On a roll: Roads and rail the big winners from increased infrastructure spending


25 May 2017

Freight and commuters are the two biggest beneficiaries from the Government’s announced infrastructure spending in Budget 2017.

Out of $4 billion the Government will invest in infrastructure this year, nearly $1 billion will be to rail programmes, with $450 million going to KiwiRail’s network, $436 million as the first tranche of the Government’s commitment to Auckland’s City Rail Link and $98 million in improvements to Wellington’s commuter rail network.

Beyond rail, $812 million will go to rebuilding State Highway One North and South of Kaikoura.

“Public transport has long been a pain point to keeping our cities moving,” said PwC Partner and Budget 2017 Leader Richard Forgan.

“This investment will allow the capital and our largest city to keep up with population growth and demands on its road and rail networks.”

Ongoing investment in school infrastructure

Besides road and rail, education is benefitting from increased investment, with a large portion going towards population growth in Auckland. The Government will fund the construction of six new schools and 305 new classrooms nationwide. Auckland alone will see four of these six new schools, and 170 more classrooms.

“Investment in schools is a positive sign that the Government is continuing to invest in fast-growing communities. This investment is vital for meeting the country’s projected population growth,” said Mr Forgan.

 

-Ends-
 

 

Budget 2017 has brought something for everyone, with wide-ranging spending for families and infrastructure two areas that are seeing the most investment.
“Minister of Finance Steven Joyce’s first budget finally reaps the rewards of the Government’s fiscal patience. Strong economic performance with good growth, modest inflation and shrinking unemployment, gives the Government options that it did not have before. And the response has been to provide something for almost everyone,” said PwC Partner and Budget Leader Richard Forgan.

There are welcome shifts to tax thresholds, long held at their current levels. Together with Working for Families, these will give the typical earning household between $1,000 and $2,000 more per year in disposable income. And those benefits will be most felt by low earners.

Infrastructure and house-building get a huge boost, most of it in Auckland; the innovation system gets more funding; the health sector is given some $4 billion more; defence, law and order, prisons, school building and vulnerable children all benefit.

Underneath the headlines, the general thrust is the more of the same from previous years – economic growth supported by investment in trade relationships, infrastructure building and innovation funding; more social services targeted at the most vulnerable parts of society; investment in core public functions such as the health, education, the tax system, ACC, defence and the justice system.

So who gets left out?

“Small businesses and the regions are mentioned in passing (particularly for tourism), but pale into insignificance against the investment in Auckland’s powerhouse,” explains Mr Forgan.

“But the underlying themes show a high degree of continuity, with the Government investing in recovering from the Kaikoura earthquake and replenishing EQC’s funding model to prepare for any future shocks.”

 

Budget 2017 has brought something for everyone, with wide-ranging spending for families and infrastructure two areas that are seeing the most investment.
“Minister of Finance Steven Joyce’s first budget finally reaps the rewards of the Government’s fiscal patience. Strong economic performance with good growth, modest inflation and shrinking unemployment, gives the Government options that it did not have before. And the response has been to provide something for almost everyone,” said PwC Partner and Budget Leader Richard Forgan.

There are welcome shifts to tax thresholds, long held at their current levels. Together with Working for Families, these will give the typical earning household between $1,000 and $2,000 more per year in disposable income. And those benefits will be most felt by low earners.

Infrastructure and house-building get a huge boost, most of it in Auckland; the innovation system gets more funding; the health sector is given some $4 billion more; defence, law and order, prisons, school building and vulnerable children all benefit.

Underneath the headlines, the general thrust is the more of the same from previous years – economic growth supported by investment in trade relationships, infrastructure building and innovation funding; more social services targeted at the most vulnerable parts of society; investment in core public functions such as the health, education, the tax system, ACC, defence and the justice system.

So who gets left out?

“Small businesses and the regions are mentioned in passing (particularly for tourism), but pale into insignificance against the investment in Auckland’s powerhouse,” explains Mr Forgan.

“But the underlying themes show a high degree of continuity, with the Government investing in recovering from the Kaikoura earthquake and replenishing EQC’s funding model to prepare for any future shocks.”

 

Budget 2017 has brought something for everyone, with wide-ranging spending for families and infrastructure two areas that are seeing the most investment.
“Minister of Finance Steven Joyce’s first budget finally reaps the rewards of the Government’s fiscal patience. Strong economic performance with good growth, modest inflation and shrinking unemployment, gives the Government options that it did not have before. And the response has been to provide something for almost everyone,” said PwC Partner and Budget Leader Richard Forgan.

There are welcome shifts to tax thresholds, long held at their current levels. Together with Working for Families, these will give the typical earning household between $1,000 and $2,000 more per year in disposable income. And those benefits will be most felt by low earners.

Infrastructure and house-building get a huge boost, most of it in Auckland; the innovation system gets more funding; the health sector is given some $4 billion more; defence, law and order, prisons, school building and vulnerable children all benefit.

Underneath the headlines, the general thrust is the more of the same from previous years – economic growth supported by investment in trade relationships, infrastructure building and innovation funding; more social services targeted at the most vulnerable parts of society; investment in core public functions such as the health, education, the tax system, ACC, defence and the justice system.

So who gets left out?

“Small businesses and the regions are mentioned in passing (particularly for tourism), but pale into insignificance against the investment in Auckland’s powerhouse,” explains Mr Forgan.

“But the underlying themes show a high degree of continuity, with the Government investing in recovering from the Kaikoura earthquake and replenishing EQC’s funding model to prepare for any future shocks.”

 

Budget 2017 has brought something for everyone, with wide-ranging spending for families and infrastructure two areas that are seeing the most investment.
“Minister of Finance Steven Joyce’s first budget finally reaps the rewards of the Government’s fiscal patience. Strong economic performance with good growth, modest inflation and shrinking unemployment, gives the Government options that it did not have before. And the response has been to provide something for almost everyone,” said PwC Partner and Budget Leader Richard Forgan.

There are welcome shifts to tax thresholds, long held at their current levels. Together with Working for Families, these will give the typical earning household between $1,000 and $2,000 more per year in disposable income. And those benefits will be most felt by low earners.

Infrastructure and house-building get a huge boost, most of it in Auckland; the innovation system gets more funding; the health sector is given some $4 billion more; defence, law and order, prisons, school building and vulnerable children all benefit.

Underneath the headlines, the general thrust is the more of the same from previous years – economic growth supported by investment in trade relationships, infrastructure building and innovation funding; more social services targeted at the most vulnerable parts of society; investment in core public functions such as the health, education, the tax system, ACC, defence and the justice system.

So who gets left out?

“Small businesses and the regions are mentioned in passing (particularly for tourism), but pale into insignificance against the investment in Auckland’s powerhouse,” explains Mr Forgan.

“But the underlying themes show a high degree of continuity, with the Government investing in recovering from the Kaikoura earthquake and replenishing EQC’s funding model to prepare for any future shocks.”

Contact us

Vasantha Naidoo
Director of Corporate Affairs
Tel: +64 9 355 8193
Email

Follow us