Next week‘s roads

Finance Minister Grant Robertson announced this week that the Government is lifting its capital investment to the highest level in more than 20 years, with $12 billion of new investment. Of this, $8 billion will go to specific capital projects and $4 billion is to be added to the multi-year capital allowance.

The specific projects will be announced in early 2020, however, of the $8 billion, $6.8 billion has been allocated to new transport projects. A significant portion of this is for roads and rail.

The remaining $1.2 billion will be allocated as follows:

• $400 million one-off increase to schools’ capital funding;

• $300 million for regional investment opportunities;

• $300 million for District Health Board asset renewal;

• $200 million for public estate decarbonisation.

“The new investment is forecast to increase the size of the economy by a further $10 billion over five years, with further positive impacts on GDP beyond that period,” Robertson says.

The Government says that, with debt low and borrowing costs at record lows, the conditions are right for it to invest to future-proof New Zealand.

“It will provide further support to boost the New Zealand economy in the face of slowing international growth and stronger global headwinds. It will also give certainty to the construction industry about upcoming infrastructure projects and will create more job opportunities for Kiwis,” he adds.

“This package shows New Zealanders that this Government is serious about tackling the infrastructure deficit we were left with,” says Robertson.

The extra $4 billion to be added to the multi-year capital allowance takes it to $8.4 billion, with allocation of that money to be announced over coming budgets.