New National Infrastructure Commission right step for NZ

New National Infrastructure Commission right step for New Zealand

Friday, 1 September, 2017

The Government’s creation of a National Infrastructure Commission is a significant step in the right direction for delivering major infrastructure projects critical to the social and economic well-being of New Zealand, says the Employers and Manufacturers Association (EMA).

Chief executive Kim Campbell says the creation of such an agency has been a long-term goal of the EMA and is priority No.2 in EMA’s Election Policy Manifesto for 2017.

He says, "We’ve seen internationally how successful such agencies can be in the delivery of PPPs (Public Private Partnerships) and other major infrastructure projects, and we see a New Zealand version as a real catalyst for speeding up the delivery of projects.

"The mix of social and hard infrastructure projects identified as priorities for the new National Infrastructure Commission also reflects their wide use internationally.

"For example, in Canada all projects over $100 million (Canadian) are run through a PPP screen and about 15% of all infrastructure projects are delivered through PPPs. Many of these projects would not have gone ahead unless they were PPPs and they have been successfully used to build hospitals, roads, bridges and energy projects.

"The UK also has a national commission model to set an infrastructure strategy, with an independent Infrastructure and Projects Authority (IPA) as the UK Government’s independent centre of excellence for infrastructure and major projects. It works with Government and industry to ensure projects are delivered efficiently and effectively."

Mr Campbell says the planned New Zealand version looked similar to the IPA or Scotland’s version known as the Scottish Future’s Trust.

The Scotland model, servicing its similar five million population and also in difficult geographical terrain, is an independent specialist agency which assists all Scottish government departments with procurement and other aspects of project delivery (legal, finance and risk), while overseeing all Scottish PPPs and private finance initiatives.

Mr Campbell says, "The Scottish Future’s Trust is particularly active in urban redevelopment, housing, roading and rail. One project delivered 67 new schools for the price of 55."

He reiterates the EMA’s long-held position that New Zealand could and should make greater use of PPPs to speed up project delivery and provide cost efficiencies.

"We already have a successful track record of using PPPs with projects such as the Wiri Prison and the Northern Gateway (Puhoi toll road) recognised internationally as successful PPPs.

"We haven’t used more PPPs to deliver critical infrastructure because of a lack of a consistent pipeline to attract big international financiers and construction companies capable of delivering more of these projects.

"This new agency will help solve that issue," Mr Campbell says.

ENDS

© Scoop Media