National Party Leader John Key is looking forward to significant progress on the issue of Auckland governance now that the makeup of the Royal Commission of Inquiry and its terms of reference have been released.

"I am pleased with the calibre and experience of all three commissioners Peter Salmon QC, Dame Margaret Bazley, and David Shand.

"This is such an important issue, and therefore it is critical the inquiry is steered by people who will be able to handle such a complex job.

"In addition, the terms of reference need to be equally robust to ensure any solutions are lasting and will stand the test of time."

Mr Key is particularly pleased that the terms of reference recognise the importance of effective relationships and collaborative arrangements between central and local government, and will address the ability of the Auckland region to compete internationally as a desirable place to live, work, invest and do business.

"It is vitally important that Auckland ends up with a governance plan that secures its place as a truly competitive global city and region.

"National is not prepared to tolerate the infrastructure deficit that has hamstrung our largest city for so long.

"I do remain concerned, however, that this inquiry has taken so long to eventuate. But at least Labour has recognised it is an issue of such critical importance that it cannot be ignored any longer."