JUNE - JULY 2022
Money alone will not solve New Zealand’s infrastructure woes Additional infrastructure funding from Budget 2022 is just catching up on years of underinvestment – the sector is calling for the Government to do more about New Zealand’s $210b infrastructure deficit
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udget 2022 lifts infrastructure investment over the next four years from $57.3b to $61.9b, representing an increase of $4.6b. Infrastructure New Zealand welcomes this additional investment, but recognises that much of it is aimed at addressing historic underspending on ageing health, education and transport infrastructure. Civil Contractors New Zealand Chief Executive Alan Pollard says the budget is a good start, but far more will be required to solve the civil construction industry’s worker short-
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age, upgrade and maintain transport and water networks and help communities mitigate the impacts of climate change. “The Government investment in trades training, rail and telecommunications infrastructure and the Construction Sector Accord initiatives is very positive but it doesn’t go far enough. As a country we are missing a trick when it comes to dealing with other key infrastructure issues.” The infrastructure sector was facing immense challenges, including a lack of workers, uncertainty around future projects, and
spiralling expenses caused by supply chain disruption and rising fuel and materials costs, he says. “Treasury’s 2022 Investment Statement has put our combined infrastructure gap at a whopping $210 billion. If we are going to make headway and create a thriving New Zealand for future generations we need a lasting commitment, from all political parties, to building and maintaining the transport, water, energy, and communications infrastructure that’s desperately needed.” Significant infrastructure funding was announced in the 2020 and 2021 budgets but some of the ‘shovel-ready’ projects outlined over the past few years are still to begin. Delays have been exacerbated by inefficient consenting processes and insufficient funding to cope with inflation and rising costs. “We must continue to innovate, look for efficiencies and work smarter, but we can’t build our nation on the smell of an oily rag. The $37 million to progress Construction Sector Accord Transformation Plan initiatives will help foster smarter and more efficient ways of working.” Construction Sector Accord Transformation Director Dean Kimpton says
the funding will support its Construction Sector Transformation Plan 2022-2025. “This new funding is a significant step forward for the Accord and we are determined that it will help unlock the sector’s potential to transform its productivity, its innovation, its sustainability, and its health and safety record.” The funding supports the sector to achieve a renewed set of transformational goals under the new plan, to be launched in July. The new Transformation Plan has a greater focus on: • the Māori construction ecosystem • strengthening capability and productivity across small to medium enterprises • driving innovation • reducing carbon emissions. These initiatives are aimed at achieving the Construction Sector Accord’s vision of a thriving, fair, and sustainable construction sector that enables the wellbeing of Aotearoa New Zealand’s people and its environment, Kimpton says. “In its first three years of progress towards industry transformation goals, the Accord has become the ‘go to’ forum for industry to engage with government and vice versa. It proved its worth during the first
