Latest news with #InfrastructureCommission
The Spinoff
5 days ago
- Business
- The Spinoff
The draft plan to finally fix New Zealand's broken infrastructure
The Infrastructure Commission says we're spending more than most developed countries on infrastructure – while getting some of the worst returns, writes Catherine McGregor in today's extract from The Bulletin. A scathing review of infrastructure failures New Zealand's infrastructure is in crisis, and the Infrastructure Commission's draft National Infrastructure Plan doesn't mince words. The 30-year strategy, unveiled at yesterday's infrastructure symposium in Wellington, paints a picture of underinvestment in maintenance, chaotic project selection and dismal returns. New Zealand spends more of its GDP on infrastructure than any other OECD country, yet ranks in the bottom 10% for return on that investment. The report calls out successive governments for favouring headline-grabbing glamour projects over essential maintenance, leading to schools with leaking roofs, hospitals with sewage issues, and NZDF homes rife with mould. The commission found that ministers repeatedly rushed to announce projects before establishing whether they were actually achievable. 'Half of the large projects seeking funding through central government's annual Budget lack business cases to demonstrate that they're ready to fund,' according to the draft plan. Short-term thinking and policy flip-flops have created a wasteful cycle of boom-and-bust in the construction sector, the report argues, making infrastructure builds more complicated and expensive than they need be. Welcome to the era of user pays Among the plan's most contentious recommendations is a greater reliance on user-pays systems to fund infrastructure. 'New Zealanders will soon see that rolling out in, for instance, water metering in pretty much every district, the tolling of new highways, and time-of-use charges starting on Auckland's roads,' writes Newsroom's Jonathan Milne. Infrastructure Commission CEO Geoff Cooper emphasises this isn't about making every project pay for itself, but finding a more sustainable and equitable funding model. While social infrastructure – like schools or hospitals – is likely to remain fully publicly funded, Cooper is calling for user-pays to become the default wherever it makes sense. 'You can have urban roads that are subsidising rural roads, same with electricity transmission and distribution, but the network as a whole should cover its own costs through those user charges,' Cooper told Oliver Lewis at BusinessDesk (paywalled). The 17 priority projects Out of 48 submissions, just 17 projects made it onto the first round of the commission's Infrastructure Priorities Programme, a key feature of the draft plan. Six of them relate to much-needed upgrades of Defence Force housing and facilities, such as new barracks at Linton Army Camp and the regeneration of the Devonport naval base. These projects won praise from Cooper for being well-scoped, achievable and urgent. Also endorsed was the Reserve Bank's vault upgrade and the redevelopment of Hawke's Bay Regional Prison. A major urban project to make the cut was Christchurch's 22km Mass Rapid Transit line, which aims to connect Hornby and Belfast along a 21-station route. The commission stressed that inclusion on the list doesn't guarantee funding but provides a clear signal that the project is of national significance. What missed out High-profile proposals that didn't make the list include KiwiRail's Marsden Point Rail Link and Auckland Strategic Rail Programme, both of which are being reworked or resubmitted. Corrections saw three prison redevelopment projects rejected, despite one – the Christchurch Men's Prison redevelopment – being underway via a public-private partnership. A multi-user ferry terminal for Cook Strait ferries, put forward by the Greater Wellington Regional Council, was also omitted. As Lewis writes, reasons for rejection ranged from lack of readiness to insufficient national relevance. Some proposals – like a maglev rail system for the Waitematā Harbour crossing – were more aspirational than realistic. The commission is currently reviewing 70 additional submissions for the second round of the programme. For many in the infrastructure community, including rail minister Winston Peters, the rejections no doubt stung. 'We expect the Infrastructure Commission will see the light,' he said of the Marsden Point project, 'and if they don't, we will have some serious questions.'
Scoop
5 days ago
- Business
- Scoop
LGNZ Welcomes Draft National Infrastructure Plan, Calls For Better Collaboration
Local Government NZ (LGNZ) has welcomed the Infrastructure Commission's draft National Infrastructure Plan, which calls for the Government to commit to greater transparency and more rigorous business cases for major infrastructure projects. LGNZ national council member Mayor Neil Holdom says councils – unlike the Government – already operate under robust legal requirements for long-term planning, transparent reporting and prudent asset management. 'This is exactly what the Infrastructure Commission is calling for, and it's great to see central government starting to hold itself to the same standards it expects of councils,' says Mayor Neil Holdom. 'We all know there are a number of infrastructure challenges in New Zealand, and the best way to tackle these challenges is for central and local government to work together constructively to find the best outcomes. 'There are many things we can learn from one another, and we owe it to our communities to do that if we want to achieve the desired outcomes. 'However, it's also important that we caution against complacency. Councils' experience shows that even with strong frameworks in place, the real challenge lies in prioritising investments that deliver the greatest value for communities and ensuring maintenance and renewals are not overlooked in favour of new, 'shiny' projects – as well as making sure funding and financing settings support both these aims. 'We look forward to working with the Government on a way forward, in order to deliver on better infrastructure outcomes for the country.'
Scoop
6 days ago
- Business
- Scoop
Airports Welcome Draft National Infrastructure Plan's Call For Stable Policy And Smarter Investment
The NZ Airports Association says the release of the Infrastructure Commission's draft National Infrastructure Plan sets a positive course for long-term planning in New Zealand. NZ Airports welcomes the plan's focus on funding reform and performance transparency, and urges stronger inclusion of the airports sector in the work ahead. 'The draft plan rightly calls out New Zealand's short-term, reactive approach to infrastructure. Airports are a positive exception, and a useful blueprint for other sectors,' says Chief Executive Billie Moore. 'Airports take a 30-year master planning approach to infrastructure maintenance and development. Regulatory settings under the Civil Aviation and Commerce Acts drive a focus on the long-term needs of customers and regions. 'As a largely user-pays sector, airport infrastructure is funded by those who use it. 'And our planning and consultation processes ensure that airport projects aren't just proposed – they're delivered. This is recognised by the public too – airports were rated the best-performing infrastructure sector in New Zealand in the Ipsos Global Infrastructure Index.' NZ Airports supports the draft plan's call for stable policy settings, noting that uncertainty can delay vital investment across sectors. 'Like energy and water infrastructure, airports suffer when policy settings are repeatedly reworked. 'Our settings are well balanced and delivering the long-term planning, user-pays funding, and transparency the draft plan rightly promotes. That equilibrium is valuable, and it shouldn't be disrupted without good reason.' The draft plan highlights the need for central government to be a better infrastructure owner and asset manager. NZ Airports says this must include the Crown's ownership of airports – particularly the five Joint Venture airports where the Crown holds a 50% share. 'These airports need capital investment to support long-term resilience and growth. Done well, this investment can help them transition to a more self-sustaining, user-pays model over time.' NZ Airports notes the draft plan's omission of aviation and ports from its sector-by-sector breakdown. 'We look forward to working with the Infrastructure Commission to fix that during the consultation process underway now. Airports and ports are critical to national connectivity and economic resilience – they must be part of the national infrastructure story.' Notes: In April, NZ Airports released a new aviation infrastructure report developed by WSP with the support of New Zealand Trade and Enterprise (NZTE). A summary and the full report are available here:
Scoop
6 days ago
- Business
- Scoop
National Infrastructure Plan Sets The Stage For Stability
The draft National Infrastructure Plan released today signals a plan for the future, but also stability for maintenance and renewals, that can make the most of our current infrastructure assets. 'The draft plan sets a logical, reasonable path to progress, past the drastic swings we see in the infrastructure work programme when new governments are elected', Civil Contractors New Zealand Chief Executive Alan Pollard said. 'The plan's recommendations should enable central and local government clients to improve how they consider, fund, finance and deliver the vital roads, water networks, hospitals and other vital infrastructure we depend on, as well as providing visibility on infrastructure project needs.' Released today by Te Waihanga New Zealand Infrastructure Commission, the draft plan sets out some of the challenges New Zealand faces in planning and delivering infrastructure. 'It was reiterated at the symposium today that maintenance work has long been deprioritised, underfunded and even ignored. Bringing local maintenance, renewal and repair works forward to fill the short-term pipeline is a priority for our industry. 'Historically, there has been a lack of priority around maintenance and renewals. But a stable long-term programme of maintenance, renewals and new infrastructure works will better serves our communities. The Plan sets appropriate priorities around this.' The plan also sets out some of the solutions, including better funding for maintenance, tools to streamline delivery, more sustainable funding pathways and right-sizing new investment. Mr Pollard welcomed Minister Chris Bishop's comments at the Infrastructure Commission symposium held today that central government is going to take a better look at its own capital-intensive government agencies, which will be held accountable for their assets going forward. 'Noting that the government owns around 40 per cent of our total infrastructure stock, the public sector must build knowledge of what infrastructure assets it owns. Many do not have asset management plans. Others are in a position where they deliberately 'sweat' their assets. 'We have a valuable opportunity to move past this, toward nation-shaping decision making built on consensus, which will provide more surety in upcoming work and provide real return on investment.' CCNZ had previously raised these concerns with Infrastructure Minister Chris Bishop, including the time it was taking between the announcement of projects and when they actually hit the market. Tools to make infrastructure delivery based around need rather than budget surplus were welcome, and Mr Pollard stressed the importance of improved interaction between central and local government, both of which hold key infrastructure delivery roles. 'We welcome efforts from the government, councils and other clients to be clearer about project delivery timeframes, and prioritise spending on renewals and maintenance,' Mr Pollard said. 'We shouldn't just talk and theorise about infrastructure—it's only meaningful when it's well funded, well-built and well maintained.' The draft National Infrastructure Plan is open for consultation and feedback until 6 August 2025. ABOUT CIVIL CONTRACTORS NEW ZEALAND Founded in 1944, Civil Contractors New Zealand (CCNZ) is the national association for infrastructure construction in New Zealand. An incorporated society, CCNZ represents 540 contractor members who work to physically construct and maintain the country's transport, water, energy and other infrastructure networks; and 320 associate members who provide equipment and services to contractors. Collectively, CCNZ's contractor members undertake approximately $12 billion in capital and maintenance works each year, and employ approximately 60,000 people. Find out more at
Newsroom
6 days ago
- Business
- Newsroom
Why agreeing on infrastructure priorities matters to sick kids
Analysis: First, Erin Speedy shed tears of frustration, trying to bring up her children in a cold military house at Waiouru. It was damp, it was mouldy, and her children suffered respiratory infections. Then, she stopped crying and picked up a pen. Speedy, the wife of an army corporal, published an open letter to the Defence Minister at Newsroom Pro. 'I ask you minister, have you visited one of your military camps to speak to those on the ground? Do you truly understand the sacrifices we make as families?' That was in May last year. The following month, the Defence Force advertised for a builder to begin work on 50 new homes, along with a park and playground, at the Waiouru camp – but still nothing happened. Then in this year's Budget, Finance Minister Nicola Willis announced $16 million to lease better homes, while designing fit-for-purpose modern homes for personnel and their families. And this week, the NZ Infrastructure Commission publishes its first, groundbreaking draft National Infrastructure Plan, in which it endorses 17 projects as priorities. The big winner is the Defence Force, whose nine bases and camps have been green lit for big upgrades, especially to troop and family accommodation. Defence infrastructure general manager Phil Gurnsey says the endorsements reflect the national significance of future investment in the defence estate, and benefits to the NZ people, economy and security. 'It gives ministers further assurance that our investment aligns with national objectives.' According to the commission's assessment, which has been provided at Newsroom's request, the Defence Force provides about 1800 houses to 1400 regular force members – but those houses are more than 60 years old, in poor condition, and require upgrading urgently to improve poor conditions and to meet Healthy Homes legislation. 'Endorsement as a national infrastructure priority at Stage 2 indicates that this is a priority proposal, which can progress to a detailed business case to identify a preferred option,' the assessment says. 'Monetising the costs and benefits of options where possible would significantly strengthen the case.' Infrastructure Commission chief executive Geoff Cooper says the Defence Force was able to quantify its problems, provide proportionate solutions, and demonstrate how they'd worked through the options to get there. Essentially, he explains to Newsroom, this evidence-based endorsement is intended to take key infrastructure projects out of the political bear-pit, so the construction sector, international investors and all New Zealanders can be confident the country's priorities won't chop and change with every change of government. The Defence Force Homes for Family programme and Devonport naval base regeneration have both been endorsed to stage 2; its plans to build new Linton army camp barracks and upgrade Ohakea air force base have been endorsed to stage 3. 'When we endorse a project to stage 3, the advice is, we think this one's ready to go,' Cooper says. KiwiRail and the NZ Transport Agency have been less successful. The commission has released to Newsroom a list of the 31 applications that have not achieved even stage 1 endorsement, at this stage. Most are the pipe dreams of individual activists and lobby groups, but among them are the Auckland Strategic Rail Programme, and the Marsden Point Rail Link, as well as highway upgrades from Tauranga through to the Desert Road. Let's highlight one major concern identified in this first draft plan, and one solution. The concern is New Zealand's utter inability to get bang for its buck from capital spending. In the last decade, this country invested more public capital in infrastructure, as a share of GDP, than any other country in the OECD – yet it ranked 37th on the efficiency of that investment. As the problems with our drinking water and wastewater networks have shown, we're putting money into vote-winning glamour projects while failing to fund basic maintenance and renewals. The OECD ranks New Zealand fourth-to-last for asset management practices, the report says. Cooper sees that, as a runner, getting out and about. 'I've been in Wellington now for about five years, and the first thing that strikes you when you run around Wellington is just that there's water everywhere. And that's what happens when leakage rates are in the order of 40 to 50 percent.' How does that manifest? 'That looks like schools with leaking roofs, lessons taught in rotting buildings; sewage leaks in our hospitals; mouldy, poor quality defence accommodation; service outages of commuter rail and ferries; and police stations with black mould, leaks, and asbestos. We can do better.' The commission points to fragmented planning, regulatory inefficiencies, complex approval processes and suboptimal use of existing assets. It warns politicians against repeatedly changing key rules such as resource management legislation, and energy market and emissions reduction policies. These changes disrupt investment. Infrastructure providers hold off until policy settles down, leading to a backlog of investment and extra congestion on networks. Nick Leggett, the chief executive of the infrastructure industry body, goes further. 'This report is candid and honest about the poor bang for the buck that we get from infrastructure,' he says. 'When you have a whole lot of projects planned and the sector is geared up to deliver them, and then they're cancelled because of political change, and you have to make a whole lot of people redundant – and then the tap gets turned on again two years later, and you've got to bring everybody back … that's what costs us the money. So that's why pipeline certainty is so important.' Who's to blame for this inefficiency? 'Pipeline uncertainty costs us between $2.3 billion and $4.7 billion a year. The private sector will price a lack of certainty and clarity into a job.' Surely, the infrastructure and construction sector itself must bear some responsibility for using the investment more efficiently? 'The sector could bring more to the table, yes, absolutely.' Infrastructure Minister Chris Bishop agrees politicians and the sector need to work together. He says the Government is determined to work alongside the industry and other political parties to establish a broad consensus about what needs to change. A key solution (beyond maintaining our existing infrastructure!) is user-pricing. The draft plan recommends user charges fully fund investment, guide efficient use of networks, and distribute the benefits of network provision. New Zealanders will soon see that rolling out in, for instance, water metering in pretty much every district, the tolling of new highways, and time-of-use charges starting on Auckland's roads. When I press Cooper on this recommendation, he acknowledges that the commission isn't saying all infrastructure should pay its own way. For instance, he wouldn't argue that cyclists should bear the full cost of cycleways, or that EV owners should pay higher road user charges because their heavy cars cause more wear and tear. But these are discussions worth having, he agrees. Social infrastructure such as schools, hospitals and the defence estate are also public goods that shouldn't be funded through user charges. Clearly, it would be hard to demand that families struck by storms and other natural disasters should have to pay the military to evacuate them from their rooftops. Which brings us back to the Defence estate. Erin Speedy has now founded advocacy group Mission Homefront. 'It does make me a little bit emotional,' she says. 'I mean, if these projects go ahead, it's going to make a huge difference to the quality of life on so many Defence personnel and their whānau. Successive governments have made the Defence estate a political kicking ball.' Both sides of Parliament agree on the value of the Infrastructure Commission drawing up an evidence-led pipeline of priorities, so that key long-term infrastructure decisions can be removed from the cynical cut and thrust of electioneering. 'It's really heartening to see an independent commission recognise the desperate and dire need that something needs to be done, and urgently,' Speedy says. 'It absolutely does need to be taken out of the bear pit and depoliticised.'
