Q1: Why was NZCID formed?
A1: To get the private and public sectors working closer together, to provide world-class infrastructure, for the benefit of all New Zealanders. Without this we will not maintain the high standard of living to which we aspire.
Q2: So you don’t have any faith in government resolving NZ’s infrastructure needs?
A2: NZCID is encouraged by recent positive progress the Government has made towards addresses New Zealand’s infrastructure development issues. There is a limit to the amount any fiscally responsible government can commit to infrastructure development. The private sector must work collaboratively with government to fill that gap.
Q3: But a recent stocktake of the nation’s infrastructure by PWC found that in many areas we’re doing okay?
A3: By definition, a stocktake looks at the present situation, but what we need to focus on is our future infrastructural needs. The PWC report also made it very clear that in a number of areas, such as roading, water and waste water, and electricity our infrastructure needs improvement. Meeting New Zealand’s Transport Infrastructure Needs to 2025 is an NZCID initiative which develops a 20 year future vision of New Zealand’s transport infrastructure needs, and identifies what needs to change in order for this vision to be most effectively delivered. We must develop a 20 year National Land Transport Development Strategy; develop a long term secure and sustainable funding base; reform the governance of the transport sector; and streamline the legislative process for approving Projects of National Importance. Without world-class infrastructure in transport, water and energy we cannot ultimately maintain the standard of living to which we aspire.
Q4: How are partnerships with the private sector going to fix the “buildability” issues in New Zealand?
A4: NZCID does not regard private financing as a panacea to the nation’s infrastructure woes. However, funding constraints are a key issue which needs to be resolved for New Zealand to deliver its transport needs. To deliver these needs a long term secure and sustainable funding base needs to be agreed and committed. This will be a significant undertaking and will only be possible if potential solutions also consider the full range of funding options, including a variety of partnering arrangements.
Q5: Isn’t this a case of big business serving itself?
A5: No, NZCID members stem from sectors across New Zealand, equity owners, service providers, public sector agencies, major infrastructure users. Together we share a clear purpose: world class infrastructure for the benefit of all New Zealanders. NZCID is focused on the public and private sectors working together to facilitate and encourage the provision of world-class infrastructure. In a country of four million people, that sort of collaborative approach makes sense at all sorts of levels.
Q6: What's wrong with the RMA?
A6: The RMA is too often used as a scapegoat by industry when development applications fail. NZCID agrees with the principles and purpose of the RMA. We are concerned with the repetitive nature of approval processes however. Our analysis recommends developing a streamlined consenting process for approving Projects of National Importance either through development of a new legislative mechanism specific to Projects of National Importance and incorporating all relevant existing legislation or alternatively improve existing legislation to encourage greater use of RMA call in powers.
Q7: Surely the current high petrol prices are discouraging people from driving? Why do we need more roads? Isn’t public transport the responsible answer?
A7: Recent increases in the price of petrol provide some indication of the impact of a 50% rise in the price of petrol on overall travel behaviour. Analysis undertaken by the Auckland Regional Council concluded that demand for petrol is largely unaffected by price. There has been very little mode switching or changes in travel patterns as a result of the increase in the price of petrol that occurred last year. There's no question that a dramatic increase in passenger transport development is required and this is a key component to the both the report and NZCID’s analysis. To meet New Zealand’s present and ongoing transport needs we must invest in both passenger transport and in roads. But the report clearly demonstrates that New Zealand's transport problem is much broader than just dealing with commuter traffic. Roading investment is required to meet the needs of farming communities, business and commercial traffic, freight, as well as every day New Zealanders who use their cars for both pleasure and work purposes. An multifaceted approach which considers the full range of transport modes, including public transport and roads, is required. It is important to recognise though that New Zealand roads are no longer capable of carrying the volumes of traffic that is now required of them. The resulting impact is worsening safety standards, increased emissions, congestion and all of the social, economic and environmental costs associated with these problems. To deal with these problems we must invest in both public transport and roads as well as encouraging walking and cycling as alternative modes of travel. We also need to look at ways of managing demand for travel more efficiently. Better land use and transport planning are also valuable tools to assist in this process.
Q8: Isn’t this just an Auckland problem?
A8: No, meeting New Zealand’s present and ongoing transport infrastructure needs is a matter of ensuring New Zealand’s future prosperity. This is a national issue. We have dramatically underinvested in New Zealand’s transport system for decades. But the regions most significantly affected are not isolated to Auckland – Waikato and the Bay of Plenty, have like Auckland experienced substantial growth and diminishing transport investment per head of population in recent times. These three regions peg out an area collectively known as the Golden Triangle, an area characterised by high growth, concentrated distribution and inter-regional transport demand. By 2025 this Golden Triangle of Waikato, the Bay of Plenty and Auckland will between them comprise 54% of NZ's population and 51% of the nation's GDP. Other regions that are significantly impacted by either past underinvestment or future growth include, Wellington, Christchurch, Northland, Nelson, and Queenstown. Playing "catch up" in each of these regions is now placing huge pressure on a limited budget and causing unsatisfactory deferral of projects in other areas of the country. Robbing Peter to pay Paul is not the answer. We must find a means of expanding the amount of money that is available and streamlining processes so that priority projects across the nation can be funded and delivered in a much shorter time frame.
