Government responds to National Infrastructure Plan with major reforms

The response confirms that all sixteen recommendations are supported, with eleven already reflected in existing work programmes.

The Government has released its official response to the independent National Infrastructure Plan, outlining how it will act on all sixteen recommendations made by the Infrastructure Commission to improve the way New Zealand plans, funds, and delivers infrastructure over the next three decades.

The plan, released in February, sets out a long-term approach to fixing persistent weaknesses in the infrastructure system. Ministers described it as a clear signal that while spending levels remain high by international standards, outcomes have not matched expectations, particularly in efficiency and asset management.

Officials highlighted that New Zealand has spent about 5.8 percent of GDP on infrastructure over the past 20 years, placing it among the highest spenders in the OECD, yet performance rankings sit near the bottom. Concerns were also raised about limited visibility across government assets and the lack of consistent long-term investment planning, which makes it harder to address growing infrastructure gaps.

Government moves to strengthen planning and delivery systems

The response confirms that all sixteen recommendations are supported, with eleven already reflected in existing work programmes. Ministers also confirmed four additional actions designed to tighten coordination across agencies and improve long-term decision-making.

A key change involves reforms to the Investment Management System, including shifting external assurance responsibilities for government-funded infrastructure projects from the Treasury to the Infrastructure Commission. A new assurance function will also be established to support capital-heavy agencies in improving asset management and investment planning.

The Government said these steps are intended to improve oversight of major projects and reduce inefficiencies that build up when planning systems operate in isolation across departments.

Major reforms across transport, data, and leadership

One of the most significant commitments is a full review of the land transport funding system. The newly formed Ministry for Cities, Environment, Regions and Transport will lead the review and develop proposals for public consultation by 2028, focusing on investment settings, pricing structures, and delivery challenges identified in the plan.

Legislative changes are also planned to require departments and Crown entities to publish long-term investment strategies and strengthen reporting on asset management. These laws are expected to be developed in 2027, with amendments to key public finance legislation.

A further change will require all infrastructure providers to keep updated information in the National Infrastructure Pipeline, with the Infrastructure Commission given authority to set data standards. This aims to improve visibility of current and future projects and support more consistent national planning.

The Government also plans to strengthen leadership across the infrastructure sector by introducing professional standards for senior project roles. The Public Service Commission and Infrastructure Commission will develop a shared framework for leadership capability, along with a national benchmark for critical infrastructure roles and a directory of senior responsible officers.

The response will be presented to Parliament this week, with a special debate expected to follow so all parties can discuss the recommendations and planned reforms in detail.