By Nick Leggett, Chief Executive, Infrastructure New Zealand

Why infrastructure must keep building.

As Aotearoa New Zealand grapples with ongoing global fuel disruption, it’s clear that the crisis is not just about supply, but about confidence – the confidence to continue investing, to keep building, and to ensure the long-term resilience of our infrastructure sector.

The situation we face today is complex, driven by volatile global markets, cost escalations and supply chain disruptions that are extending far beyond fuel alone. But even as we navigate these challenges, there is one truth that stands above others: halting infrastructure projects in the face of uncertainty will only lead to greater long-term economic consequences.

At Infrastructure New Zealand, we have been actively engaging with the government, industry and stakeholders to ensure that infrastructure remains a priority during this disruption. Our message is clear: the cost of stopping, deferring, or delaying projects now is far greater than the immediate pressures we face. The long-term damage to industry capability, economic growth and job sustainability will far exceed any short-term savings gained by pausing projects.

The immediate fuel supply fears that triggered initial uncertainty are easing; however, the broader issue on hand is a profound confidence shock, and that shock is reverberating through the economy and the infrastructure sector. We are nearing an election, and with this comes added uncertainty around budgets, manifestos, and long-term investment plans. The lack of clarity around government priorities and delayed procurement processes are deepening this uncertainty, undermining confidence across the industry.

Infrastructure projects require consistency, certainty and a visible commitment to ongoing investment, yet in the current climate, the sector is grappling with hesitation. Clients, contractors and suppliers are already seeing work slow, and projects delayed and reprioritised as they brace for the unknown. Councils are modelling potential impacts for the upcoming year, and while many do not foresee major financial hits, the ripple effects are becoming increasingly evident. Delays, hesitation and indecision at this juncture only create more instability.

One of the most pressing risks we face is de-scoping – the reduction or elimination of certain elements in infrastructure projects to curb escalating costs. While it may appear to be a quick fix, this approach risks undermining the value and long-term benefits of the projects in question. Short-term savings often come at the cost of future value, and projects that are stripped of key components may no longer deliver the desired outcomes.

Infrastructure is a long-term investment, and cutting corners now to save money could end up costing more in the future. The true costs of such decisions are not just financial; they are also social and economic, affecting communities, industries, and the future of New Zealand’s infrastructure capacity.

Clear, transparent and evidence-based decision-making will be critical. We must avoid knee-jerk reactions driven by crude numbers or fear of escalation, and instead focus on the real, measurable impacts of cost increases. The sector needs to communicate inflationary pressures clearly so that clients and funders can respond to evidence rather than assumption or speculation.

While concerns around rising fuel, freight and material costs are valid, transparency is essential. Projects need to continue not only because many are already funded, but because delaying decisions today is likely to increase costs and disruption tomorrow.

Now, more than ever, we must focus on continuity of delivery. The long-term economic resilience of New Zealand depends on it. Delaying projects might offer temporary relief from escalating costs, but it will create far more significant challenges when we face the inevitable recovery. Infrastructure investment is a critical part of New Zealand’s economic fabric; it sustains jobs, drives growth and maintains the foundation of our society’s prosperity.

Our stance is simple: we must continue building. Infrastructure is not a discretionary expenditure; it is the backbone of our economy, and the need for it will only grow in the years to come. The challenges posed by the fuel crisis should not be used as an excuse to halt progress.

The fuel shock has revealed a fundamental weakness in our infrastructure ecosystem – a lack of long-term planning and visibility. It has also, however, highlighted the strength of the industry’s collective response – a commitment to keep moving, keep building, and keep investing in Aotearoa New Zealand’s future.

Now is not the time to hesitate or slow down. It is a time for clear leadership, bold decision-making, and a resolute commitment to delivering the infrastructure projects that will power our future.