Infrastructure New Zealand says spending too costly

Infrastructure New Zealand has launched its 2026 election manifesto, arguing that New Zealand is paying too much for infrastructure.

The industry body says political interference, weak planning and inconsistent project delivery are driving poor value from billions of dollars in annual infrastructure spending. It calls for reforms to project selection, procurement, design and long-term planning, along with a more stable pipeline of work for the construction market.

At the centre of the document is the claim that New Zealand's infrastructure problem is not a lack of spending, but the return on that spending. International comparisons, it says, show the country performs poorly on value for money despite the scale of public investment in roads, water, energy, hospitals and other assets.

Nick Leggett, chief executive of Infrastructure New Zealand, said stop-start decision-making and shifting political priorities were adding cost throughout the system.

"We spend billions of dollars every year on infrastructure, yet international comparisons consistently show New Zealand delivers poor value for money. That's costing households, businesses and taxpayers. Projects stop and start, politicians meddle and new governments change direction. Skilled and talented people then leave the market, costs rise and everyone ends up paying more. This isn't inevitable. Countries around the world have shown there is a better way," Leggett said.

The organisation wants a framework that would outlast changes of government. Its manifesto calls for a national economic ambition to guide infrastructure choices, with the aim of linking construction decisions more directly to broader goals such as economic growth, jobs and investment.

Leggett said that should come before decisions on which projects proceed.

"Before deciding what to build, we need agreement on what kind of country we want to become. How do we grow our economy? Where do we want jobs and investment? What industries will underpin our future prosperity? Infrastructure isn't the goal, it's the platform that makes those ambitions possible," he said.

Planning reforms

The policy package sets out several structural changes, including a nationally sequenced infrastructure pipeline, better procurement and project delivery practices, stronger long-term planning and greater weight on design quality. It also argues that a more predictable flow of projects would give companies confidence to invest in workers, machinery and new methods.

That emphasis reflects a long-running concern in the sector that uneven demand pushes up costs. When projects are delayed, cancelled or reordered, firms can struggle to retain specialist staff and maintain capacity. When work returns, competition for labour and equipment can intensify, contributing to higher project prices.

The organisation argues the issue is rooted as much in politics as in engineering or finance. It says project choices are too often shaped by election cycles rather than stable long-term priorities, creating uncertainty for both public agencies and private contractors.

Leggett said the manifesto was designed as a practical set of proposals rather than a sector wish list.

"These aren't simply the wishes of the infrastructure sector. They are ideas grounded in evidence and proven overseas. Political leaders of all stripes want better results, and progress has been made by this Government. The challenge is to provide governments with practical, evidence-based ideas and then hold them accountable for implementation," he said.

Cost pressure

The manifesto links infrastructure efficiency directly to household finances and broader economic performance. It argues that overspending on public works has consequences beyond project budgets because every additional cost must ultimately be borne by taxpayers, consumers or both.

The argument comes as governments across developed economies face pressure to expand and renew infrastructure networks while dealing with tighter budgets, construction inflation and demands for faster delivery. In New Zealand, debate over transport, water and social infrastructure has increasingly focused on whether the country can improve delivery without simply spending more.

Infrastructure New Zealand's membership spans public and private sector organisations involved in transport, energy, water, telecommunications and social infrastructure. The group says its members collectively employ about 150,000 people in infrastructure-related roles, giving it a broad view of how policy settings affect project delivery on the ground.

Leggett said the costs of inefficient delivery affect the wider economy.

"The cost of building infrastructure is ultimately the cost of living. Every unnecessary dollar spent on roads, water, energy or hospitals is a dollar New Zealanders don't get back through lower taxes, better services or stronger economic growth," he said.

The manifesto closes with a call for more discipline in how the country plans and delivers major works, arguing that the necessary skills and capital already exist in the market if policy settings improve.

"New Zealand has the skills, capital and ingenuity to do much better. What we need now is the ambition and discipline to build an infrastructure system that delivers world-class value for New Zealanders, not world-class costs," Leggett said.