Building industry bosses are counting on Brown

Len Brown. Photo / Herald on Sunday

Big new Auckland construction jobs are more likely following Len Brown's mayoral victory, say building industry bosses.

The $1.4 billion 5.5km Waterview motorway will be the largest infrastructure job followed by Auckland's central underground railway line, a $1.5 billion job, the industry leaders predicted.

"After Waterview, we can move on to the rail tunnel," one construction boss said.

Infrastructure earnings are picked to fall next year when many big jobs are finished including State Highway 20, Eden Park, Mt Eden Prison and Victoria Park Tunnel.

Mark Binns, head of construction and infrastructure at Fletcher Building, said state spending was significant.

"I like John [Key] spending money and if he stops, we're in trouble because the private sector has no gas in the tank. I think it will be quite a while before it changes. The Government will be dominant for the next two to three years. For that to change and the private sector to return, we need underlying demand in retail, residential housing, offices, commercial, industrial - and demand is on the floor at the moment," Binns said in August.

Not everyone is happy about big state spending and Government funding is uncertain after Key dealt a blow to Brown's big plans, saying "not all roads or rail tracks can lead to the Government".

Rob Mercer of Forsyth Barr has expressed concern about Fletcher's forward workload being too heavy on Government jobs, a number of big projects ending soon.

"Last year the risk of a drop in activity for major commercial/infrastructure was looking a key risk. Now the construction companies are unanimous: the drop-off is guaranteed unless the Government fast-tracks some of the projects that are scheduled for 2012/13," Mercer said.

Hawkins Construction has finished the Aotea Square upgrade and at the beginning of next year will hand over the refurbished and expanded Auckland City Art Gallery.

NZ Transport Agency says the Waterview Connection will begin where State Highway 20 ends in Mt Roskill, travel through Mt Albert and Avondale and connect to State Highway 16 adjacent to Great North Road.