Tumeke finds our comments on the productivity drain to the nation caused by poor infrastructure in Auckland to be amusing. We agree that Wellington's large state sector organisations are at least an equal drain, but Tumeke seems to have missed our point. Better infrastructure in Auckland is going to help grow national productivity, because of the gateway role that Auckland plays.
Unfortunately productivity in the state sector is unmeasured. Likewise, our knowledge of regional productivity is not as clear as we would like it to be, a bit like our knowledge of regional GDP. At least one study from a few years back suggested that both Wellington and Auckland were relatively good performers productivity wise compared to other regions in the country - in the measured sector. Our own view is that Wellington's private sector, particularly in the CBD and out in Miramar, has been very keen to adopt the latest technologies, and if there were studies done, we would be surprised if it did not leave Auckland in the dust in the productivity stakes. The problem is the state sector, where the numbers employed keep growing but without even a commensurate growth in output. Then there is the talent drain and the wage inflation problems also caused by the growth in the public service. We won't go on........................
