The National Infrastructure Plan was released yesterday, and it makes for grim reading. I don't think anyone expected good news, but nonetheless a cold hard dose of reality is always unwelcome, especially when you've been wilfully ignoring the obvious for years. The plan looks at 17 sectors covering central government, local authorities, and commercially regulated utilities, and lays out a 30 year outline looking at how New Zealand can improve the way it plans, funds, maintains, and delivers infrastructure. So far, so very grown up, but really this is something that should have been done 30 years ago because in a nutshell, we have a huge infrastructure deficit. We need hospitals, we need roads, we need bridges, we need alternatives, we need cycleways, we need sewage, we need water pipes, we need electricity, we need alternative electricity, huge infrastructure deficit across all of the sectors.  

But even if we had billions of dollars, which we don't, throwing money at the problem doesn't seem to be the only answer, because we are very, very poor at getting bang for our buck as was highlighted in the plan. Over the last 20 years, New Zealand has averaged spending about 5.8% of its GDP on infrastructure, which is one of the highest rates of spending in the OECD. Yet we rank near the bottom of the OECD in terms of efficiency of spend and we came fourth to last in terms of asset management. So we spend all this money, get very little for it, and then don't look after it when we have it. I mean look at Moa Point – it's a brilliant example of what happens when you do not spend money on the boring stuff like maintenance and upkeep. The whole country is basically a Moa Point waiting to happen.  

The plan recommended that 60 cents of every dollar of infrastructure spend should be allocated to renewals and maintenance. A key theme of the plan was that governments have tended to underfund maintenance. That funding's routinely deferred in favour of the “new and shiny”, to quote the authors of the plan. It's like looking at your house and thinking, God, that plumbing needs fixing, that pipe's looking a bit iffy, we really need to paint the house because those weatherboards are going to get rotten otherwise. Oh boring, let's take the kids to Fiji. That's pretty much what we've been doing as a country for far too long. And it's not just one government, it's successive governments, National and Labour, who have let us down. And they've let us down because we have let them let us down. We don't want to hear the news either. Voters are as much to blame as the governments because we don't want to hear the hard messages. The plan says we cannot afford to have everything we want and in fact need as a country and the infrastructure jobs that we do need to do will have to pay for beyond our general taxes. 

“The reality is asking people to pay for things is difficult and we've pushed the boat out quite a bit as a government on tolling and that's because ultimately roads have to be paid for. And we've tried to move the system towards more of a user pays model and we think that's fair. The original Harbour Bridge in Auckland was of course paid for with a toll and we've just signalled quite clearly that when you're dropping billions and billions of dollars, which is what the second harbour crossing will be, it will be the biggest infrastructure project ever built in New Zealand, that's a project where we do think it will end up being tolled because that's a fair way of paying for the project.  

“Here's the reality, roads and in fact all infrastructure has to be paid for. It has to be and you can use user charges for that through tolling or through petrol tax or a combination of both, which is essentially what we do. You can borrow for that, but of course that has to be paid for too. Money is not, despite what the Labour Party think, debt is not free. We already have a huge amount of debt that was built up during the Covid years that has to be repaid and we are desperately as a government getting the books back in order so that when the next shock comes along, the next Cyclone Gabrielle or whatever, we're in a position where we could actually deal with it. At the moment of course we're in a very vulnerable situation and the Treasury says we've got to keep the debt levels under control, otherwise our international borrowing costs will go up and then everybody's interest rates will go up and then you're in banana republic territory. Then you can't even meet the debt repayments on what you've already borrowed.” 

That was Minister for Infrastructure Chris Bishop talking to Mike Hosking this morning. So it's grim reading. As I say, successive governments are at fault and so are we voters. We want everything done for us and we want the government to pay for it. We don't want to pay more in tax though when we want the government to pay for it. We want all the benefits our great grandparents had in the 60s without being willing to pay the sort of tax they were paying in the 60s. We have to wake up and be willing to vote for governments that are going to make tough decisions. And to help us do that, National and Labour need to join forces, get together and agree on the tough stuff. That the age of universal Super needs to go up, allowing for people to collect less early, sure, when you've got the tough jobs, but you know, we can dither around this but ultimately that's what needs to happen. We need to agree on an infrastructure program that will involve maintenance and building and won't be subject to the whims of politics. We're going to need to see more governance, less politicking. We need that to start this election, otherwise the main parties will be fighting it out to govern a country that isn't worth living in. 

The National Infrastructure Plan was released yesterday, and it makes for grim reading. I don't think anyone expected good news, but nonetheless a cold hard dose of reality is always unwelcome, especially when you've been wilfully ignoring the obvious for years. The plan looks at 17 sectors covering central government, local authorities, and commercially regulated utilities, and lays out a 30 year outline looking at how New Zealand can improve the way it plans, funds, maintains, and delivers infrastructure. So far, so very grown up, but really this is something that should have been done 30 years ago because in a nutshell, we have a huge infrastructure deficit. We need hospitals, we need roads, we need bridges, we need alternatives, we need cycleways, we need sewage, we need water pipes, we need electricity, we need alternative electricity, huge infrastructure deficit across all of the sectors. &nbsp;
But even if we had billions of dollars, which we don't, throwing money at the problem doesn't seem to be the only answer, because we are very, very poor at getting bang for our buck as was highlighted in the plan. Over the last 20 years, New Zealand has averaged spending about 5.8% of its GDP on infrastructure, which is one of the highest rates of spending in the OECD. Yet we rank near the bottom of the OECD in terms of efficiency of spend and we came fourth to last in terms of asset management. So we spend all this money, get very little for it, and then don't look after it when we have it. I mean look at Moa Point – it's a brilliant example of what happens when you do not spend money on the boring stuff like maintenance and upkeep. The whole country is basically a Moa Point waiting to happen. &nbsp;
The plan recommended that 60 cents of every dollar of infrastructure spend should be allocated to renewals and maintenance. A key theme of the plan was that governments have tended to underfund maintenance. That funding's routinely deferred in favour of the “new and shiny”, to quote the authors of the plan. It's like looking at your house and thinking, God, that plumbing needs fixing, that pipe's looking a bit iffy, we really need to paint the house because those weatherboards are going to get rotten otherwise. Oh boring, let's take the kids to Fiji. That's pretty much what we've been doing as a country for far too long. And it's not just one government, it's successive governments, National and Labour, who have let us down. And they've let us down because we have let them let us down. We don't want to hear the news either. Voters are as much to blame as the governments because we don't want to hear the hard messages. The plan says we cannot afford to have everything we want and in fact need as a country and the infrastructure jobs that we do need to do will have to pay for beyond our general taxes.&nbsp;
“The reality is asking people to pay for things is difficult and we've pushed the boat out quite a bit as a government on tolling and that's because ultimately roads have to be paid for. And we've tried to move the system towards more of a user pays model and we think that's fair. The original Harbour Bridge in Auckland was of course paid for with a toll and we've just signalled quite clearly that when you're dropping billions and billions of dollars, which is what the second harbour crossing will be, it will be the biggest infrastructure project ever built in New Zealand, that's a project where we do think it will end up being tolled because that's a fair way of paying for the project. &nbsp;
“Here's the reality, roads and in fact all infrastructure has to be paid for. It has to be and you can use user charges for that through tolling or through petrol tax or a combination of both, which is essentially what we do. You can borrow for that, but of course that has to be paid for too. Money is not, despite what the Labour Party think, debt is not free. We already have a huge amount of debt that was built up during the Covid years that has to be repaid and we are desperately as a government getting the books back in order so that when the next shock comes along, the next Cyclone Gabrielle or whatever, we're in a position where we could actually deal with it. At the moment of course we're in a very vulnerable situation and the Treasury says we've got to keep the debt levels under control, otherwise our international borrowing costs will go up and then everybody's interest rates will go up and then you're in banana republic territory. Then you can't even meet the debt repayments on what you've already borrowed.”&nbsp;
That was Minister for Infrastructure Chris Bishop talking to Mike Hosking this morning. So it's grim reading. As I say, successive governments are at fault and so are we voters. We want everything done for us and we want the government to pay for it. We don't want to pay more in tax though when we want the government to pay for it. We want all the benefits our great grandparents had in the 60s without being willing to pay the sort of tax they were paying in the 60s. We have to wake up and be willing to vote for governments that are going to make tough decisions. And to help us do that, National and Labour need to join forces, get together and agree on the tough stuff. That the age of universal Super needs to go up, allowing for people to collect less early, sure, when you've got the tough jobs, but you know, we can dither around this but ultimately that's what needs to happen. We need to agree on an infrastructure program that will involve maintenance and building and won't be subject to the whims of politics. We're going to need to see more governance, less politicking. We need that to start this election, otherwise the main parties will be fighting it out to govern a country that isn't worth living in.&nbsp;

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

Kerre Woodham Mornings Podcast

Kerre Woodham: We need to see more governance and less politicking

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/69676920-4d4c-4aa2-9da2-b3f401882f3e/transcript