Commission suggests NZ revisit the bounds and boundaries of local councils' responsibilities, in a major public consultation about the future of the country's public networks and services.
On the one hand, the country's growing cities would be freed to put tolls on their roads to manage congestion. On the other, urban development and housing supply would be guided by central government.
These are some of the more startling and sometimes contrasting proposals in a new government consultation on the future of New Zealand's infrastructure.
Alongside the Government major review of local government, and reforms across health and education, it sets the stage for a dramatic realignment of the roles and responsibilities of central and local government.
This could extend to redrawing the boundaries of local authorities to better reflect the changing needs of employers and their workforce. "It has been more than 30 years since New Zealand established the geographical boundaries of local and regional councils," the consultation document says. "During that time cities have grown substantially, increasing the need for infrastructure that crosses institutional borders, and integrated planning."
It questions the appropriateness of existing local government boundaries, given expanding labour markets, and the ability of local government to provide, fund, maintain and operate both social and economic infrastructure.
New Zealand's public infrastructure is increasingly strained. Last year economist Shambueel Eaqub led a team that put the deficit at $75 billion – a figure the government accepts would by now have grown still further. The country is ranked down at 41st in the world for the quality of its infrastructure.
The Government has come under pressure from local councils to finance replacement schools, hospitals and transport links, and to provide new funding tools to help councils and developers get local projects started.
So the first part of the consultation document is about laying out the extent of the problem – notably, population growth, and the climate and housing crises – and acknowledging the country does not have the resource to build all the new infrastructure communities might like.
Geoff Cooper, Te Waihanga's strategy general manager, said the country would welcome up to two million more New Zealanders over the next 30 years – but the strategy was not about building new things for the growing population. Existing infrastructure and existing space needed to be used more efficiently – for instance, by converting more road space to public transport.
"We need to be thinking about how we make smarter and better decisions about the existing infrastructure we have," he said. "Most of the infrastructure we will be using in 30 years’ time is already around us. Infrastructure lasts a very long time. So when we are thinking about what we need from infrastructure it has to be both fit for purpose and fit for the future."
He told Newsroom that five cities – Auckland, Tauranga, Hamilton, Wellington and Christchurch – were projected to keep growing rapidly. But three-quarters of local authorities were forecast to shrink in coming years, as the population becomes more urban and moves north.
For transport, the document proposes congestion charging in Auckland to improve urban accessibility and begin to plan for congestion charging in Tauranga, Wellington and other cities. That would mean changing the law that barred councils from tolling existing roads, Cooper said
For energy generation, it proposes reducing the country's reliance on hydro and geothermal power by investigating the potential for offshore renewables. "It may be prudent to investigate whether an offshore renewable-energy regulatory framework is needed to enable an environmentally responsible exploration, construction and operation of offshore wind and other clean energy technologies."
And for housing, it suggests a more responsive planning system to meet housing needs, achieved by standardising the National Policy Statement on Urban Development and planning rulebooks across the country to provide a consistent process to speed up rezoning for residential density. The current approach is fragmented, it says, and suggests regional and district plans be combined and the planning process sped up.
The distance between local and regional councils is highlighted at present by a proposal for a big Sleepyhead factory and residential development in Ohinewai, north of Huntly. The Waikato District Council supports it, the Waikato Regional Council opposes it, and the whole thing has been tied up in the district council planning commission for the past six months.
The proposal to redraw local and regional boundaries has some support from local government. In talks with the commission, councils highlighted the need to aligning regions and regional boundaries to ensure a consistent approach for all local, regional and central government agencies.
That inconsistency can be seen in some of the major reforms announced by the Government this year: the health and three waters reforms propose splitting the country in four, but the education reforms would split it in three parts. None of those necessarily align with each other or with local government boundaries.
"As our cities age many of the infrastructure networks that support them are nearing end of life, often at the same time. Add to that the need to redesign our fossil-fueled energy system, improve water quality, relieve our congested towns and cities and build the new houses we need for a growing population, there is a lot to do." – Ross Copland, Te Waihanga
Infrastructure Commission Te Waihanga chief executive Ross Copland said the consultation document He Tūāpapa ki te Ora, Infrastructure for a Better Future set a proposed direction for a 30-Year Infrastructure Strategy.
It is the second step in drawing a national direction for developing the country's biggest public networks and services: roads and rail, power, water and communications, as well as health, education and waste.
The third step, in September, will be delivering a draft strategy to Infrastructure Minister Grant Robertson. The final strategy is to be provided to the Minister in March 2022, and tabled in Parliament the following month.
But already, it's clear that there's a change in balance underway, with the Cabinet beginning reforms to take back greater central government control of health, education, local government and its three waters infrastructure.
Copland said New Zealand was facing some huge challenges. "As our cities age many of the infrastructure networks that support them are nearing end of life, often at the same time. Add to that the need to redesign our fossil-fueled energy system, improve water quality, relieve our congested towns and cities and build the new houses we need for a growing population, there is a lot to do. This is going to require bold, decisive action, starting now,” says Copland.
Infrastructure for a Better Future also draws on research and the priorities people shared through our Aotearoa 2050 engagement campaign(external link) and sets out options for how better infrastructure can enhance the wellbeing of New Zealanders.
The consultation document sets out goals for a New Zealand with a productive, carbon-neutral economy, affordable homes, reliable travel and safe and healthy communities. Infrastructure decisions would be guided by the Treaty of Waitangi and in partnership with Māori, Copland said.
Other proposals include:
- Rigorous and transparent cost-benefit analyses on all major public infrastructure projects to ensure value for money;
- A major projects leadership academy to raise capability in both government and industry;
- Better pricing of existing and new infrastructure services, including for urban development, water, transport, and to support the transition to Net Zero Carbon 2050;
- Greater use of open data in infrastructure, to enable the development of ‘digital twins’ in public sector infrastructure and the use of artificial intelligence for activities such as consenting;
- The potential for an Asset Management Team to take on infrastructure responsibilities from government agencies that are not well equipped.
Submissions on Infrastructure for a Better Future can be made through the Te Waihanga website at: www.infrastructure.govt.nz/have-your-say. The public consultation closes on June 24.
