Need to expand investment opportunities in NZ

Infrastructure Partnership Fund investment in Melbourne underlines need to expand investment opportunities in NZ

The New Zealand Council for Infrastructure Development has commended the Morrison & Co Public Infrastructure Partnership (PIP) fund investment in the Melbourne Convention & Exhibition Centre but says that the absence of domestic investment opportunities signals a serious shortcoming in new Zealand's infrastructure capital markets.

"The Melbourne Convention and Exhibition Centre is an exemplar of a successful Public Private Partnership. It's undoubtedly an excellent investment for the for the PIP fund", says NZCID chief executive, Stephen Selwood. "But what a shame that Morrison & Co have been forced to invest NZ Super funds and NZ Social Infrastructure funds offshore for want of opportunities in New Zealand."

"Potentially, savings of New Zealanders could be used to invest in all kinds of public facilities from social infrastructure like schools and hospitals, to community amenities like conference and exhibition centres and water treatment plants and to economic infrastructure like roads.

"But in order for this benefit to be realized it is essential that both central and local government open up investment opportunities in public infrastructure.

"Last week the government announced that all Crown agencies proposing new infrastructure with a whole of life cost over $25 million will need to consider and evaluate alternative procurement options, including a PPP.  It would be good if the local government sector took a similar approach.

"Contrary to the assertions by some, this is not "privatization". Rather, it is an opportunity for New Zealanders to invest in New Zealand", Selwood says.

"This is exactly the kind of initiative that is needed. Not only will it help drive improved public sector procurement of infrastructure services it will provide a whole new category of much needed investment opportunities for mum and dad, Maori and institutional investors in New Zealand".

ends

© Scoop Media