Investing in Auckland high priority - Key

Investing in Auckland remains a high priority for the Government, despite economic cutbacks following the Christchurch earthquake, Prime Minister John Key said today.

Speaking at Auckland Unleashed, a day-long mayoral summit, Mr Key said the Government would support Auckland's continued growth.

Auckland Mayor Len Brown launched the Auckland Plan, also called the spatial plan, at the summit. It aimed to guide the future development and growth of the city for three decades.

"We know that Auckland can be better, and the city's spatial plan would accommodate a wide range of aspirations of Aucklanders," Mr Key said.

The Government was looking forward to being part of the process.

But he said a lot changed when the earthquake struck on February 22 -- not just in Christchurch, but around New Zealand.

"As New Zealanders, we have to pay for the earthquake in Christchurch, at least the portion that is not covered by insurance and re-insurance.

"Trimming our expenditure will be the most effective way of paying for the earthquake, and the Government plans to run a budget which is austere in terms of what we're used to in New Zealand.

"That does not mean that we will not be spending more money in Auckland. That does not mean that we remain uncommitted to the projects that we've already signed up to.

"That does not mean that as a result of the spatial plan, we cannot fund different objectives over time.

"In the end, if we ignore that then we leave a ticking time bomb for infrastructure demand in Auckland and that's not acceptable either," Mr Key said.

"There is a lot of work which has to be done in transport in Auckland, whether it's the Victoria Tunnel or ultimately the complete replacement of the Newmarket viaduct. Those things are going to happen, as is electrification, as is new rolling stock for our rail network," he said.

This was a balancing act which needed to be put into perspective, Mr Key said.

Mr Brown released a discussion document on his plan to guide the future development of the city for the next 20 to 30 years.

"As New Zealand's only true international city, we must realise our potential. In particular, we must become much more the economic powerhouse of the nation, the spearhead that leads our country's stride into the global marketplace," he said.

He acknowledged the summit was being held while the country was still grieving for Christchurch.

"It is critical for the nation's future that we keep focused for the benefit of Auckland and for the nation. We must keep focused on the critical work and the timing of that work which will transform our city."