2. DAVID BENNETT (National—Hamilton East) Link to this
to the Minister for Infrastructure
What progress is the Government making on its infrastructure investment programme?
Hon BILL ENGLISH (Minister for Infrastructure) Link to this
It is making very good progress. The Government laid out a programme 2½ years ago, and despite the fact of the recession and significant Government deficits, we have actually held our capital spending and increased investment in infrastructure, because we believe that in the long run, investment in productive infrastructure will help our export sector to be more competitive, and will therefore help to rebalance this economy. In addition to this spending, we have changed the rules on consenting for infrastructure projects so that they can occur much more quickly than in the past.
One of the benefits of this long-term investment in infrastructure happened to be that during the recession, when we were ramping up the programme, the Government’s infrastructure spend directly supported thousands of jobs across New Zealand in the construction sector, which, as we know, was hit very hard, both by the New Zealand recession and then by the effects of the global recession. A very significant proportion of all non-residential building in New Zealand has been funded over the last 2 or 3 years as part of the Government infrastructure investment programme.
It is just more good news. We expect to invest heavily in what is now a clearly defined pipeline of work. Over the next 5 years we will invest $750 million in KiwiRail for new wagons, locomotives, and other projects to increase productivity, and $5.4 billion in new State highways, which will mean the start of construction of the Waterview Connection, four more sections of the Waikato Expressway, and the MacKays Crossing to Peka Peka Road part of State Highway 1. We will be spending $3.9 billion on upgrading the national electricity grid and spending $7 billion on State housing, schools, hospitals, and the prison system. Of course there is also the investment of at least $1.5 billion in the roll-out of ultra-fast broadband, for which the final commercial arrangements have been put in place in just the last few weeks. Parliament will pass that legislation hopefully in the next few weeks.
John BoscawenHow does the Government intend to attract private capital to boost New Zealand’s infrastructure base?
The Government has taken a careful and considerate approach to introducing public-private partnerships, being one of the few developed countries in the world that has not had those in place in the last 10 years. We have learnt from others, and we are making cautious progress in that respect.
Would he describe the comment made by the Hon Trevor Mallard regarding broadband infrastructure investment that “Anyone entering into an arrangement based on this legislation has got to know that it may not last,” as being wanton economic thuggery that would scare away private infrastructure investment and turn New Zealand into a banana republic; if not, how would he describe it?
Hon Trevor Mallard Link to this
I raise a point of order, Mr Speaker. Although that is something that I might like to frame and send to my Labour electorate committee, I think asking the Minister of Finance to have responsibility for my comment is going a little bit far.
Mr SPEAKERI do not need to hear further on the matter. The Minister certainly does not have responsibility for the honourable member’s comment, but Ministers can be asked their opinions on all sorts of things. As long as the Minister is somewhat careful in answering it, I am prepared to allow the question, but certainly the Minister has no responsibility for that comment.
Hon Trevor Mallard Link to this
I raise a point of order, Mr Speaker. I do not think the member had finished. It was such a good quote, I would like—
I think it is more bark than bite, because, firstly, no New Zealand Government would act illegally and it would comply with the contract; secondly, that comment is reckless; and, thirdly, I will work very hard over the next few months to make sure that the election of 2011 makes that comment irrelevant.
Hon David Cunliffe Link to this
If his stated aim of infrastructure investment is to boost our economy through streamlining private sector exports, then why are poorly maintained rural roads being ripped up by milk tankers while his Associate Minister for Infrastructure, Steven Joyce, squanders $1.8 billion on the Holiday Highway, which has a benefit-cost ratio of just 80c in the dollar?
I am most impressed with this newfound sympathy of the Labour Party for the farming community, but those members need to sort out their strategy, because last week they were kicking farmers in the slats and today they are trying to hug them. As someone who lives on one of those poorly maintained rural roads, I say that the Government has done a very good job of working with local government to make sure the rural infrastructure can support the very successful export efforts of our rural sector.
Hon David Cunliffe Link to this
Can he confirm that land transport funding will be reallocated later this year by the new Government policy statement, with more money being taken out of road safety, maintenance, and public transport and instead being funnelled into four new so-called roads of national significance, which will, presumably, have even worse benefit-cost ratios than the road from Pūhoi to Wellsford?
No, I cannot confirm that. I can confirm that the process of allocation is arm’s length and very focused on productivity, so much so that the most recent tar-sealing programme in Dipton actually stops at the end of English Road. We have the same gravel road that we have had for 100 years. [ Interruption]
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. I just ask whether the Minister might repeat his answer. It was very difficult to hear, and I am an “English patient”.