Infrastructure New Zealand has welcomed moves to strengthen the role and capability of the New Zealand Infrastructure Commission in providing independent assurance over major infrastructure investment decisions.
Cabinet has agreed to five key changes to the Investment Management System as part of a Government plan to improve how it selects infrastructure projects.
One of the changes announced will see Ministerial oversight of major projects increased, with the Infrastructure and Investment Ministers Group to review High-Profile High-Risk investments and long-term investment plans before they go to Cabinet, and monitor delivery after decisions are made.
“We finally have the start of an Infrastructure Commission with some proper powers. This is another step in its maturity, and that will ultimately benefit New Zealanders through better assurance of what is built on their behalf,” says Infrastructure New Zealand Chief Executive, Nick Leggett.
“Strengthening independent oversight is long overdue. New Zealand is investing tens of billions of dollars in infrastructure over the coming decades, and the public deserves confidence that these decisions are well-tested, properly prioritised, and deliver long-term value.”
Mr Leggett said the move to introduce a more formal external investment assurance function – particularly one that applies consistently across major Crown-funded projects – addresses a long-standing gap in the system.
“Bringing greater rigour to business cases, improving the quality of advice to Ministers, and incorporating an entity’s delivery track record into assessments should lift overall decision-making.”
“The idea that Ministers will be in the best place possible to make smart decisions about Infrastructure, is a welcome one.”
He said Infrastructure New Zealand also supports the intent to consolidate and improve existing assurance approaches, including drawing on the best elements of Gateway reviews and other frameworks into a single, clearer product.
“It has been too complex, and gaps have allowed poor decisions to get through. A single, coherent assurance approach makes sense,” says Mr Leggett.
The proposal to extend assurance to central government asset management plans is particularly important, he said.
“For too long, New Zealand has underinvested in maintaining the infrastructure it already owns. Central government has often held local government to higher standards than it applies to itself. A more disciplined and transparent approach to asset management is essential if we are to avoid repeating past failures.”
However, Infrastructure New Zealand cautions that these changes will only succeed if they improve practice on the ground.
“There is a clear opportunity here, but also a risk. Additional assurance must not become a handbrake on delivery. New Zealand already struggles with slow decision-making and long lead times. The system must remain focused on enabling timely, cost-effective delivery—not adding layers of process that delay it. We will be watching that carefully,” says Mr Leggett.
