NZ Govt Welcomes Draft Infrastructure Plan; Urges Stakeholder Engagement

The New Zealand Government, through Infrastructure Minister Chris Bishop, has formally welcomed the draft National Infrastructure Plan released by the independent New Zealand Infrastructure Commission. The Government is now encouraging citizens, industry leaders, and political parties to engage actively with the consultation process to shape the future of infrastructure investment and management in the country.

A Call for Smarter Infrastructure Spending

Minister Bishop highlighted a stark reality: despite New Zealand ranking in the top 10% of OECD countries in infrastructure investment over the past decade, it ranks in the bottom 10% for the returns on that spending. “It’s not how much we spend, but how well we spend it,” said Bishop. “The draft Plan makes clear we need to ‘lift our game’—and that’s precisely what we intend to do.”

The draft Plan proposes wide-ranging improvements including:

• Enhanced use of user pricing to fund infrastructure projects

• Broader adoption of spatial planning to guide development

• Alignment of priorities through the resource management system

• A major push toward improving asset management and maintenance

These measures closely align with current government priorities and are expected to inform future decisions when the final version of the Plan is released in late 2025.

Underperforming Systems: The Need for Reform

One of the most critical revelations in the draft Plan is the poor performance of the central government’s infrastructure system, which owns 40% of New Zealand’s infrastructure stock and finances nearly half of the annual investment. Despite this, recent data shows:

• 50% of investment proposals in Budgets 2023 and 2024 lacked a business case

• Significant lags exist between budget approvals and actual project implementation

• Chronic underinvestment in maintenance, often sacrificed for new builds

This neglect has led to serious consequences: leaky and unsafe hospitals and schools, mouldy police stations, unreliable commuter rail services, and substandard housing for Defence Force personnel.

Moreover, the OECD ranked New Zealand fourth worst in asset management and last for accountability and professionalism, underscoring systemic gaps in how infrastructure is tracked and maintained.

All-of-Government Initiative Underway

To address these issues, the Cabinet has approved a comprehensive government-wide work programme aimed at strengthening asset performance. Key elements include:

• Possible legislation mandating 10-year investment plans for capital-intensive agencies

• Tighter performance reporting requirements

• Structured maintenance frameworks to prevent deferred upkeep

Bishop noted that these reforms are essential not just for efficiency, but also for ensuring better living standards and productivity for all New Zealanders.

Cross-Party Collaboration and Public Consultation

Recognizing the importance of bipartisan support for long-term infrastructure planning, Bishop has urged the Infrastructure Commission to brief all political parties. He also committed to writing directly to their spokespeople to encourage submissions during the consultation phase.

The finalised National Infrastructure Plan will be presented to the Government in late 2025, and a formal response will be prepared in early 2026, including a special Parliamentary debate hosted by the Business Committee.

“I thank the Infrastructure Commission for its thorough work,” said Bishop. “We need everyone—citizens, industry experts, and political leaders—to help shape a national infrastructure system that truly delivers for New Zealand.”

Public submissions on the draft Plan are now open and will be critical in informing its final shape.