Hon Bill English
Minister for Infrastructure

26 Aug 2010 Media Statement

Govt welcomes joint infrastructure commitment

Central and local government must work together to ensure smarter infrastructure decisions and investment, Minister for Infrastructure Bill English says.

Mr English and other Government Ministers met last night with Local Government New Zealand (LGNZ) representatives to discuss infrastructure issues.

"This Government has increased infrastructure investment – we currently spend about $6 billion a year on the purchase and maintenance of our critical infrastructure and hold about $110 billion in physical assets," Mr English says.

"However at a time when our finances are constrained, it is vital we get the most out of this investment. That means projects must be properly selected and must provide a justifiable return on taxpayers' funds.

"The Government is determined to improve the management of its assets – both the current stock and how decisions are made about future investment.

"Local government holds about $84 billion in assets and I'm pleased LGNZ shares the view that New Zealand could be smarter in its approach to investment and how the various parts of government decide which projects should proceed.

"A vital step in achieving smarter infrastructure investment in the future will be greater central and local government collaboration. This is one of the areas that will be developed further in the next National Infrastructure Plan.

"Greater collaboration and co-ordination will help ensure the right projects are built when they are needed and that taxpayers and ratepayers get the best possible return on limited funds. I welcome the mayors' and LGNZ's constructive approach to this issue," Mr English says.

During discussions Ministers and mayors agreed to work towards:

• Developing an integrated planning framework to provide greater certainty about investment and decision-making, get better information about infrastructure priorities and likely future demand, and improve strategic alignment between central and local government.
• Identifying opportunities to remove unnecessary regulatory barriers.
• Further developing and sharing asset management skills and practice.
• Ensuring local government has the tools it needs to manage emerging infrastructure pressures.

The mayors of Wellington, Hastings, New Plymouth, South Wairarapa and Ashburton attended the meeting as well as the chair of Northland Regional Council. LGNZ's statement can be read at www.lgnz.co.nz .

ENDS

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