2. CRAIG FOSS (National—Tukituki) Link to this
to the Minister for Infrastructure
What measures is the Government taking to improve New Zealand’s infrastructure?
Hon BILL ENGLISH (Minister for Infrastructure) Link to this
As part of the Government’s plan for the road to recovery we have outlined a $7.5 billion 5-year plan to improve telecommunications, schools, and hospitals. We have also lifted spending on State highways by $1 billion over the next 3 years, are investing record sums in upgrading the national electricity grid, and have a plan to roll out ultra-fast broadband.
After 10 years of mismanagement of the economy it is very important that we increase our productivity. Better roads, more secure electricity, and faster broadband will help us to increase productivity and grow our exports.
The Government’s increased investment in productive infrastructure has two benefits for jobs. In the short term it supports thousands of jobs as these projects get up and running, and in the long term the benefits from a more productive economy will support sustainable jobs in the export sector. Unfortunately, many people who are losing their jobs now are finding out that their jobs were based on the previous Government’s reckless spending and too much borrowing.
Hon Shane JonesWhen will the Government announce its intentions to use the infrastructure fund to subsidise the development of water storage capacity for the agricultural sector?
There have been a number of propositions from the agricultural sector for some kind of Government participation, but it is not exactly clear what it has in mind or what might be effective.
Hon Sir Roger Douglas Link to this
Can the Minister guarantee for the House that his expenditure on infrastructure is warranted from a cost-benefit point of view, including investment in the cycleway, KiwiRail, and other similar make-work schemes?
For the broad range of infrastructure I can give the member an assurance that what the Government is currently investing in meets the criteria of productive investment. I must say, however, that KiwiRail is a bit more of a problem. The previous Government spent $1 billion acquiring KiwiRail; today it is probably worth nothing. We are going through a major exercise of trying to work out how much investment is appropriate.