- Hon Chris Bishop
The Government has launched a new work programme to improve public infrastructure asset management, Infrastructure Minister Chris Bishop says.
"We need to be honest about the fact that we've done asset management poorly in the public sector for decades. We rank fourth to last in the OECD for asset management, with a number of government agencies reporting non-compliance with Cabinet expectations relating to depreciation funding, asset management plans and asset registers. The public sector performs poorly compared with the private sector.
"Poor asset management results in expensive renewals and emergency works, poor infrastructure quality, asset failures, and less funding for new services. The Infrastructure Commission estimates that for every $40 spent on new infrastructure, we should be investing $60 in maintenance and renewals.
"In practice, years of poor asset management means leaky hospitals and schools, mould in police stations and courthouses, service outages on commuter rail, and poor accommodation for Defence Force personnel and their families. It's not good enough. New Zealanders deserve better.
"To ensure we get the most out of every dollar we invest, Cabinet has agreed to an all-of-Government work programme that will improve central government asset management and performance, with a focus on infrastructure.
"The objective of the programme is to strengthen the infrastructure system to lift asset performance and service outcomes for New Zealanders, ensure there is adequate investment in planned asset maintenance and renewal activities, ensure new investment decisions can be made within the overall context of agencies' asset management plans, and improve accountability, capability, and oversight of our infrastructure.
The work programme will be broken up into two phases:
Phase One (short term improvements), including:
- Continued work to update to the Better Business Case (BBC) and Gateway frameworks.
- Self-assessment of New Zealand policy and institutional settings against the IMF Public Investment Management Assessment framework.
- Improved asset management and long-term planning performance indicators and guidance - providing more detailed guidance on expected asset management and long-term planning practice, including which indicators will provide Ministers, stakeholders and the public with confidence that agencies are delivering value for money.
- Supporting the growth of a "Community of Practice" to build capability - the Infrastructure Commission is partnering with Āpōpō to build a 'community of practice' through collaborative events for public service asset management professionals.
- A possible national Underground Asset Register - officials are providing advice on opportunities to scale the Wellington City Council underground asset register for use across New Zealand.
Phase Two (beyond December 2025):
Phase two will consider more fundamental changes to system settings to ensure that asset management outcomes improve, and will include:
- The development of the 30-year National Infrastructure Plan (NIP) to ensure greater stability of infrastructure priorities that help New Zealand plan, fund and deliver important infrastructure. As part of their work developing this plan, the Infrastructure Commission will recommend system changes to strengthen investment and asset management outcomes.
- Investigating legislative requirements for the development of ten-year investment plans by capital intensive agencies and performance reporting requirements.
- A refresh of the Cabinet Office circular CO (23) 9, to give effect to broader changes across the IMS and restate Cabinet's expectations on investment planning, assurance, and asset management practices. The refresh of the Circular will be undertaken in parallel with the NIP, to allow the refreshed Circular to take into account the NIP recommendations.
"The draft 30-year National Infrastructure Plan is expected to be published in June this year and it will then go out for public consultation.
"I intend to consider proposed recommendations from the Infrastructure Commission as part of the Government's response to the Plan in 2026.
"Making improvements to our investment management system will ensure New Zealanders' infrastructure investments are well-managed. These improvements will enable greater economic growth and deliver efficient infrastructure which will have long-term impacts on the cost-of-living," Mr Bishop says.
