Infrastructure Minister Chris Bishop has called for a greater reliance on private sector financing, including public-private partnerships (PPPs), to fund major infrastructure projects.
Speaking at a Local Government New Zealand event, Bishop said that government grant funding should be a last resort for councils, arguing for the need for ‘innovative funding solutions’ like tolls, congestion pricing, and value capture to manage the country’s infrastructure deficit, which has accumulated over many years.
Bishop pointed out that the government cannot solely rely on its resources to address the issue and must instead focus on making better use of existing assets and investing in maintenance. This approach includes the recently launched Pothole Prevention Fund and exploring new revenue streams such as water meters and toll roads.
Bishop also addressed the importance of well-designed PPPs, ensuring that risk is appropriately shared between public and private partners. He announced the establishment of a new National Infrastructure Agency to build expertise and refine the PPP model. Bishop acknowledged the potential of foreign investments, particularly from large pension funds, and encouraged local investment through KiwiSaver and the New Zealand Super Fund. This strategy aims to generate a return for New Zealanders while funding critical infrastructure projects. Bishop mentioned that discussions are ongoing about financial incentives for councils, including potential GST-sharing arrangements, to support regional infrastructure development.
Image credit: Tyler Lastovich
Bishop wants to sell the country to China to keep funding consultants,useless government workers and Maori street signs
There was a time when the council employed people who worked on the infrastructure. Moving to private contractors was not a cost-cutting step. Yes, it trimmed down on staff. But now we pay for the same staff at temp rates plus the hire cost of their equipment. Everyone including renters pay for that profit going to private enterprise. Ever notice there are way too many cones too close together? The council now hires cones by how many are used. Wages for council staff used to be average because they are near guaranteed employment. Now, council workers are paid at the same or beyond what international corporate jobs are paid. Rubbish was collected as part of your rates and tip fees were nil. The council think they are some sort of enterprise rather than the civil servants they really are. The council does not save up money and spend it on infrastructure or infrastructure maintenance. It borrows money and increases the rates. Or in Wellington’s case with the sewer plant, each person is now charged a levy on top of rates. Are you renting? A major part of your rent is rates and levies. I would say on average at least $100 per week, more like $130 p/w and climbing at 18% a year. Maori wards have nothing to do with running a city. That’s why we, the rate payers have been given the power to vote that out. Rainbow crossings that cost Wellington rate payers $40,000 are not about running a city. Moving a bus stop for $7000 because it was outside a sex device shop is way out of what it really should be. It should be a privilege to serve the people, but I wonder who is serving whom. For far too long, central government has let councils do whatever they want. Minister Brown should force local government to make a budget that includes infrastructure, maintenance and capped wages. This new government are doing a good job cutting central government staff. I was hoping some government departments who are now more political than providing a service like the gender based ministry for women would be gone by now. You don’t want that? OK then, how about this for size – If you are Maori, you get a levy to pay for the ministry for Maori, if you are a women how about paying a levy for the ministry for women. If anything, the men and boys are woefully disadvantaged now.