Government outlines infrastructure approach

The Government intends to involve the private sector in infrastructure projects where it makes sense for both taxpayers and users, Infrastructure Minister Bill English says.

The Government has increased infrastructure funding to $7.5 billion over the next five years and is now focused on ensuring New Zealand gets the best value and services from that investment.

"To that end we are looking at how we can make greater use of private sector expertise when there are clear benefits in doing so," Mr English said in a speech today to the New Zealand Council for Infrastructure Development.

"The private sector is already contracted to build most of our infrastructure. Overseas experience shows that extending this through public-private partnerships can introduce new design, financing and maintenance techniques that provide better services and value to taxpayers."

Prisons will be one of the first areas where such partnerships are considered.

"There is a range of opportunities for more private sector participation in prisons - from the current approach where input is limited to construction, right through to designing, financing, building, maintaining and operating facilities.

"We've asked Corrections to look at alternatives to conventional procurement for delivering new prison capacity, including a new prison. We're happy to proceed with that if the case stacks up, with decisions taken early next year."

The Government is also committed to investigating greater use of the private sector in other infrastructure areas, where there are clear benefits.

"But let me be clear - this is not about ideology: Private sector involvement will only happen where it makes sense.

This will mean a better deal for taxpayers. It will also introduce the public sector to new techniques that can hopefully raise their management of assets across the board."