Browse by publication topic: infrastructure and transport

Do you get the sense that New Zealand doesn’t invest in the major public infrastructure facilities like we used to? Previous generations built entire networks for rail, road, water and energy. Only Muldoon’s Think Big projects and the current ‘Roads of National Significance’ might compare. Major infrastructure investment decisions come down to how much we care about our future, and the future of our children and grandchildren. The government’s social discount rate policy captures in a single number how much decision makers care about the future relative to today. The default public sector stance is to use an 8% real (i.e. net of inflation) discount rate. But is 8% right?

The Government's infrastructure priorities now need to be reviewed in light of the cost of Christchurch's devastating earthquakes. However, the cost-benefit appraisals of major transport schemes that are likely to form part of the reprioritisation tend to understate the benefits. Thus there is a risk the wrong projects get weeded out or delayed when it would be better to look elsewhere to find the money needed to support Christchurch. We describe the reasons why, and provide some considerations that will help reduce this risk. In the long term we would argue for improvements to methodologies.

Presentation by Jagadish Guria to the 8th Annual New Zealand Transport Summit, Wellington, 25 February 2008

Presentation by Brent Layton to the New Zealand Road Transport Forum Conference, Christchurch, 16 September 2007

by Simon Wear & Ian Duncan. A report to Telecom.

A report for Vodafone NZ Ltd.