Winston Peters’ $100 billion infrastructure fund is the right idea. Politics-as-usual is the problem
-Timothy Wech, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau New Zealand’s infrastructure woes are a constant political pain point. From ageing water systems to congested roads and assets increasingly threatened by climate change, the country faces mammoth upgrading and future-proofing challenges. Enter Winston Peters and NZ First with a surprise proposal for a NZ$100 billion “Future Fund” dedicated to infrastructure investment. Sounds promising – but the proposal’s success will hinge on getting the details right and, more importantly, getting the politics out of infrastructure planning. Unveiled at NZ First’s annual convention last weekend, the idea bears striking similarities to challenges previously highlighted by urban planning and infrastructure experts. The country currently has an estimated infrastructure deficit of over $100 billion which aligns eerily with the scale of Peters’ proposed fund. The Future Fund proposal sounds impressive on paper. Ring-fenced from political meddling and focused on national interests, it’s billed as a silver bullet for infrastructure funding problems. Peters claims he’s taken a page from the Singapore and Ireland playbooks – potentially breaking New Zealand’s habit of treating big infrastructure projects like they’re part of a three-year plan. Long-term savings As always, the devil is in the details – and the Future Fund is light on them. How exactly would this fund be financed ? How would projects be selected and prioritised? And, crucially, how would it be insulated from the political interference it claims to avoid? The potential benefits are significant.Research suggests that a stable, long-term approach to infrastructure investment and better utilisation of existing assets could unlock substantial savings – potentially up to 40% of total project costs. A well-managed $100 billion fund could provide the certainty and consistency needed to achieve these efficiencies. The scale of the fund also aligns with the urgent need for […]