by Mike Bain, The Daily Examiner.
The Public Works Act will undergo its most significant reform in nearly 50 years to help unleash an infrastructure boom, Land Information Minister Chris Penk has announced. At the same time, the latest quarterly update from the New Zealand Infrastructure Commission shows a significant increase in the value of infrastructure projects in the National Infrastructure Pipeline.
“Removing barriers to make it faster and more affordable to build the homes Kiwis need, creating jobs through new projects, and providing infrastructure to support better public services is a major part of the Government’s economic growth agenda,” Mr. Penk says. He highlighted that complex regulations and inefficient processes are currently slowing down development, leading to blown-out budgets and added costs for taxpayers.
“We cannot afford this in the face of a productivity crisis and critical infrastructure deficit. A modernised Public Works Act will set the foundation for building better,” Mr. Penk asserts.
Meanwhile, Infrastructure Minister Chris Bishop has announced that the value of infrastructure projects in the National Infrastructure Pipeline totals $204 billion, an increase of $60.4 billion since the last quarter. “A strong pipeline of infrastructure projects means a growing economy with more jobs and more opportunities for Kiwis,” says Mr. Bishop.
The December 2024 Pipeline update shows there are over 1500 projects currently under construction, worth a total of $48.6 billion. There are $107.9 billion of infrastructure projects that have a confirmed funding source, an increase of $8.1 billion from the previous quarter.
“The Commission’s projections show that more than $15.1 billion is expected to be spent across all infrastructure sectors in 2025. This spend is equivalent to around 3.6 per cent of our GDP. The transport sector accounts for the biggest spend, with more than $7.7 billion – 51 per cent of our total spend in 2025,” Mr. Bishop explains.
The first tranche of extensive policy changes to the Public Works Act to be announced in the coming weeks includes:
– **Delegate land acquisition responsibility:** Empower government agencies like the New Zealand Transport Agency to enter into acquisition agreements with landowners, while the Minister for Land Information will remain responsible for compulsory acquisition by the Crown.
– **Enable collaboration between agencies:** Allow government agencies to work together when acquiring land for connected public projects, coordinating land acquisition as needed.
– **Enable relocation of infrastructure:** Permit the government and local authorities to acquire land for moving existing infrastructure that obstructs new public works.
– **Refine the role of the Environment Court:** Clarify the factors that the Environment Court can consider when reviewing objections to land acquisitions for public works, focusing on individual property rights and removing overlap with the Resource Management Act.
– **Require mediation for compensation disputes:** Mandate mediation or alternative dispute resolution before escalating compensation disputes to the Land Valuation Tribunal.
– **Allow Transpower to bypass standard processes:** Enable Transpower, the State-Owned Enterprise managing New Zealand’s power grid, to use the Public Works Act to acquire land by agreement, streamlining their process for building energy infrastructure.
Other politicians have weighed in on these reforms and the Pipeline update:
Labour Party spokesperson on infrastructure, Hon Barbara Edmonds, remarked, “This is a positive step forward, but we need to ensure that the rights of landowners are adequately protected. The mediation requirement is a welcome addition, but it must be accessible and fair”.
Green Party MP, Julie Anne Genter, emphasized, “While streamlining processes is important, we must not compromise on environmental standards. The Public Works Act amendments should consider the ecological impact of new infrastructure projects”.
ACT Party leader, David Seymour, commented, “These reforms are long overdue. Cutting through the red tape will not only expedite development but also foster economic growth. However, we must remain vigilant to ensure that the process is transparent and that landowners receive fair compensation
Mr. Penk also mentioned that the Government would fix a discrepancy in the Public Works Act, which undervalues Māori freehold land compared to other land types. Further improvements will be revealed as the Government prepares to introduce the Public Works Amendment Bill to Parliament around the middle of 2025. The public will have the opportunity to provide feedback during the select committee process.
The Pipeline now includes information on more than 7,600 infrastructure projects that are underway or being planned by 147 organisations. A more robust and transparent pipeline is good for New Zealand infrastructure. It can help understand where there are pressures and opportunities for the construction sector.
