The Housing Infrastructure Fund will provide $230 million in funding to the Tauranga City Council to provide for 35,000 more houses through three major new infrastructure projects in the city, Finance Minister Steven Joyce and Building and Construction Minister Dr Nick Smith say.

 

“These infrastructure projects will provide for a very large part of the expected need for additional housing for the next 30 years in one of New Zealand’s fastest growing regions,” Mr Joyce says.

 

“The proposed infrastructure includes a connection to State Highway 2, new local arterial roads, new wastewater and water supply network mains and storm water infrastructure as well as building a new water treatment plant and extending the wastewater treatment plant,” Dr Smith says.

 

Specifics of the developments are:

 

Te Tumu Eastern Corridor: A greenfields development which will eventually include a town centre, potential job growth for about 8500 people, a new school development and significant recreational facility development. The Te Tumu development will provide infrastructure for 20 per cent of Tauranga’s forecast housing needs in the next 30 years.

 

Waiari Water Treatment Plant: A new water treatment plant at Waiari, with existing consent to draw water from the Waiari stream until 2050. The plant will provide for 100 per cent of the fresh water needs for the predicted growth in the next 30 years.

 

Te Maunga Wastewater Treatment Plant Extension: Increases the capacity of the existing plant to service 100 per cent of the waste water needs for expected housing growth over the next 30 years.

 

“Both the Te Maunga waste water extension and Waiari water treatment plant have been going through the planning process for 20 years. This demonstrates a good grasp of long-term infrastructure growth planning by Tauranga City Council, which is great to see,” Mr Joyce says.

 

“Te Maunga has already secured resource consent for the extension plans, which will speed up the implementation of this exciting new infrastructure. Sewage treatment and disposal would have been a significant obstacle to responding to rapid housing growth in Tauranga, and now we have a way for forward,” Dr Smith says.

 

The Tauranga City Council will now work through Detailed Business Cases for the projects alongside government agencies, with the first funding agreements from the Housing Infrastructure Fund expected to be signed before the end of the year.

The Housing Infrastructure Fund will provide 10,700 more houses across two major new subdivisions in the Waikato, Finance Minister Steven Joyce and Building and Construction Minister Dr Nick Smith say.

“These investments will unlock two major subdivisions in one of New Zealand’s fastest growing regions,” Mr Joyce says. “It will provide network roading and water infrastructure for the 8100 section Peacockes Development on the southern border of Hamilton and a 2600 section subdivision in Te Kauwhata in Northern Waikato.”

The Peacockes development in Hamilton is close to the city’s CBD, university and hospital and has been on the planning books for some years.

“This proposal from the Hamilton City Council includes a new bridge over the Waikato River, as well as an interchange at Cobham Drive and connection to State Highway 3,” Mr Joyce says.

“This initiative is a massive boost to the supply and affordability of housing in Hamilton. The first homes are projected to be completed by the end of 2018, at least 1000 by 2022, and a further 7100 progressively as demand requires,” Dr Smith says.

“This project will complement the high level of uptake of the Government’s KiwiSaver HomeStart scheme for first home buyers. Hamilton has one of the highest uptakes; over 1000 people have used the scheme, with $25 million of KiwiSaver withdrawals and $5 million of HomeStart grants to fund first home deposits. The uptake has been predominantly for existing homes because of a shortage of new houses. This Southern Hamilton development is ideal for new house buyers.”

The Waikato District Council’s proposal is for a greenfield development adjacent to Te Kauwhata that will provide 2600 houses, all within 10 years. 

“The Housing Infrastructure Fund will provide local road upgrades, cycle connections, and three waters infrastructure to allow this development to occur,” Mr Joyce says.

“An exciting aspect of this project is that it will provide significant environmental benefits alongside the supply of housing,” Dr Smith says. “The project includes a wastewater solution that will remove all the existing municipal wastewater discharges from the catchment of Lake Waikare and the Whangamarino wetland, allowing a major lift in the freshwater quality in both the lake and the wetland.”   

The successful Councils will now work through Detailed Business Cases for the projects alongside government agencies, with the first funding agreement from the Housing Infrastructure Fund expected to be signed in the coming months.

Five of New Zealand’s fastest growing Councils will have infrastructure projects funded through the Government’s $1 billion Housing Infrastructure Fund, Finance Minister Steven Joyce and Building and Construction Minister Dr Nick Smith say.

“These funding decisions will help provide another big step forward in housing supply,” Minister Joyce says. “The funding will be used to provide network roading and water infrastructure for 60,000 houses across nine projects in these five fast-growing urban areas.”

“The funding of this infrastructure is bringing forward the ability to build these homes in some cases up to eight years earlier than otherwise,” Dr Smith says.

“Adding these big new subdivisions will help lift the supply of residential sections and bring greater consumer choice into the housing market.”

The successful proposals are in critical high growth areas including:

Auckland Council – $300 million – 10,500 houses

Greenfield development (North-west) at Whenuapai and Redhills.

Hamilton City Council – $272 million – 8,100 houses

Greenfield development (Peacockes) on southern edge of Hamilton.

Waikato District Council – $37 million – 2,600 houses

Te Kauwhata (new development on the shore of Lake Waikare).

Tauranga City Council – $230 million – 35,000 houses

Greenfield development at Te Tumu (eastern end of Papamoa) as well as a capacity upgrade to the Te Maunga Wastewater Treatment Plant and a new (Waiari) water treatment plant (at Te Puke).

Queenstown Lakes District Council – $50 million – 3,200 houses

Two new greenfield sites (Quail Rise South and Ladies Mile) on the Frankton Flats and an extension of the Kingston township.

Proposals were assessed by independent experts and an independent evaluation panel recommended the agreed package to Ministers.

“The infrastructure to be funded includes a new bridge over the Waikato River, a State Highway interchange, arterial roads, water and waste treatments plants, pump stations and reticulation and collection networks, and storm water drainage”, Mr Joyce says.

“This infrastructure initiative is the logical next step in our housing programme. We have freed up planning constraints on new subdivisions through Special Housing Areas and reforms to the Resource Management Act but the areas zoned for residences cannot be built on without infrastructure. We will be working closely with the Councils and developers to ensure these projects are progressed at pace,” Dr Smith says.

“The next step is for the Councils to complete with the Government the detailed funding agreements which we expect to be concluded in the next few months. There is also a huge amount of work required on resource consenting and construction of the works. The first earthworks will be under way this coming summer, the first homes consented early in 2018 and homes completed by late 2018.”

The Government expects to make statements on further new funding options and tools for housing infrastructure in the coming weeks. 

The Housing Infrastructure Fund will provide $230 million in funding to the Tauranga City Council to provide for 35,000 more houses through three major new infrastructure projects in the city, Finance Minister Steven Joyce and Building and Construction Minister Dr Nick Smith say.

“These infrastructure projects will provide for a very large part of the expected need for additional housing for the next 30 years in one of New Zealand’s fastest growing regions,” Mr Joyce says.

“The proposed infrastructure includes a connection to State Highway 2, new local arterial roads, new wastewater and water supply network mains and storm water infrastructure as well as building a new water treatment plant and extending the wastewater treatment plant,” Dr Smith says.

Specifics of the developments are:

Te Tumu Eastern Corridor: A greenfields development which will eventually include a town centre, potential job growth for about 8500 people, a new school development and significant recreational facility development. The Te Tumu development will provide infrastructure for 20 per cent of Tauranga’s forecast housing needs in the next 30 years. Waiari Water Treatment Plant: A new water treatment plant at Waiari, with existing consent to draw water from the Waiari stream until 2050. The plant will provide for 100 per cent of the fresh water needs for the predicted growth in the next 30 years. Te Maunga Wastewater Treatment Plant Extension: Increases the capacity of the existing plant to service 100 per cent of the waste water needs for expected housing growth over the next 30 years.

“Both the Te Maunga waste water extension and Waiari water treatment plant have been going through the planning process for 20 years. This demonstrates a good grasp of long-term infrastructure growth planning by Tauranga City Council, which is great to see,” Mr Joyce says.

“Te Maunga has already secured resource consent for the extension plans, which will speed up the implementation of this exciting new infrastructure. Sewage treatment and disposal would have been a significant obstacle to responding to rapid housing growth in Tauranga, and now we have a way for forward,” Dr Smith says.

The Tauranga City Council will now work through Detailed Business Cases for the projects alongside government agencies, with the first funding agreements from the Housing Infrastructure Fund expected to be signed before the end of the year.

Finance Minister Steven Joyce and Transport Minister Simon Bridges, in conjunction with Auckland Council, today announced appointments to the Board of City Rail Link Limited, the new company jointly owned by the Crown and Auckland Council with responsibility for delivering Auckland’s City Rail Link project.

Sir Brian Roche was appointed as Chair at the establishment of the company. The Board members are Russell Black, Brian Harrison, Karen Jordan and Anne Urlwin.

“I welcome the valuable knowledge and experience that these people will bring into their new roles,” Mr Joyce says. “Under the leadership of Sir Brian Roche as Chair, CRLL will drive delivery of this complex project.”

“The appointees bring considerable experience in major project management, procurement in rail projects and other large infrastructure projects, and expertise in finance, accounting and audit and risk,” Mr Bridges says. “I’m confident they are the right group to oversee this hugely important transport project.”

Biographies:

Russell Black is a consultant who is a Civil Engineer by training, and has significant experience in senior management of large transport infrastructure companies and project managing large infrastructure projects, such as the London Underground’s Jubilee Line extension. He was Project Director for the Mass Transit Railway Corporation (MTR) in Hong Kong and consulted to Metro Trains, Melbourne and Sydney Metro. He was previously a member of EQC, and he has been a director of Northpower Ltd since 2011. 

Brian Harrison is a lawyer who specialises in infrastructure funding, procurement, PPPs and contracts. Some of the projects that he has been involved in include: acting for project finance lenders to the Arlanda express rail link, Stockholm; negotiation and delivery of the private finance portion of the funding for the construction of the Jubilee Line, London; adviser to the Strategic Rail Authority (UK) on the capitalisation and debt structuring of rail infrastructure assets.

Karen Jordan immigrated to New Zealand in late 2015 from the UK where her last role was with the Ministry of Defence as Director Contract Management, where she was responsible for improving capability across a multi-billion pound procurement and investment programme. Prior to that, she spent the majority of her career in British Gas or National Grid Plc. 

Anne Urlwin is a Wanaka-based professional director, chartered accountant and business consultant with a wide range of directorship experience. Ms Urlwin is currently the Chair of Naylor Love Enterprises (to step down in October), a director of Chorus, Southern Response Earthquake Services, OnePath Life, Steel & Tube Holdings and Summerset Group Holdings. She has experience of both central and local government and has served on numerous Crown boards and two local government CCOs.

The Government accounts for the eleven months to 31 May 2017 show a surplus of $4.5 billion, $1.5 billion ahead of the budget forecast, says Finance Minister Steven Joyce.

“The rising surplus shows the benefit of a strong economic plan that is delivering consistent growth,” Mr Joyce says. “The primary driver for these results is stronger-than-forecast tax revenues, particularly company tax” Mr Joyce says.

Core Crown revenue was $1.1 billion higher than expected for the eleven month period, while Core Crown expenditure was $345 million less than what was expected. 

Net debt is currently at 22.4 per cent of GDP.

“While these surpluses are significant, they will be needed to meet the cost of the significant investments we have committed to as part of the next four Budgets including the Government’s $32.5 billion infrastructure programme,” Mr Joyce says.

“It is only possible to make the investment decisions we have announced in the last few months because we have a strong economic plan which is delivering for New Zealanders. If we keep with the plan we will have the capacity to make more positive decisions into the future.” 

The May actuals are compared against forecasts in the 2017 Budget Economic and Fiscal Update, previously published on 25 May, and are the last actual results published until the audited accounts for 30 June 2017 are released in mid-October.

“The next opportunity we will have to review the government accounts and the expectations for the years ahead will be at the Pre-election Fiscal Update on August 23,” Mr Joyce says.

Finance Minister Steven Joyce and ACC Minister Michael Woodhouse have today announced the sale of FairWay Resolution from Crown ownership to employee ownership with effect from July this year.

“Employee-ownership is a successful business model that will give staff a greater role in the future direction of the company,” Mr Joyce says.

“The change in ownership will also reflect positively in the way staff work, which has a direct flow on for clients.”

Fairway started in 1999 as the Dispute Resolution Service within ACC before becoming an independent Crown entity in 2011, and is New Zealand’s largest specialist conflict management company with a team of over 200 people throughout New Zealand.

“An independent review of the ACC dispute resolution process in 2016 found that Crown ownership affected clients’ perceptions of FairWay’s independence and the report cited change of ownership as a possible solution,” Mr Woodhouse says.

“With today’s announcement, any doubts that clients may have had about the complete independence of FairWay can be laid to rest.”

Independent advice was relied upon to identify and assess appropriate options for the long-term ownership of the company with the employee ownership model best for the crown and company. The agreed purchase price was $6.5 million

Finance Minister Steven Joyce and Transport Minister Simon Bridges have today signed the agreements with Auckland Mayor Phil Goff that establish City Rail Link Limited to assume responsibility from tomorrow for delivering Auckland’s City Rail Link, marking the next step in transforming Auckland’s public transport.

“City Rail Link Limited (CRLL) is a new company owned jointly by central and local Government, with the sole and express responsibility of successfully delivering the game-changing City Rail Link (CRL) project,” Mr Joyce says.

“This is a complex and critical piece of infrastructure that will unlock major development opportunities across central Auckland”, Mr Joyce says,  “It is crucial we have a single joint entity running the project solely focussed on delivering a high-quality result for the city while effectively managing the investment of both the Crown and Auckland Council.”

“This is a massive public transport project to deliver New Zealand’s first underground rail system. I want to congratulate the project team that has successfully managed the CRL project to date, and supported the transition to CRLL,” Mr Bridges says.

“Today’s signing is the next milestone in this important addition to Auckland’s public transport system. Auckland’s population predicted to grow by more than 700,000 people over the next 30 years, the CRL will play an important role in getting people in and out of the city with ease.

“Once complete, the CRL will fundamentally change the way people get around central Auckland and demonstrates the Government’s is commitment to Auckland and its Public Transport systems.

“CRL is Auckland’s top new transport priority. It will double the capacity of the whole existing rail network and provide significant travel time savings for commuters,” Mr Bridges says.

“The Crown and Auckland Council have signed agreements transferring the project to CRLL, formalising their partnership to jointly fund and oversee it through to completion,” Mr Joyce says.

“Under the leadership of Sir Brian Roche as Chair, CRLL will drive delivery of this complex project.”

Once complete, the CRL will be one of New Zealand’s largest-ever transport projects. The 3.4 kilometre double-track underground rail line will run from Britomart station in downtown Auckland through the CBD to connect with the existing western line at Mt Eden station.

Finance Minister Steven Joyce today announced that Lindsay Wright and Philippa (Pip) Dunphy have been reappointed to the Guardians of New Zealand Superannuation Board.

“As a New Zealander based in Hong Kong, current Deputy Chair Ms Wright brings an international, particularly Asian perspective, and a strong asset management investment capability, both in public and private markets, to the New Zealand Superannuation Fund,” Mr Joyce says. “We are fortunate to have someone with Ms Wright’s understanding of financial markets on the Board.”

Ms Wright is currently co-Head of BNY Mellon Investment Management Asia-Pacific and Head of Distribution Asia Pacific. She will be reappointed for a shortened term of one year as her new term commencement date could fall within the caretaker government period.  

“Ms Dunphy brings strong technical investment knowledge, deep Crown and private sector governance experience, as well as institutional knowledge of the Fund from her near five years on the Guardians Board,” Mr Joyce says.

Pip Dunphy chairs the Guardians Audit Committee. She is also Deputy Chair of Abano Healthcare Group Ltd and former Chair of Mint Asset Management Ltd.  She is to be reappointed for a shortened term of two years in order to provide more options for succession planning.

The New Zealand Superannuation and Retirement Income Act 2001 established the New Zealand Superannuation Fund, a portfolio of investments held for the purpose of helping to meet the cost of New Zealand Superannuation. The Guardians manage and administer the Fund. The New Zealand Superannuation Fund is one of the Crown Financial Institutions.

Finance Minister Steven Joyce and the Minister Responsible for the Earthquake Commission Gerry Brownlee have today announced plans to simplify and improve the EQC scheme for New Zealanders.

“EQC has provided huge support to New Zealanders following the Christchurch, Seddon, and Kaikōura earthquakes,” Mr Joyce says.

“This review has provided us the opportunity to consider how the scheme could work more effectively for future natural disasters.

“Everyone with a private insurance policy, that includes fire insurance for their residential building, will continue to receive EQC cover,” Mr Joyce says. 

Mr Brownlee says the reforms will have no impact on the handling and outcome of existing EQC claims.

“The reforms we are announcing will simplify the relationship between the EQC scheme and private insurance and help provide faster and smoother resolution of claims following a major event,” Mr Brownlee says.

The reforms are:

Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover. Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it. Standardising the claims excess on EQC building cover at $1,000. This currently ranges from $200 to $1,150 depending on the size of the claim. EQC no longer providing any residential household contents insurance. Requiring EQC claimants to lodge claims with their private insurer who would pass the claim on to EQC (if the property is insured).

“Requiring EQC claimants to lodge claims with their private insurer will help EQC and private insurers work better together in future.

“Following feedback from the Discussion Document issued in 2015, changes were made in response to submitter concerns regarding the treatment of land damage affecting residential buildings, the previously proposed $2000 excess and the idea of combining building and land damage cap amount,” Mr Brownlee says.

Further work now needs to be done on the details of a scheme that will incorporate the features announced today.

The Government hopes to release a draft of an EQC reform bill later this year or early next year, with the changes anticipated to be implemented in 2020.