Infrastructure
New ZealandElection 2023
Priorities

infrastructure.org.nz

Infrastructure NZ | Election 2023 Priorities

The incoming Government
must accelerate infrastructure
investment and set a bold vision
for the country
On behalf of the wider infrastructure sector and ahead of the 2023 General
Election, we have put together a set of key priorities that will help New Zealandachieve world class social and economic performance. Our hope is that theincoming Government – no matter its stripes – takes this document seriously
as the infrastructure sector’s call to action. We intend to revisit theserecommendations following the Government’s first 100 days in office, to ascertain
what has been achieved and assess whether new directions have been set.
New Zealand’s future will require greater investment
in infrastructure to meet growth and climatechange pressures. We must also address historic
underinvestment in infrastructure maintenance andrenewals. To meet these challenges, we need tofundamentally rethink the way planning and funding
functions across local and central government
are organised.
We know from a recent Infrastructure New Zealand/
Curia poll, that 70% of New Zealanders think that
we haven’t invested enough in infrastructure. From
focus groups discussions, we further identified the
key areas where government investment is needed.
These were housing and transport – particularly
roading. It’s time to coordinate across infrastructure
priorities to ensure that the full benefits ofinvestment are realised.
A step change is needed in the way New Zealandthinks about and invests in its infrastructure.
External partnerships need to be at the forefront of
the incoming Government’s approach to successfully
unlock New Zealand’s potential. The improved useof private capital and associated increase in delivery
capacity and expertise must come alongside
new and innovative ways of partnering with local
government, Iwi and the wider infrastructure sector.
Doing so will require a mindset shift. System change
is needed to drive better decision making andcoordination. An openness to private capital willneed to come alongside to supercharge our ability tobuild for growth and vitally improve our approach tomaintaining and better utilising the assets we have.
Infrastructure New Zealand is Aotearoa’s peakmembership organisation for the infrastructure
sector. We promote best practice in national
infrastructure development through research,
advocacy and public and private sector
collaboration. We also promote public and media
discussion on topical issues of infrastructure. Our
members come from diverse sectors across New
Zealand and include infrastructure owners, service
providers, investors and operators.
These priorities will form the basis of our agenda forthe next parliamentary term and beyond.

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Five actions for
the Government’s
first 100 days
1. System Change
Begin consolidation of regional councils and territorial authorities
into new regional entities with long term city deals as a firststep towards rebalancing the power between Local and Central
Government on infrastructure delivery and growth.

2. Climate Resilience
Start development of infrastructure resilience plans for all
sectors and establish funding for these, including private funding
opportunities.

3. New and better utilisation of tools
Uptake of existing funding mechanisms on specific projects in thefirst 100 days of office. Review current tools that need refinement
to be effective in the current climate, including the Infrastructure
Funding and Financing Act and Urban Development Act toimprove usability.

4. Improve use of external sources of capital
to fund infrastructure
Commit to the engagement of private sector funders andfinanciers as partners at all levels of Government to speed up
project delivery and deliver more value to New Zealanders, faster.

5. Workforce
Commit funding to establish a major project leadership academy
to improve project governance and lift capability.

Infrastructure NZ | Election 2023 Priorities

It’s time for system change to drive
momentum in the sector
Recommendations
1.1 	Begin consolidation of regional councils and territorial
authorities into new regional entities with longterm city or regional deals as a first step towards
rebalancing local and central government power.
1.2 	Establish a framework and complete successful cityand regional deals between central government,
local government, Iwi, and the private sector
as funders, deliverers and partners on major
infrastructure builds for all parts of New Zealand.
1.3 	Action a fast-track consent process that will
enable major projects to be planned and built on
accelerated timeframes.
1.4 	Agree on the Terms of Reference for a review ofand recommendations for a refreshed large project
consenting framework.
1.5 	Progress implementation of water reform by
establishing the entities and funding mechanismsthat provide for sustainable ongoing investmentin the modern and safe water infrastructure ourcommunities need.
Balanced partnership needs to be at the heart of systemchange to supercharge the sector. At present, weakcentral government commitment and insufficient fundingof local government are the key barriers to effective
implementation of plans in the current system. The
incoming Government must build on the Review into the
Future for Local Government’s recommendations and agree
to local government reform that provides for significant
structural change which promotes a local voice.
Local government reform should consolidate regional
councils and territorial authorities into new regions definedby logical social, economic environment and cultural
boundaries. Planning, funding, and governance functions
must be integrated to deliver value to the public.
At the regional level, development strategies would identify
the long-term outcomes for the new defined regions
and map out the future sequencing of development bydecade on 10, 20-and 30-year horizons. A 10-year spatialplan would give effect to the strategy by regulating land
use and sequencing investment in infrastructure for the
next decade. A three to four-year budget cycle would

commit funding for development and provide investor
certainty, while new and increased funding would be
provided to regions and communities by way of a shareof the economic uplift resulting from effective deliveryof the spatial strategies. Within towns and communities,
community councils would plan, fund, and deliver local
placemaking and amenities to reflect the needs andaspirations of communities.
To enable this, the incoming Government would need toenact legislative change. We envisage a simplified systemcomprised by a dedicated Environment Act to set limits,standards and policies for protection of the environment
and national heritage; and a Development Act to consolidate
local government into regional entities with new funding
powers, tasked with the delivery of regional development
plans to deliver improved social, environmental andeconomic outcomes across New Zealand.
City and regional deals, if implemented effectively,
could act as a bridging measure to drive local-central
government partnership and devolve responsibility toregions. Long term funding certainty and earn-backmechanisms could pave the way for broader reform. The
deals or place-based agreements would bring together
central and local government, Iwi, and the private sector
as partners, funders, and deliverers on major infrastructure
are a fantastic opportunity to provide certainty of long-term
funding and planning, but the right building blocks must be
in place first. A national plan for cities, and a staged approachto negotiations based on local government capacity andcapability should be prioritised in the first instance.
Change is badly needed in the water sector and shying
away from difficult conversations on implementation
won’t provide confidence to the sector or the public.
The incoming Government needs to establish water
services entities and funding mechanisms that provide
for the sustainable funding of the modern and safe water
infrastructure our communities need.
Despite the controversy surrounding the reform
programme, the major parties have points of agreement.
In line with a broader reset of regional responsibilities, wehope the broad regional structure of the reform programme
as enacted will remain. Off-council balance sheet
borrowing, and established economies of scale benefits
achieved by the entity structure should be retained. These
are significant long-term assets and they need to be

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A national plan for cities,
and a staged approachto negotiations basedon local government
capacity and capability
should be prioritised in
the first instance.

funded as such. The role of private capital should also be
seriously considered. If any change to the entities modelis introduced, we encourage the incoming Government
to consider the benefits of shared services models, in linewith the Review into the Future for Local Government’s
recommendations.
We also know that New Zealand’s current consenting
system isn’t working. Action on a fast-track consent
process that enables major projects to be planned and built
in the required timeframes is needed, and the Government
should agree on the Terms of Reference for a review andrecommendations for a refreshed large project consenting
framework in its first 100 days.

We expect that any incoming Government would either
carry forward or make minor amendments to significant
infrastructure reforms including legislation passed by
the House supporting the affordable water and resource
management reform programmes. Any amendment to theresource management system should be made in line withthe regionalised structure but with simplified legislation –acknowledging the current fragmentation across statutes
including the Local Government and Land Transport
Acts as well as climate change response legislation. Bothreforms represent much needed progress and rolling backgains on regional structure, as well as the improved ability
to raise capital for infrastructure would inhibit progress.

Infrastructure NZ | Election 2023 Priorities

The Government must
drive a mindset shift andimprove pipeline certainty
for Aotearoa New Zealand
Recommendations
2.1 	Communicate a clear vision and strategy for
New Zealand’s future infrastructure needs andinvestment pipeline.
2.2 	Accelerate and communicate a clear and credible
pipeline of infrastructure projects to provide
confidence and certainty to the entire sector andthe New Zealand public.
2.3 	Integrate central government’s infrastructureadvisory and funding functions into a single
independent entity to provide coordination andsystem leadership.
In recent years, we have seen some progress towards
greater certainty and longer-term planning in the sector,
but independent advice has lost traction with ministers.
New Zealand’s infrastructure system needs strong,
independent advice that is coordinated with the funding
and financing functions currently housed with Crown
Infrastructure Partners. A single agency could take asystem leadership role.
We know that random politicised infrastructure projects,
where project decisions and directions turn on the whim ofpoliticians, creates uncertainty for the sector and hampers
its ability to gear up and deliver. A recently commissioned
Infrastructure New Zealand report outlines that a morecertain pipeline could enable $2.3 and $4.7b more a year
on average being delivered, over the period 2025-31. These
are not benefits we can afford to miss out on in the context
of a substantial infrastructure deficit. Te Waihanga’s
Infrastructure Priority List will go some way towards
prioritising the pipeline. This work needs to be accelerated
by an agency with the mandate to facilitate funding andfinancing of prioritised projects. A compelling vision for New
Zealand’s infrastructure is needed – one which commits tolong-term planning, informed by independent advice, data,and evidence, that provides greater certainty to both the
New Zealand public the wider sector. We recommend that
central government’s infrastructure advisory and funding
functions are integrated into a single independent entity toprovide coordination and system leadership.

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The private sector has a central role to play
Recommendations
3.1 	Commit to the engagement of private sector
funders and financiers as partners to Government
in infrastructure projects.
3.2 	Establish a set of streamlined infrastructure
capital funds to ensure a strategic approachis taken to central government’s capital
infrastructure spend. These capital funds should
be administered by one central agency.
3.3 	Review current tools, including the Infrastructure
Funding and Financing Act and Urban
Development Act to improve usability.
3.4 	Introduce legislation to progress congestion
charging in Auckland and that enables Local andCentral Government to use road pricing as a tool
more generally.

Partnership must be at the forefront of the incoming
Government’s approach to infrastructure. The
infrastructure deficit was estimated in 2019 to be $210
billion. The intervening years have brought substantial

cost escalation, and the impacts of climate related weather
events that have added to the figure significantly.
The Government can’t fund this alone – incoming
leadership needs to commit to engaging private sector
partners to deliver large projects. Alongside an improved
approach to private capital, existing government-led
funding and financing arrangements require improvement.
There is an opportunity to streamline existing capital funds
to develop a strategic approach to government investment,
review current tools – including the Infrastructure Funding
and Financing Act (2020) and introduce new and improved
revenue tools like congestion charging / road use pricing,
tourist levies, GST rebates that can address funding
shortfalls and improve the attractiveness of infrastructure
financing opportunities.
Greater use of private capital enables more infrastructure
projects to be funded, constructed, and completed earlier,adding more immediate benefits to New Zealand. The greatest
cost to New Zealand remains the cost of not building vitalprojects that improve social and climate progress and our
productivity and economic performance. Rapid funding,construction and delivery of more projects can only
occur by effectively using parties external to Government
through wise use of available tools and sector expertise.

Infrastructure NZ | Election 2023 Priorities

The incoming Government should partner with local
councils to deliver significant projects across the country
Recommendations
4.1 	Commit to funding, including use of private
capital, and a clear delivery structure to guarantee
an integrated mass rapid transit network in
Auckland, including commencement of the second
Waitematā harbour crossing by 2026.

requires funding certainty and the build of the second
harbour crossing should commence by 2026. The incoming
administration must seriously engage with the private
sector to agree on the way forward to involving private
capital in these major projects.

4.3 	Negotiate regional deals to fund and plan forregional projects with long term certainty, greater
power-balancing and an integration of planningand funding functions.

There is also an opportunity to provide certainty andimproved resilience outcomes across our growth regions.
Regional deal arrangements should include projects
to meet this need. In the Waikato, a regional deal
could partner central government with councils on theconstruction of the Southern Links and completion of
Cambridge to Piarere expressway. In Tauranga, special
legislation to approve the Port of Tauranga’s berthextension would enable a partnered approach to deliveringmuch needed port capacity. Commitment to deliver theState Highway 29 network connections and the SH29
bypass would enable planned development around Tauriko,Western Bay of Plenty.

Our metropolitan areas provide the biggest opportunities
for decarbonisation through mode shift in transport.
Improvements to Wellington’s urban transport andinfrastructure and Auckland’s mass rapid transit network– including integration via a second Waitematā harbour
crossing are badly needed, but current plans lack funding
commitment. Legislation needs to be introduced in thefirst 100 days of the incoming Government’s term to fundand commence work in Wellington, including for tunnel
duplication and the trenching of an expanded state
highway network to the airport. Auckland Light Rail also

In the South Island, a regional deal that included theco-funding of a second Ashburton bridge would improveconnectivity and resilience along key freight routes. In the
North Island, the Government should also accelerate theCoromandel, Tairawhiti and Hawke’s Bay’s recovery from
Cyclone Gabrielle by reviewing options for a regional deal
between central and local governments in the area. The
long-term partnership arrangements focus on creating
economic growth by giving local government power andresources to deliver projects in their region and are mostsuccessful when they involve the private sector (andprivate capital) from the start.

4.2 	Introduce legislation and establish a delivery
vehicle as necessary to commence work on a
package of transport and urban infrastructure in
Wellington, including for tunnel duplication andtrenching of an expanded state highway network
to the airport.

9Meeting the climate change challenge
Recommendations
5.1	Develop infrastructure resilience plans for all
sector plans and established funding for these,including private funding opportunities.
5.2	Continue work on regulatory settings to manage
New Zealand’s energy security, including
progressing work on offshore renewables.
5.3	Government should progress climate adaption
legislation as soon as possible to provide clarity andcertainty, and enable communities to address thecomplex issues associated with managed retreat.
5.4	Establish a new central government organisation
to oversee climate event recovery and response toensure there is sufficient funding available.
The current Government’s ‘policy bonfire’ earlier this year
created significant uncertainty. Further instability anda lack of committed funding to meet the pressing needto decarbonise and build climate resilient infrastructure
will hinder any hope of progress. Critical monitoring andreporting of the ERP’s implementation progress need to beconsidered as part of the development of the second ERP
and ERP actions need to be fully funded and prioritised as
we head into the critical second emissions budget period.
A combination of mitigation and adaptation approaches isneeded to address our climate change challenges.
The future of New Zealand’s energy security relies ona well-balanced and consistent regulatory approach.
Getting this right early in the transition will be critical toits success. Work is underway by the current Government,
including on the offshore wind market. We expect thisreality to be considered seriously in the Government’s first
100 days, and for work underway to be largely progressed.

The impact of climate change is exacerbating New
Zealand’s existing vulnerabilities. Planning and building
new infrastructure must now be done with climate
resilience and sustainable development front of mind. New
Zealand also needs to take a proactive risk management
approach to our existing infrastructure networks andfacilities by assessing the risk of climate-related flooding,slips, erosion, and coastal inundation. Based on theseassessments, sector plans need to be developed (where
they do not already exist) and a long-term funding plan tobuild more resilience into our infrastructure needs to start
now. Opportunities to leverage private funding and financing
options should be provided for too - this challenge is too big
for the government to undertake by itself.
To enable communities to address the complex issues
associated with climate change and managed retreat, weurgently need the climate adaptation legislation to provide
the foundations for us to change our planning policies tomatch today’s challenges. A framework to address theinevitable funding question is a key component of this.
There also needs to be clear accountability and oversightby government to assist with future recoveries andrebuilds, particularly given the ongoing nature of climaterelated events and the geographic spread of these. The
systems established to facilitate, and fund, recovery efforts
as well as the lessons learnt need to be harnessed to ensure
they contribute to future recovery efforts. A new central
government organisation should be established to facilitate
this and to leverage the opportunities that exist to build backbetter. The incoming Government should progress climate
adaption legislation as soon as possible and ensuring that
established funding is available to address resilience needs –including through private sector involvement.

Infrastructure NZ | Election 2023 Priorities

New Zealand’s
major projects
need to employ
best practice andmake the mostof constrained
resources.

Growing capability and nurturing a more inclusive
industry makes economic sense
Recommendations
6.1 C
 ommit funding to establish a major project
leadership academy, drawing on Te Waihanga’s
recommendation.
6.2 Commit to ongoing support of infrastructureskills centres and industry led diversity initiatives
across the sector.
Skills shortages have been a pressing issue over the last
few years across the New Zealand economy – especially ininfrastructure and construction. Immigration numbers have
improved, but there are ongoing challenges in competingfor global talent. There is substantial opportunity to address
shortfalls by leveraging increased diversity in recruitment
and retention across the sector, and space to drive bestpractice in the sector by growing onshore expertise.
Less than 3% of construction tradespeople are women in
New Zealand. Leveraging the opportunity to build greater
inclusivity and improve conditions for greater diversity
across the sector isn’t only the right thing to do, it presents

significant opportunity to address skills pressures in
key industries. The sector has a range of industry-led
initiatives, including the piloted infrastructure skills centres
which Government and industry partnered to deliver which
would benefit from long term committed funding.
In its 30-year Infrastructure Strategy - Rautaki Hangangao Aotearoa, Te Waihanga / the New Zealand Infrastructure
Commission has recommended that a New Zealand Major
Projects Leadership Academy is established based on
proven international approaches and that completion ismade a requirement for project leaders. New Zealand’s
major projects need to employ best practice and make themost of constrained resources. To drive a step change inmajor project management in New Zealand – alongsidebringing in overseas expertise, INZ recommends thata leadership academy here, modelled on successfulinternational experience, would benefit New Zealand’s
major project delivery environment.

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Government must improve as a client of infrastructureservices, and lead on improvements to procurement
and business case processes.
Recommendations
7.1 R
 eview assessment processes, including
Treasury’s better business case approach andWaka Kotahi’s business case process to ensure
New Zealand is utilising international best practicefor project development and decision making.
7.2	Review government procurement practices andintroduce changes which streamline approvals,
reduce inefficiencies, and incentivise the use oftechnological innovation including improved data
provision and digitisation.
Both central and local government are large infrastructure
procurers. Both could leverage and lift sector capability andproductivity by improving their own decision making andprocurement practices.
At present, central government business case practices
are often inefficient and achieve sub-optimal outcomes

because they tend to favour status quo or gradualimprovement due to the discounting of longer-term
benefits and the lack of attention to non-quantifiable
benefits like climate resilience or city shaping. We needto improve the way we make decisions on projects toenable us to better consider benefits and costs against theoutcomes we are seeking and make informed decisions
about the types of projects that are important for our
future. Treasury’s better business case approach andWaka Kotahi’s business case process should be reviewed
to ensure they remain fit for purpose and are in line withinternational best practice.
There is also an opportunity for improved procurement
practices to lift the capability of the industry by changing
procurement rules to require data provision back to
Government – the client – on infrastructure projects,
with a view towards developing an enabling environment
to support digital twin and underground asset mapping
capabilities. Improved procurement practices will need tobe met with significant capability uplift within governmentand collaboration across the industry.

Nick Leggett

Chief Executive+64 (0) 21 248 2175
nick.leggett@infrastructure.org.nz

Michelle McCormick

Policy Director+64 (0) 21 526 473
michelle.mccormick@infrastructure.org.nz

Infrastructure New Zealand
PO Box 7244, Victoria Street West,
Auckland 1142, New Zealandinfrastructure.org.nz