By Nick Leggett, Chief Executive, Infrastructure New Zealand
As election year kicks into gear, infrastructure has risen to the surface and is set to be one of the key political topics.
New Zealanders understand the importance of infrastructure to their everyday lives, as communities across the country are feeling the strain of more congestion, aging water networks, constrained energy capacity and the increasing costs of living in cities that have not kept pace with growth. The question is no longer whether we invest in infrastructure, but how well, and how efficiently, we can do it.
The release of the National Infrastructure Plan by Te Waihanga (the New Zealand Infrastructure Commission) marks a significant step forward. For the first time, we have a comprehensive, long-term view of what Aotearoa New Zealand needs over the next 30 years and how we might deliver it. The Plan does not simply list projects; it highlights the systemic pressures facing our infrastructure system – aging assets reaching end of life, rising construction and financing costs, capacity constraints in the workforce, and increasing exposure to natural hazards and climate risk.
Crucially, the Plan also focuses on the need to prioritise the maintenance, renewal and replacement of the assets we have already built. New Zealand has a poor record of looking after what we already own. This is being felt in communities, and we know that the cost of not properly managing and maintaining our existing assets will cost us more in the long term.
The Plan also gives us visibility of a pipeline worth approximately $275 billion. A transparent, prioritised pipeline reduces boom-and-bust cycles, and sends a signal that New Zealand is serious about building for the future. If we are serious about getting better value for money out of what we spend on infrastructure (we are currently in the bottom 10 per cent of the Organisation for Economic Co-operation and Development (OECD)), then a base of properly business-cased, planned and funded projects being released for delivery to the market is a must.
We are spending a lot (about 5.8 per cent of gross domestic product – above the OECD average), but we are not always spending well. Projects take too long and delivery risks are not consistently managed. Funding and financing settings are often fragmented. In too many cases, political cycles override long-term discipline.
At the same time, we must be cautious not to let fiscal constraint alone define national ambition. There can be an implicit sense that because we are relatively small, we must limit our aspirations. That mindset risks becoming self-fulfilling. Infrastructure is not simply a cost on the balance sheet; it is an investment in productivity, resilience and higher living standards. Well-planned infrastructure supports growth, strengthens public finances over time and lifts quality of life.
The National Infrastructure Plan is a step in the right direction because it embeds long-term thinking beyond a single parliamentary term. But a plan on its own will not lift productivity; it must be accompanied by action. Reform that improves the settings around planning, funding, procurement and governance must then become our ways of working.
The reform agenda, led by Infrastructure Minister the Hon. Chris Bishop, is well underway. Changes to the resource management system are intended to streamline decision-making, and provide clearer pathways for nationally and regionally significant infrastructure. For too long, consenting processes have added delay, cost and uncertainty. Replacement legislation aims to enable development while maintaining appropriate environmental safeguards. If implemented well, these changes should reduce duplication, clarify responsibilities, and ensure that infrastructure can be delivered in a timely and predictable way.
At the same time, funding and financing tools remain central to unlocking delivery. The Infrastructure Funding and Financing Amendment Bill seeks to refine and improve mechanisms that allow infrastructure to be paid for over time by those who benefit from it most. New Zealand requires large-scale investment, and we need to broaden our toolkit. That ranges from targeted levies to user-pays models and public-private partnerships, applying these tools consistently and transparently.
Local government reform also forms a critical part of the picture. The Simplifying Local Government Proposal has the potential to reduce barriers and improve outcomes for communities. The establishment of Combined Territories Boards and regional reorganisation plans could reduce transaction costs and duplication, resulting in material benefits for the infrastructure sector. These changes, however, must be viewed through the lens of delivery capability. Central government must ensure local authorities have the scale, capability and balance sheet strength to absorb these responsibilities, utilising existing institutions and enabling a nationally coordinated, consistent delivery model.
As we move through 2026, the challenge for policymakers will be to maintain momentum. Recent submissions on key reform proposals have demonstrated strong engagement from across the sector. There is appetite for change, but also a clear message; reform must be coherent and coordinated. Piecemeal adjustments will not shift the dial. What is required is a stable, bipartisan commitment to long-term planning, diversified funding, streamlined regulation and institutional capability.
We now have a credible national plan, and an active reform programme. The task ahead is implementation: translating strategy into projects delivered on time, on budget and to a high standard.
The foundations are being laid. The decisions made this year will determine whether we seize the opportunity to build an infrastructure system that supports productivity, improves quality of life and underpins sustainable growth for decades to come.