$6 Billion Stimulus A Promising Start – But It Must Be The Start Of A More Certain Pipeline

Infrastructure New Zealand has welcomed the Government’s $6 billion infrastructure announcement as a timely and much-needed stimulus.

“This is good news for a sector that has been doing it tough,” says Infrastructure New Zealand Chief Executive Nick Leggett. “We see this investment as the beginning of a much-needed pipeline of work, one that must endure beyond political cycles or short-term fiscal pressures.”

“Infrastructure investment delivers real bang for buck, not just in immediate economic activity and employment, but in enabling faster, more efficient service delivery and long-term national productivity.”

Leggett says the projects outlined for commencement by the end of the year are a strong signal, and already positive anecdotal signals on the ground are positive.

“After a year of layoffs, there are some signs of confidence returning.”

However, he warns the sector cannot afford another false dawn.

“This must be the start of something consistent. Our industry can’t switch capacity on and off like a tap. To deliver the scale and speed of infrastructure New Zealand needs, we must have a visible, credible and bipartisan pipeline.”

A recent Infrastructure New Zealand survey revealed a sector under strain: while 45% of firms expected more work in the next year, 65% had reduced staff over the past 12 months and nearly half had lost workers to overseas markets.

“These figures reflect an industry that’s had reduced work and is bleeding capability,” says Leggett. “New Zealand has an infrastructure deficit, and we need our skilled workforce here to close it.”

Leggett says today’s announcement is encouraging, but it must lead to a longer-term commitment.

“A healthy infrastructure pipeline supports not just firms and jobs, it underpins housing, transport, hospitals, climate resilience, and ultimately a stronger economy. That’s what we’re aiming for.”

Infrastructure New Zealand will be monitoring the impact of today’s announcement on a very sore industry that’s lost a lot of people, and we’ll report on its effects at year’s end to assess whether it’s truly turning the dial.

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