17 February 2011

The New Zealand Contractors’ Federation has urged local authorities to follow the government’s example of pressing ahead with infrastructure development despite the tight economy.

Federation chief executive Jeremy Sole spoke out after Transport Minister Steven Joyce outlined the success of transport projects accelerated by the government as part of the Jobs and Growth economic stimulus package.

In March 2009, the government fast-tracked almost $500 million of publicly-funded construction projects, including $322 million worth of roading projects countrywide.

These included the Fair Springs upgrade in Rotorua, officially opened by Mr Joyce this week.

“The projects initiated through the scheme have had a dual benefit in that they have created and supported jobs while at the same time providing for New Zealand’s future growth,” said Mr Sole.

“It was a bold move by the government but one that is paying off and will continue to pay off for communities right across New Zealand for generations to come.”

However, Mr Sole said that the civil construction industry was still suffering from the impact of the economic downturn and urged local authorities to take a similar approach, reaping benefits for taxpayers.

“Local authorities should continue to evaluate what essential infrastructure development work can be brought forward so ratepayers can benefit from such a favourable purchasing environment while the industry is still very quiet,” he said.

“The market is so competitive that councils may find that they end up with a cheaper overall outcome by borrowing in order to get the work done now.”

Mr Sole said that councils that hesitate may find themselves, as others have in the past, paying for infrastructure in a boom period when resources become scarce and more expensive.”

ENDS

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