It’s less than two weeks until Finance Minister Nicola Willis unveils her “moderate, responsible Budget”, as she described it in her pre-Budget speech at the Hutt Valley Chamber of Commerce last week. She was followed this week by Prime Minister Chris Luxon, who told the Auckland Business Chamber: “No bells. No whistles. Just the basics done well to rebuild the economy, restore law and order, and deliver better public services.”

Both made it abundantly clear that this Budget will focus on strengthening the economy, reducing the cost of living and delivering better services. Neither hinted too much at issues affecting our industry, Willis saying, “Every Budget must make its contribution to building the better New Zealand that we all want to see 10, 15, 20 years from now. That means ensuring we invest in the long-term infrastructure needed to support a resilient and growing country, with an economy far less dependent on carbon emissions, better prepared for a warmer climate…”

Luxon, meanwhile, commented: “We’re also putting together an extensive infrastructure pipeline, eliminating the bottlenecks to growth plaguing businesses across the country, but especially in our fastest growing regions. That includes a transport programme – as Simon [Bridges] will appreciate in his new role as Chair of NZTA – that gets back to the basics of connectivity, growth, and resilience.”

While we wait for Willis’ Budget reveal, the Australian government released its 2024/2025 Budget this week. I know our territories, markets and economies are vastly different, and there is little point comparing – not that we could for another two weeks anyway. Regardless, I did find it interesting to read reports of what’s lined up for transport across the Ditch.

“Heavy investment in infrastructure, strategic transport and net zero,” seem to be the top priorities, with AU$16.5 billion for new and existing projects over the next 10 years, AU$4.6 billion put towards roads and rail projects, and AU$10.1 billion to be put towards existing infrastructure projects.

Aussie has also allocated further funding for programmes focusing on road safety and productivity. Particularly, funding for the construction and maintenance of Australia’s local road infrastructure assets will double to AU$1 billion per year, and AU$200 million has been allocated to the Safer Local Roads and Infrastructure Programme, which now includes the Heavy Vehicle Safety and Productivity Programme and the Bridges Renewal Programme.

Hopefully, when Budget 2024 is announced, we’ll see the government putting the money where its mouth is if you’ll excuse the loose Budget-inspired pun. Going on Transport Minister Simeon Brown’s comments when launching the Roads of Regional Significance programme earlier this week, it may well do.

I was encouraged by Brown handing off decision-making responsibility concerning project delivery to the NZTA “with ministers no longer determining project scope and funding decisions, which was leading to project delays and scope creep under the previous government”. Has NZTA finally been unshackled, allowed to get on with the job in an enabling environment created by the government, not a restrictive one? This and comments by Peter Brown, NZTA regional manager, maintenance and operations, at the TMS Conference in March, would make it seem so.

Let’s see where the dollars lie 30 May and how things go thereafter.

Take care out there,

Gavin Myers
Editor