Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones say the Government has tasked a group of industry leaders to seek out infrastructure projects ready to start as soon as work returns to normal.
The move is aimed at reducing the economic impact of covido-19,
The Infrastructure Industry Reference Group, to be headed by Crown Infrastructure Partners chairman Mark Binns, will list projects from the private and public sectors that are shovel-ready or likely to be within six months.
They will be in addition to and build on the Government’s $12 billion Upgrade Programme and existing Provincial Growth Fund infrastructure investments.
The Government will then decide which can be funded, contracted and ready to go as soon as the construction workforce is active.
Relevant government departments will also provide advice to ministers.
“We are focused on the health and wellbeing of New Zealanders first and foremost and we need to get through the lockdown and out the other side of this pandemic.
“The Government is planning ahead for when that time comes,” Twyford said.
“That’s why we are now developing a pipeline of infrastructure projects from across the country that would be ready to begin as soon as we are able to move around freely and go back to work.”
The types of projects the Government will consider funding include water, transport, clean energy and buildings with a public or regional benefit, that create jobs and can start in short order.
IrrigationNZ chief executive Elizabeth Soal said it’s great news that water infrastructure has been included.
“The pandemic and the lockdown have demonstrated how important the food and fibre sectors are to our country to put food on the table and also to support our economy.
“Water is used to produce 90% of NZ’s vegetables, 58% of its wine and fruit, 52% of its grain and crops, 26% of dairy and 2% of sheep and beef.
“In short, access to reliable water is essential to maintaining this.”
It’s not only a huge relief for the primary sector to see water included as essential infrastructure but also extremely prudent.
“Not only will investment in water infrastructure projects create jobs during the construction phase but they will also support the longer-term resilience of our economy.
“The covid-19 pandemic has had a huge impact on everyone and while health and wellbeing are the number one priority, planning ahead for the post-pandemic NZ is essential.”
In the past few decades water infrastructure projects have typically been funded largely by local communities and end users.
“As the effects of the pandemic affect regional economies on a scale we have not seen before, increased central government funding will be critical from now on.
“High levels of co-funding at the local level will simply no longer be feasible.”
How certain processes of the Local Government Act and the Resource Management Act will affect the viability of projects will also need to be considered.
“It is currently unclear how annual planning processes will occur or how resource consents can be fast-tracked to get projects shovel-ready in a short timeframe.
“Consenting processes for major projects generally take years not weeks,” Soal said.
“While the economic effect of covid-19 is yet to be fully understood we know that we have an opportunity to move our country into action mode and the Government does not wish to see red tape stymie our eventual recovery,” Jones said.
“The reference group will be seeking out larger projects, those with a value of over $10 million, which would have an immediate stimulatory effect on the construction industry, its workforce and the economy.
“Smaller projects will be considered if they demonstrate a direct and immediate benefit to the regional economies and communities in which they are based,” Jones said.
The Provincial Development Unit will continue to work with councils to identify regional roading projects, particularly in the identified surge regions, to provide employment and boost local economies.
“These projects will help address the country’s infrastructure deficit as well as create jobs and buoy the economy,” Jones said.
More information on the work of the Infrastructure Industry Reference Group and the project criteria is available on the Crown Infrastructure Partners website.
