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Government's $6b infrastructure announcement welcomed by struggling sector

Monday, 21 July 2025

Infrastructure Minister Chris Bishop explains how the Infrastructure Commission came up with its first list of 17 priority projects.

Infrastructure sector leaders have welcomed the Government’s commitment to $6 billion in infrastructure projects before Christmas, as the industry suffers from a “hiatus” on building.

Prime Minister Christopher Luxon was on Sunday joined by Infrastructure Minister Chris Bishop and Finance Minister Nicola Willis in announcing the $6b in projects, many already in the pipeline, that ranged from a Ōtaki to Levin highway to the earthquake strengthening of Parliament’s library.

Despite the absence of new projects, criticised by Labour as “déjà vu”, the heads of Infrastructure New Zealand and Civil Contractors New Zealand said the promise of beginning these projects before Christmas was sorely needed by the sector.

“It's less of what's new and more of what's actually going to be actively deployed into the market,” said Infrastructure NZ chief executive Nick Leggett.

“The idea that most or all of these projects would actually be properly commenced and got-going before year's end would be a very significant action for the infrastructure industry that's been under significant pressure now for quite a long period of time.”

Infrastructure NZ chief executive Nick Leggett says his organisation will monitor carefully that the projects do actually begin.
Infrastructure NZ chief executive Nick Leggett says his organisation will monitor carefully that the projects do actually begin.

The value of total building work in place was down 10% in the March quarter on the year prior, according to Stats NZ. Leggett said industry data showed two-thirds of firms had reduced their staff numbers, and 45% had lost skills overseas.

“If you're given enough notice the industry can gear up. And obviously, you know, a lot of infrastructure firms will know about these [projects] and be actively preparing and working on them.”

In an April interview Leggett had told The Post that projects in the pipeline would be needed for the sector to survive as it waited for the economy to turn the corner. He said Sunday’s announcement would amount to this -- if the work actually begun.

“We have to monitor that very closely … There’ll be a lot of New Zealanders hanging out for that.”

NZTA board member Warwick Isaacs, Chris Bishop, Transport Minister, and Christchurch mayor Phil Mauger (L-R) pose during a sod turning event for a new pedestrian and cycle overbridge on Brougham St, last week.
NZTA board member Warwick Isaacs, Chris Bishop, Transport Minister, and Christchurch mayor Phil Mauger (L-R) pose during a sod turning event for a new pedestrian and cycle overbridge on Brougham St, last week.

Civil Contractors NZ chief executive Alan Pollard said the industry’s concern was getting through the “hiatus” of work, and when projects arose at pace and scale the pressure would be on to deliver.

“We knew of the projects anyway, so there's no surprises there, and there's some very, really good, high quality projects sitting in there.

“But you know, we've got an industry that goes from Kaitaia to Bluff, and we've got to make sure that we keep all of the industry busy, because we're going to need that whole entire industry when all the other projects start coming to market.”

He said the slowdown in construction had been across local and central government amid uncertainty, prompted in part by reforms like Local Water Done Well.

“It’s all very well, but in the meantime, maintenance has to continue … what we've seen largely is that work’s dried up while they've tried to work through this -- you might call it -- a political conversation.”

Speaking to Labour’s criticism of the Government delivering an “announcement of an announcement”, Pollard said it’s one thing to have an asset but what mattered was shovels in the ground.

This was a clear commitment that $6b of projects would be starting, he said.

The projects beginning construction include: