Latest news with #InfrastructureCommission
NZ Herald
6 days ago
- Business
- NZ Herald
Cutting red tape key to NZ's infrastructure success
These days we find it difficult to get consent for a solar farm. Not even build it, just to get permission to build it. Click here for an alternative view: Julie Anne Genter: Time to prioritise public good over private gain In my view, New Zealand is at an inflection point and we have two choices. One option is we grow slowly – or not at all. We muddle along, take years to make tough decisions, react to things as they come up, and just largely accept the status quo. I call this managed mediocrity. At worst, it is managed decline. The other option is that we make the tough decisions that successive governments have put in the too-hard basket — on planning, housing markets, transport pricing, and more. We take advantage of our extraordinary natural competitive advantages – like cheap, renewable energy – to accelerate growth, increase our standard of living and make us better off than we are today. Achieving this prosperous future won't just magically happen. As I've said before, we need to start saying 'yes' a lot more, and 'no' a lot less. This is especially true for infrastructure. Chris Bishop. Photo / Getty Images Throwing money at the problem won't fix things, because our current system is too inefficient. Despite being in the top 10% of high-income countries for infrastructure spend, we are in the bottom 10% for outcomes. In reality, this looks like poor bang for our buck, funding gaps, cost overruns, delays, and – often – worn-down assets that don't do their job. It isn't good enough. The only way to fix our problems is to get the underlying system settings right, and that's what I've focused on as Infrastructure Minister: developing a National Infrastructure Plan, improving funding and financing, sorting out consenting and planning, improving education and health infrastructure, and strengthening asset management and resilience. These priorities are in response to what I've heard from industry and infrastructure experts, both in New Zealand and overseas. National Infrastructure Plan (NIP) Last month, the Infrastructure Commission released the draft NIP. As Minister for Infrastructure, I hear regularly that what New Zealand needs is a long-term infrastructure plan that transcends political cycles. I agree. A plan will give the private sector more certainty so that they can invest in people and equipment. But a plan is only as good as it's execution. So, the NIP will only be successful if it is – at least in part – accepted and adopted across successive governments over the long term. It's worth noting that this isn't our first plan. New Zealand had infrastructure plans in 2010, 2011, and 2015. Depressingly, some recommendations in these older plans are identical to those put forward in this plan, more than a decade later. I'm thinking of things like agencies completing 10-year capital plans and making better use of pricing tools. What differentiates this plan is that it has been developed independently by the Infrastructure Commission – separate from the government of the day. The NIP is not this Government's plan. It's New Zealand's plan. Each political party in Parliament was offered a briefing on the NIP. I'm really pleased that most parties accepted the offer and have had one or more meetings with the Commission. Building greater consensus on infrastructure is, unfortunately, not as simple as different political parties getting in a room and convincing each other of the other's view. That's not realistic. Instead, consensus will be enabled by strong systems and institutions, robust investment frameworks, high-quality evidence of our infrastructure needs, and advocacy for projects and policies from a better-informed public. That's what this plan is about. People also often say, we need a bipartisan infrastructure pipeline, as if that will solve all problems. We do have a robust infrastructure pipeline. The Commission has been running it for more than five years, and it's been progressively improved over that time. The pipeline has more than 8000 initiatives underway and in planning, from 114 contributing organisations. It represents more than $200 billion in investment value – with over $110b of the pipeline having a funding source confirmed. I suspect that almost all of the projects underway right now are supported by everyone in Parliament. It's the high-profile and high-cost disagreements that make the headlines. But it's the low-profile and often low-cost projects that actually make New Zealand. My own view is that we need to move away from the rhetoric of needing a bipartisan pipeline and instead build bipartisan consensus on the idea that governments of all flavours should use best-practice to plan, select, fund and finance, deliver, and look after infrastructure. That's not the case at the moment and it's what I'm working so hard to fix. Improving Infrastructure Funding and Financing An important priority is improving infrastructure funding and financing. Currently, infrastructure is primarily paid for by taxpayers or ratepayers. This makes sense for some infrastructure like schools and hospitals, but our reliance on this blunt approach has led to challenges like congestion, run-down assets, and the unresponsive provision of enabling infrastructure – contributing to unaffordable housing. In 2024, the Government released a suite of frameworks and guidance – like Treasury's Funding and Financing Framework and a new market-led proposal process – to help the Crown be a smarter owner and purchaser of infrastructure services. This year, I announced five changes to New Zealand's funding and financing toolkit including improving the IFF Act and shifting councils from Development Contributions to a new Development Levy system. These changes will move us to a future state where councils can fully recover the costs of housing growth, and where infrastructure providers can recover costs of significant and city-shaping projects. And today, at the Building Nations summit, I will be announcing a shift in our approach to road user charges. Improving the consenting framework Arguably, the biggest improvement we are making to the infrastructure system is fixing the Resource Management Act (RMA). Consenting takes too long, costs way too much, and makes delivering the infrastructure we need too difficult. We are on track to replace the RMA with new legislation next year. Our new system will be effects-based, embrace standardised zoning and be far more permissive and enabling – while also protecting the environment. An independent analysis by Castalia estimated the new system could reduce compliance and administrative costs by $14.8b – potentially removing about 10 Transmission Gullys-worth of red tape from the economy. It will be a game changer. Better asset management is a key recommendation of the draft NIP. Everyone knows if you don't paint the weatherboards on your house, the wood will rot. Billion-dollar infrastructure is fundamentally no different. Unfortunately, due to decades of diverted maintenance spending, lack of asset registers, and lack of asset management plans, we have schools with leaking roofs, sewage leaks in our hospitals, asbestos in police stations, service outages of commuter rail, and mouldy defence accommodation. Strengthening asset management and resilience In May this year we started a work programme that will improve asset management in central government. We are considering fundamental changes such as legislatively requiring agencies to prepare and publish long-term Asset Management and Investment Plans, and to report on their performance. Regulated utilities and local government are legislatively required to do these things – I don't see why central government thinks it should hold others to a higher standard than it does itself. A couple of weeks ago the Minister for Economic Growth and I released an infrastructure update showing that more than $6b of government-funded construction is due to start between now and Christmas. Workers will start construction on $3.9b of roading projects – like Melling and Ōtaki to north of Levin, $800 million of school property projects, and a range of health projects and other government buildings. Some people said that these projects were 'already announced'. They missed the point. A non-trivial number of these projects were funded all the way back in 2016-2020 – but never started construction. As Government, we are getting on with building infrastructure — not just announcing it. And we're fixing the system, to help build and maintain better infrastructure for all Kiwis. Chris Bishop is the Minister for Infrastructure and National MP for Hutt South.
1News
21-07-2025
- Business
- 1News
Govt trumpets billions being spent on infrastructure in coming months
The Government has released an infrastructure update showing $6 billion of state-funded construction is due to start between now and Christmas. The ministers who were visiting a construction site in Drury spoke to media this morning. Prime Minister Christopher Luxon also took part in the briefing. Minister for Economic Growth Nicola Willis and Minister for Infrastructure Chris Bishop said in a media release that the projects would drive economic activity and create thousands of jobs across the country. "The projects getting underway include new roads, hospitals, schools, high-tech laboratories and other government buildings," Willis said. "That means spades in the ground, jobs throughout the country and a stronger economy. ADVERTISEMENT "Improving the quality of New Zealand's infrastructure is critical to growing the economy and helping Kiwis with the cost of living. "Good roads, schools and hospitals help business to move goods and services to market quickly and efficiently, children to learn and doctors and nurses to get patients back on their feet." The projects getting underway would create thousands of employment opportunities for New Zealanders, Bishop said. "Numbers vary according to the nature of projects, but data sourced from the Infrastructure Commission suggests each billion dollars of infrastructure investment per year equates to about 4500 jobs. "In total, workers are expected to start construction on $3.9 billion worth of roading projects in the next few months. "They include the Ōtaki to north of Levin expressway, the Melling interchange, the Waihoehoe Road upgrade, and the new Ōmanawa bridge on SH29. All will help to lift productivity by getting people and freight to their destinations quickly and safely. "Health projects kicking off include upgrades to Auckland City Hospital, Middlemore Hospital, and the construction of a new acute mental health unit at Hutt Valley Hospital. ADVERTISEMENT "Construction work on the new inpatients' building at the new Dunedin Hospital has also just begun." Projects focused on improving school properties nearly $800 million in value would also be underway before the end of the year, he said. "Other government infrastructure projects due to start before the end of this year include a massive new state-of-the-art biosecurity facility in Auckland for the Ministry of Primary Industries and the Papakura District Court interim courthouse. "Importantly, this is just the start. The National Infrastructure Pipeline, managed by the Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector." Alongside the infrastructure update, Nicola Willis today released an update on the Government's Infrastructure for Growth work programme. The update is the first refresh of the Going for Growth agenda launched in February to drive economic growth by backing business, improving infrastructure and skills, and removing barriers to innovation. The projects beginning construction include: Hutt Valley Te Whare Ahuru Acute Mental Health Unit, Wellington Kidz First and McIndoe Building Recladding, Middlemore Hospital, Auckland Linear Accelerators Replacement, Auckland City Hospital, Auckland Plant Health & Environment Capability Laboratory, Auckland Papakura District Court Interim Courthouse, Auckland Waihoehoe Road Upgrade, Auckland SH22 (Drury) Corridor Upgrade - interim works, Auckland SH29 Tauriko - Omanawa Bridge - Bay of Plenty SH1 Ōtaki to north of Levin, Horowhenua SH2 Melling Interchange, Wellington SH76 Brougham Street, Canterbury Rolleston Access Improvements - Package 1, Canterbury Parliamentary Library - south building and underground carpark seismic strengthening & rebuild, Wellington School property projects across the country including roll growth classrooms, upgrades and redevelopments & learning support satellite classrooms, administration blocks and gymnasiums.
Scoop
20-07-2025
- Business
- Scoop
Infrastructure Projects To Drive Jobs And Growth
Minister for Economic Growth Hon Chris Bishop Minister for Infrastructure Billions of dollars worth of infrastructure projects getting underway in the next few months will drive economic activity and create thousands of jobs across the country, Economic Growth Minister Nicola Willis and Infrastructure Minister Chris Bishop say. The Ministers today released an infrastructure update showing $6 billion of government-funded construction is due to start between now and Christmas. 'The projects getting underway include new roads, hospitals, schools, high-tech laboratories and other government buildings,' Nicola Willis says. 'That means spades in the ground, jobs throughout the country and a stronger economy. 'Improving the quality of New Zealand's infrastructure is critical to growing the economy and helping Kiwis with the cost of living. 'Good roads, schools and hospitals help business to move goods and services to market quickly and efficiently, children to learn and doctors and nurses to get patients back on their feet.' Chris Bishop says the projects getting underway will create thousands of employment opportunities for New Zealanders. 'Numbers vary according to the nature of projects, but data sourced from the Infrastructure Commission suggests each billion dollars of infrastructure investment per year equates to about 4500 jobs. 'In total, workers are expected to start construction on $3.9 billion worth of roading projects in the next few months. They include the Ōtaki to north of Levin expressway, the Melling interchange, the Waihoehoe Road upgrade, and the new Ōmanawa bridge on SH29. All will help to lift productivity by getting people and freight to their destinations quickly and safely. 'Health projects kicking off include upgrades to Auckland City Hospital, Middlemore Hospital, and the construction of a new acute mental health unit at Hutt Valley Hospital. Construction work on the new inpatients building at the new Dunedin Hospital has also just begun. 'Between now and the end of this year, school property projects valued at nearly $800 million will get underway across the country. 'Other Government infrastructure projects due to start before the end of this year include a massive new state-of-the-art biosecurity facility in Auckland for the Ministry of Primary Industries and the Papakura District Court interim courthouse. 'Importantly, this is just the start. The National Infrastructure Pipeline, managed by the Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector.' Alongside the infrastructure update, Nicola Willis today released an update on the Government's Infrastructure for Growth work programme. The update is the first refresh of the Going for Growth agenda launched in February to drive economic growth by backing business, improving infrastructure and skills, and removing barriers to innovation. The update shows that since February the Government has delivered on 14 actions to build a stronger infrastructure pipeline and drive better value for money. They include: streamlining land acquisition processes for major infrastructure projects agreeing to fund more than $550 million of water, energy, Māori development and other projects through the Regional Infrastructure Fund; and consulting on a draft National Infrastructure Plan due to become final by the end of the year that will give investors and businesses confidence and drive better value for money from public investment. Note The projects beginning construction include: Hutt Valley Te Whare Ahuru Acute Mental Health Unit, Wellington Kidz First and McIndoe Building Recladding, Middlemore Hospital, Auckland Linear Accelerators Replacement, Auckland City Hospital, Auckland Dunedin Hospital Sterile Services Unit, Dunedin Plant Health & Environment Capability Laboratory, Auckland Papakura District Court Interim Courthouse, Auckland Waihoehoe Road Upgrade, Auckland SH22 (Drury) Corridor Upgrade – interim works, Auckland SH29 Tauriko – Omanawa Bridge – Bay of Plenty SH1 Ōtaki to north of Levin, Horowhenua SH2 Melling Interchange, Wellington SH76 Brougham Street, Canterbury Rolleston Access Improvements – Package 1, Canterbury Parliamentary Library – south building and underground carpark seismic strengthening & rebuild, Wellington School property projects across the country including roll growth classrooms, upgrades and redevelopments & learning support satellite classrooms, administration blocks and gymnasiums. This list excludes a small number of significant projects which will begin construction before the end of 2025, but cannot yet be named for a range of commercial reasons. The value of these projects is included in the $6 billion total. Announcements will be made about them in the coming weeks and months.
Otago Daily Times
20-07-2025
- Business
- Otago Daily Times
Infrastructure boost for jobs and growth, says govt
The government has released an infrastructure update showing that $6 billion of government-funded construction is due to start between now and Christmas. Prime Minister Christopher Luxon and other ministers joined him in the rural town of Drury, near Auckland, for the announcement this morning. In a statement, Minister for Economic Growth Nicola Willis and Minister for Infrastructure Chris Bishop said the projects would drive economic activity and create thousands of jobs across the country. "The projects getting under way include new roads, hospitals, schools, high-tech laboratories and other government buildings," Willis said. "That means spades in the ground, jobs throughout the country and a stronger economy. "Improving the quality of New Zealand's infrastructure is critical to growing the economy and helping Kiwis with the cost of living. "Good roads, schools and hospitals help business to move goods and services to market quickly and efficiently, children to learn and doctors and nurses to get patients back on their feet." The projects would create thousands of employment opportunities for New Zealanders, Bishop said. "Numbers vary according to the nature of projects, but data sourced from the Infrastructure Commission suggests each billion dollars of infrastructure investment per year equates to about 4500 jobs. "In total, workers are expected to start construction on $3.9 billion worth of roading projects in the next few months. "They include the Ōtaki to north of Levin expressway, the Melling interchange, the Waihoehoe Road upgrade, and the new Ōmanawa bridge on SH29. All will help to lift productivity by getting people and freight to their destinations quickly and safely. "Health projects kicking off include upgrades to Auckland City Hospital, Middlemore Hospital, and the construction of a new acute mental health unit at Hutt Valley Hospital. "Construction work on the new inpatients building at the new Dunedin Hospital has also just begun." Projects focused on improving school properties nearly $800 million in value would also be underway before the end of the year, he said. "Other government infrastructure projects due to start before the end of this year include a massive new state-of-the-art biosecurity facility in Auckland for the Ministry of Primary Industries and the Papakura District Court interim courthouse. "Importantly, this is just the start. The National Infrastructure Pipeline, managed by the Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector." Alongside the infrastructure update, Nicola Willis today released an update on the government's Infrastructure for Growth work programme. The update is the first refresh of the Going for Growth agenda launched in February to drive economic growth by backing business, improving infrastructure and skills, and removing barriers to innovation. Projects beginning construction • Hutt Valley Te Whare Ahuru Acute Mental Health Unit, Wellington • Kidz First and McIndoe Building Recladding, Middlemore Hospital, Auckland • Linear Accelerators Replacement, Auckland City Hospital, Auckland • Plant Health & Environment Capability Laboratory, Auckland • Papakura District Court Interim Courthouse, Auckland • Waihoehoe Road Upgrade, Auckland • SH22 (Drury) Corridor Upgrade - interim works, Auckland • SH29 Tauriko - Omanawa Bridge - Bay of Plenty • SH1 Ōtaki to north of Levin, Horowhenua • SH2 Melling Interchange, Wellington • SH76 Brougham Street, Canterbury • Rolleston Access Improvements - Package 1, Canterbury • Parliamentary Library - south building and underground carpark seismic strengthening & rebuild, Wellington • School property projects across the country including roll growth classrooms, upgrades and redevelopments & learning support satellite classrooms, administration blocks and gymnasiums.
Otago Daily Times
20-07-2025
- Business
- Otago Daily Times
Infrastructure boost includes Canterbury works
The government has released an infrastructure update showing that $6 billion of government-funded construction is due to start between now and Christmas. Prime Minister Christopher Luxon and other ministers joined him in the rural town of Drury, near Auckland, for the announcement this morning. In a statement, Minister for Economic Growth Nicola Willis and Minister for Infrastructure Chris Bishop said the projects would drive economic activity and create thousands of jobs across the country. "The projects getting under way include new roads, hospitals, schools, high-tech laboratories and other government buildings," Willis said. "That means spades in the ground, jobs throughout the country and a stronger economy. "Improving the quality of New Zealand's infrastructure is critical to growing the economy and helping Kiwis with the cost of living. "Good roads, schools and hospitals help business to move goods and services to market quickly and efficiently, children to learn and doctors and nurses to get patients back on their feet." The projects would create thousands of employment opportunities for New Zealanders, Bishop said. "Numbers vary according to the nature of projects, but data sourced from the Infrastructure Commission suggests each billion dollars of infrastructure investment per year equates to about 4500 jobs. "In total, workers are expected to start construction on $3.9 billion worth of roading projects in the next few months. "They include the Ōtaki to north of Levin expressway, the Melling interchange, the Waihoehoe Road upgrade, and the new Ōmanawa bridge on SH29. All will help to lift productivity by getting people and freight to their destinations quickly and safely. "Health projects kicking off include upgrades to Auckland City Hospital, Middlemore Hospital, and the construction of a new acute mental health unit at Hutt Valley Hospital. "Construction work on the new inpatients building at the new Dunedin Hospital has also just begun." Projects focused on improving school properties nearly $800 million in value would also be underway before the end of the year, he said. "Other government infrastructure projects due to start before the end of this year include a massive new state-of-the-art biosecurity facility in Auckland for the Ministry of Primary Industries and the Papakura District Court interim courthouse. "Importantly, this is just the start. The National Infrastructure Pipeline, managed by the Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector." Alongside the infrastructure update, Nicola Willis today released an update on the government's Infrastructure for Growth work programme. The update is the first refresh of the Going for Growth agenda launched in February to drive economic growth by backing business, improving infrastructure and skills, and removing barriers to innovation. Projects beginning construction • Hutt Valley Te Whare Ahuru Acute Mental Health Unit, Wellington • Kidz First and McIndoe Building Recladding, Middlemore Hospital, Auckland • Linear Accelerators Replacement, Auckland City Hospital, Auckland • Plant Health & Environment Capability Laboratory, Auckland • Papakura District Court Interim Courthouse, Auckland • Waihoehoe Road Upgrade, Auckland • SH22 (Drury) Corridor Upgrade - interim works, Auckland • SH29 Tauriko - Omanawa Bridge - Bay of Plenty • SH1 Ōtaki to north of Levin, Horowhenua • SH2 Melling Interchange, Wellington • SH76 Brougham Street, Canterbury • Rolleston Access Improvements - Package 1, Canterbury • Parliamentary Library - south building and underground carpark seismic strengthening & rebuild, Wellington • School property projects across the country including roll growth classrooms, upgrades and redevelopments & learning support satellite classrooms, administration blocks and gymnasiums.
