Satisfaction regarding New Zealand's national infrastructure has declined steeply since 2019, according to Ipsos’ 2024 Global Infrastructure Index.
Satisfaction regarding New Zealand's national infrastructure has declined steeply since 2019, according to Ipsos’ 2024 Global Infrastructure Index.
New Zealand has ranked last in a global survey for its record of delivering national infrastructure, new data shows.
Only 17% of Kiwis said they believe New Zealand has a good record of delivering national infrastructure projects – placing us tied for last with Hungary – according to the Ipsos’2024 Global Infrastructure Index.
More than 1000 New Zealanders participated in the 32-country survey, which had 23,000 total respondents.
Over two-thirds (67%) of New Zealanders believe the country is not doing enough to meet its infrastructure needs – a figure that has been steadily increasing from 55% in 2019.
Last year, 61% said New Zealand wasn’t doing enough to meet its infrastructure needs.
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“The number of New Zealanders who don’t think New Zealand is doing enough to meet our infrastructure needs has significantly increased, and while our views were aligned with citizens in other countries in 2019, we are now out of step with the global trend,” said Carin Hercock, managing director for Ipsos NZ.
New Zealand was behind the global average on four of the 10 infrastructure metrics recorded.
Airport and digital infrastructure quality were the standout performers both nationally and globally.
Both rated “significantly” higher than the global average, the report said.
New Zealand’s airport infrastructure rated “very” or “fairly” good among 81% of those surveyed, ranking fourth globally.
Only Indonesia (90%), Singapore (86%) and Thailand (85%) rated higher, with a global average of 72%.
When it comes to digital infrastructure (e.g. high-speed broadband, full fibre networks and 5G), New Zealand ranked seventh-equal (70%), ahead of the global average of 61%.
Water supply and sewerage infrastructure – while ranked third-highest in New Zealand at 56% – was one of two categories to go backwards from last year’s survey (57%).
EV charging infrastructure fell from 36% in 2023 to 35% in the recent survey.
The worst performers were flood defence and new housing supply infrastructure.
More than two-thirds (67%) said the country’s new housing supply was “very” or “fairly” poor. Just 27% rated it the opposite.
Only 24% said flood defences were “very” or “fairly” good.
More than half (55%) of those surveyed said new housing supply should be made a priority investment for New Zealand.
This was followed by water supply and sewerage and the motorway/major road networks in joint-second (50%).
“New Zealanders are clearly looking for better infrastructure delivery and their priorities for infrastructure investment, like housing supply, water and sewerage, and major road networks, are also the areas where they are less likely to highly rate the quality of current delivery,” Hercock said.
Nick Leggett, chief executive of Infrastructure New Zealand, told the Herald the figures didn’t surprise the association and lined up with its own research.
“Kiwis are well-appraised of our country’s challenges with infrastructure decision-making and delivery,” he said.
“We know that New Zealanders are wanting greater certainly when it comes to infrastructure – be it more reliable roads, rail, schools, hospitals or energy.”
He said the recent cost escalation with I-Rex and Dunedin hospital projects added to people’s perception that New Zealand needs to improve the way we do things.
“A significant way to make improvements will be for a more politically bipartisan approach to agreeing on which projects are important, along with funding and improvements in the wider funding and delivery system.
“System and funding changes that are being worked on by Government are encouraging, but it will ultimately be shovels in the ground on new projects that don’t blow their budgets, with those projects being completed on time, that will improve these Ipsos figures.”
A sinkhole that opened up in central Auckland last year swallowed pieces of road. Photo / Dean Purcell
ASB economists said in a report earlier this year New Zealand faces a $1 trillion bill over the next 30 years to bring the country’s infrastructure up to scratch and to future-proof it to meet challenges.
An additional 175,000 to 700,000 dwellings and associated infrastructure would be required to meet an expected population growth of anywhere from 500,000 to two million people, the ASB Infrastructure Report said.
ASB senior economist Mark Smith said New Zealand had underinvested in core infrastructure for many years, leading to a current infrastructure deficit of around $200 billion.
The agency will be tasked with identifying infrastructure priorities for the next three decades.
An additional $1b in funding has also been allocated from Budget 2024 towards Roads of National Significance – on top of the $20.7b in spending to be rolled out between 2024 and 2027.
The Government’s fast-track approvals legislation – expected to pass through Parliament by the end of the year – would see 149 projects pushed through in an attempt to turbo-charge the economy.
All up, 58 housing or land development projects, 43 infrastructure projects, 22 renewable energy projects, 11 mining projects, seven aquaculture and farming projects and eight quarrying projects have been given the green light.
According to the New Zealand Infrastructure Commission, we spent an average of 5.8% of GDP – around $24b – on infrastructure between 2003 and 2023.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
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