NZ 'held back' by lack of spending

Frugal spending on the country's roads and electricity supply is holding New Zealand back in the competitive global market, an infrastructure and energy lawyer said yesterday.

"Road transport, electricity transmission and issues around security and supply of electricity are examples of deficits in infrastructure funding," said Bryan Gundersen, a partner in Kensington Swan's corporate advisory business unit.

"Our percentage of gross domestic product investment in infrastructure has decreased since 1992 - it was less than 1 per cent in 1999 - which puts us way behind other OECD countries."

Mr Gundersen, chairman at the annual Land Transport Summit in Auckland, said both Prime Minister Helen Clark and National leader Don Brash had said increased spending was needed but they baulked at further action.

"There's an absence of policy or leadership to take this forward, so I'm calling for greater accountability on the issue - a minister of infrastructure."

A minister supported by a force of officials could change legislation that restricts private sector funding across all major infrastructure projects, he said.

"With our basically full employment situation our biggest demand is greater productivity and if we can't do that through more people, we've got to do it through investment.

"The first place is our infrastructure assets to drive economic growth."

The spending would have a "pay-back" when producers, retailers and wholesalers of any service or industry could operate together more efficiently.

Mr Gundersen said one thing was clear: "There is an urgent need for new direction to facilitate more investment in infrastructure.

"Whether politicians agree with the proposed new direction or not, we must do better than we are doing now."

- NZPA