Govt details infrastructure priorities

Finance Minister Bill English. File photo / Mark Mitchell

The National Infrastructure Plan released by Finance Minister Bill English in Auckland today has been welcomed by the CEO of the Wellington Regional Chamber of Commerce.

Charles Finny said that the plan showed the Government was serious about plugging New Zealand's infrastructure deficit.

However, he encouraged the Government to consider increasing its focus on Wellington and New Zealand's central regions.

"Wellington's location in the centre of the country, on State Highway One and on Cook Strait gives it a crucial strategic location on infrastructure networks," said Mr Finny.

"While our problems are less acute than Auckland's, Wellington's strategic location means its infrastructure deficit has a disproportionate effect on national productivity."

A second Auckland harbour crossing and a lack of trains are two gaps identified in the infrastructure stocktake, said Mr English, and while there were "bottlenecks" in roading and electricity, they were being addressed.

"While these bottlenecks exist, there are no obvious looming crises in the near term (five years)," Mr English said.

"It also identifies some future gaps and issues that might require action, including an additional Auckland Harbour crossing, the need for better alignment between central and local government planning and more investment in the most commercially viable parts of the rail network.

The report said a second Auckland harbour crossing could be needed in 10 to 20 years. There was also a need to replace some of the rail fleet to boost growth on "some routes" with demand for further investment in Auckland and Wellington.

The plan said the five priorities for the Government were:

* broadband;

* electricity;

* regulatory reform;

* roads of national significance; and

* Rugby World Cup 2011.

Three emerging priorities were reviewing the electricity market, irrigation and better management of the Government's assets.

It said there was a large amount of planning, but it was variable.

Mr English said the plan was a step towards better management of $6 billion of investment a year and $110 billion in asset holdings.

The plan was a snapshot of public and private infrastructure, planned investment and the Government's priorities.

- NZPA, NZ HERALD ONLINE