Budget 2017

Infrastructure investment

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Population growth combined with spending control have left New Zealand with a real infrastructure deficit.

With interest rates at record lows, inflation under control and a buoyant construction sector, the Government is investing an additional $4 billion in a range of areas.

Interest rates and official cash rates over time

EY - Interest rates and official cash rates over time

Announcements include:

  • KaikĊura roading $812 million capital investment to reinstate the earthquake damaged sections of State Highway 1 from Picton to Christchurch.
  • Rail around New Zealand $548 million investment in the rail network with Kiwirail, including $98 million for the Wellington Commuter Rail Network.
  • Auckland City Rail Link $436 million investment for the first part of the Crown’s share for the Auckland City Rail Link project.
  • New schools and classrooms $392 million additional investment in school property with six new schools, 11 special education satellite units, and 305 new classrooms.
  • Defence $576 million investment in Defence for new capability and the modernisation of defence bases.
  • Justice sector $763 million investment in additional prison capacity.
  • Health $150 million more for the District Health Boards’ capital plans.

The Government’s total investment in new infrastructure over the next four years is $32.5 billion. This includes $9.2 billion in new State Highways and $2.7 billion in housing, including the Auckland Housing Programme.