N@N

Government takes new approach to pay for infrastructure

The article from the National Business Review discusses the New Zealand government's new strategy for funding infrastructure, particularly focusing on the Infrastructure Funding and Financing Act (IFFA). This approach allows for the creation of Special Purpose Vehicles (SPVs) to finance infrastructure projects through mechanisms like targeted rates or levies on properties that benefit from the new infrastructure. The government's initiative aims to address the significant infrastructure deficit by attracting private investment without adding to public debt. Key points include the establishment of the Crown Infrastructure Partners (CIP) to oversee these projects, the use of IFFA to fund projects like the $1.3 billion Warkworth to Wellsford road upgrade, and the potential for this model to be applied to other sectors like housing and water infrastructure. The approach is seen as innovative but also raises concerns about the long-term financial implications for ratepayers and the equitable distribution of costs and benefits.

Read the Full The National Business Review Article at:
[ https://www.nbr.co.nz/politics/the-governments-new-approach-to-paying-for-infrastructure/ ]