Scott Simpson Announces $57.7 Million Budget to Modernise Research Database

Minister Simpson described the IDI as a giant puzzle that connects data from multiple agencies to reveal the broader picture of how policies affect New Zealanders throughout their lives.

New Zealand's largest and most comprehensive research database is set to undergo a significant transformation following a Government commitment of $57.7 million over four years through Budget 2026.

Statistics Minister Scott Simpson announced the investment as part of efforts to modernise the Integrated Data Infrastructure (IDI), a critical national data system that supports evidence-based policymaking and social investment decisions across government.

The funding aims to replace ageing technology, improve the quality and accessibility of data, and ensure New Zealand's decision-makers have access to more reliable and up-to-date information when developing policies and allocating public resources.

According to the Government, the upgrade will help meet increasing demand for data-driven insights while strengthening the country's ability to evaluate the effectiveness of public services and social programmes.

What Is the Integrated Data Infrastructure?

The Integrated Data Infrastructure, commonly known as the IDI, is one of New Zealand's most important research tools. Managed by Stats NZ, it combines information from a wide range of government agencies, non-government organisations, and national surveys into a single research database.

The system works by securely linking information from different sources, allowing researchers and policymakers to gain a more complete understanding of how individuals and communities interact with public services over time.

Minister Simpson described the IDI as a giant puzzle that connects data from multiple agencies to reveal the broader picture of how policies affect New Zealanders throughout their lives.

By linking data across sectors such as education, health, employment, housing, and social services, the IDI provides valuable insights into long-term outcomes and trends that may not be visible through individual datasets alone.

This enables governments to evaluate whether policies are achieving their intended goals and identify areas where improvements may be needed.

Supporting Evidence-Based Decision Making

A key objective of the investment is to strengthen the Government's ability to make decisions based on evidence rather than assumptions.

Minister Simpson said the IDI plays a crucial role in helping policymakers understand what works, what does not, and where public resources can have the greatest impact.

For example, the database can be used to analyse whether free apprenticeship programmes help participants secure better employment opportunities, or whether specific health interventions contribute to improved school attendance among children.

These insights provide valuable information that can guide future policy decisions and ensure public spending delivers measurable benefits for New Zealanders.

"The IDI shows us what is working, and what is not," Mr Simpson said.

"It makes sure Government decisions are based on facts, not guesswork, and taxpayer dollars are directed where they can make the biggest difference for New Zealanders."

As governments face increasing pressure to deliver effective services while managing public finances responsibly, access to reliable data has become an essential tool for informed decision-making.

Growing Demand Driving the Need for Modernisation

The announcement comes as demand for data analysis and research continues to grow across both government and research sectors.

Over the years, the IDI has become an increasingly valuable resource for understanding complex social, economic, and health issues. Researchers, policymakers, and government agencies rely on the system to conduct detailed studies and evaluate programme outcomes.

However, the technology underpinning the current infrastructure is becoming outdated and is struggling to keep pace with rising demand and increasingly sophisticated analytical requirements.

Minister Simpson acknowledged that while the IDI has served New Zealand well, significant upgrades are now necessary to ensure it remains fit for purpose.

"The current IDI is built on old technology," he said.

"This critical Government investment will ensure our data infrastructure keeps up with growing demand and more complex use, giving decision-makers a clearer, more up-to-date picture of what's happening in our communities."

The modernisation programme is expected to improve system performance, increase efficiency, and support more advanced forms of data analysis.

Boosting Social Investment Initiatives

A major focus of the upgrade is supporting the Government's social investment approach, which aims to use data and evidence to identify where interventions can deliver the greatest long-term benefits.

Social investment involves directing funding toward programmes and services that are proven to improve outcomes for individuals and communities.

The IDI provides a powerful tool for measuring the effectiveness of these investments by tracking outcomes over time and across different sectors.

For example, policymakers can assess whether early childhood programmes improve educational achievement later in life, whether employment initiatives reduce long-term welfare dependency, or whether targeted health interventions contribute to better overall wellbeing.

By strengthening the data infrastructure that underpins these assessments, the Government hopes to improve its ability to identify successful programmes and replicate them on a larger scale.

The investment is expected to help ensure that limited public resources are directed toward initiatives that generate the greatest positive impact.

Better Data for Better Public Services

The Government argues that stronger data systems ultimately lead to better public services for New Zealanders.

Accurate and comprehensive information allows agencies to identify emerging challenges, understand community needs, and design more effective responses.

Minister Simpson said better data helps ensure funding reaches the people and communities that need support most.

"Better data means funding is directed to where it's needed most," he said.

"It's about fixing the basics and building the future towards a better data landscape and better social services, now and for future generations."

This approach aligns with broader government efforts to improve efficiency, accountability, and outcomes across the public sector.

By enabling agencies to evaluate programmes more effectively, the upgraded IDI is expected to contribute to ongoing improvements in service delivery and policy development.

Building a Stronger Data Future

The modernisation of the Integrated Data Infrastructure is being viewed as a long-term investment in New Zealand's future.

As technology continues to evolve and data becomes increasingly important in policymaking, governments around the world are investing heavily in modern data systems to support economic growth, social development, and public sector performance.

The Budget 2026 investment positions New Zealand to continue leveraging data-driven insights while maintaining a robust and reliable national research infrastructure.

The upgraded system is expected to enhance collaboration between government agencies, researchers, and community organisations, creating new opportunities to better understand complex social issues and develop effective solutions.

It will also help ensure that New Zealand remains capable of responding to emerging challenges with policies grounded in evidence and real-world outcomes.

Strengthening Decision-Making for Future Generations

The Government's $57.7 million commitment represents more than a technology upgrade—it is an investment in the quality of future decision-making.

By modernising the country's largest research database, officials aim to provide policymakers with stronger evidence, clearer insights, and a more complete understanding of the factors shaping New Zealanders' lives.

As demand for data-driven policymaking continues to increase, the enhanced Integrated Data Infrastructure is expected to play an increasingly important role in guiding public investment, improving services, and ensuring taxpayer funding is used effectively.

With the planned upgrades, the IDI will remain a cornerstone of New Zealand's research and policy landscape, helping governments make informed decisions that support stronger communities and better outcomes for generations to come.