$11b for NZ infrastructure

Minister of Finance Steven Joyce has pledged an extra $4 billion on New Zealand infrastructure ahead of next month’s Budget announcement, with a focus on reinvesting in roads across the country. “In some parts of New Zealand, including Auckland, you can’t move for road cones at times, which is frustrating,” he says during a speech to the Wellington Chamber of Commerce. State Highway 1 and the rail line north and south of Kaikoura, which was badly damaged in the earthquake last November, was singled out by Joyce. Costs are now expected to hover between $1.1 and $1.3 billion, below initial forecasts. “The Government’s priority is to restore the pre-earthquake transport links to Kaikoura and its surrounding communities, and ensure these vital links are resilient for the long term,” Transport Minister Simon Bridges says in a separate statement. “To make sure this work continues at pace, Budget 2017 will provide up to $812 million to reinstate State Highway 1 between Picton and Christchurch.” Capital infrastructure spending, including roads, is also set to receive a huge boost in the next Budget, with $11 billion earmarked during the next four years. This is almost double the $4.8 billion in funding allocated during the previous four years. “We are investing hugely in new schools, hospitals, housing, roads, and railways. This investment will extend that run-rate significantly, and include new investment in the justice and defence sectors as well,” Joyce says. Combined with the investment made through the National Land Transport fund, this totals $23 billion of funding for infrastructure over the next four years. “We want to extend that further, with greater use of public-private partnerships, and joint ventures between central and local government, and private investors,” Joyce says. Road Transport Forum chief executive officer Ken Shirley has welcomed the funding boost. “With our growing population and expanding economy the burden on our transport infrastructure is becoming acute. The freight task alone is expected to increase by around 70 per cent over the next 25 years,” he says. “The devil will be in the detail of course, but the transport industry looks forward to budget day and more information on where the first $4 billion will be spent.” But Labour’s finance spokesman, Grant Robertson, calls the announcement “underwhelming". “The new spending announced today is only enough to buy 650 metres of the Auckland Central Rail Loop each year,” he says.