A Future Fund will secure Aotearoa’s future and is a
positive step towards long-term infrastructure planning,
Infrastructure New Zealand says. Labour’s proposed New
Zealand Future Fund could also depoliticise key aspects of
the funding process – a long overdue move.
“New
Zealand’s infrastructure deficit is well-known and
understood. However, solving it will take political courage,
bold long-term thinking and the willingness to seek
additional investment. A Future Fund as Labour has proposed
has the potential to bring scale, certainty and domestic
capital into the system to fund much needed
infrastructure,” says Chief Executive Nick
Leggett.
Leggett says Infrastructure New Zealand has
long pushed for new ways to pay for infrastructure beyond
relying on government funding.
“We welcome the focus
on building an investment vehicle that can unlock
large-scale, intergenerational infrastructure projects.
Details matter. We need clear criteria for how the fund will
prioritise infrastructure investment as well as how it can
work alongside other forms of funding and financing. It is
positive this fund is independent of day-to-day politics –
and individual politicians.”
Leggett says the Future
Fund should complement, not replace, other investment
tools.
“PPPs, asset recycling and overseas private
capital also have a big role to play in our future
infrastructure story. A well-designed Future Fund should sit
alongside these and possibly integrate some of them. There
is potential for this fund to be a magnet that attracts
additional private investment into blended capital
situations – resulting in best value infrastructure, built
earlier.”
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“At its most effective, a Future Fund
could support long-term national strategies like the
Infrastructure Priorities Programme. No matter the flavour
of the government of the day, we must build public and
investor confidence and begin to methodically deliver
projects that lift New Zealand’s economic productivity and
address our communities’ needs and
resilience.”
Infrastructure New Zealand is the
nation’s leading infrastructure member association. Our
core purpose is to advance best practice development of
world-class transport, energy, water, telecommunications,
and social infrastructure for all New Zealanders. We do this
through research, advocacy, and public and private sector
collaboration. Our membership is comprised of over 150
organisations, including central and local government
agencies, consultants, contractors, financiers, utilities,
and academics – collectively employing approximately
150,000 people in infrastructure-related roles. Together, we
are committed to creating a better New Zealand through
outstanding
infrastructure.
