BECOME A MEMBER
Connecting New Zealand

Water investment must not be drip-fed

08 Jul 2020


The government’s latest announcement around water infrastructure investment provides welcome support for New Zealand’s ailing water networks. But to support COVID-recovery, fix systemic problems and provide employment, work should start quickly rather than being drip-fed.

Civil Contractors New Zealand Chief Executive Peter Silcock said the Prime Minister’s Havelock North announcement of NZD $761m to invest in water infrastructure was well overdue as the country’s aging water networks were failing due to overload and decades of underinvestment.

“This investment is a great start, but the problem is huge. Three waters services are expected to need around NZD $17 billion over the next decade, with much of the work centring around replacement of aging assets and upgrading to meet new freshwater and wastewater standards.”

He said water systems were essential for the health of the country and the environment, but there was a tendency for local authorities to work based on system failure rather than planned maintenance, with contractors often hired to install ‘patches on top of patches’.

“Now that central government has extended this support, local authorities must step up. It’s their responsibility. What we don’t want to see is local authorities using the funding as an excuse to reduce their own portion of funding and carry on with the same old approach. We must do better.”

Systemic change driven by local authorities was needed. The linking of funding to a reform package recognising the need for aggregation of local authorities as water asset owners was welcome, reducing duplication and complication, he said.

“It’s very frustrating for contractors to have to deal with multiple water authorities, so the challenge for central government in dealing with them all at once is huge. Some of the problems we face result from doing the same thing 70 different ways. Now the incentive is there, we need to fix the issues.”

Mr Silcock said it was “disappointing” no timeframes had been announced for this work, given the urgent need to upgrade systems and retain skilled workers post-COVID.

“We’re in a very strange situation. We have more than 100 ‘shovel-ready’ projects in the pipeline the government is not willing to announce just yet. But we all know work takes a long time to reach the market, and contractors can’t hold their workforce indefinitely waiting for projects to come along.”

A lack of tenders coming to market had contractors worried, with a sizable gap in projects and prospective job losses across the construction and engineering sectors, largely due to reduced spending from private clients and local government.

He said structural change would take time, but timing of the work coming to market was critical. Coupled with a lift in the council debt cap and streamlined consents, he hoped the announcement would give local government confidence to bring existing projects to market, keeping people employed and delivering on the country’s need for clean water and effective wastewater systems.

 

 

RELATED


Principal Business Partner
Core Associates
Major Associates
Blick
BNZ Partners
Enviro NZ Services Ltd
Milwaukee Tool New Zealand
Terra Cat
Southeys Group Auckland
Nulca NZ
Teletrac Navman
ERoad Ltd
Mimico NZ Ltd
Wirtgen NZ Ltd
AWF
Brolube New Zealand
Global Survey - Auckland
Hydraulink Fluid Connecters Ltd
TDX Ltd
The Drug Detection Agency
Geosynthetic Partners International Ltd
Parallaxx
Manage Company
Assignar
Connexis | Te Pukenga
Solo
Marley NZ Ltd
Franklin Smith Group
First Gas
Kobelco New Zealand
CSP Div of Fletcher Steel
Doug the Digger
Synergy Positioning Systems
MATES In Construction
Coninnova Limited
Porter Group Limited
Greenlight Insurance Brokers
Northpine Ltd
Portacom New Zealand Limited
Hynds Pipe Systems
TVH NEW ZEALAND
Waka Kotahi NZ Transport Agency
Geofabrics New Zealand Ltd
SAMI Bitumen Technologies New Zealand Ltd
TR Group
Humes Pipeline Systems
Turners Group Ltd: Head Office/Auckland
Brandt Equipment
Rettenmaier New Zealand Ltd
n3
Capital Consulting International NZ Limited
Reliance Reinforcing Limited
Commercial Hire NZ Ltd
RobLawMax Recruitment
Vertu Equipment Limited
Infrastructure Sustainability Council
Youngman Richardson
Komatsu New Zealand Ltd
Vertical Horizonz NZ Ltd
SITECH NZ
Mico New Zealand Ltd
UDC Finance
Assetinsure
A B Equipment Ltd
H.J. Asmuss & Co. Ltd
Absolute Immigration NZ
beforeUdig
John Deere Limited
CivilShare
Advice Financial
XCMG New Zealand
Liebherr New Zealand
Power Farming New Zealand Ltd
Infrastructure New Zealand
TRIG Instruments
Winstone Aggregates
Sheet Pile Ltd
TLC Insurance Limited
Holcim New Zealand Ltd
Firth Certified Concrete
TotalEnergies NZ Ltd
Steelgal NZ Ltd
Terra Infrastructure Pty Ltd
ENZED
AECOM New Zealand Limited

Login





Forgot password?
Create an Account