Finance minister Grant Robertson has announced NZ$12bn (£6bn) of new investment, with NZ$8bn for specific capital projects and NZ$4bn to be added to the multi-year capital allowance.
The NZ$8bn includes:
- NZ$6.8bn for new transport projects, with a significant portion for roads and rail.
- NZ$400m one-off increase to schools’ capital funding
- NZ$300m for regional investment
- NZ$300m for District Health Board asset renewal
- NZ$200m for decarbonisation of the public estate
The specific projects will be announced in early 2020.
“The new investment is forecast to increase the size of the economy by a further NZ$10bn over five years, with further positive impacts on GDP beyond that period,” said Robertson.
He said that, with debt low and borrowing costs at record lows, the conditions are right for the government to invest to ‘future-proof’ New Zealand.
He added: “It will provide further support to boost the New Zealand economy in the face of slowing international growth and stronger global headwinds. It will also give certainty to the construction industry about upcoming infrastructure projects and will create more job opportunities for Kiwis.”
The extra NZ$4bn to be added to the multi-year capital allowance takes it to NZ$8.4bn, with allocation of that money to be announced over coming budgets.