The sector would have noticed there was little summer down time with a large influx of legislation and submissions needing to be prepared and consulted on.
In the last few weeks of Parliament sitting in December, we saw numerous pieces of new legislation introduced. These include the long awaited third tranche of the Local Government (Water Services) Bill, the second phase of the Resource Management Act (RMA) amendments addressing consenting system changes and the Offshore Renewable Energy Bill which had their first readings and were referred to the appropriate Select Committee.
The Land Transport Management (Time of Use) Amendment Bill, which was introduced on 16 December, is still to have its first reading and be referred to Select Committee, although this is now flagged as an action in the Coalition Government’s 2025 Quarter 1 Action Plan.
In January we also saw a Cabinet reshuffle which has significance for infrastructure, with Chris Bishop picking up the Transport portfolio which complements his Infrastructure, RMA Reform, Housing and Associate Finance portfolios. Simon Watts picked up the Local Government portfolio to go along with Energy, Climate Change and Revenue portfolios. James Meager was appointed to the new role of Minister for the South Island as well as Associate Transport Minister. We look forward to working with these Ministers in their new portfolios.
Legislation and Other Submissions
Since the start of 2025, INZ has made several submissions on new legislation and other government public consultations. You can read them all here.
The Offshore Renewable Energy Bill has been welcomed after perceived delays following earlier MBIE consultation with the sector. INZ’s submission strongly supports the establishment of a regulatory regime for the sector. Clarity around the permit regime and decommissioning obligations were welcomed. A critical aspect determining the successful establishment of this sector will be its engagement with Iwi and the potential for partnerships. Recognising that New Zealand is competing globally to establish an offshore renewable energy sector needs to be considered. Our submission also comments on wider aspects, such as the need for the introduction of price stability mechanisms, the need for coordination of the skilled workforce and supporting infrastructure.
The Resource Management (Consenting and other System Changes) Amendment Bill introduced several welcome provisions which will support infrastructure development including:
- A new National Policy Statement for infrastructure and other national directions and environmental standards (electricity and telecommunications).
- A targeted review of the NZ Coastal Policy Statement.
- Provisions to support the Going for Growth Housing Plan.
- Heritage buildings management.
- National Direction on Natural Hazards.
- Climate change adaptation.
INZ supports these provisions, and we are particularly pleased to see the key role that infrastructure plays reflected in the provisions and recognition of the long-term nature of these assets with longer 35-year consent durations for renewable energy and long-lived infrastructure. We support the 20 year extension of certain coastal permits for port companies and allowing them to have Requiring Authority status. The introduction of simplified alternative tests and reduced assessment and information requirements for designations which should help speed up and reduce costs in these processes is also supported.
The Local Government (Water Services) Bill introduced in December is the crucial supporting legislation that outlines the key requirements for water services delivery, economic regulation and the customer protection regime. INZ largely supports this legislation. The sector requires certainty so that it can make the necessary plans and investments in infrastructure and services to improve the provision of freshwater supply, waste water management and flood protection. It is vital that these provisions are workable.
Following last year’s public consultation by the Ministry of Education on Vocational Training and Education structure options, Cabinet decided in December to seek further industry input on the future model for work-based learning. In January the 2025 Work-Based learning reforms – targeted consultation document was released. INZ has engaged with NZ Civil Contractors, Business NZ and Waihanga Ara Rau on the two options proposed and our submission supports their positions and presents a cohesive sector view.
On the job learning and the gaining of recognised qualifications is vital to the ongoing development of the infrastructure workforce and our ability to deliver world class projects.
INZ has supported the need for a wider funding basis for infrastructure in New Zealand and consequently we welcomed the recent MBIE consultation document Enabling KiwiSaver Investment in Private Assets. With KiwiSaver funds now managing in excess of $122 billion, it is timely to review the regulatory constraints and enable investment in private assets, including infrastructure, which can offer long term and stable returns. The establishment of the National Infrastructure Plan, Infrastructure Priority Programme and growing coverage of the pipeline allows greater transparency of the investment opportunities available.
INZ Policy Development
INZ has been working on another tranche of policy positions covering the Public Private Partnership models, including a community partnership model based on our report from last year; Developing and refining the Public Private Partnership model and other infrastructure financing tools in New Zealand. The other policy position topic is around urban development. This is particularly pertinent with the signalled refocusing of Kāinga Ora on social housing provision.
Following on from last year’ INZ Senior Leaders’ Retreat in Waitākere we are considering the next steps in progressing our work on what Aotearoa New Zealand’s vision is and how infrastructure can deliver on this.
This month INZ has been invited to meet with the International Monetary Fund (IMF) as part of their annual mission to New Zealand and the 2025 Article IV review on the economic policies and performance of its member countries. The IMF report back on their findings on the state of the New Zealand economy, including recommendations for policy change, within a couple of months of their visit. They have had a particular interest in infrastructure and looking at New Zealand’s settings in terms of supporting planning, funding and delivery.
Engagement and Events
Earlier this month in Wellington, KPMG kindly hosted INZ’s event on climate resilient infrastructure. Richard Threlfall, KPMG’s Global Head of Infrastructure, Government and Healthcare set the scene with an international perspective on the current situation, which jurisdictions were taking the lead in developing and implementation adaptation frameworks and what the barriers were to gaining more traction to address these issues. He offered three recommendations for New Zealand:
- Draw on intimate experience and knowledge of the land that is held by Māori.
- Take an all hazards and six capitals approach rather than a devolving approach.
- Use a systems thinking and programmatic approach rather than taking a project-by-project approach.
Our CE, Nick Leggett, facilitated a panel discussion with Richard, Vanessa Browne (Interim Group General Manager Transport Services, NZTA) and Sarah Bogle (Director, Sustainable Value, KPMG) which explored some of the case studies where adaptation and pre-planning were paying dividends. There was quite a lot of discussion around decarbonisation activities versus adaptation measures and how it was currently easier to fund the former. Internationally, governments are funding 98% of adaptation work but this is likely to change with the insurance industry and banks looking to de-risk their investments and portfolios. The impetus is therefore moving onto the private sector.
Media
INZ has maintained a strong media presence over the summer months with various media releases, opinion pieces, and interviews.
You can read our various media releases here.
In late November, based on our policy position, we called for a single agency to coordinate climate adaptation and recovery. We also met to discuss this issue and the National Adaptation framework with Simon Watt, Minister for Climate Change earlier this month.
We publicly supported the consideration of private sector ferry replacement options, encouraged the Government to ensure tolling can contribute to the upkeep of new roads, and welcomed the establishment of Invest NZ while also seeking clarification between its role and the widened remit for NIFFCo (previously Crown Infrastructure Partners).
The media has also sought commentary on the RMA reforms, Iwi investment in infrastructure, the Infrastructure Commission’s Invest or Insure report, local government sustainability of funding, and the impact of project delays affecting engineers and the infrastructure workforce.
In early December INZ teamed up with The Post, with support from Chapman Tripp, to run Future Proofing New Zealand: The 2050 Infrastructure Forum which was an in-person and live streamed event. Infrastructure Minister, Hon Chris Bishop, and Parliamentary Under Secretary, Simon Court used the Forum to launch new guidelines for market-led proposals, which allows private sector players to bring unsolicited ideas to Government for consideration. You can read the Minister’s speech here.
Andrea Vance, The Post’s National Affairs Editor then hosted a panel discussion with Luke Malpass (Political and Economics editor), Dita de Boni (Auckland Business Editor), Katherine Rich (Business NZ CEO), and Craig West (Downer’s Country Lead). The panel explored whether politics can really be taken out of infrastructure so that New Zealand can make progress on addressing our infrastructure needs over the next 30 years.
Over the holiday period our CE Nick had three significant columns published. The first (The Post, Waikato Times and The Press) was on why Aotearoa requires a national agency, similar to the Queensland Reconstruction Authority, to coordinate and manage disaster recovery and climate adaptation programmes. The second (The Post) addressed the issue of public asset sales and the need for a mature national conversation about the issues. The third, (NZ Herald – paywalled), argues that the Prime Minister is right to focus on economic growth if we wish to maintain and enhance our highly-valued public services.
Welcoming New Members
Nau mai haere mai, welcome, to our new Infrastructure New Zealand members. We’re so glad to have you on board and look forward to continuing to engage with you.
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