Summarised by Centrist

Winston Peters has proposed a $100b “Future Fund” to tackle New Zealand’s infrastructure crisis, aiming to fund much-needed improvements in water, transport, and climate resilience. 

While the idea seems promising, as urban planning expert Timothy Welch points out, “the proposal’s success will hinge on getting the details right and, more importantly, getting the politics out of infrastructure planning.”

Peters claims to have drawn inspiration from Singapore and Ireland, with a focus on long-term investments. However, some questions remain unanswered: How will the fund be financed? How will projects be chosen? And, how will it be protected from political interference? 

New Zealand’s infrastructure deficit sits at over $100b, aligning closely with Peters’ fund proposal, but past political meddling has derailed previous projects.

Welch points to the need for stability and consistency stating that “one government’s ‘vital infrastructure’ becomes the next’s ‘wasteful spending’.” He also notes that a more “stable, long-term approach” could reduce project costs by up to 40%, but Peters will need to convince his coalition partners, especially National, to support the idea of borrowing for such a large-scale fund.

Without a proper long-term strategy, New Zealand risks continuing the “boom-bust infrastructure cycle.” 

According to supporters like Welch, a 30-year plan supported by all political parties, similar to the UK’s National Infrastructure Assessment, could be a solution to ensure the fund isn’t just another political football.

Read more over at The Conversation

Image: Cam Slater