Frequently Asked Questions (FAQs)
- What announcements has the Government made regarding the management and planning of the country’s long-term infrastructure requirements?
- Is a primary motivator of these announcements a desire by the Government to be more proactive and less reactive in terms of future taxpayer capital investment decisions?
- What are some of the key roles of the National Infrastructure Unit?
- Will the Unit manage the infrastructure projects that the Government announced on 11 February 2009 will be brought forward? If not, who will?
- What do other infrastructure-focused agencies (e.g. the New Zealand Transport Agency, the Electricity Commission) do? What's the delineation of responsibilities between the Unit and these agencies?
- If I have a suggestion or proposal for a possible public sector infrastructure project, or a question about an existing one, who do I contact in the first instance?
- Is there any danger that having a separate Unit with its own brand could inadvertently de-emphasise the significance of infrastructure-related issues to the rest of the Treasury, which is the Government's key economic advisor?
- What is encapsulated in the term infrastructure? Is it a new word to describe capital investment?
- Is there a big emphasis on Auckland infrastructure?
- What priority will the environment have in infrastructure plans?
- To whom do the National Infrastructure Unit and National Infrastructure Advisory Board report? And how do they work with each other?
- What is the anticipated cost to the Crown of the Treasury’s National Infrastructure Unit?
What announcements has the Government made regarding the management and planning of the country’s long-term infrastructure requirements?
Cabinet decided to establish a National Infrastructure Unit within the Treasury. The Unit is responsible for driving change in the way public sector agencies manage their existing infrastructure assets and plan New Zealand’s long-term infrastructure needs. Cabinet also endorsed a six-to-ten-person National Infrastructure Advisory Board drawn from the private sector and outside central government.
This Board will provide direct advice to the Minister for Infrastructure and the Treasury’s National Infrastructure Unit with a conduit to different viewpoints and areas of expertise on New Zealand’s long-term infrastructure needs, robust and reliable infrastructure project appraisal and capital asset management issues.
Is a primary motivator of these announcements a desire by the Government to be more proactive and less reactive in terms of future taxpayer capital investment decisions?
Yes. More proactive in anticipating future capital outlay requirements, more proactive in identifying the extent to which any proposed capital investment proposal will contribute to raising productivity and economic growth, and more transparent and proactive in alerting the private sector to potential investment opportunities that it might be interested to become involved in, and providing the private sector with the opportunity of improved long-term workforce planning and skills development.
What are some of the key roles of the National Infrastructure Unit?
The Unit’s role is to take a national overview of infrastructure priorities – providing cross-government co-ordination, planning and expertise. Its key roles are to:
- Formulate, and monitor progress on, a 20-year National Infrastructure Plan (updated every three years)
- Establish cross-government frameworks for robust and reliable infrastructure project appraisal and capital asset management, and monitor the implementation and use of those frameworks
- Provide support to, and act as a secretariat for, the National Infrastructure Advisory Board.
The Unit will develop its policy advice to the Minister in close cooperation with the Advisory Board.
Will the Unit manage the infrastructure projects that the Government announced on 11 February 2009 will be brought forward? If not, who will?
No. The accelerated infrastructure projects for state housing, state highways and schools will be managed by the relevant government agencies. The government fast-tracked those projects to contribute to its economic stimulus programme, whereas the Unit and Board are intended to significantly strengthen the management and planning of New Zealand’s long-term infrastructure needs.
What do other infrastructure-focused agencies (e.g. the New Zealand Transport Agency, the Electricity Commission) do? What's the delineation of responsibilities between the Unit and these agencies?
The other infrastructure-focused agencies will continue performing their same jobs (for more information on these refer to the page on the infrastructure portfolio). The role of the Unit is to complement the roles of individual agencies with robust and reliable advice and frameworks, and to co-ordinate infrastructure spending across the different sectors and across government.
If I have a suggestion or proposal for a possible public sector infrastructure project, or a question about an existing one, who do I contact in the first instance?
In almost all instances, the appropriate agency to contact will be the one that is either directly sponsoring an existing project or that would normally sponsor a proposed project, e.g. if it is a transport issue, the New Zealand Transport Agency would be the most appropriate first point of call. The National Infrastructure Unit will be responsible for keeping detailed oversight on only a small number of nationally significant infrastructure projects.
Is there any danger that having a separate Unit with its own brand could inadvertently de-emphasise the significance of infrastructure-related issues to the rest of the Treasury, which is the Government's key economic advisor?
No. The Unit is fully operationally integrated within the Treasury and the Executive Director reports directly to the Secretary, highlighting the importance that the Treasury attaches to well-managed infrastructure investment and its role in lifting New Zealand’s productivity and growth rate over time.
What is encapsulated in the term infrastructure? Is it a new word to describe capital investment?
The primary focus of the Unit is on economic infrastructure – the performance of the stock of physical assets that underpin the functioning of the economy, specifically network and utility systems such as transport, water, communications and energy. The Unit also has an interest in the quality of investment in, and long-run management of, social infrastructure such as public housing, schools, hospitals, prisons and defence assets. The overall aim is to ensure such networks enhance both delivery of government services and future national economic performance.
Is there a big emphasis on Auckland infrastructure?
The Unit takes a national overview of infrastructure priorities and will consider Auckland within this context. The relationships that the Unit builds with Auckland stakeholders in local government and in the private sector will be important.
What priority will the environment have in infrastructure plans?
The Unit is seeking infrastructure investment that contributes to sustainable economic growth. This can also deliver environmental benefits. For example, infrastructure policy developments can encourage modal shifts (from road to public transport, rail, or coastal shipping), better demand management in areas such as traffic volumes and water use, and more efficient utilisation of existing infrastructure services.
To whom do the National Infrastructure Unit and National Infrastructure Advisory Board report? And how do they work with each other?
The Unit reports through the Secretary to the Treasury to the Minister for Infrastructure. The Board has lines of advice to both the Unit and the Minister for Infrastructure and will be appointed by the Minister (in consultation with colleagues). The Unit and the Board will work closely together to ensure there is interaction with relevant stakeholders, to develop the 20-year plan, and to discuss regulatory hurdles to growth and new opportunities for partnership to promote growth.
What is the anticipated cost to the Crown of the Treasury’s National Infrastructure Unit?
The net cost of operating the Unit is not anticipated to be large as much of it involves reallocating resources within the Treasury or seconding specialist staff from other departments to work with the Unit.