Property Council New Zealand has welcomed the government’s announcement of $11 billion of new funding for infrastructure across New Zealand over the next four years
The funding announcement, ahead of Budget Day, signals a clear commitment by government to continue its support for New Zealand’s economic growth and development.
Property Council Chief Executive Connal Townsend says a lot of the country’s infrastructure is at the end of its useful life and expects that asset replacement would feature prominently in the budget.
“There is a clear expectation that at the time of asset replacement, capacity will be increased to service projected growth,” he believes.
“Government’s announcement is a recognition that houses and commercial properties do not exist in isolation but need to be supported by infrastructure such as roads, schools and hospitals.”
Townsend adds that he pleased the government is actively looking for public private partnership opportunities to accelerate infrastructure provision that may not necessarily be in sequence with its capital works programme.
“It is important that we look to alternative funding mechanisms, rather than simply relying on taxpayers to continually foot the bill.”
Townsend says Property Council is keenly awaiting Budget Day to see how the $11 billion will be allocated.
“Under-investment in infrastructure creates significant deadweight losses for the wider economy. Property Council is pleased that government recognises this.
“Infrastructure spending must be seen for what it really is. It is an investment in our cities and a productive input into the wider production process, rather than a mere cost.”