Business leaders are welcoming the Government’s $12 billion dollar infrastructure investment and say road and rail should now be a top priority.
New transport projects are receiving $6.8 billion of the funding which is the biggest lift in capital investment in more than 20 years.
Civil Contractors New Zealand Chief Executive Peter Silcock says the investment is “significant” and will help boost the economy and improve living standards.
“We need to get on with the job of overcoming our infrastructure deficit, so this announcement is very welcome. It’s also a necessary move to save jobs which are on the line as major transport projects wind down.”
Silcock says the lack of short to medium term work had been a major concern for the industry as jobs like Transmission Gully, the Waikato Expressway, and Kaikoura and Christchurch motorway projects are completed over the next year.
Shovel-ready projects are now needed and a wide range of transport projects put on the back burner over the past two years need to be brought forward, he says.
This includes Melling Link in Wellington’s Hutt Valley, Tauranga’s Northern Link which is “pretty much ready to go”, Cambridge to Piarere and increased investment in safety improvements and State Highway maintenance.
“Contractors are people of action. There has been a lot of announcements and talk but until funding is confirmed and planning approval granted construction work can’t start. We really need projects we can start work on over the next year.
“We’ve seen a lot of transport projects stalling in the past two years, and some of the other work has been slow to come to the market – including safety improvements and investment in rail and road maintenance.
“We appreciate there has been a shift in vision and priorities, but the infrastructure work pipeline is a long-term thing that doesn’t change overnight,” Silcock says.
Employers and Manufactures Association head of advocacy and strategy Alan McDonald is hoping the upper North Island region gets some attention through the funding.
The package will be in addition to what has already been allocated in the National Land Transport Plan (NLTP).
“Our understanding is that in some cases the funding may speed up projects in the NLTP or supplant already allocated funds. Where that happens the funding that is freed up from the NLTP will then be reallocated for other NLTP projects to further accelerate that pipeline,” McDonald says.
“While details about which projects will receive the new funding are being held back – they are likely to be announced in the New Year – there are a number of public transport, rail and road projects across the upper North Island that are virtually ready to go and if brought forward will bring considerable benefits to businesses in the region,” he says.
BusinessNZ chief executive Kirk Hope says he looks forward to see more project details from the investment.
“We need to make sure the projects can be executed, and that decisions are worked through Infrastructure Commission to ensure investments are strategic and contribute to New Zealand’s growth in productivity.
“It will be important that capacity constraints don’t restrict execution of essential short- and medium-term projects, and that the projects are strongly aligned with immigration and training policies,” Hope says.
