New Zealand commits $71bn to help fix infrastructure deficit

New Zealand recently held its Master Builders Association New Zealand Constructive Forum 2023 in Auckland to discuss its growing infrastructure deficit.

In the country’s 2023 Budget, the government committed a further NZD$71 billion (US$42 billion) over the next five years in a bid to help fix the infrastructure deficit.

In New Zealand, property has historically been expensive and scarce (Photo: AdobeStock)

At the forum, New Zealand’s housing minister Dr Megan Woods highlighted that building new housing infrastructure was vital for the country.

Woods said, “New Zealand simply does not have enough housing for it to be affordable and available to everyone who needs one. It is why we are investing billions in infrastructure like pipes and roads to get land ‘build ready’ to enable new housing [...] The future of the construction sector is critical to the success of New Zealand.”

In New Zealand, property has historically been expensive and scarce. However, a combination of even higher prices, poorly constructed housing, and the negative impact of interest rate hikes has elevated the housing crisis to a top priority.

Woods went on to mention that Te Waihanga - New Zealand Infrastructure Commission - is working hard to enhance the National Infrastructure Pipeline. She said that this is an essential tool that aims to provide the market with the information and confidence needed to plan and deliver work.

“For too long Governments have kicked the can down the road when it comes to investing in resilient and essential infrastructure,” highlighted Woods.

Last year, Treasury estimated the cost of addressing the current deficit - and stopping it from worsening - at NZD$210 billion (US$124 billion) over the next thirty years.