Image: In May’s Budget, $400 million was earmarked for state highway resilience projects to keep routes open during and after severe weather events such as Cyclone Gabrielle.
Civil Contractors New Zealand is applauding the increased Government infrastructure investment in Budget 2026 but says more clarity is needed over regional delivery and says ‘cancel culture’ should be avoided.
Chief Executive Alan Pollard says the association is welcoming clarity in funding channels and the prioritisation of a sustainable pipeline of infrastructure investment. He says this clear and stable funding for infrastructure will provide communities with much-needed assets, and valuable certainty. In particular, a new package of transport resilience projects to protect networks from the impact of severe weather and natural hazards is welcome, and something contractors have long called for, as is funding for rail, hospital and school infrastructure.
CCNZ has long advocated for decision-makers to focus on long-term, sustained infrastructure development supported by safeguards such as solid cost-benefit analysis, which prevents projects from being cancelled.
The industry is in recovery from a significant downturn, and projects need to come to market in a steady flow so companies can scale up workforce capability and capacity for delivery, Alan adds. Projects supported with planning and investment need to be carried through to completion, and more recognition of the true value of infrastructure delivery is needed.
“Our members build the roads and community infrastructure that New Zealanders depend on to improve their quality of life, and to boost the regional and national economy. So, we are pleased to see the Budget following through on infrastructure and providing great opportunities for people that are willing to get hands-on and make a real difference.”
While the proposals are welcome, more clarity is needed over regional delivery, particularly regarding water infrastructure, with water networks excluded from the Government’s ‘Incentives for Growth’ fund, leaving regional water entities to carry the can.
Announcing infrastructure project and maintenance funding is only the first step. CCNZ is encouraged the Crown is making better use of its own balance sheet, ensuring projects are not just discussed and designed, but in the funnel for delivery.
However, Alan says with project budgets often spent on re-assessing, re-designing and re-thinking projects prior to any physical delivery, the country needs to stop paying the cost of the ‘cancel culture’ that all too often stops projects with clear public benefit in their tracks.
A study commissioned by CCNZ, Infrastructure NZ and Water NZ found pausing, cancelling and delaying infrastructure projects cost the country around $11.8 million over the past 25 years. The cost of stopping: Assessing the true cost of delaying, deferring and cancelling infrastructure projects, was written by economist Shamubeel Eaqub and released last month.
Alan says infrastructure construction delivers public benefit but when looking at delaying or cancelling of projects, we need to be careful we aren’t unnecessarily denying our communities access to these benefits. “There is a real cost to this. Stop-start investment damages capability across the entire supply chain.”
The report found inconsistent investment pipelines are driving up costs, eroding productivity and delaying critical public benefits. It is accompanied by a new interactive “Cost of Stopping” tool to help decision-makers assess the full impacts of pausing or cancelling projects, maintenance and renewals, which can be found online at www.costofstopping.nz.
Putting the plan into action