From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m 30s
Infrastructure NZ urges parties to keep projects out of coalition deals
Infrastructure NZ warns political parties against including infrastructure projects in coalition agreements to ensure long-term planning.
In brief
Infrastructure NZ warns political parties against including infrastructure projects in coalition agreements to ensure long-term planning. Infrastructure NZ calls for infrastructure projects to be kept outside coalition deals to prevent political interference and ensure long-term funding. Originally reported by RNZ.
Infrastructure NZ warns parties
Infrastructure NZ urges political parties not to include infrastructure projects in coalition agreements for long-term planning.
“Infrastructure NZ is warning political parties not to put infrastructure projects into coalition agreements, and calling for a coherent vision for the future.”
Leggett's democratic approach
Leggett wants the Infrastructure Commission to prioritize projects with parliamentary approval based on majority support from all parties.
“He wants a more democratic approach where the Infrastructure Commission prioritises projects, and Parliament signs them off - dependent on each being able to get majority support from all parties in a kind of 'market of the Parliament'.”
Roads of National Significance
Roads of National Significance projects are construction-ready with funding as the main constraint.
“These are very advanced projects - essentially construction-ready with the main outstanding constraint being funding”
Infrastructure pipeline status
New Zealand has a $290 billion infrastructure pipeline of 12,000 projects with most lacking confirmed funding.
“We've got an infrastructure pipeline which is a wish list of $290b worth of 12,000 projects ... and most of those do not have confirmed funding.”
Productivity and infrastructure deficit
New Zealand ranks 37th in OECD infrastructure value for money with a $1 trillion infrastructure deficit.
“Since the 1950s the country had gone from 3rd to 37th in the world for productivity growth ; had a $1 trillion infrastructure deficit; and was 37th out of 38 OECD countries on infrastructure value for money with an estimated $11.8 billion lost from pausing or cancelling projects.”
Infrastructure Commission model
Infrastructure projects should be prioritised via cost-benefit analyses with parliamentary approval.
“The projects would be prioritised according to standardised cost-benefit analyses by government departments - with advice from the Infrastructure Commission, which would write the overall strategy - with Parliament setting the overall funding envelope.”
Public-Private Partnerships
Public-Private Partnerships could be used for projects where clear outcomes are guaranteed.
“PPPs are good for infrastructure projects ... where you know what you want out of them.”
Parliamentary oversight
Parliament would decide on projects midway between elections with mechanisms to prevent changes during construction.
“Parliament would make the final call on specific projects and priorities, but only at the midway point between elections, and with a mechanism to prevent changes to projects that have started construction.”
Local government reform
Local governments own 36% of public assets but receive only 11% of tax revenue, requiring systemic change.
“Local government own 36 percent of public assets and get about 11 percent of the [total share of tax] revenue, they're never going to be able to keep up ... people wait for central government to ride in with a solution and write the cheque.”
Future of Local Government
A review of local government's fiscal and constitutional standing is needed to improve governance.
“He said the Future of Local Government review commissioned under Labour and completed early in this government's term was 'seen to be too much of one side of politics'.”
The key point
Infrastructure NZ calls for infrastructure projects to be kept outside coalition deals to prevent political interference and ensure long-term funding.
