New Zealand cannot afford to see infrastructure projects slowed or stopped as a result of the ongoing fuel disruption, with the economic consequences set to be significant and long-lasting.

“Fuel response settings must be designed first and foremost to keep the economy moving,” says Infrastructure New Zealand Chief Executive Nick Leggett. “That means ensuring high-value economic activity, including infrastructure delivery and maintenance, can continue, even as the system comes under pressure.”

Infrastructure delivery and maintenance should be explicitly recognised as a critical economic activity within the Government’s fuel allocation framework. Infrastructure New Zealand is calling for infrastructure to be included in Band B of the proposed priority system, alongside other economically important services.

“The biggest risk is that policy settings could unintentionally slow down or defer projects that are already underway. That will cost us jobs, productivity and capacity of the infrastructure sector to continue to deliver in the immediate and long-term,” Leggett says, with stop-start investment creating inefficiencies, driving up costs and undermining confidence across the sector.

Pressures from global supply chain volatility are already flowing through to the infrastructure sector, increasing the cost of diesel, freight, shipping and petroleum-based materials such as bitumen and plastic. While the cost pressures are real, they should not be used as a reason to delay or halt funded projects.

“Treasury data shows there is existing capacity within the capital programme to help absorb cost escalation in the short-term. The focus should be on maintain continuity of delivering, not compounding disruption,” says Leggett.

A strong signal from Government that funded projects will continue is critical. Without that certainty, contractors may slow activity to manage risk, and once capability leaves the sector, it is difficult and expensive to rebuild.

Infrastructure investment plays a central role in supporting jobs, sustaining industry capacity and maintaining a productive economy.

“We need to keep building,” Leggett says. “Infrastructure is not discretionary; it is fundamental to New Zealand’s economic resilience. Halting projects now would only deepen the future economic impact of the fuel disruption and delay recovery.”

Infrastructure New Zealand said that Local and Central Government, and private clients, can also consider how they can prioritise pre-works, planning, funding design and consenting for infrastructure that is not diesel intensive.

“We can ready ourselves for the next build phase, after the price shock subsides.”

Infrastructure New Zealand

Infrastructure New Zealand is the nation’s leading infrastructure member association. Our core purpose is to advance best practice development of world-class transport, energy, water, telecommunications, and social infrastructure for all New Zealanders. We do this through research, advocacy, and public and private sector collaboration. Our membership is comprised of over 150 organisations, including central and local government agencies, consultants, contractors, financiers, utilities, and academics – collectively employing approximately 150,000 people in infrastructure-related roles. Together, we are committed to creating a better New Zealand through outstanding infrastructure.

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