Infrastructure Portfolio

Page updated 28 Feb 2012

The National Infrastructure Unit takes an overview of national infrastructure priorities within the infrastructure portfolio - providing cross-government co-ordination, planning and expertise. The portfolio covers a number of sectors where, in general, specific government agencies lead in terms of both policy advice and implementation.

The primary focus of the Unit, and for the infrastructure portfolio, is on 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 as well as the quality of investment in, and long-run management of, key infrastructure (including areas of large capital expenditure) such as schools, hospitals and prisons. The overall aim is to ensure such networks enhance both the delivery of government services and future economic performance.

Relevant agencies in this regard include:

Infrastructure as Discussed in the Briefing for the Incoming Minister 2011

At the time of publishing, the Treasury's Briefing to the Incoming Minister of Finance: Increasing Economic Growth and Resilience [2011] stated that network infrastructure was one of the five most pressing domestic policy areas for reform as part of improving the domestic business environment:

iv Better prioritisation of investment and management of existing assets is required to maximise the contribution of network infrastructure, especially roads

National spending on network infrastructure has increased rapidly over the last decade, with investment in electricity transmission, roading and telecommunications in particular helping to provide a stronger platform for future economic growth. Nevertheless, survey measures continue to suggest there is substantial room for improvement. The National Infrastructure Plan 2011 provides an overarching strategic direction for the planning, funding and building of infrastructure over the next 20 years. The key priorities for enhancing the contribution of infrastructure to economic growth are:

• ensuring that Auckland has a robust and realistic plan for transport, in which people and businesses have confidence, and which optimises the future network through new investment and measures to manage demand, including network pricing
• using rigorous, consistent and transparent benefit-cost analysis for developing Auckland’s transport plan and for other transport investment – unfunded projects with net economic benefits should be accelerated through a range of funding mechanisms including increases in fuel excise and road user charges, and
• ensuring that the Christchurch rebuild is focused on future needs and is prioritised to support infrastructure that is growth enhancing (box 6).

Box 6: Canterbury earthquake recovery

Since the immediate response phase to the major quake events, the Government's focus has been on progressing the restoration of infrastructure and government services, and on providing property owners with the best available information about the state of their land so they can plan their futures with a degree of certainty.   This has required detailed geotechnical investigations across large areas, leading to difficult judgments.  These prolonged investigations, coupled with continuing seismic activity, have affected the level of confidence that insurers have about providing cover immediately, which in turn has delayed reconstruction. With land decisions now substantially taken, and provided seismic activity declines as predicted, insurance and reconstruction should begin to free up in the near term. For the central city, although wide scale demolition has proceeded, the city council has been working on a draft strategy for its rebuild.  

With the status of land becoming settled, the focus will shift to the longer-term recovery. This will involve an interplay between various state and private sector institutions, the availability of human and financial resources, and confidence in the future. The Government will need to ensure that economic recovery can occur in a timely manner and that markets - most notably insurance, financial, property and labour markets - can resume operating normally.  This will include ensuring the rebuild strategy is realistic, achievable, economically viable and based on robust assessments of benefits and costs. The Government will need to consider how it might leverage its presence as a significant employer and tenant to act as a catalyst for commercial revival.  As the recovery will be a process that runs over several years, the Government, along with the private sector and the city council, will need to maintain and build confidence in the city's future.