Breaking short-term development cycle

While New Zealand spends about 5.8% of GDP on infrastructure every year, it ranks towards the...
While New Zealand spends about 5.8% of GDP on infrastructure every year, it ranks towards the bottom of developed countries when it comes to the quality and efficiency of its infrastructure investment. PHOTO: SUPPLIED
The release of the government’s response to the independent National Infrastructure Plan is significant.

This is about taking a longer-term view of New Zealand’s future and finally breaking the cycle of short-term thinking that has too often frustrated infrastructure development in this country.

The plan delivered a stark warning.

New Zealand spends around 5.8% of GDP on infrastructure every year, making us one of the highest infrastructure spenders in the OECD.

Yet despite that spending, we rank towards the bottom of developed countries when it comes to the quality and efficiency of our infrastructure investment, and fourth-to-last in the OECD for asset management.

The report highlighted a range of long-standing issues.

Many public agencies do not have robust asset management plans.

Some do not have a complete understanding of the assets they own or their condition.

Maintenance has too often been deferred, creating larger and more expensive problems down the track.

At the same time, New Zealand faces growing challenges from an ageing population, ageing infrastructure, population growth in some regions and increasing pressure from natural hazards, and severe weather events.

The good news is that there is now a plan to address these challenges.

The government has supported all 16 recommendations made by the infrastructure commission, and work is already under way on many of them.

The next stages include reviewing New Zealand’s land transport funding system, legislating to require long-term investment and asset management plans from government agencies, improving the collection of infrastructure data through the national infrastructure pipeline, and strengthening oversight and leadership of major infrastructure projects.

One of the key aspects of the National Infrastructure Plan is that it looks 30 years ahead. Infrastructure assets often last for generations, and major projects can take many years to plan and deliver.

Encouragingly, there is growing recognition of this across Parliament.

The government’s response included contributions from both Labour and Green Party infrastructure spokespersons, reflecting broad support for the overall direction of the plan and the need for a more enduring approach to infrastructure planning.

That bipartisan support matters.

Businesses investing in New Zealand need certainty.

Councils need confidence to plan for growth.

The construction sector needs visibility to train workers and invest in capability.

Communities deserve assurance that important projects will not be endlessly delayed because priorities change every election.

The plan is not a document that should sit on a shelf gathering dust.

It is an opportunity to lift New Zealand’s performance and deliver better value for future generations.

The commission has provided the blueprint.

Our government has accepted the challenge.

Because when it comes to infrastructure, New Zealand’s future depends not on what just happens over the next three years, but on the decisions we make over the next 30.

•James Meager is the MP for Rangitata