Infrastructure bonds way to go

John Key - National Associate Commerce Spokesperson

National’s Associate Commerce and Transport spokesperson, John Key, is calling on the Government to issue retail and institutional infrastructure bonds when it finally does pass legislation enabling private funding to be used for New Zealand roads.

“Infrastructure bonds could provide a great investment opportunity for New Zealand investors, allowing purchasers to enjoy higher interest rate returns at the same time as providing much needed capital to get important projects like the Auckland motorway network and Transmission Gully off the ground.

“The history of Auckland Airports demonstrated how much Kiwi mums and dads enjoy the opportunity of investing in sound and profitable pieces of New Zealand’s infrastructure.

“It would be a great shame if this deal is only offered to foreign banks and investors to take up.

“The bonds could be distributed through banks, stockbrokers and financial planners and could be listed on the Stock Exchange to offer constant liquidity.

“Who knows, even the Government’s Super Fund could invest in them instead of losing millions in sending our money offshore?”

Mr Key points out that private sector funding of public assets is booming, with many overseas governments using methods such as infrastructure bonds to fund projects like roading, hospitals, schools and sewerage and water facilities.

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