NZ Launches Major Overhaul to Fix Public Sector Infrastructure Failings

“Poor asset management results in expensive renewals and emergency works, poor infrastructure quality, asset failures, and less funding for new services,” Bishop stated.

In a decisive move to address decades of poor asset management within the public sector, Infrastructure Minister Chris Bishop has unveiled a comprehensive new work programme aimed at significantly improving the quality, performance, and accountability of infrastructure assets across central government. The initiative comes in response to stark findings about the nation's infrastructure management and is positioned as a transformative step toward building a more resilient and effective public infrastructure system.

Acknowledging the Depth of the Problem

Minister Bishop did not mince words when outlining the current state of public infrastructure management. He acknowledged that New Zealand ranks fourth to last in the OECD for asset management performance. Key issues identified include widespread non-compliance with Cabinet expectations on asset registers, depreciation funding, and asset management plans across multiple government agencies.

“Poor asset management results in expensive renewals and emergency works, poor infrastructure quality, asset failures, and less funding for new services,” Bishop stated. “Years of neglect have left us with leaky hospitals and schools, mould-ridden police stations and courthouses, unreliable commuter rail services, and substandard Defence Force accommodations. It’s not good enough—New Zealanders deserve better.”

The Infrastructure Commission estimates that for every $40 spent on new infrastructure, at least $60 should be allocated for maintenance and renewal. Yet, in practice, this has not been the case, further straining an already overstretched system.

The Two-Phase Work Programme

To address these challenges, the government is initiating an all-of-Government work programme focused on enhancing infrastructure asset management. This initiative will unfold in two key phases:

Phase One: Immediate Improvements (2024–2025)

This initial phase concentrates on short-term, actionable changes, including:

• Updates to the Better Business Case (BBC) and Gateway Frameworks: Enhancing decision-making tools that guide public investment planning and assurance.

• IMF Assessment Alignment: Conducting a self-assessment of New Zealand’s policy and institutional frameworks against the IMF’s Public Investment Management Assessment to identify global best practices.

• Asset Management and Planning Guidance: Developing comprehensive performance indicators and guidance to help agencies adopt best practices. These indicators will also provide Ministers, stakeholders, and the public with transparency on value for money.

• Building a Community of Practice: The Infrastructure Commission is collaborating with Āpōpō to nurture a nationwide community of asset management professionals through workshops and networking initiatives aimed at boosting capability.

• Underground Asset Register Expansion: Officials are evaluating the potential to scale up the Wellington City Council’s Underground Asset Register for nationwide use, a move that could significantly improve infrastructure mapping and planning.

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Phase Two: Structural Reforms (Post-December 2025)

Once foundational work is complete, the programme will pivot to more systemic reforms aimed at ensuring long-term sustainability and performance. Key features include:

• 30-Year National Infrastructure Plan (NIP): A draft plan is expected to be released for public consultation in June 2025. This blueprint will establish a stable, long-term vision for infrastructure development, investment priorities, and maintenance strategies.

• Ten-Year Investment Plans: The government is exploring legislative requirements for capital-intensive agencies to submit detailed 10-year investment plans, coupled with enhanced performance reporting mandates.

• Cabinet Circular CO (23) 9 Refresh: This key policy document will be revised to reflect broader system changes and align Cabinet’s expectations on investment assurance and asset management with modern best practices. The refresh will coincide with the finalization of the NIP to ensure policy coherence.

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Long-Term Vision and Accountability

According to Bishop, the programme is not merely a bureaucratic adjustment but a foundational change intended to unlock economic potential and improve living standards across New Zealand. "We’re committed to making the public sector as effective as the private sector in managing infrastructure. This means planning ahead, budgeting responsibly, and being transparent and accountable for outcomes."

He emphasized that once the Infrastructure Commission’s recommendations are received in 2026, the Government will act decisively to implement them, ensuring the reforms are sustained beyond political cycles.

“Improving our investment management system will not only ensure better outcomes for current infrastructure assets but also enable future projects to be delivered more effectively. This is critical for both economic growth and addressing the cost-of-living challenges that everyday New Zealanders face.”

Public Engagement and Next Steps

The public will have the opportunity to engage with the draft National Infrastructure Plan starting mid-2025, as part of a broader effort to ensure community input and transparency. The government hopes that by laying out a clear and robust framework, agencies will be empowered—and obligated—to prioritize long-term thinking over short-term fixes.

With this initiative, New Zealand signals a turning point in how it plans, funds, and maintains public infrastructure, bringing the nation closer to international standards and ensuring future generations inherit assets that are fit for purpose.