Warning of infrastructure crunch

New Zealand would have to spend twice as much as it currently does on infrastructure for the next 30 years to build its way out of the current challenges, a new report says.

Waihanga/New Zealand Infrastructure Commission has released its first strategy document, which explains the problems ahead for the country’s infrastructure.

It said electricity generation capacity would need to increase by about 170% if the country was to meet its net carbon zero goals. It would cost about $90 billion to fix water networks. For every $40 spent on new infrastructure, the country had to spend $60 on renewals.

But construction costs were rising 60% faster than prices elsewhere and there was expected to be a shortfall of 118,500 construction workers in 2024.

‘‘More of the same simply won’t cut it. The strategy shows we will have to be smarter about how we plan, deliver and pay for our infrastructure,’’ Te Waihanga chief executive Ross Copland said.

The strategy said there should be rapid development of clean energy, reducing the carbon emissions from infrastructure.

Towns and regions should be supported to grow through better physical and digital connectivity as well as freight and supply chains. Cities should respond to population growth, unaffordable housing and traffic congestion through better long-term planning, pricing and good public transport.

Charges and road tolling for the busiest roads at peak times would free them up, it said.

Resilience to shocks should be strengthened with a co-ordinated and planned approach to risks, based on good quality information, the commission said.

The country should move to a circular economy with a national direction for waste, managing pressure on landfills and wasterecovery infrastructure and developing a framework for the operation of waste-to-energy infrastructure.

The report said New Zealand’s commitment to being a net-zero emissions economy by 2050 would require a major energy transition and levels of investment in infrastructure not seen since the 1970s.

It said the country currently spent about 5.5% of GDP on new infrastructure.

‘‘If we were simply to keep doing what we’ve always done and try to build our way out of current and future infrastructure challenges, we would need to spend almost double what we’re spending now.’’

But it said responding to the challenges did not always mean building something new. ‘‘We also need to get better use out of our existing infrastructure.’’

Infrastructure Minister Grant Robertson said the report was an invaluable piece of work.