2025 – Infrastructure

Is NZ at an inflection point?

New Zealand is at an inflection point and we have two choices. That is the stark message from Infrastructure Minister Chris Bishop: “One option is we grow slowly — or not at all.
“We muddle along, take years to make tough decisions, react to things as they come up, and just largely accept the status quo. I call this managed mediocrity,” says Bishop in today’s Herald Infrastructure report.

“The other option is that we make the tough decisions that successive governments have put in the too-hard basket — on planning, housing markets, transport pricing, and more.”

Not only is Bishop the Minister of Infrastructure, but he also holds the Housing and Transport portfolios and is responsible for the Government’s Resource Management Act reforms.

It’s a tall order for a politician who was sworn into Cabinet little more than 18 months ago. His performance across a suite of demanding portfolios is integral to New Zealand’s future economic success.

At the 2025 Building Nations symposium — which gets under way in Wellington today — Bishop will share insights on the Government’s long-term planning, funding priorities, and the critical policy shifts needed to drive delivery and improve outcomes across the country.

His address will be keenly absorbed: not simply by the near 1000 people who are converging on Wellington for the two-day summit, but also by offshore investors who are considering whether to invest in the Government’s own pipeline of infrastructure projects, or into private sector and iwi ventures where success is dependent on robust infrastructure that enhances productivity.

It’s nearly five months on from the New Zealand Infrastructure Investment Summit, which took place in Auckland in March.

The Prime Minister’s flagship summit was one of several initiatives undertaken to promote new and upcoming investment opportunities and to elicit private sector interest in New Zealand’s infrastructure, growth sectors, and iwi opportunities. Reports suggest it was an outstanding success. Some 70 delegates from global organisations attended; they were from 16 countries, and importantly represented NZ$6 trillion funds under management.

A Treasury paper released last month identified key ongoing risks with achieving the summit’s desired impact:

• Not following up on post-summit actions, including an all-of-government approach to investment;
• Lack of bipartisanship on infrastructure projects and pipeline;
• Slow or stalled delivery of announced infrastructure projects or policy/legislative reform;
• Inability to convert the announced infrastructure pipeline into investable projects and,
• Failure to demonstrate to potential investors that there is a long-term pipeline of work.
• Invest NZ has been set up as a dedicated agency for facilitating foreign direct investment in New Zealand, and the “shop front” for investors — providing it with a clear responsibility for broad investor and market engagement and facilitating the promotion of both public and private investment opportunities.

Investment banker Rob Morrison chairs the Invest NZ board having formerly led a private sector reference group for the new entity.

NZTE chair Charles Finny and former NZ Super Fund chair Catherine Savage are also directors.

The core purpose of Invest NZ is to increase the flow of foreign direct investment into New Zealand — in essence, serving as a “one door” shopfront for investors, actively targeting large global investors and investment opportunities of scale, supporting mid-cap deals that have the potential to become larger over their lifetime and welcoming and working with experienced, skilled investors via the Active Investor Plus Visa.

It’s notable that a CEO has yet to be appointed — the process is still at an early stage. Keeping the momentum up in an internationally volatile environment is important for Government and business alike.

There are plenty of thought-provoking contributions in today’s report. Enjoy the read.

Fran O’Sullivan

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