New Zealand has an estimated infrastructure deficit of approximately $NZ104 billion, but according to Te Waihanga – the NZ Infrastructure Commission – bridging that gap does not just require investment in new projects.
Blake Lepper, the general manager of infrastructure delivery at the Commission, says that getting more out of existing infrastructure through improved decision making is as important as sourcing investment for greenfield projects.
“The best thing we can do is make sure we are picking the right projects that deliver the most benefits, but it’s also about how to get more out of what we already have,” says Lepper.
“We are really strongly focused on this. Ideas like congestion charging or water metering, these can make a big difference.
“We don’t always have to solve things by simply building more. If we can get more out of what we’ve got, that’s going to have a huge impact.”
Lepper says there is also an intergenerational issue in preserving and maintaining existing infrastructure.
“There is some fantastic stuff that we have inherited from past generations,” he says.
“And our generation needs to make sure we are also cherishing that because we have a really important responsibility to make sure we’re passing it on to the next generation in good condition, at least as good as it is now.”
Te Waihanga – the NZ Infrastructure Commission – was established in 2019 in response to a recognition that short term electoral cycles are not necessarily conducive to good long term infrastructure planning.
According to Lepper, both sides of NZ politics understood that the nation would benefit from having an independent entity outside of political influence to think long term about the country’s infrastructure challenges.
The Commission delivered an infrastructure strategy for the nation last year with 68 recommendations and a priority list, most of which have been picked up by the central government.
A major focus has been emissions reduction and climate change adaption, and since its inception the Commission has also been active in addressing NZ’s water crisis through advising on the Three Waters reforms.
The water reforms will move control of water policy and operations away from local government, with the creation of four regional entities independent of government and able to borrow funds for long term investment.
Energy is another challenge for New Zealand, and one where Lepper says NZ has an “amazing opportunity” as it decarbonises.
“We are already fortunate to have high levels of renewable energy but we have great opportunities to build on that,” he says.
“I think there is a future where NZ can have a renewable energy system that is very cost effective compared to anywhere else in the world.
“I’m a great believer in seeing a strong connection between energy and human wellbeing, and if we can have the cheapest energy of any part of the OECD I think that is something that will make a material difference which can be experienced over many years.”
The Commission’s role is to play a role in designing infrastructure networks for renewable energy and utilise economic resources for NZ “to be the most equitable society most New Zealanders can enjoy.”
A key partner in NZ’s infrastructure future is the private sector, and although Lepper doesn’t think the country has “always got the public private partnership model right” he believes there have been positive changes with the Government understanding that the way it contracts services can contribute to a healthy, diverse and sustainable economy.
“The NZ Government is spending about NZ$10 to NZ$15 billion on infrastructure each year, but it doesn’t directly employ carpenters or drill digger drivers,” he says.
“There’s been a change in thinking and the Government is more a buyer of infrastructure services, but is responsible for the sector and making it accountable.
“There are also some great examples of high performing privately owned infrastructure, and I think the public layer can also learn a lot from those examples and build some of that success into regulation to really deliver the right levels of service to customers.”
