Tolling to play growing role in infrastructure cost control

Tolling to play growing role in infrastructure cost control: English

By Pattrick Smellie

Aug. 20 (BusinessDesk) - Charging users for some types of public infrastructure will increasingly feature as a way to save taxpayers much larger bills to meet future needs, but "should never be used simply to raise revenue," says Finance Minister Bill English.

In a speech in Christchurch to launch the 30 Year New Zealand Infrastructure Plan, English flagged the rise of "non-asset solutions alongside the traditional approach, which is to see a problem and build something to address it."

"Non-asset solutions such as demand management is also important to ensure we make better use of existing networks," said English. "This isn't a new idea. Taxes on fuel pay for the National Land Transport Fund mean we already use demand management tools in roading, and all councils meter large water consumers.

"New technology will offer greater opportunities for managing demand for infrastructure assets over the next 30 years."

However, demanding management "shouldn't be used without considering wider infrastructure outcomes, such as increased productivity or well-being," said English. "Charges for infrastructure should never be used simply to raise revenue."

He also outlined a new initiative to develop shared national data and standards for assessing roading, water and building needs.

"A common base of facts, methodologies and approaches will help cut through the assumptions that sometimes lead people to talk across each other when making infrastructure decisions."

Because analysis and presentation of data are "specialised skills that call for something different for our typical infrastructure practitioners," the government would also be helping to establish centres of excellence to support decision-making, since those skills would not be present in every government agency or local council.

Alongside the 30 year plan, the government has also today published the capital spending intentions over the next five years for central government agencies, allowing an overview of some $25 billion of intended infrastructure investments that include land transport investments, the ultra-fast and rural broadband initiatives, as well as between $400 million and $600 million for the Inland Revenue Department's information technology upgrade and between $200 million and $300 million of ongoing support for KiwiRail.

The single largest investment item is between $1 billion and $3 billion over the next five years on the Auckland central rail loop.

(BusinessDesk)

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