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

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.

Contact us

Geof Nightingale

Partner, PwC New Zealand

Tel: +64 21 940 346

Richard Forgan

Partner, PwC New Zealand

Tel: +64 21 358 468

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