Infrastructure spending — Govt prioritises water, waste

WATER projects and waste management are priorities for the Government as it spends the next couple of weeks deciding which of nearly 2000 infrastructure projects vying for funding will gain approval.

Prime Minister Jacinda Ardern told a Business NZ webinar that maintaining infrastructure had been a hard sell for politicians at both central and local government levels over the years, leading to the deficit now facing the nation.

‘‘It’s not sexy to invest in pipes,’’ she said.

The Government announced it would spend another $3 billion on shovelready infrastructure projects, having received proposals for about $136 billion of works. That’s on top of the $12 billion the New Zealand Upgrade programme announced earlier this year, and comes at a time when the nation’s closed borders mean international workers and expertise are not available.

Ms Ardern said water infrastructure and waste management projects were two prime candidates for funding.

Her comments followed an earlier speech by Finance Minister Grant Robertson in his traditional annual address hosted by ANZ.

Mr Robertson said the Government simply could not fund all the proposals it received, and wanted the projects to improve the nation’s productivity.

‘‘It’s not just about creating jobs and getting it done. It’s making sure they’re the right ones.’’

Both Ms Ardern and Mr Robertson warned their audiences not to get too fixated on economic forecasts, which would continue to move around as the impacts of and responses to the Covid19 pandemic became clearer. — BusinessDesk