Political rabbits put in charge of the lettuce

Where the money is going • Auckland: $500 million • Canterbury: $300 million • Otago: $260 million • Wellington: $185 million • Bay of Plenty: $170 million • Waikato: $150 million • Northland: $150 million • Manawatū/Whanganui: $140 million The construction industry stands to lose a huge amount of skilled

A combined plea from three key infrastructure associations garners a partial response from a government accused of using shovel-ready projects for politicking ahead of the election

Details of 59 projworkers face redundancy selected 150 projects worth But four weeks later, ects were released and business confidence $2.6b that would create or only projects worth about on July 27 by the amongst construction and retain 20,000 jobs. $500m (approximately 25 government’s Infrastructure infrastructure companies It also indicated that it per cent of the total alloReference Group after infranose-dives,” the joint comwas looking to spend $464 cated) had been released. structure industry leaders munique from Infrastrucmillion housing and urban A package including $761m and opposition party MPs ture NZ, Civil Contractors development, $460 million of three waters funding had had earlier called for the NZ and the Association of on the environmental, $670 also been announced, but release of the government’s Consulting and Engineering million on community and without any timelines. full list of shovel-ready NZ said. social development and As details of a further projects. Early in July the Govern$708m on transport projdozen or so trickled out

“Increasing numbers of ment had announced it had ects. during the month News-

workers • Hawkes Bay: $130 million • Southland: $90 million • West Coast: $90 million • East Coast: $106 million • Taranaki: $85 million • Top of the South Island: $85 million

room was reportedly told by Infrastructure Minister Shane Jones that the rest would be announced in coming weeks, some by ministerial visit. "I wouldn't want to break a habit," he told the news agency Finance Minister Grant Robertson said "this is about that certainty that we constantly hear from the construction sector they want".

Civil Contractors New Zealand chief Peter Silcock says while the funding announcements were welcome, details were urgently needed, or people would lose their jobs. “There was a big difference between making announcements and providing meaningful employment opportunities through economic activity,” Silcock says.

The latest “in principle approvals subject to contract negotiations” provide support or total funding to $1.365 billion of $2.151 billion worth of projects. Investment values are also subject to change.

“The current situation is incredibly frustrating,” says Silcock. “We know the work is out there, but unless we know where, what and most importantly when projects will start, contractors are left totally in the dark. They will have no choice but to put workers off or face the risk of companies going under.” A joint letter from industry leaders was sent to ministers in mid-June stating the urgent need. Ministers responded that answers were ‘imminent’, but the actual project details are still trickling out slowly,

“Companies are running out of options,” say Infrastructure New Zealand chief Paul Blair.

“Timing is everything. Projects starting construction today had planners, designers and architects at work last year. Contractors began allocating resources, scaling up or down based on predictions of work.

“The problem now was that no one could see six to 12 months ahead, so they were taking risks retaining staff on assumptions work would appear or having to cut back hours.

“It’s very stressful, it’s increasing costs and it’s completely avoidable. The full list and timing of shovel ready projects needs to be released now with a clear commitment to project timeframes.”

Association of Consulting and Engineering Chief Executive Paul Evans said the situation was looking dire as local government cut spending on infrastructure projects.

“Unless urgent action is taken, the infrastructure and construction industries stood to lose a huge amount of skilled workers.”

Job creation

• Auckland City Mission - 200 jobs during construction and 150 once completed. • Bay of Plenty - Wharenui Road and SH30 with Rotorua Lakes District Council and NZTA - 300 jobs. • Canterbury: Coastal Pathway with Christchurch Coastal Pathway Group and Christchurch City Council - 100 jobs over a year. • East Coast: Rugby Park Grandstand with Poverty Bay Rugby Football Union - 30 jobs • Hawke’s Bay: Whakatu Inland Port with Port of Napier Ltd - 46 full-time jobs over two-years then 28 jobs once completed. • Northland: Whangarei Rejuvenation with Whangarei District Council, Whangarei Boys High School, Hihiaua Cultural Centre Trust, Northland Rugby, Bike Northland Incorporated and Ruakaka Recreation Centre - 200 jobs. • Taranaki: Thermal Drying Facility Replacement with New Plymouth District Council - 77 jobs during construction. • Top of the South: Blenheim Art Gallery and Library with Marlborough District Council - 30 direct jobs. • Southland: Invercargill Inner City Development with Invercargill City Limited - 350 jobs • Waikato: Taupo Town Centre with Taupo District Council - 92 jobs

Source: Newsroom

Grant Robertson calls it the certainty the construction industry was looking for, and when it comes to announcements, Shane Jones "wouldn't want to break a habit." Photo: Mark Mitchell