Proposed changes to the Public Works Act 1981, to be introduced in the Public Works Amendment Bill around the middle of 2025, are aimed at “removing barriers to make it faster and more affordable to build the homes Kiwis need, creating jobs through new projects and providing infrastructure to support better public services[1]”.
While such an outcome is commendable, caution must be sounded that it is insufficient to clear barriers to build new infrastructure unless the whole of life maintenance, renewal and eventual replacement of that infrastructure is considered and provided for up front.
Te Waihanga research indicates that 60 cents of every dollar spent on infrastructure in New Zealand needs to be invested in renewals and replacements[2] in order to maintain the service level provided by existing infrastructure. Given that 99% of the infrastructure we require to support our quality of life in 30 years time[3] already exists, the allure of building new, even if made easier through changes to the Public Works Act, needs to play second fiddle to maintaining what we have already.
Professionals experienced in infrastructure asset management, who are qualified in and familiar with global standards of best practice that are contextualised to local conditions, are best placed to ensure that initial infrastructure investments realise their full value for the lifespan of the asset. Infrastructure business cases rely on long return on investment periods to justify the large upfront cost of building new or replacing existing – on the assumption that the community’s needs will consistently be met by that infrastructure for its full design lifespan.
Experience of foreign aid provided in some Pacific nations to build new infrastructure highlight the dangers of not adequately considering how new assets will be managed over their lifetime. A colloquially referred to Build Neglect Replace (BNR) default strategy arising from inadequate provision for lifelong asset management is simply unaffordable and extremely wasteful. If asset management disciplines are not applied throughout the expected lifespan of an infrastructure asset, previous generation’s (or donor’s) investments made on the assumption that the community will therefore thrive ‘for all time’, can fall substantially short of expectations and require new significant unplanned investment in order to restore the expected quality of life.
Investing in infrastructure asset management capability needs to be prioritised alongside the provision of the infrastructure itself. Training and supporting skilled professionals in managing existing and new infrastructure so that it consistently delivers services to the standard expected and required, often over generational time periods, is required. Overlooking this critical function will undermine the original investment and disappoint the future generations who are intended to rely on the efforts of today providing a better tomorrow.
Murray Pugh
Āpōpō CE
[1] Hon Chris Penk Going for Growth: Public Works Act overhaul | Beehive.govt.nz
[2] Te Waihanga – Build or maintain? Feb 2024 pg 5.
[3] Te Waihanga – Taking care of tomorrow today Asset Management State of Play Nov 2024 pg 6.
