Giles
Dexter, Political Reporter
The Finance
Minister says there is already interest in one of the Public
Private Partnerships (PPP) on offer at the government’s
Infrastructure Investment Summit.
Representatives of
more than 100 companies from 15 countries have gathered in
Auckland for the summit, between them controlling $6
trillion in assets and funds.
One of the projects the
government had already confirmed attendees would be invited
to register their interest in was the
26km Warkworth to Te Hana section of the Northern
Expressway, which will include an 850 metre twin-bore
tunnel.
Nicola Willis said there had already been a
lot of talk about the road at the summit and she understood
multiple bids would be submitted.
“What it tells you
is, one, that we have put together a project that people can
see as investable and viable. But two, what it means is we
get a better deal for the taxpayer, because you want
competitive bids so that we can actually see really what our
options are,” she said.
Willis indicated funding for
at least one PPP would come in this year’s Budget.
“I
expect that to be the case in every Budget that I deliver,”
she said.
“We view an uptick in investment and
critical infrastructure as a core Budget priority that will
include financing both public private partnerships and
direct government investments.”
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Associate Finance
Minister David Seymour said he did not believe PPPs were a
silver bullet, but were a more honest way to deal with
costs.
“If you look at DHBs and why they got into so
much trouble, a lot of them were just spending their
depreciation to keep the lights on. You can’t do that with a
PPP, because you’re required to pay the fees that are needed
to keep the assets in a good state,” he said.
“So in
some senses, you actually end up needing more money. But if
that’s the case, it’s because you’re no longer kidding
yourselves, the way so many DHBs were for so
long.”
Guido Cacciaguerra from Italian
contracting firm Webuild confirmed he would be
bidding.
“It’s the first PPP, of course, which is very
important because if the government gets this right, it’s
the most powerful marketing tool to attract more investors
in the future,” he said.
The morning’s speeches all
had a common theme in trying to convince investors New
Zealand was a safe and secure place to invest, in an
increasingly volatile world.
Prime
Minister Christopher Luxon told investors New Zealand was a
“safe haven” which played by the rules and stood by its
values.
“New Zealand has been and will continue to be,
a poster child for social and political stability in a more
volatile and changing world. That reputation is long
standing, but in challenging times, it has come into much
sharper focus,” Luxon said.
Willis told media that
despite Parliamentary complexities, investors valued New
Zealand’s certainty, consistency, and
predictability.
“They see that we are well positioned,
and that when they invest their money here, they can rely
that rugs aren’t going to be pulled out from underneath
them.”
Regional Development Minister Shane Jones, who
is due to speak on Friday with his Resources hat on,
confirmed the government was seeking investors for the
Marsden Point dry dock.
Progressing a business case
for the project was part of National and New Zealand First’s
coalition agreement. It was expected to cost $350 million to
$450 million.
During
Luxon’s speech, dozens of protesters gathered outside the
summit banging pots and holding out anti-privatisation
banners.
Grace Newton, from not-for-profit campaigns
platform ActionStation, said the summit was a privatisation
expo, which would not benefit New Zealanders.
“Each
instance of privatisation we’ve seen of public services or
state assets or infrastructure, has left the public losing
out, it’s sent our collective resources into the pockets of
a few corporations and asset managers, like the ones in that
room here today, so we’re here to say we’re sick of being
ripped off,” Newton said.
Willis was not perturbed by
the protests.
“This is not about fewer assets. This is
about more assets, and how we deliver that at pace,” she
said.
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