Latest news with #NationalInfrastructurePlan
Otago Daily Times
13 hours ago
- Politics
- Otago Daily Times
Putting the skids under buses
All aboard! Next stop, short-termism. In a week which gave us some evidence that New Zealand governments can think beyond the three-year electoral cycle, thanks to the release of a draft National Infrastructure Plan, buses have managed to bring us back to earth. The Otago Regional Council has been stuck between a rock and a hard place over lifting bus fares for passengers in Dunedin and Queenstown. Its hardest decision was whether to follow the road the government is steering regional councils down — to get rid of free bus fares for children. In the end, the council had little choice but to go in the direction laid out by the NZ Transport Agency Waka Kotahi. Despite opposition from some councillors, 5 to 18-year-olds will now pay $1.50 per trip while single adult fares will rise from $2 to $2.50. Cr Michael Laws, who voted against the adoption of the council's regional public transport plan 2025-35, voiced the concerns many parents will have, that at $1.50 a trip for only one child, that extra $600 a year may be another significant burden for a struggling household. Insisting on children becoming fare-paying customers was at odds with Associate Education Minister and Deputy Prime Minister David Seymour's anti-truancy "crusade", Cr Laws said. PHOTO: ODT FILES It certainly is the case that the council has been railroaded into the fare hikes by the government. Their arms have been twisted by the not-so-subtle threat that to be eligible for central co-funding of public transport, they must align themselves with the Government Policy Statement on Land Transport and NZTA's fares and funding policy direction. While the previous Labour government and the Green Party have been big supporters of public transport, and low or no fares for children, the coalition has been slowly but surely turning that approach around. We have also seen it in the loss of financial support for cycling and pedestrian initiatives, and in money being more freely available for major roading projects (not to mention higher speed limits). What the government is actually doing is putting things in reverse when it comes to a cleaner, green future for New Zealand. The council, and others around the country, are now in a very difficult position, because if patronage falls as a consequence of these changes, then that's not an encouraging sign for the future of that service. The cleft stick faced by the regional council is that it could have carried on without the fare increases, but that would have cost ratepayers several hundreds of thousands of dollars in higher rates bills. Council staff told councillors ahead of the vote it was a "tricky balance" for them this time, trying to take into account elected representatives' expectations and those of the community and government. While there was "strong public support" for free children's fares, there was "strong opposition" from NZTA. Cr Andrew Noone, the co-chairman of the public and active transport committee, made it obvious to colleagues they had little choice. It had been made "pretty clear there could well be implications to existing services" if the council didn't increase passenger revenue. Chairwoman Cr Gretchen Robertson articulated her concerns about the unfairness of the position the government had put the council in. ORC one of the best-performing authorities when it came to raising money from public transport, but that success remained unrewarded: "Instead we are penalised and threatened with removal of current services and that's simply not OK," she said. Councillors agreed to write to Mr Seymour, Education Minister Erica Stanford and Transport Minister Chris Bishop in an attempt to explain that children's bus fares could backfire and affect attendance at school. We are of the view that scrapping free buses for children and increasing fares for adults is the kind of step backwards which those concerned about the country's future would go to great lengths to avoid. However, we appreciate the invidious position the regional council is in and understand why it made the decision it did. The pressure on bus fares from the coalition would be concerning enough on its own, without the wider amplifying anti-regional council views that some, most notably thwarted Resources Minister Shane Jones, are expressing. Little wonder the council, and its contemporaries across the nation, will be opting to take a cautious approach.
The Spinoff
2 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
3 days ago
- Business
- Scoop
'Once-in-a-generation' National Infrastructure Plan sets vision for next 30 years
The draft National Infrastructure Plan is challenging the government to "lift its game" on project planning, saying it has often been "short-term and reactive". The strategy has been developed by the infrastructure commission, Te Waihanga, laying out the key areas in need of attention over the next three decades. Infrastructure Minister Chris Bishop acknowledged the invocation and said the recommendations aligned with the government's priorities. Bishop cited the proposed shift towards user-pays, spatial planning, and better asset management and maintenance. "The government is determined to improve New Zealand's infrastructure system and to work alongside the industry and other political parties to establish a broad consensus about what needs to change," he said. The commission's chief executive Geoff Cooper said New Zealand spent a greater percentage of gross domestic product (GDP) on infrastructure compared to other high-income countries, but was in the bottom 10 percent for the value from that spend. "To ensure New Zealanders are getting the infrastructure services they need, it's critical that we get smarter about how we invest," he said. "A National Infrastructure Plan can help, showing where our infrastructure dollar will have the greatest impact in meeting New Zealand's future needs." The plan contains a "Priorities Programme List" of 17 projects, six of which relate to the Defence Force. As well, it endorses the upgrade of the Reserve Bank's cash centre and vault, and the redevelopment of Hawke's Bay Regional Prison. The commission said more investment would be needed over the next three decades in hospitals and electricity, while changes would be required in land transport investment. The draft plan laid out a litany of problems with the existing approach, including that infrastructure projects were announced before establishing whether they were affordable or 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. "Maintenance funds, which should provide a steady, ongoing stream of work, may get diverted to new builds. Consequently, efforts to recruit, develop, and retain a skilled workforce are stretched" It said New Zealand needed to get smarter about infrastructure planning, and suggested easing the regulatory environment or taking a "more commercial approach". "It's time to start fixing up our essential infrastructure assets, rather than seeing them breaking under our feet because we didn't set aside money for maintenance. "It's time to invest in infrastructure that will lift our productivity and cut our carbon emissions. "It's time to do new projects right, rather than dreaming big and seeing them constantly delayed, rescoped, and cancelled because they're too big for us to afford." The plan will now go out for consultation with a final version to be published by the end of the year. Speaking at a symposium at Parliament on Wednesday morning, Bishop said the independent plan would succeed only if it was accepted and adopted by successive governments. "This is not the... coalition government's plan, this is New Zealand's plan. We will all be better off if we follow its recommendations," Bishop said. He also use his speech to take a whack at "14 laggard councils" which had not yet lodged bids with the infrastructure pipeline. "I'm going to be writing to them, saying that they need to get on board," Bishop said. "My own view is we do need to get away from the rhetoric of needing a bipartisan pipeline, and instead we need to start talking about building bipartisan consensus on the idea that governments of all flavours should use best-practice to plan, select, fund and finance, deliver, and look after our infrastructure." Infrastructure New Zealand chief executive Nick Leggett described the plan as a "once-in-a-generation" opportunity. "The draft Plan is a clear-eyed assessment of the infrastructure challenges facing New Zealand, our historic under-performance and provides a solid pathway for improvement, particularly from our government agencies," he said. "If we don't face up to this now, there will be real pain for our future generations." Leggett said the association particularly supported the design of a "steady project pipeline" to allow providers to invest in their workforce. Labour leader Chris Hipkins said the plan was a welcome contribution. "If we can agree some shared priorities, we can avoid this flip-flopping cycle where everything just takes too long and costs too much." Hipkins expected there were some assumptions in the plan that would be tested over the consultation process, and there would still be some debate over who pays for what. "Even in transport, we have partial user-pays for public transport at the moment. There's probably going to be some differences between Labour and National, in particular about where we think the balance of that should rest."
Scoop
3 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.'
The Star
3 days ago
- Business
- The Star
New Zealand draft infrastructure plan outlines need for more hospitals, electricity
FILE PHOTO: The view of the entrance to the hospital in Whakatane, New Zealand, December 10, 2019. REUTERS/Jorge Silva/File Photo WELLINGTON (Reuters) -New Zealand on Wednesday released a draft 30-year national infrastructure plan, which highlighted a need for the country to invest more in hospitals and electricity production and to prepare to spend more on responding to national disasters. The plan aims to improve infrastructure preparations and introduce a less politically driven approach to infrastructure investment, which critics say has been impacted by electoral cycles with the stop-start results being costly for large projects. 'We want the National Infrastructure Plan to help build common ground about our areas of need and what is affordable for Kiwis, giving the Government of the day guidance for making decisions about infrastructure,' said Geoff Cooper, chief executive of the New Zealand Infrastructure Commission. The draft plan said the country needed to establish affordable and sustainable funding, make it easier to build new infrastructure, prioritise maintaining current infrastructure and assess the readiness of projects before they are funded. While New Zealand was in the top 10% of the OECD in its infrastructure spend as a percentage of gross domestic product, it was not getting the returns it should, it added. To meet demand, annual capital investment would need to increase from around NZ$20 billion ($12 billion) today to slightly more than NZ$30 billion by the 2050s, according to the plan. The New Zealand government has outlined plans to boost the infrastructure build in the country, and earlier this year hosted an infrastructure investment summit to promote foreign investment in the country's infrastructure. 'The Government is determined to improve New Zealand's infrastructure system and to work alongside the industry and other political parties to establish a broad consensus about what needs to change,' said Chris Bishop, Minister for Infrastructure. The finalised plan is expected to be released at the end of the year and will be discussed by parliament in early 2026. ($1 = 1.6565 New Zealand dollars) (Reporting by Lucy Craymer; Editing by Lincoln Feast.)
