A draft national 30-year infrastructure strategy released by the New Zealand Infrastructure Commission, Te Waihanga, is being welcomed as “long overdue”.
Considering congestion charging for some of Auckland’s busiest roads and the potential for getting better use of Wellington’s roads are among its recommendations.
Preparing infrastructure for the impacts of climate change, increasing technology use, standardising planning policy and streamlining consenting processes are also among its themes.
The 243-page draft strategy, released last week, contains 67 recommendations to government, local government and the infrastructure sector. It was provided to the Minister for Infrastructure and is awaiting feedback before its finalised in early 2022.
The strategy included estimates of the cost required to meet New Zealand’s infrastructure needs if the country was to “build itself out” of trouble at around 9.6% of GDP over a 30-year period (equivalent to around $31 billion per year), up from a current 5.5% of GDP.
This includes transport, water, hospitals, education and defence facilities but excludes privately provided infrastructure like electricity generation and telecommunications.
It suggests the country’s infrastructure woes can’t simply be fixed by a build programme but that systematic change is needed.
The draft strategy was based on public consultation and feedback from stakeholders. More than 20,000 New Zealanders also shared their views on infrastructure issues through its Aotearoa 2050 survey.
Te Waihanga chair Dr Alan Bollard says the strategy “sets a direction for a net-zero carbon economy, cities that are affordable and easier to get around, a New Zealand that produces zero landfill waste, connected and prosperous regions, infrastructure that is resilient to the many shocks we face including the current COVID pandemic, and would make it easier to get things done”.
“While we face challenges, there are steps we can take that would not only help us to overcome those but meet our aspirations and build a New Zealand that’s an even better place to live. Achieving this means not simply doing the same old but working smarter.”
Te Waihanga strategy general manager Geoff Cooper says fixing New Zealand’s infrastructure needs a different approach to how things were done previously.
“Over the next 30 years the number of people who call New Zealand home will grow significantly; at the same time we face a housing crisis, rising congestion and an enormous economic transition as we mitigate the effects of climate change. Our infrastructure system needs to be part of the solution, not the problem. We need it to be coordinated, responsive to change, adequately funded and technology enabled.
“Underspending, restrictive planning and a just-in-time approach to infrastructure has contributed to unaffordable homes. We have a consenting system that slows the development of the infrastructure needed to meet our net zero-carbon goals. Congestion in our cities will grow worse without change to the way we plan and use our transport connections.
“In the past we’ve tried to build our way out of some of these problems. But the cost of building the infrastructure we’d need to keep up with demand and face future challenges would cost us about $31 billion per year, almost double what we spend now.
“We will need to increase infrastructure funding over the next 30 years, but there are steps we can take to close this gap by improving the way we make decisions, changing the way we pay for services to better manage demand, taking a longer term approach to urban planning, and removing barriers to building homes in the parts of our cities where there’s already infrastructure,” Cooper says.
‘Certainty needed’
Infrastructure New Zealand general manager Claire Edmondson says the 30-year plan sets out a vision but also highlights the challenges.
“Most of the 67 recommendations address known issues, and work on some is already underway, including resource management reform, emissions reduction and a national digital strategy.
“It won’t come as a surprise to anyone that we need to ensure the resource management system doesn’t unnecessarily increase project costs, efficiency and smarter ways of getting things done.
“We’ve been asking for reforms to the Resource Management Act and the recommendation to ensure that the Natural and Built Environments Act ‘gives effect’ to existing requirements for the Crown to deliver infrastructure is an added extra.
“The sector will be particularly thrilled at the recommendation of an independent Infrastructure Priority List to build consensus around key projects and initiatives that address significant long-term problems. This will enable the sector to ensure it has the appropriate resources and supply chain to compete for and deliver this work,” Edmondson says.
“The sector will also be pleased with the recommendation for a national infrastructure skills plan to ensure we have the right people with the right skills to develop our infrastructure in the medium to long-term.
“These are the sorts of things that provide the certainty needed for the sector to get on with the job of making New Zealand a better place for us all. We just need the Government to take them on board and implement them in a timely way,” Edmondson says.
Strategy ‘long overdue’
Civil Contractors New Zealand chief executive Peter Silcock also welcomed the strategy and says it frames challenges and solutions in a way that was “long overdue”.
“It seems a glaring omission for the country to have gone so long without an overarching strategy for something as important as infrastructure. Once finalised, this strategy will inform the national approach and give industry and government more clarity on the work ahead.”
Silcock says the strategy mapped out the challenges the country faces in terms of infrastructure construction and provision, and also recommends actions on key issues such as cost escalation, climate change and ongoing maintenance.
He says it will be interesting to see the Government’s response to the 67 recommendations provided in the strategy, which include improving water infrastructure pricing and provision, clearer long-term funding intentions and a clear national direction for waste management.
Recommendations include:
- Considering congestion charging for some of Auckland’s busiest roads and the potential for getting better use of Wellington’s roads, while at the same time, funding public transport.
- Increasing housing opportunities in areas with infrastructure access, reducing costs and increasing housing affordability.
- Ensuring population and infrastructure planning are closely linked.
- Consolidating multiple infrastructure capital funds.
- Allowing for water meters to manage demand and encourage water conservation.
- Preparing infrastructure for the impacts of climate change.
- Helping councils to align infrastructure and planning decisions in areas where current boundaries don’t reflect where people live and work.
- Reducing the amount of waste we create, particularly for products that can’t be recycled.
- Increase technology use, including greater uptake of real-time data about infrastructure that can help with planning and maintenance, for instance, through digital twins.
- Standardising planning policy across New Zealand and requiring New Zealand cities to plan for significantly more growth.
- A material increase in funding to meet the infrastructure challenge and boost productivity, and options for ensuring that those who benefit most from infrastructure pay a fair share.
- Streamline consenting processes, particularly for infrastructure that helps meet national objectives like a zero-carbon economy, and reduce the regulatory burden on construction materials.
