start projects cost $11.8b since 2000
Economist Shamubeel Eaqub argues that New Zealand's infrastructure sector suffers from a $11.8 billion waste caused by inconsistent political decision-making. He suggests that a more stable, long-term approach to project planning is necessary to improve productivity and prevent the loss of skilled labor.
Why it matters
The analysis highlights the economic consequences of political 'stop-start' cycles on national infrastructure development and workforce retention.
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Economist Shamubeel Eaqub says we must be clever and less wasteful. Photo / Alyse Wright
We have an infrastructure deficit, we don’t maintain what we have, we don’t build what we need, and we waste precious money and resources with silly political stop-start.
New Zealand has an infrastructure deficit of about $210 billion. Because we need to keep maintaining and renewing what we have, investing out of this would cost nearly $1 trillion. We don’t have that kind of money, so we must be clever and less wasteful.
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