Infrastructure: Signals without solutions

By CHRIS DANIELS

Infrastructure and the need for more investment in energy and transport seem to be concerns of the Government, but yesterday's Budget was not the place to find evidence of this.

Carter Holt Harvey chief executive Peter Springford said he heard a recognition from the Government of energy and infrastructure issues, but no money had been allocated to dealing with some of them.

Of particular importance to Springford and Carter Holt Harvey are the state of the electricity market and the future of the New Zealand railway system.

"This year it's going to be a very difficult year, particularly for industry. There are a number of things that the Government could do to mitigate the spikes in energy prices.

"Maybe they'll find another way of dealing with the energy issue through the SOEs, so it may not appear in the Budget - maybe the same with rail," said Springford.

"Reading between the lines, it might mean they would say to a power company - you must have backup generation capacity should a dry year eventuate."

Although it was good to see the Government signalling these important issues, signalling solved nothing.

"From a business point of view, surpluses are positive, consistency is good, and personal tax benefits are probably a negative. I think some of the statements on education spending and more resources into business training and skills were good. Border and biosecurity is good - we feel good about that."

Some infrastructure-type spending plans outlined were:

* An extra $250,000 for the Maritime Safety Authority's boating safety programme, specifically to publicise new lifejacket rules.

* $500,000 more for more investigators at the Transport Accident Investigation Commission.

* $1 million over the next two years for an investigation into the "pricing and regulatory treatment of road and rail, charging for traffic congestion and implementation of the Land Transport Management Bill.