A draft National Infrastructure Plan has challenged 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 new 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,” Bishop 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% 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 contained a “Priorities Programme List” of 17 projects, six of which relate to the Defence Force. As well, it endorsed 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.
‘Time to do projects right, rather than dreaming big’
“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.
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.
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