COVID-19: Government signals major construction and infrastructure effort for economic recovery By Helen Macfarlane, Glen Holm-Hansen and Sean Gamble While New Zealanders played their part in eliminating the spread of COVID-19 by staying at home, the government has been developing plans for the construction sector in a post COVID-19 New Zealand. In a release on 1 April, Ministers Twyford (Transport) and Jones (Infrastructure) set out the government’s intention for the construction sector as pandemic control measures continue. The government’s plan comprises the establishment of the Infrastructure Industry Reference Group (Reference Group), commencement of advance payments to contractors engaged in government transport projects and an announcement that the government is considering significantly reforming Crown Infrastructure Partners (CIP). The government also announced it was pursuing options to speed up the consenting process for key construction and infrastructure projects.
The goal of the announcements was outlined as a stimulation effort to mitigate the economic impact of the COVID-19 pandemic.
Construction Sector Accord
The Construction Sector Accord (Accord) has shifted its focus from industry transformation to resilience and recovery. The Accord is a partnership between government and industry that extends across the entire sector, making it a valuable advisor to Ministers on how the government can best support the industry after the COVID-19 disruption and a key consultant for the Reference Group. The Accord’s COVID-19 Response Plan is divided into three response phases (maintain, restart, transform) which serve as guidance posts for the government’s recovery efforts. Further details of the Response Plan can be found on the Accord’s website.1
Reference Group
Chaired by Mark Binns (current chair of CIP) the Reference Group was tasked with collating and recommending to Ministers, infrastructure projects from the public and private sector which are ‘shovel ready’ now, or will be within the next six months. The Reference Group sought information from those in the construction sector with upcoming projects. The government outlined a timeline for information to be submitted to the Reference Group, and a set of criteria which the Reference Group assessed before recommending projects to Ministers.
(a) Construction readiness: Projects are expected to be ‘shovel ready’; ideally construction could begin now, or within six months.
(b) Public or regional benefit infrastructure: Infrastructure highlighted by the Reference Group as beneficial includes transport, three waters, and buildings and structures.