Asset Management State of Play Project 2022/23
Te Waihanga (New Zealand Infrastructure Commission) has enlisted a team of independent consultants to develop a State of Play Report on asset management maturity in New Zealand. You can look forward to accessing this report by mid-2023.
The purpose is to shine a light on the baseline performance of our infrastructure system. Consultants will examine the regulatory frameworks, funding incentives, capabilities and behaviours that drive our infrastructure outcomes. From there, they can recommend priority areas for action.
Why is Te Waihanga developing a State of Play report?
Public works support the lives and wellbeing of tāngata (people). Infrastructure includes the networks that service our homes with power, water and waste; our communications and transport networks; our networks of hospitals and schools; and many other services that support our health and economy.
Yet over the next 30 years, Rautaki Hanganga o Aotearoa (the New Zealand Infrastructure Strategy) points out many challenges:
Responding to changes in our population and its distribution.
Rising construction costs.
However, the biggest single challenge we’ll face is the cost of repairing or replacing worn-out infrastructure. 99% of the infrastructure we need today is already in existence – the decisions of our forebears, their labour and their foresight have built us a strong foundation. It’s our duty to care for this legacy, so future Kiwis can benefit too.
Getting the most value out of these existing assets is the core action to help our future generations. The Strategy estimates that for every $40 spent on new infrastructure, we should be investing $60 in maintenance and renewals of existing assets.
Much of our infrastructure is owned and looked after by public institutions – central government agencies and entities, and local councils. We rely on these institutions to look after public assets and plan for future needs.
Right now, there isn’t enough information available in one place to tell us much about asset management capability or performance, across these institutions and their asset networks. So, we want to learn the state of asset management practice today to help improve all aspects of our system. We want to learn what’s working well and what can be improved.
Te Waihanga is asking leading practitioners and stakeholders in each sector, and representative industry bodies, about their experiences and insights.
The team commissioned by Te Waihanga includes some of New Zealand’s most recognised independent asset management consultants: Brian Smith, Maxine Forde, David Jeffrey, Steve Browning, and Lisa Roberts, with assistance from Steve Verity based in Australia.
Why has Te Waihanga commissioned this project?
Asset Management is the best way to address the deficit identified in Rautaki Hanganga (New Zealand Infrastructure Strategy) because most infrastructure spending is on existing assets.
We want to improve asset management capability and performance, so we have commissioned the State of Play to help us understand what is happening right now.
Once we know where we are, we expect to work with engaged professionals across the sector to design, facilitate, and champion improvements.
What is the scope of the project?
We are seeking to use existing information to understand the state of asset management maturity across all infrastructure sectors and draw cross-sector insights.
We will also draw on analysis and advice from key stakeholders and leading practitioners from each sector.
When will it be finished/when do you expect it to be published?
We expect to publish our results in Q2 2023.
Will this be the end of Te Waihanga’s work in this space?
No, we think more will be needed.
This is just the first step towards improving asset management and making better decisions in line with Rautaki Hanganga o Aotearoa.