Infrastructure investment key to boosting economy

For immediate release
15 July 2009

Contractors’ Federation believes Government investment in infrastructure
key to boosting economy

The Government’s investment in infrastructure is key to boosting the New Zealand economy, said the Contractors’ Federation.

“It’s great the Government is taking infrastructure seriously, especially that infrastructure is one of the Government’s six main policy drivers,”said Jeremy Sole, CEO of the Contractors’ Federation.

“There’s a plan in place, and whilst the economic plan isn’t fully fleshed out, it’s on the right track.”

In his business breakfast speech in Wellington today, John Key said The Treasury has predicted that over the next three years the economy will be $50 billion smaller than was expected in last year’s Budget.

“Investment in infrastructure should mitigate this somewhat due to the flow on effects it has for the economy,” said Mr Sole.

“Not only do infrastructure projects provide an economic injection for New Zealand, they also help increase efficiency by moving goods around the country faster and more effectively. Being able to get goods across town and to our ports of departure is vital to boosting our economy.

“The Government is also preparing a 20 year infrastructure plan, something that the Contractors’Federation has long called for. Planning ahead and working with industry ensures the sector is prepared and infrastructure is delivered in a focused way.

“The Government has also brought forward the start date of the Victoria Park motorway project. The New Zealand Transport Agency’s willingness to engage with industry to identify and mitigate constraints to fast tracking is pleasing. Working together, we can get New Zealand moving.”

ENDS

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