The government has announced a $3 billion infrastructure fund that will help create more than 20,000 jobs post Covid-19.
Finance Minister Grant Robertson and Infrastructure Minister Shane Jones today outlined how $3b in the Covid Response and Recovery Fund will be allocated across the regions.
They said the investment package included about $210 million for climate resilience and flood protection projects, $155m for transformative energy projects, about $180m for large-scale construction projects and $50m for enhanced regional digital connectivity.
"This is about creating jobs as we recover and rebuild from the recession caused by the global Covid-19 pandemic. Because we went hard and early with our health response, we've been able to open up the economy quicker than other countries and get a head start on our recovery," Finance Minister Grant Robertson said.
He said the overall package was expected to deliver more than 20,000 jobs across New Zealand and unlock investment with a project value of more than $5b.
"Building infrastructure is a key component of our economic recovery plan. It creates jobs and provides much-needed economic stimulus."
"There's a range of ways we get benefit from these projects" in terms of jobs, Robertson said.
Firstly during the construction phase, then secondly when facilities opened and provided ongoing employment.
The government had sought out short-term projects and longer-term ones within regions to provide immediate and continuing benefits, Robertson said.
The projects, all beginning at different times, would lead to a "pipeline" of job creation, Robertson said.
There was still some due diligence to do on projects to make sure they stacked up, he said.
Earlier this year, ministers established the Infrastructure Reference Group (IRG) to work with local councils and businesses to identify a pipeline of projects to support the economy during the Covid-19 rebuild.
The IRG received a total of 1924 submissions across approximately 40 sectors of the economy.
Cabinet approved 150 of those projects worth $2.6 billion.
"We have focused on key sectors that are central to the government's economic plan - housing and urban development, climate resilience, energy and community development," Robertson said.
"This package will provide Kiwis with confidence that the government is backing them in this challenging economic environment by creating new jobs and opportunities in communities around the country."
Allocations of funding for projects across regions was based on analysis where the impacts of Covid-19 would be felt harder, Robertson said.
But he acknowledged that all regions had been impacted.
How the $3 billion will be spent:
- Housing and urban development: $464m
- Environmental: $460m
- Community and social development: $670m
- Transport (cycleways, walkways, ports and roads): $708m
The projects were in addition to the $12b New Zealand Upgrade Programme and existing Provincial Growth Fund investments.
Jones said the pipeline of projects would create immediate economic activity in the metropolitan centres as well as the regions.
"Both are critical to our economic and social recovery from the Covid-19 crisis," he said.
"The specific projects we're announcing today are examples of the sort of projects we're supporting - from nationwide investments in flood protection and better digital connectivity to civic facilities that we know form the bedrock of our communities."
Jones said there were four broad areas that the funding targeted: housing and urban development, environmental projects and community and social infrastructure.
"There is a tremendous degree of infrastructure activity taking place ... there's going to be a lot of pressure as to when these things start... The expectation is that mahi begins within 12 months."
Jones said the projects being revealed today were just a sample of the many that would be revealed in coming weeks.
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