InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
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InfraRead
Te Kawepūrongo Waihanga
ISSUE 2.
JULY 2021
InfraRead
Te Kawepūrongo Waihanga
Kia ora
Welcome to the July edition of InfraRead.
As I take over the leadership of Infrastructure New Zealand, it is worth noting
that change can sometimes be unsettling. Nonetheless, our work programme and
events calendar remain unchanged, and I’m working very closely with our Board to
deliver these.
We have several exciting events scheduled in the coming months and work is well
underway to deliver another successful Building Nations event this November.
Just last week Infrastructure New Zealand and Chapman Tripp co-hosted
Hon Nanaia Mahuta at an Auckland event on Three Waters.
July has been yet another busy month in the policy world. The government is
pushing ahead with a heavy workload and is consulting on several proposals
simultaneously. One of them is the reforms to the resource management system,
and you will find there is a dedicated section on that in this edition.
Please feel free to forward this newsletter to others in your organisation. If you
have colleagues who would like to be added to the InfraRead mailing list, they can
subscribe by emailing office@infrastructure.org.nz.
I encourage you to reach out if you have any comments or feedback, or if there
are specific matters you would like to discuss. I can be contacted at
claire.edmondson@infrastructure.org.nz.
Ngā mihi
Claire Edmondson
General Manager
ISSUE 2. JULY 2021 2
CONTENTS
Peddling influence trumps urgent power needs 4
Our energy conundrum 7
NEWS
GPS on Housing and Urban Development 11
Beyond the Resource Management Act 1991 12
Auckland Light Rail 14
An emissions reduction plan 15
Local government wraps up long-term budgets 16
Three Waters Reform Programme 17
Other note-worthy government announcements 18
UPCOMING EVENTS 19
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 3
Peddling influence trumps urgent power needs By Claire Edmondson, General Manager InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 4
I’m all for modeshift. I bought my electric bike three years ago and recently
invested in an electric scooter. I love my electric bike and am a confident
cyclist – I zoom around Auckland’s city centre, take my e-bike with me
over to Waiheke Island, and it even accompanies me on the ferry to the
Coromandel.
However, I still cannot fathom The Benefit Cost Ratio (BCR) is
why the government thinks estimated at 0.4-0.6 – yes, for
spending $785 million on a every dollar spent, there could
walking and cycle lane across well be a loss of up to 60 cents.
the Waitemata Harbour is a good
investment, especially at this I cannot help but question this
time when the government has project’s priority at a time when:
either downsized or culled some • there is a significant
other committed projects. infrastructure deficit in areas
such as the health sector
Last month, Transport Minister
• we have nurses striking over
Hon Michael Wood announced
their pay during the COVID-19
the Northern Pathway Westhaven
pandemic
to Akoranga project as a
dedicated walking and cycling • we have over 100,000 New
link between Central Auckland Zealanders stating they are
and the North Shore. The homeless
preferred option is a stand-alone • over 100,000 people have
bridge alongside the existing presented a petition to
Harbour Bridge. Parliament asking for more
funding so New Zealanders
Perhaps I’m experiencing a can get access to modern
different reality in Auckland and medicine from Pharmac,
New Zealand than whoever came because the $200 million extra
up with this idea, but I really funding allocated over four
cannot understand the logic years in this year’s National
behind this project. Budget is insufficient.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 5Why not just get on with a Minister Wood believes the BCR multimodal harbour crossing would improve once a more instead? detailed re-assessment was done. The government is rightly To me, that suggests fudging copping flak on the issue, with numbers to artificially make the National Party stating the a project appear beneficial. whole fiasco – including the If the numbers do improve earlier clip-on version – has substantially, it would be useful already cost $37 million, with to review the methodology and $20 million spent on consultants apply it against projects that alone over the past two financial have not progressed due to an years. unfavourable BCR. The ACT Party’s David Seymour All this announcement tells me is has stated the announcement that if you have the means and breaks the government’s original create noise, this government 2018 statement that it would fully will give you what you want when fund the cycle crossing only if the others without a voice are not business case for it stacked up. getting what they need! InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 6
Our energy conundrum By Martina Moroney, Researcher InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 7
A confluence of below average rainfall, low hydro lake storage levels and less
wind has resulted in New Zealand using more coal for electricity generation
in the quarter to March 2021 than in any other quarter since 2012.
Hydro generation was down by This forced reliance on coal
9%, and gas faced supply issues, demonstrates the difficult and
experiencing an 18% decrease expensive battle the government
over the past year, resulting faces in closing the gap between
in a turn to coal as a back-up our current capacity and its goal
generation source. of 100% renewable energy by
2035.
Compared to the quarter
immediately preceding it, the Addressing the issue will
amount of coal burned for depend on increasing hydro
electricity production more energy storage capacity and
than doubled, to nearly 430,000 the productive resilience of
tonnes. renewable sources.
At Huntly, our least renewable The Ministry of Business,
energy production source, these Innovation and Employment’s
challenges have meant that their NZ Battery project seeks to
third Rankine unit was brought address the dry-year problem
online during this period of by funding the establishment of
increased coal-demand. And further hydro-storage to the tune
the share of renewable energy of $30 million for the feasibility
decreased to 79% from 82% study alone, and billions more if
compared to the same period last construction is undertaken.
year.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 8Against a background of In recognition of the size of the
limited capital available for challenge presented by work
climate change adaptation to ensure the consistency of
and mitigation, the technically renewable energy provision, the
difficult task of building Climate Change Commission
storage capacity to enable the itself discusses a more
achievement of those last few realistic assessment of the
percentage points of renewable 100% decarbonisation goal
energy generation is going to and recommends that the
be equally as economically government avoid prioritising
challenging as it is technically a huge pay out for a few
difficult. percentage points, and instead
focus on decarbonising other
Further, as we transition away sectors and address other
from fossil fuels and increasingly challenges in the electricity
seek to rely on renewable energy generation space.
sources under the government’s
decarbonisation agenda, the
issue of limited supply is only
likely to worsen and compound
the existing challenges.
What is now a dry-year problem,
is likely to become a dry, cloudy,
and/or calm issue as we also
rely on wind and solar, which will
in turn be worsened by rising
electricity demand.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 9NEWS InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 10
Consultation for a
government policy
statement on housing
and urban development
The Ministry of Housing and
Urban Development is consulting
on a discussion document that The first GPS-HUD will be
will inform the Government Policy published by 1 October 2021 and
Statement on Housing and Urban reviewed at least every three years.
Development (GPS-HUD).
The consultation and publication
The GPS-HUD is intended to timeline appears overly ambitious
provide a shared vision and and rushed, and the government
direction across housing and is consulting on a discussion
urban development, to guide and document as opposed to a draft
inform the actions of all those who government policy statement.
contribute. It will seek to set out
how the government and other Submissions close on 30 July.
parts of the housing and urban
development system will work Infrastructure New Zealand will
together to realise this vision. make a submission.
The GPS-HUD will seek to shape
future:
• government policy
• investment
• programmes of work.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 11Beyond the Resource Management Act 1991
– from one to three
The government released an • the Bill’s purpose and related
exposure draft of the Natural and provisions (Part 2)
Built Environments Bill (the Bill) • a national planning framework
on 29 June. The resulting Natural (Part 3)
and Built Environments Act will be
one of three Acts to replace the • natural and built environments
Resource Management Act 1991 plans (Part 4).
(the RMA), the others being the
Strategic Planning Act and the The exposure draft marks another
Climate Change Adaptation Act. step in replacing the RMA, though
questions are being raised over
The Bill’s proposed purpose how much of an improvement the
is broader than the RMA’s; it Bill really is over the RMA, including
emphasises protecting and concerns around further cost
enhancing the natural environment pressures on councils and erosion
(instead of just managing it) and of local democracy.
considers future generations’ well-
being. Timelines
The Bill’s exposure draft is a
The exposure draft covers land-use partial one, and the Environment
and environmental regulation and Committee will consider it between
includes draft clauses on: 29 June and 18 October.
The closing date for public
submissions is 4 August.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 12The select committee will report and having particular regard to
its findings to Parliament. Changes cumulative effects; one of the
will be made before the entire Bill is criticisms of the RMA has been its
formally introduced to Parliament inability to account for cumulative
in the first quarter of 2022, followed effects adequately. Also, this list is
by the usual select committee more like a shopping list than a key
process. list of principles. MFE need to cut
these down to a core few.
The government is looking to pass
the Bill and the Spatial Planning Bill Natural and built environments
into law before the second half of plans
2023. A further key proposal in the
exposure draft is having planning
We ran a survey from 7-18 July committees in each region
seeking member input – thank you to prepare natural and built
to those who completed the survey. environments plans. The proposal
We will make a submission on the follows the Resource Management
exposure draft. Review Panel’s proposal to develop
one natural and built environments
A national planning framework plan per region.
The Bill proposes a national
planning framework which would The government has indicated
have the effect of regulations, it is still considering the best
i.e. the government will be able approach to plan preparation and
to prepare, update or review the decision-making. It will look to
framework without going through the feedback received from the
the Parliamentary process. While select committee inquiry. Natural
it could serve as a key catalyst to and built environments plans will
making the resource management consolidate over 100 RMA policy
system agile, responsive and statements and regional and
enabling the government to district plans into about 14 plans,
respond quickly, the framework which the government considers
could look very different depending vital to simplifying and improving
on the government of the day. the integration of the system.
The exposure draft also puts A concern of the reforms is that
forward a list of indicative there will now be three Acts to
principles under Part 2, such as navigate and interpret and that
taking a precautionary approach this may lead to further delays to
planning and developing.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 13Auckland Light Rail
The government announced earlier
this year it was making a “fresh
start” on the Auckland Light Rail
project.
Transport Minister Hon Michael
Wood said this was because urban development, economic
the previous process had not and environmental outcomes for
involved Aucklanders enough. everyone.
The government subsequently
set up the Auckland Light Rail The Auckland Light Rail Group
Group to develop a business case will include the feedback into its
and make recommendations. The business case and it expects to
group consists of Waka Kotahi NZ provide its recommendations to
Transport Agency, the Ministry the government in September. We
of Transport, Auckland Council, encourage you to visit the light rail
Auckland Transport, and Kāinga website and complete the online
Ora. feedback form.
Auckland’s light rail will run from The government will make a
the city centre to Māngere and is decision about the route, mode and
intended to provide the backbone delivery entity later this year.
for future light rail to North and
North-west Auckland. Later phases of consultation will
address more detailed issues like
The group is currently holding the location of stops or stations and
community focussed “listening” how disruption will be managed.
sessions until 31 August to
understand what people want Infrastructure New Zealand will be
and build the project’s social holding a member event in August
licence. This engagement period on the Auckland Light Rail. More
is about finding the solution that details will be released soon.
gives the best transport, access,
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 14An emissions reduction
plan
The Climate Change Commission’s
final advice to the government
on how New Zealand can reach
its climate target was tabled in
Parliament last month. vehicles; and supporting a more
efficient freight system.
The government now has until
31 December 2021 to set the first Submissions closed late last
three emissions budgets out to month and we made a submission
2035 and release its first all-of- primarily focussed on the need
government emissions reduction for integration between urban,
plan. If it chooses not to accept transport and land-use planning,
the commission’s advice, it must and broadening the first theme
publish an alternative plan for to ‘changing why and the way we
addressing climate change in New travel’.
Zealand and reaching its targets.
Full public consultation on
Work on an emissions reduction initiatives to reduce transport
plan has already begun. The emissions will occur in the second
plan will include a chapter on half of this year and then refined
transport and the Ministry of further for inclusion in the transport
Transport recently consulted on a chapter of the emissions reduction
consultation document Hīkina te plan.
Kohupara – Kia mauri ora ai te iwi -
Transport Emissions: Pathways to The Climate Change Commission
Net Zero by 2050. will begin monitoring how the
government’s emissions reduction
The consultation document plan is being implemented from
focussed on identifying 2022, including how well New
opportunities to reduce emissions Zealand is tracking to meet the
across three themes: changing the 2050 net zero target.
way we travel; improving passenger
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 15Local government wraps
up long-term budgets
The process of councils consulting
on and adopting their long-term
plans has concluded.
Long-term plans are councils’ 10-
year budgets which are renewed even projects without confirmed
every three years. The themes of funding, can be timed for later
emissions and climate change, years and then again pushed out in
environment, infrastructure, the following iteration resulting in a
COVID-19 impacts and recovery vicious cycle.
have been consistent across the
plans, with rates rises remaining a In the case of Auckland, a decision
contentious issue for ratepayers. to introduce congestion charging
will have significant implications for
Some commentators have the RLTP; not only will there be a
expressed their amazement as to need for infrastructure to establish
how easily councils can increase and run a pricing scheme, but
rates – often significantly – with increased investment will also be
negligible to no pushback from needed to cater for the increased
those who pay them. mode shift that will result from
congestion charging. The newly
Alongside long-term plans, regional adopted RLTP does not include the
councils and Auckland Transport cost of implementing congestion
have also adopted their respective pricing.
regional land transport plans
(RLTPs). RLTPs lay out a region’s Meanwhile, Parliament’s Transport
land transport objectives, policies, and Infrastructure Committee
priorities and measures for at least is undertaking an inquiry into
10 years. They include capital as congestion pricing in Auckland at
well as operational spending and the request of Transport Minister
identify a range of projects, but Hon Michael Wood. We made a
as the saying goes, the devil is in high-level submission in May.
the detail. Some much bigger and
potentially contentious projects, The select committee is expected
to report back later this year.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 16Three Waters Reform
Programme
The government has made a
number of recent announcements
regarding its proposal for three
waters reform.
It is too early to speculate on how
The government is proposing to successful the reform programme
create four large publicly-owned will be given the response from
water entities to take on the role several councils continues to be
of public water providers in New lukewarm. The possibility of the
Zealand. reform being mandated by the
government is a possibility.
A $2.5 billion package has also
been announced for councils Infrastructure New Zealand,
who participate in the reform in conjunction with co-hosts
programme – $500 million will Chapman Tripp, held a lively
be spent on supporting councils question and answer session with
through the transition process and Hon Nanaia Mahuta last Thursday
to ensure the reform’s financial (22 July).
impacts will be managed, and $2
billion will be awarded to councils The event was well-attended, and
to invest in the future for local the Minister used the opportunity
government, urban development, to reflect on the progress and
and their communities’ wellbeing. implications of the Three Waters
Reform Programme.
Details of how the package
will be divided across councils
or how exactly growth-related
infrastructure would be funded is
not yet clear.
InfraRead
Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 17Other note-worthy government announcements KiwiRail’s inaugural Rail Network Investment Programme Commits $1.353 billion for freight, tourism and the Auckland and Wellington Metro networks. Spending will be across network maintenance, operations, management, renewals and improvements. Infrastructure Acceleration Fund A contestable process to allocate funding to infrastructure projects for housing development, part of the government’s $3.8 billion Housing Acceleration Fund announced in March 2021. Productivity Commission inquiry into immigration settings An inquiry into what immigration policy settings would best facilitate New Zealand’s long-term economic growth and promote New Zealanders’ wellbeing. InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 18
UPCOMING EVENTS InfraRead Te Kawepūrongo Waihanga ISSUE 2. JULY 2021 19
AUGUST
Auckland Light Rail
Leaders Lunch with Hon David Clark, Minister for the
Digital Economy and Communications (full capacity)
SEPTEMBER & OCTOBER
NX2 Project site visit
Low Emission Vehicle Infrastructure
Renewable Energy and Hydrogen
NOVEMBER
Building Nations
More information on these member events will be released soon.
InfraRead
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