Lack of competition in New Zealand's building materials market, inconsistent procurement processes, and no clear pipeline of future work are all factors putting off potential Australian infrastructure investors, Cabinet papers show.
The issues emerged during Infrastructure Minister Shane Jones' trip across the Tasman in April where he went searching for ideas on how to improve management of New Zealand's major projects.
Jones wants an independent infrastructure body to provide advice on the state of the nation's assets but ultimately leave decisions in the hands of ministers. He tasked officials to ensure New Zealand makes the most of investment opportunities from Australia, including getting closer to the market across the ditch.
A Cabinet paper shows their ongoing commercial interest in providing New Zealand infrastructure was tempered by a number of negative perceptions, such as a lack of a clear and coherent pipeline of work beyond the transport sector.
Among those concerns were inconsistent procurement processes and inflated project costs arising from New Zealand's highly concentrated materials sector, the paper said.
