together in time for briefings wasn’t always easy.
“I was trying to bring multiple pieces of information together,” Simpson says. “What I found the most challenging was that I became the public face of what was going on, and there wasn’t one source of truth.
“It was Auckland Transport, Watercare, planning staff. I had to go to multiple sources to find out bits of information. That shouldn’t happen, we need to be better prepared for all eventualities.”
Simpson says we need to rethink how we understand and manage risk in New Zealand. “It is very easy to be reactive with short-term thinking. We have got to look at dealing with investment into resilience much better.
“It is going to be expensive, and it is often difficult to do.”
Meteorological services were forecasting heavy rain in Auckland in advance of the flood. But they said the record rainfall couldn’t have been predicted.
Simpson says though this is the case, managing risk and resilience can help New Zealanders prepare for a range of possible consequences. “If we can prepare that something will go wrong at some stage, then we can prepare for that eventuality.
“If as a society we had been thinking this way, then perhaps our infrastructure deficit wouldn’t be what it is, and we might have better considered the cost of infill housing on our stormwater infrastructure,” she observes. “We probably would have had a second harbour crossing a long time ago and plans for climate change and managed retreat would be well advanced.”
Simpson says there are a lot of LIMs (land information management reports) in Auckland that show a risk of flooding. But planners have not been inhibited from increasing housing density, even though the risk shows the density sometimes exceeds infrastructure capacity.
“I think there is a real risk around that, and from my personal perspective, I’d like to put a stake in the ground and say ‘hold on — let’s stop’.” She suggests a “digital twin city” model could be a possible solution to help with future planning. This is where a digital computer model of a city simulates how urban upgrades would impact water flows, traffic and provide other intelligent feedback.
Because everyone shares the same data, a digital twin city would also allow service providers to share data and ensure that work is co-ordinated.
During the devastating floods, Josephine Bartley realised the severity when she was inundated by messages on social media from community members whose homes were being filled with water, and who had no idea what to do or where to go.
“I was being sent videos of people swimming in the street, and even though they only know me through Facebook, they thought I might be someone who could help them.
“They were scared, and I was scared. But I was trying to be strong for them, to give them direction to get out of their homes.”
The second term councillor for Maungakiekie-Tamaki quickly emerged as a powerful voice — not just for her own ward, but for other parts of Auckland — particularly those with a high proportion of Pasifika residents.
She says that while south Auckland residents were poorly supported by official channels and in some cases couldn’t be reached by emergency services, communities came together to help one another.
Bartley went to the Māngere evacuation centre, set up under the leadership of Manukau Councillor Alf Filipaina and the local board.
“We worked with what we had. The community came together to help each other and that is what made all the difference. I shared a video from the venue on social media and the community contacted me and came through. Even the local psychologist joined us to spend time with the traumatised families.”
To be better prepared for future events, Bartley emphasises the need to improve local plans and make them more accessible to the community.
“People need to have in the back of their heads: ‘if this happens, we go here’. We have to get to the stage where people don’t rely on emergency services but will be ready to help their own family immediately.”
She points out that Civil Defence and bureaucracies often fail to understand the unique needs of specific communities. Providing an empty building as an evacuation centre is not enough and doesn’t account for the different cultural and social requirements that are needed in the community.
Bartley’s leadership caught the attention of international media. While still based at evacuation centres, Bartley spoke with international outlets Fox News, BBC World News, Pacific Media Network and others, sharing updates on the emergency situation in Auckland and insights into the ongoing community efforts.
During the floods, Julie Fairey was unable to leave her house — she had three children at home and a broken arm which made driving and lifting things impossible.
But as one of the two representatives for Albert-Eden-Puketāpapa, Fairey still had an active role in flood response work.
“I was completely useless outside,” she says. “So I worked to get better communication out to the community, because particularly in the first week, council unfortunately didn’t do a great job.”
Her role became keeping Aucklanders informed of the evolving situation through her social media channels, answering frequently asked questions and logging jobs that came in from residents into the relevant system so they could be addressed.
“I ended up triaging but also directing welfare requests to the local MPs’ teams. A lot of them had people out door-knocking on the ground — it’s something they’re good at. They turned that around into checking on people and going through the areas where people had been worst hit.”
The Albert-Eden-Puketāpapa ward is one of the most diverse in Auckland, covering an area that includes Mt Eden, Greenlane and Epsom across to Waterview, Mt Roskill and Lynfield. She says there was a big difference between parts of the community where people didn’t have a lot of access to resources and the parts where people were quite capable to get on the phone to their insurance and escalate things through council to get the help they needed.
“A lot of our response was about how we direct resources. Councillors Josephine Bartley and Angela Dalton got in touch several times to say they had some resources they could share, or to connect people up with relevant community groups on the ground that could check on people or provide supplies or emergency accommodation.”
To improve the council’s preparedness for future events, Fairey stresses the importance of improving its emergency management communications. “That was apparent on the day of the event, but also after.”
She says the council’s communication system with elected members during the Covid pandemic was a good example of effective communication. This provided regular updates with critical information, ensuring everyone was kept informed and that communications were aligned.
“After the floods it took too long for that system to reactivate,” Fairey says. “It is widely acknowledged that we should have that ready to go — maybe not right away when we don’t know how severe things are — but within the first 24 hours.”
Fairey says the flooding demonstrated elected members can be a great asset to get information out to residents. “But we can only tell people what we know.
“After a couple of days there was an acknowledgement that we were not in the way, but we were a very useful communications channel.”
A comprehensive emergency recovery plan to help rebuild the region and better prepare Aucklanders for future weather events is under way.
“It’s been more than a month since our region was hit by a horrible one-two punch – the Auckland Anniversary floods and then Cyclone Gabrielle and we still have a lot to do to help our hardest-hit communities,” said Auckland mayor Wayne Brown, who has labelled the plan the Big Auckland Fix Up.
Brown has asked Auckland Council CEO Jim Stabback to initiate a rapid assessment of flood risk areas to identify simple fixes and then carry out the necessary programme of work in consultation with Watercare and Auckland Transport.
He’s also tasked local boards to identify five main trouble spots and fixes in their area.
Brown then plans to visit these sites with relevant engineers to progress work. The mayor has identified several simple fixes to reduce flooding risks:
1. Clear streams and open drain channels on public and private land.
2. Lower non-arterial roads over constricted drains and waterways.
3. Build and improve turn-offs to utilise public stormwater storage in public parks and other areas.
4. “Daylight” streams in places where they are enclosed in pipes or narrow paths to create floodplains and reduce flooding of residential areas.
Brown says it’s obvious that Auckland must get better prepared for severe weather events and needs to rebuild local capabilities and response plans that have fallen into disrepair over the last six years and look at how we forecast and model flooding so we can provide better intelligence to the public.
“We need to restore and rebuild our broken roads, bridges, water system and buildings in a way that will make communities stronger and more resilient, and we need to address land use planning and building regulations.
“Recent events exposed problems in where and how some houses have been built in Auckland. In some cases, the government or courts have constrained council’s ability to regulate, and this will need to be addressed. The council must be able to say no and plan for infrastructure, as managed retreat is a last resort option.”
Project Auckland: Cyclone and flood deluge brings ‘a wake-up call’
Auckland Councillor Richard Hills says the recent Auckland floods and cyclone have been a big wake-up call for politicians and communities to reduce emissions and adapt to climate change.
Hills discount those who say climate change is already here and we should solely focus on adaptation.
“This is a one-degree world. If we add two or three degrees onto this, we will face catastrophe.”
The third-term councillor chairs Auckland Council’s planning, environment and parks committee.
He put an extraordinary item on the committee’s agenda in early February to commission work into the implications of the flooding on Auckland’s land use planning, regulatory, infrastructure and other policy settings.
“While we’re talking about a one in 200- or 250-year flooding event — or a half a per cent chance of this happening in any given year — we know from Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan that we need to adapt and be more resilient because this is going to happen more often,” says Hills.
“When I led that plan in 2020, it was considered 10-20 years away but unfortunately it is here now. We had a two-year drought followed by the wettest winter, wettest summer, wettest January, wettest day. As well as that, the last eight years have been eight of our hottest ever.”
The planning review will consider what measures were effective in preventing and mitigating the impact of the floods.
Hills says this is important to avoid knee-jerk decisions which tar all forms of intensification.
He points to the Te Ara Awataha greenway in Northcote as an exemplary development where underground pipes were resurfaced to follow the path of the original Awataha Stream. Sections of the stream were opened and replanted in a process called daylighting that rejuvenates buried urban streams.
“We could only do that because Eke Panuku, Healthy Waters and Kāinga Ora all worked together,” says Hills. “They demolished the homes in that area of Northcote so we could re-channel everything — and it didn’t flood. We don’t have that luxury in every community but it shows what happens when we do intensification well with the right infrastructure alongside it.”
Hobsonville and Stonefields fared well during the flood compared to some of the worst hit more established suburbs of Mt Eden and Mt Albert.
“Our biggest emissions come from transport, so it will be important to act there. But the flooding has raised questions about where any future rail or light rail to the North Shore would go,” says Hills.”
During the January 27 event, major sections of Auckland’s motorways were flooded or closed. On the Northern Motorway, people were trapped in cars that were floating along rising floodwaters.
“Is the busway the best place to put rail? Or is it better to be higher,” he questions. “We need to think about everything — not just because the infrastructure might flood, but also will people be living in low-lying areas in the future?
“If we think that people will ultimately move away from those areas, then we need to plan ahead for that.”
Hills was in the thick of it during the January 27 flooding. He used his social media channels to implore residents to stay out of floodwaters and check on their neighbours, share information about evacuation centres, and remind people to stay prepared by filling water bottles and charging their phones.
Hills is one of the most-followed councillors on social media. He spoke with Tātaki Auckland Unlimited early about cancelling the Elton John concert when it was obvious Auckland was facing a severe weather event. The promoters didn’t cancel the concert until shortly before the superstar was due to take to the stage at 7pm, stranding thousands of people at Mount Smart Stadium. Hills’ focus then turned to Auckland Transport, requesting they mobilise all available buses to get people home.
“It was all pretty chaotic and upsetting,” he says. “People were contacting me, ringing me, and sending social media messages. In that kind of chaos, people just need any information so if I could help that is what I was trying to do.”
Over the weekend that followed, it was obvious to Hills that flood-damaged property needed to be urgently dealt with.
“Council’s advice was that insurance needed to deal with rubbish, but if we waited on that then we would have a major health crisis. In some roads in Milford and Sunnynook, there were entire households worth of waste piled up on the berm. We were worried about more rain events coming and debris floating away.”
Hills organised the first public rubbish skips in concert with the local board.
In the days that followed, he took mayor Wayne Brown to the North Shore to see damaged houses before later meeting with Prime Minister Chris Hipkins, Auckland Minister Michael Wood and Auckland Central MP Chlöe Swarbrick.