Infrastructure Investment Summit fuels optimism and creates opportunities
Investors managing funds worth more than $6 trillion came together in Auckland for the Government’s two-day Infrastructure Investment Summit, where they learned that New Zealand is open for business, we’re ripe for growth, and our best days lie ahead of us. ACE Chief Executive Helen Davidson, Frequency Chair Graham Darlow and Height Chief Executive Warner Cowin share their insights from the event.
Prime Minister Christopher Luxon speaking at the New Zealand Infrastructure Investment Summit.
There was definitely optimism in the air – Helen Davidson, ACE
“At times it’s been hard to see what the Government’s overall vision is for how infrastructure will operate as a high-functioning and non-politicised sector. But the summit brought it all together, delivering a clear and articulate strategy for infrastructure planning and delivery in Aotearoa. It was beautifully packaged to sell to investors and came across as very polished and professional.
“I was impressed at how well the ministers knew their portfolios and the passion they showed for each of their areas. As a group, they appeared to understand the interconnectedness between each of their portfolios and a successful infrastructure sector. The PM and the ministers stayed for the entire event, taking time to talk with everyone in the room and listen to different perspectives.
“The shift towards a more bipartisan approach was evident – several senior Labour Party members were at the summit, and it was good to hear from their finance spokesperson Barbara Edmonds that if Labour were back in power, they would support projects already contracted and underway. But she clarified they do not support private ownership or operation of core public assets like hospitals, schools or prisons – which can’t be ignored as we think about future investment in New Zealand.
“The infrastructure showcases delivered by the ministers for health, education, justice, courts, corrections and transport laid out the pipeline of work in those sectors. There wasn’t anything new in here that would surprise ACE members, but some timelines were laid out. You can find out more detail in the ministers’ presentations online.
“There was definitely optimism in the air and business leaders seemed to be feeling more positive about the medium to long-term. But many of our members don’t work on these larger scale central government projects so there’s still concern with the delivery partners I talked to about how we support local government to build its momentum and strategies for longer-term investment that goes beyond election cycles.”
PPPs can work if we change the model – Graham Darlow, Frequency
“It was a really well-organised summit. The most impressive thing was having the Prime Minister, the ministers and leaders of the opposition there the whole time, which gave us a huge amount of credibility and demonstrated that this coalition Government means business.
“I was also impressed with the delegates that were there, particularly José Manuel Entrecanales from Acciona – he's one of the most wealthy and influential construction firm leaders in the world.
“I'm worried that the delivery model of choice is a PPP contract – with the majority of these previously in New Zealand, the participants lost significant amounts of money. If they’re going to roll out the same old PPP contract as before, then investors, contractors and designers won’t be interested or there will be another failure. But the PPP contract for the Wiri men’s prison was done extremely well so if they listen to the industry, and they're prepared to change the model so it’s fair to all parties, then there’s no reason it can’t be successful.
“Overall the content at the summit was good, and I certainly learned a lot. I think I know quite a bit about the New Zealand infrastructure industry, but I learned quite a bit as well. It was an honour to be invited and I was very happy to be there.”
Investors learned the importance of iwi partnerships – Warner Cowin, Height
"The surprising success of the summit was the cross-party commitment to work together to provide consistency in the infrastructure pipeline, irrespective of who is in power. In my 25 years of experience, this was the first time I had seen cross-party support and a message of partnering with iwi for infrastructure investment with local and foreign businesses.
“Sadly, with decades of changes in government, we have had a culture of chopping and changing commitments and strategies around infrastructure investment and priorities. So, any cross-party long-term commitment is critical to attracting the needed foreign infrastructure investment. Put bluntly, politicising infrastructure programmes and investment has not enhanced New Zealand's economic prosperity and social success. To see this, we only have to look at assets like the ferries, health and transport system.
“Another pleasing aspect of the summit was the strong representation of iwi leadership. The Prime Minister and ministers were all at pains in their speeches to highlight the importance of iwi partnerships in investing, delivering and managing our core infrastructure. If anything, iwi are the only long-term constant in the landscape of politics and government changes, and our foreign partners would be wise to invest in these partnerships.
“The summit was a positive step towards rebuilding confidence with our foreign partners and the local sector. It also sent a clear message to our foreign partners that New Zealand is a safe place to do business.
“There is a lot of work to be done, but I am feeling optimistic on behalf of New Zealand.”
More information