10 September 2019
Infrastructure sector calls for transformational government reform to fuel New Zealand’s well-being
“Three-quarters of the infrastructure sector have called for transformation, rather than incremental change, of the
culture and incentives between central and local government to work together to promote national well-being,” says
Infrastructure NZ CEO Paul Blair.
Infrastructure NZ today released the results of Beca-sponsored polling taken during the 2019 Building Nations Symposium
from 21-23 August. Over 720 industry leaders attended the conference and were polled after each session on current and
proposed policies.
“Respondents overwhelmingly supported more tools for local and regional governments in order to unlock the full
potential of our regions.
“Only 2 per cent of respondents believed that water provision should remain in its current state.
“Sixty-six per cent of respondents agreed that water services should not be owned by local councils and instead be
delivered by regulated Watercare-type entities.
“City and regional deals, where central and local governments partner to drive regional economic development, also
received particularly strong support, with 98 per cent of respondents believing the approach would be useful in our
context.
“A core contributor to our governments' inability to respond to complex, multi-faceted issues such as housing
affordability and transport needs, is a culture where central and local government lack trust and in fact often compete
with each other.
“The city deal model incentivises regional governments with the money and the responsibility to take faster, localised
action on the outcomes that matter to communities and the country. It builds a more collaborative relationship.
“Between 65 and 74 per cent of respondents supported a redistribution of central government’s GST, or income and
corporate tax revenue, to local governments.
“Our political system has evolved to the point where central government takes 93 per cent of all taxes and rates
revenue, leaving only 7 per cent for local and regional authorities. This is highly unusual internationally.
“Our proposal, which almost three-quarters of respondents supported, would double the current $3 billion Provincial
Growth Fund into a $6 billion Regional Growth Fund and use it as a tool to align central and local government
investment.
“An additional $3 billion over the next three years to regions who cooperate to develop spatial plans would drive
regional growth and development for the benefit of the nation as a whole.
“Central government would trial this responsibility-sharing through a city deal-type arrangement where regions would be
funded if they commit to and deliver on complex system-wide outcomes such as adequate housing supply, reliable
transportation networks, healthy waters, and economic performance,” says Blair.
Greg Lowe, Group Chief Executive, Beca, commented that “New Zealanders want to see their tax dollars invested in
projects and outcomes that will improve how we live, work and play in our communities. Encouraging stronger partnership
between central and local government would lead to better decisions and more effective funding for regional
infrastructure.
“Better long-term planning and a transparent project pipeline will improve New Zealand’s productivity and strengthen our
economy. It will lessen the impact of political change and encourage industry to invest with confidence in upskilling
our people and creating more jobs in our communities.
“We are not keeping pace with the infrastructure needs of our country and our communities - we need to be able to move
together, both public and private sector, to plan and deliver quality infrastructure at a faster pace,” says Lowe.
The full results of the polling, sponsored by Beca, from the 2019 Building Nations Symposium can be found here.
A copy of Infrastructure New Zealand’s thought leadership report “Building Regions: A Vision for Local Government,
Planning Law and Funding Reform” is available here.
ENDS