Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Specialist agencies key to delivering public infrastructure



Specialist agencies key to delivering public infrastructure on time and on budget

Media Statement
7 April 2016

An independent agency dedicated to the retention, development and application of major project delivery capability in New Zealand will improve the value for money public bodies achieve from infrastructure investment, according to a new report from the New Zealand Council for Infrastructure Development following a recent study trip to Canada.

“Canada has set up agencies like Partnerships BC and Infrastructure Ontario, which are generating millions of dollars of added value for taxpayers every year,” says Stephen Selwood CEO of the New Zealand Council for Infrastructure Development.

“These agencies demonstrate that significant value can be created when government departments and city and district councils that don’t have dedicated capability in house are provided access to specialist support in major project delivery.

“In New Zealand it is not unusual to find public agencies like government departments, health boards, councils and other public agencies suddenly thrust into having to invest tens and sometimes hundreds of millions of dollars replacing or constructing new buildings, plant or facilities with little or no experience in major project delivery.

“Having access to the support provided by a specialist dedicated group of experts enables public agencies to focus on delivering core services (like teaching kids and providing healthcare for example) rather than refining procurement models and managing tender processes.

“Meanwhile the specialist support agency is able to transfer knowledge across sectors from one project to the next and become a centre of excellence for the purchase and delivery of major public assets.

“The time, cost and efficiency of infrastructure delivery improves as more sophisticated and fit-for-purpose procurement models evolve from a team of career experts.

“Canada’s results speak for themselves. Specialist procurement agencies are consistently delivering projects on time and on budget across the public sector and achieving added value or savings of 10% or more over traditional public sector delivery methods.

“If New Zealand was able to cut whole of life asset costs on planned projects above $30 million by half that amount, savings would total almost $4 billion over the next decade.

“That is money which could either go into projects which we cannot currently fund or into delivering a new level of service to businesses, residents and communities.

“NZCID recommends that a special purpose public agency focused on major project procurement as a standalone activity should be investigated by the Government.

“If modelled on Canadian exemplars, the agency would operate independently, with its own CEO reporting to an experienced Board responsible to the Finance Minister.

“The Minister would determine whether or not procurement could be delivered ‘in house’ or whether the guidance of the procurement agency would be needed, using Cabinet’s existing Investment Management and Asset Performance framework.

“The agency would pursue a partnership approach to procurement, operating alongside central and local service providers, helping to guide departments through complex procurement processes. It would then undertake a monitoring function to ensure business case expectations are being met.

“The scale of this opportunity combined with the likelihood that it can deliver significant value makes centralising and specialising procurement a priority public policy initiative and one which should be investigated with urgency,” Selwood says.

To read the report please click here.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Wages Remain Hot While Job Listings Cool Off
Salaries are skyrocketing in the regions as Kiwi employers battle to attract staff and combat the rising cost of living, according to the analysis of over 77,000 vacancies listed on Trade Me Jobs for the quarter ending 30 June (Q2)... More>>



Tegel: Chicken Prices On The Rise But It’s Still The Favourite Protein For Kiwi Families

A combination of domestic and international factors is forcing New Zealand’s largest poultry supplier Tegel to raise its prices from July. The roughly 10% price rise is a result of ongoing cost pressures on the industry, including increases in labour... More>>

Hospitality NZ: Hospitality Wages Jump 9% To Pass Living Wage
Wages and salaries across the hospitality sector continue to increase despite businesses having to battle through some of the toughest trading periods in living memory... More>>


Motor Industry Association: New Vehicle Registrations Soften

The Motor Industry Association’s Mark Stockdale says that 12,049 registrations of new vehicles for the month of June shows the market is weakening in the face of raising costs of living... More>>



MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>



Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>