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Home / Business

NZ govt's $87.3b investment focused on transformational projects

BusinessDesk
19 Jan, 2017 10:10 PM2 mins to read

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The annual investment project report shows $41.9 billion was spent on 281 projects in the year.

The annual investment project report shows $41.9 billion was spent on 281 projects in the year.

The New Zealand government has focused its $87.3 billion investment programme into projects that will fundamentally change the way it operates in the ongoing drive to get more with less from the public service, according to a Treasury report.

The Treasury's second annual report on investment projects show the Crown's investment portfolio - including planned work, work in progress, and completed work - rose 15 per cent to $87.3 billion in the year ended June 30, 2016, spanning 508 different projects, up 24 per cent from 2015.

Of that, $39.3 billion was for 192 projects which aim to "transform and fundamentally change the way services are delivered" and often involve "significant business change".

Some $31.5 billion was spent on 230 projects to keep existing services running, while a further $16.4 billion on 79 projects was tagged for enhancing existing services.

The Treasury cited Immigration New Zealand's $119 million programme in 2015 to overhaul a largely-paper-based system to one that was "more flexible, risk-based, customer-focused, consistent and cost-effective", transforming visa processing to cope with increased demand.

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Much of that spending is tied up in what the government deems to be complex projects, and the Treasury's major project watchlist released yesterday had 53 projects with a price tag of $37 billion attached as at Nov. 1.

Of those projects, 33 were to do with transformational change.

The annual investment project report shows $41.9 billion was spent on 281 projects in the year.

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Much of that was in Auckland, where $16.8 billion was spent on 74 programmes, although the Western Ring Route road accounted for $2 billion alone in what is the New Zealand Transport Agency's biggest ever project.

By sector, transport was the biggest beneficiary with $21 billion of spending tagged for 68 projects, followed by $16.2 billion for 58 defence projects. Housing was third with $12.6 billion earmarked for nine projects, and $10.3 billion for 151 different health programmes.

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