Q+A with Jack Tame Geoff Cooper: Why NZ gets poor 'bang for buck' on infrastructure
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Aug 2, 2025 Geoff Cooper, Chief Executive of Te Waihanga, dives into New Zealand's infrastructure struggles. He reveals why high spending yields low returns and stresses the urgent need for reform. The discussion highlights the critical importance of maintenance investments and developing solid business cases for major projects, like the Northern Expressway. Geoff also examines the Infrastructure Priorities Programme, which aims to prioritize essential developments while navigating the complexities between central and local governments.
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NZ's Infrastructure Spending Paradox
- New Zealand spends a high percentage of GDP on infrastructure but gets poor value due to ageing populations and fiscal constraints.
- Lack of clear asset records and fast wear-out worsen infrastructure effectiveness.
Maintenance Is Key for Infrastructure
- New Zealand's infrastructure wears out about $15 billion annually, but renewal spending falls far short.
- Proper maintenance is crucial; it should consume 60 cents of every dollar spent on infrastructure.
Business Cases Essential for Projects
- Half of large projects lack business cases, making portfolio optimization and investment decisions difficult.
- Knowing future usage and funding ability is vital to avoid burdening future generations with debt.