Government's $6b infrastructure announcement welcomed by struggling sector
Monday, 21 July 2025
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.
They include Stage 1 of a $180 million infrastructure upgrade for Rolleston, with the NZ Transport Agency (NZTA) announcing Monday it was seeking a contractor to build a new roundabout at the intersection of Stage Highway 1, Dunns Crossing Rd and Walkers Rd - aimed at easing congestion, streamlining freight movement, and improving safety for traffic entering and exiting Rolleston and its industrial zone from the south.
Construction is set to begin in October and finish in December 2026.
NZTA regional manager Sean Walsh said the work was vital for Selwyn.
“Rolleston is at the heart of the Selwyn District, which has been the fastest-growing district in the country, which makes these transport improvements all the more important.”
In addition to the roundabout, the Stage 1 contract includes realignment and widening SH1, Dunns Crossing Rd and Walkers Rd, improving efficiency at the Weedons interchange, and constructing a new rail crossing on Walkers Rd, replacing the current one.
Walsh acknowledged the work would cause some disruption, “but of course we will be doing everything we can to minimise that”.
The full State Highway 1 Rolleston Access Improvements project is estimated to cost $180m to $200m and is expected to be completed by late 2028. It’s one of several projects NZTA has under way or in planning along the SH1 corridor between Timaru and Lyttelton, including a second Ashburton bridge and the upgrade of SH76/Brougham St.
Stage 2 will include a flyover to connect Rolleston township with the industrial area, safety upgrades at several high-risk intersections, removing two sets of traffic lights on SH1, lane extensions, and a major upgrade to the rail crossing at Hoskyns Rd. That stage is expected to begin in October 2026.
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 major projects, that ranged from a Ōtaki to Levin highway to the earthquake strengthening of Parliament’s library, 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.”
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 said 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.”
Other South Island projects beginning construction include a $150m revamp of Brougham St in Christchurch, the first stage of which started last week focusing on a new pedestrian and cycle bridge at Collins St and Simeon St, expected to be completed in about two years, with Fulton Hogan building it.
They include the Dunedin Hospital sterile services unit, and school property projects across the country including roll growth classrooms, upgrades and redevelopments and learning support satellite classrooms, administration blocks and gymnasiums.
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.
* Rolleston locals will have a chance to learn more about the project at upcoming drop-in sessions:
Saturday, July 26: 10.30am to 12.30pm: Selwyn Sports Centre, 70 Broadlands Drive.
Thursday, July 31: 2.30pm to 5.30pm: Te Ara Ātea, 56 Tennyson St.
Monday, August 4 and Tuesday, August 5: 2.30pm to 3.30pm: West Rolleston School, 327 Dunns Crossing Rd.