Government’s response to the National Infrastructure Plan is a win

Local Government New Zealand (LGNZ) welcomes the Government’s response to the National Infrastructure Plan and is pleased to see signs of the bipartisan approach needed for the plan’s long-term success.

LGNZ President Rehette Stoltz says councils are responsible for around 25% of New Zealand’s infrastructure, so they have a keen interest in ensuring the settings for future infrastructure are right.

“Some of the recommendations in the National Infrastructure Plan are matters that LGNZ has advocated for for many years, like mandatory spatial planning, resource management reform, and time-of-use charging. Some are now well underway,” Stoltz says.

“Others, like more predictable funding signals from central government, are at an earlier stage but remain critically important so that councils can plan for the future and deliver the infrastructure that communities expect.”

“We’ve seen the importance of the Government co-investing in climate change mitigation infrastructure, for example. Having more established processes for how that works would deliver even greater benefits.”

Rangitikei Mayor Andy Watson, who is also the Chair of LGNZ’s Infrastructure Reference Group, says it is particularly encouraging that the Government has committed to reviewing the land transport funding system.

“It has been clear for quite some time that the basic premise of a self-funding transport system has broken down. This has created uncertainty, particularly for councils as co-funding partners of central government who are responsible for our public transport and local roads,” he says.

Other issues that should be considered as part of the review include:

• Better alignment between NLTP processes and local government planning timeframes.
• A sustainable, long-term plan for emergency works funding, with a greater focus on proactive resilience work.
• Considering greater use of bulk funding, particularly in the context of a more dynamic planning system that will require greater flexibility on the part of councils to adequately service growth.
• How low-volume and uneconomic transport infrastructure is treated by the system, and balancing connectivity and community expectations with ensuring value for money.
• Ensuring public and active transport receives a fair share of funding, and that the benefits of investing in these areas are fully accounted for by NZTA.

“We would strongly encourage the Government to work closely with local government as the terms of reference for this review are firmed up,” Watson says.