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Attracting Infrastructure Investment: Government Releases First Quarterly Action Plan for 2025
In a movement to boost the construction sector, the collation government has released its first quarterly action plan for 2025, focusing on growth, infrastructure, and rebuilding the economy.
Prime Minister Christopher Luxon recently announced that the plan included outlines to reshape planning rules so "people can get stuff done in this country". It also included upgrading the nation’s visa settings and improving regulations for the agriculture sector.
This plan follows a series of initiatives delivered by the government to improve the building and infrastructure sector. Last year, the government unveiled the Fast Track Bill, which saw many construction projects being fast-tracked in its approvals process.
"We have hit the ground running with many of the priorities in our Q1 plan already ticked off, including allowing digital nomads into New Zealand and laying the groundwork for AI to improve public services," said Luxon.
Luxon says that this action plan is created with the goal to “lift our incomes, strengthen our businesses, and create opportunities for all Kiwis,”
International Investment Summit to boost infrastructure possibilities
According to Luxon, the "centrepiece" of the plan is an international investment summit from 13th to 14th March that would bring together 100 of the world's high-profile investors, business leaders, and construction companies.
"Attendance is by invitation only, and interest is so high that the summit is already oversubscribed," Luxon said.
"As well as showcasing upcoming infrastructure opportunities for partnership and investment, the summit will highlight changes to policy, regulation, and legislation that make it easier to do business here, along with other investment opportunities in a range of growth sectors and the Māori economy."
Luxon said New Zealand has performed poorly in attracting foreign direct investment for a number of decades. The investor summit would showcase New Zealand's potential to enable economic growth and address the country’s $ 100 billion infrastructure deficit.
"We need to be able to make the most of all that pension fund wealth that sits out there in the world which is awash with cash. We want to be able to make sure it needs a home, and we want to make sure we can bring some of that money here to New Zealand to benefit everyday Kiwis," he said.
Luxon said that there will be “very strong safeguards in place” to protect the country’s national interest.
A step up for building and infrastructure
According to Minister for Infrastructure Chris Bishop, the country’s infrastructure deficit was equivalent to 80 Transmission Gully motorways. This was three times the size of New Zealand’s entire school property portfolio and eight times the size of the hospital network.
“Our infrastructure deficit is a major drag on productivity and growth, and to fix it, the government has a massive programme of infrastructure investment over the next five years. We can’t buy our way out alone – we need to patch the leak and the leaky bucket using every tool in the toolbox.”
Stalling infrastructure projects have been costing the country. Recently, it was revealed that hundreds of project engineers are losing their jobs and leaving New Zealand because of delays. Engineering New Zealand’s chief executive, Dr Richard Templer, said the pipeline of infrastructure work had dried up, leaving a devastating impact on the sector and its associated professions.
Prime Minister Christopher Luxon notes that the first step to recovery is investment, which is the key goal of the summit.
"We need investment because when we get investment and capital, which leads to higher incomes and more jobs, which is a good thing for Kiwis who win out of the back of this.
“Attendees will be left in no doubt that New Zealand is a country worth investing in.”
Key takeaway
The New Zealand Infrastructure Investment Summit will take place in Auckland from 13-14 March. As we wait for further details to be revealed by the government, builders and construction companies can look forward to possible new projects, more access to labour and materials, and an overall boost. Capitalising on these new possibilities involves future-proofing projects with proper risk management.
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