Infrastructure Bond Investment Drive Applauded

FOR IMMEDIATE RELEASE

NZCID Applauds Infrastructure Bonds' Drive for Investment

Media Release : 1 Febuary 2007

The New Zealand Council for Infrastructure Development applauds the Government's announcement that it will shortly issue the first round of Infrastructure Bonds aimed at driving investment and accelerating vital transport improvements.

"NZCID research clearly shows that over the next 20 years alone the deficit between the cost of vital projects and the funding which is available exceeds $6 billion. Of more significance is the fact that the social, economic and environmental benefits from advancing major transport projects vastly exceed their costs." says Chief Executive Stephen Selwood.

"New Zealand's ratio of debt to GDP is currently very low by international standards. Now is the time for much more ambitious levels of investment in essential national infrastructure to transform our economy and lift New Zealand's living standards and quality of life".

"Starting to address this serious deficit by looking outside the square of failing traditional funding revenues is an encouraging first step by the Government. It is part of what should be a much more aggressive debt funding program to make New Zealand's infrastructure needs happen", says Selwood.

The Government will make up to $1 billion in Infrastructure Bonds over the next five years. Revenues are specifically linked to long term investment in transport infrastructure. In particular the extra revenue will enable advancement of key State Highway projects; the Manukau Harbour Crossing, Kopu Bridge Replacement, the four laning on the Longswamp-Rangiriri stretch of the Waikato Expressway, the Christchurch Southern Motorway, and the investigation and design of Transmission Gully.

"This is good progress", says Selwood, "but in reality we need the solution to be much greater in scale. Even with the additional funding New Zealanders still lose out - continuing to wait more decades for the actual construction of long awaited projects like Wellington's Transmission Gully and Auckland's Western Ring Route. Even more concerning are the safety upgrades, the public transport initiatives and the four laning of heavily trafficked sections of state highway which remain unfunded."

"Basic and vital infrastructure projects must be on the "To Do" list not the "Wish list". It is simply good sense to use a combination of private and public debt funding to take today's positive move a step further and make projects happen. The economic, environmental and social spin offs are clear and the Government should ensure that New Zealanders can fully enjoy the benefits."

ENDS

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