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A million-dollar Christmas tree is going up in downtown Auckland, leaving some baulking at the council’s spending while its residents struggle through a cost-of-living crisis.

Auckland Council hasn’t revealed the price of the 18m steel tree, set to stand in Te Komititanga Square (formerly Elizabeth Square) on lower Queen Street. However, the Auckland Ratepayers’ Alliance says it costs up to $1.3 million.

Auckland Council is stumping up $800,000 for the tree.

Private organisations Heart of the City, the central city’s business association, and Precinct Properties, a major landholder and developer, are funding the rest.

Te Komititanga Square on lower Queen St, Auckland, with 2022's Christmas installation.

Alliance spokesman Sam Warren told the Herald the cost raised questions around spending priorities.

“There’s no doubt the tree will look stunning - it should, given its incredibly high price tag,” Warren said.

“But considering the state of the books, and how everyone else has had to tighten their belts, it’s hard not to wonder if this is a ‘nice to have’ and not a necessity.”

The alliance, an offshoot of the Taxpayers’ Union, lodged a Local Government Offical Information and Meetings Act request to seek details of the full cost breakdown. This, however, was declined.

In a letter seen by the Herald, the council said Wednesday it was temporarily withholding information on funding as “this information will soon be publicly available” in a press release which was due to be published last Friday.

The council’s press release did not include a full cost breakdown. It said $400,000 funded from the city centre targeted rate would go towards the fake tree’s purchase cost and another $400,000 would be spent on operational funding for the next few years.

Te Komititanga Square, the site of a new million-dollar Christmas tree.

Warren was disappointed the council did not offer a full breakdown and claimed a lack of transparency.

“We’ve had a real run-around with trying to work out exactly how much this is costing,” he said.

“Every dollar spent by Auckland Council must be readily defendable, and choosing to release only a fraction of the information requested through a carefully crafted press release simply isn’t good enough.”

The council did say all of its funding comes from the city centre targeted rate on businesses and residents.

Auckland Council’s head of city centre programmes Jenny Larking said: “Funding [the tree] through the city centre targeted rate means that the resources provided by city centre businesses and residents are reinvested to benefit the same community”.

The council said the tree, dubbed Te Manaaki (the respect, care or hospitality), was an “exciting new festive tradition for Auckland” and was “a significant investment for the city that will be enjoyed for many years to come”.

The tree will be made from a steel frame and decorated with 10,000 individual LED lights, 4000 pōhutukawa flowers and more than 200 giant stainless steel baubles.

Heart of the City said the tree would be “durable with long-lasting materials ... built to be a permanent fixture of Auckland’s festive season for many years to come”.

Te Manaaki will be lit up during a special event on November 23. It will start to be constructed outside Britomart Train Station and Commerical Bay on November 17.

Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.