Wellington Water workers were seen repairing infrastructure at the intersection of Johnson Street and Customhouse Quay in September. New Zealand has been warned that it could face a disaster if more money is not invested into council infrastructure. This could result in people having to deal with significant increases in rates.
Local Government New Zealand and Āpōpō, a leading group of infrastructure management professionals, voiced their concerns about the potential infrastructure costs of hundreds of billions of dollars. Āpōpō president, Gary Porteous, stressed the need for a long-term plan to invest in infrastructure assets to avoid a potential tragedy.
Porteous used Wellington as an example, highlighting the numerous issues with the city’s pipe network over the past two years. He also mentioned the poor condition of the roads, which are currently being repaired.
Local Government New Zealand president, Sam Broughton, stated that the country was facing enormous costs. He revealed that over $100 billion was needed just for water infrastructure, according to government figures. Additional costs for transport, ports, and airport strategies would require hundreds of billions more. Broughton suggested that New Zealanders would need to contribute significantly to these costs.
Broughton praised councils like Hamilton, Hutt City, and Christchurch, which are considering substantial rate increases, calling it a mature approach to the problem. He argued that neglecting failing infrastructure would only pass the problem onto future generations.
Broughton also expressed a desire to discuss potential new sources of funding with the government. He suggested local tax revenue, petrol taxes, congestion charging, or tourism levies as possible solutions. He also proposed that the government should contribute towards rates on their land and assets within districts.
Broughton also suggested a four-year term for councils to increase productivity. However, Local Government Minister Simeon Brown said he was not currently considering a change to the council term. Instead, Brown is focusing on ensuring councils can access long-term funding and financing to deliver infrastructure and efficient local services.
