Call for close monitoring of implementation

Media Release – for immediate release

27 August 2009

Contractors’ Federation calls for close monitoring of implementation

The New Zealand Contractors’ Federation has called for a close monitoring of implementation following the launch of the National Land Transport Programme.

Federation chief executive Jeremy Sole said strategies unveiled in the $8.7 billion scheme were greatly welcomed but the next challenge would be to ensure local and central government agencies have the capacity and capability to get funds flowing swiftly into construction phase.

“The civil construction industry has been downsizing for a few months now because many projects have not been ready to roll out and because some local authorities don’t have the funds to match the government’s contribution” said Mr Sole.

“If these projects don’t get to be shovel ready in a shorter than normal timeframe this will have a significant negative impact on the economic benefits government is expecting from its investment

“While we can’t expect miracles, we do need to get these going faster in order to ensure we retain a healthy civil construction Industry to enable further growth and to ensure value for money at the tender box in the future.”

Mr Sole said that the diverse range of investment, announced by Transport Minister Stephen Joyce, which includes $4.6 billion on the state highway network, $1.9 billion on local roads and $900 million in key urban public transport networks, will provide a major boost for contactors providing work at the major project level of the civil construction industry.

“It is also important to provide opportunities for regional second tier contracting businesses to grow, mature, and employ more staff,” he said.

ENDS

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