The Government is lifting capital investment to the highest level in more than 20 years as it takes the next step to future-proof New Zealand.
Finance Minister Grant Robertson has announced $12 billion of new investment, with $8 billion for specific capital projects and $4 billion to be added to the multi-year capital allowance.
The $8 billion includes:
- $6.8 billion for new transport projects, with a significant portion for roads and rail.
- $400 million one-off increase to schools’ capital funding
- $300 million for regional investment opportunities
- $300 million for District Health Board asset renewal
- $200 million for public estate decarbonisation
The specific projects will be announced in early 2020.
“The new investment is forecast to increase the size of the economy by a further $10 billion over five years, with further positive impacts on GDP beyond that period,” Grant Robertson says.
With debt low and borrowing costs at record lows, the conditions are right for the Government to invest to future-proof New Zealand.
“We inherited neglected infrastructure when we took office, including run down hospitals, roads that had been announced but not paid for, overcrowded classrooms and a state housing shortage.
“This package shows New Zealanders that this Government is serious about tackling the infrastructure deficit we were left with.
“It will provide further support to boost the New Zealand economy in the face of slowing international growth and stronger global headwinds. It will also give certainty to the construction industry about upcoming infrastructure projects and will create more job opportunities for Kiwis,” Grant Robertson says.
The extra $4 billion to be added to the multi-year capital allowance takes it to $8.4 billion, with allocation of that money to be announced over coming Budgets.