InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand

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InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
InfraRead
    Te Kawepūrongo Waihanga

ISSUE 2.
JULY 2021
InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
InfraRead
Te Kawepūrongo Waihanga

       Kia ora

       Welcome to the July edition of InfraRead.

       As I take over the leadership of Infrastructure New Zealand, it is worth noting
       that change can sometimes be unsettling. Nonetheless, our work programme and
       events calendar remain unchanged, and I’m working very closely with our Board to
       deliver these.

       We have several exciting events scheduled in the coming months and work is well
       underway to deliver another successful Building Nations event this November.
       Just last week Infrastructure New Zealand and Chapman Tripp co-hosted
       Hon Nanaia Mahuta at an Auckland event on Three Waters.

       July has been yet another busy month in the policy world. The government is
       pushing ahead with a heavy workload and is consulting on several proposals
       simultaneously. One of them is the reforms to the resource management system,
       and you will find there is a dedicated section on that in this edition.

       Please feel free to forward this newsletter to others in your organisation. If you
       have colleagues who would like to be added to the InfraRead mailing list, they can
       subscribe by emailing office@infrastructure.org.nz.

       I encourage you to reach out if you have any comments or feedback, or if there
       are specific matters you would like to discuss. I can be contacted at
       claire.edmondson@infrastructure.org.nz.

       Ngā mihi
       Claire Edmondson
       General Manager

                                                                      ISSUE 2. JULY 2021    2
InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
CONTENTS
 Peddling influence trumps urgent power needs		            4

 Our energy conundrum 							                              7

 NEWS
    GPS on Housing and Urban Development 			               11
    Beyond the Resource Management Act 1991 				           12

    Auckland Light Rail								                            14

    An emissions reduction plan							                     15

    Local government wraps up long-term budgets			         16

    Three Waters Reform Programme						                    17

    Other note-worthy government announcements			          18

 UPCOMING EVENTS								19

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Te Kawepūrongo Waihanga                        ISSUE 2. JULY 2021   3
InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
Peddling influence trumps
urgent power needs
By Claire Edmondson, General Manager

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   Te Kawepūrongo Waihanga             ISSUE 2. JULY 2021   4
InfraRead Te Kawepūrongo Waihanga - ISSUE 2. JULY 2021 - Infrastructure New Zealand
I’m all for modeshift. I bought my electric bike three years ago and recently
invested in an electric scooter. I love my electric bike and am a confident
cyclist – I zoom around Auckland’s city centre, take my e-bike with me
over to Waiheke Island, and it even accompanies me on the ferry to the
Coromandel.

   However, I still cannot fathom         The Benefit Cost Ratio (BCR) is
   why the government thinks              estimated at 0.4-0.6 – yes, for
   spending $785 million on a             every dollar spent, there could
   walking and cycle lane across          well be a loss of up to 60 cents.
   the Waitemata Harbour is a good
   investment, especially at this         I cannot help but question this
   time when the government has           project’s priority at a time when:
   either downsized or culled some        • there is a significant
   other committed projects.                infrastructure deficit in areas
                                            such as the health sector
   Last month, Transport Minister
                                          • we have nurses striking over
   Hon Michael Wood announced
                                            their pay during the COVID-19
   the Northern Pathway Westhaven
                                            pandemic
   to Akoranga project as a
   dedicated walking and cycling          • we have over 100,000 New
   link between Central Auckland            Zealanders stating they are
   and the North Shore. The                 homeless
   preferred option is a stand-alone      • over 100,000 people have
   bridge alongside the existing            presented a petition to
   Harbour Bridge.                          Parliament asking for more
                                            funding so New Zealanders
   Perhaps I’m experiencing a               can get access to modern
   different reality in Auckland and        medicine from Pharmac,
   New Zealand than whoever came            because the $200 million extra
   up with this idea, but I really          funding allocated over four
   cannot understand the logic              years in this year’s National
   behind this project.                     Budget is insufficient.

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   Te Kawepūrongo Waihanga                                  ISSUE 2. JULY 2021   5
Why not just get on with a            Minister Wood believes the BCR
multimodal harbour crossing           would improve once a more
instead?                              detailed re-assessment was done.

The government is rightly             To me, that suggests fudging
copping flak on the issue, with       numbers to artificially make
the National Party stating the        a project appear beneficial.
whole fiasco – including the          If the numbers do improve
earlier clip-on version – has         substantially, it would be useful
already cost $37 million, with        to review the methodology and
$20 million spent on consultants      apply it against projects that
alone over the past two financial     have not progressed due to an
years.                                unfavourable BCR.

The ACT Party’s David Seymour         All this announcement tells me is
has stated the announcement           that if you have the means and
breaks the government’s original      create noise, this government
2018 statement that it would fully    will give you what you want when
fund the cycle crossing only if the   others without a voice are not
business case for it stacked up.      getting what they need!

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Te Kawepūrongo Waihanga                                 ISSUE 2. JULY 2021   6
Our energy conundrum
By Martina Moroney, Researcher

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   Te Kawepūrongo Waihanga       ISSUE 2. JULY 2021   7
A confluence of below average rainfall, low hydro lake storage levels and less
wind has resulted in New Zealand using more coal for electricity generation
in the quarter to March 2021 than in any other quarter since 2012.

   Hydro generation was down by           This forced reliance on coal
   9%, and gas faced supply issues,       demonstrates the difficult and
   experiencing an 18% decrease           expensive battle the government
   over the past year, resulting          faces in closing the gap between
   in a turn to coal as a back-up         our current capacity and its goal
   generation source.                     of 100% renewable energy by
                                          2035.
   Compared to the quarter
   immediately preceding it, the          Addressing the issue will
   amount of coal burned for              depend on increasing hydro
   electricity production more            energy storage capacity and
   than doubled, to nearly 430,000        the productive resilience of
   tonnes.                                renewable sources.

   At Huntly, our least renewable         The Ministry of Business,
   energy production source, these        Innovation and Employment’s
   challenges have meant that their       NZ Battery project seeks to
   third Rankine unit was brought         address the dry-year problem
   online during this period of           by funding the establishment of
   increased coal-demand. And             further hydro-storage to the tune
   the share of renewable energy          of $30 million for the feasibility
   decreased to 79% from 82%              study alone, and billions more if
   compared to the same period last       construction is undertaken.
   year.

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   Te Kawepūrongo Waihanga                                 ISSUE 2. JULY 2021   8
Against a background of              In recognition of the size of the
limited capital available for        challenge presented by work
climate change adaptation            to ensure the consistency of
and mitigation, the technically      renewable energy provision, the
difficult task of building           Climate Change Commission
storage capacity to enable the       itself discusses a more
achievement of those last few        realistic assessment of the
percentage points of renewable       100% decarbonisation goal
energy generation is going to        and recommends that the
be equally as economically           government avoid prioritising
challenging as it is technically     a huge pay out for a few
difficult.                           percentage points, and instead
                                     focus on decarbonising other
Further, as we transition away       sectors and address other
from fossil fuels and increasingly   challenges in the electricity
seek to rely on renewable energy     generation space.
sources under the government’s
decarbonisation agenda, the
issue of limited supply is only
likely to worsen and compound
the existing challenges.

What is now a dry-year problem,
is likely to become a dry, cloudy,
and/or calm issue as we also
rely on wind and solar, which will
in turn be worsened by rising
electricity demand.

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Te Kawepūrongo Waihanga                                ISSUE 2. JULY 2021   9
NEWS

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Te Kawepūrongo Waihanga   ISSUE 2. JULY 2021   10
Consultation for a
government policy
statement on housing
and urban development
 The Ministry of Housing and
 Urban Development is consulting
 on a discussion document that         The first GPS-HUD will be
 will inform the Government Policy     published by 1 October 2021 and
 Statement on Housing and Urban        reviewed at least every three years.
 Development (GPS-HUD).
                                       The consultation and publication
 The GPS-HUD is intended to            timeline appears overly ambitious
 provide a shared vision and           and rushed, and the government
 direction across housing and          is consulting on a discussion
 urban development, to guide and       document as opposed to a draft
 inform the actions of all those who   government policy statement.
 contribute. It will seek to set out
 how the government and other          Submissions close on 30 July.
 parts of the housing and urban
 development system will work          Infrastructure New Zealand will
 together to realise this vision.      make a submission.

 The GPS-HUD will seek to shape
 future:
 • government policy
 • investment
 • programmes of work.

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  Te Kawepūrongo Waihanga                                ISSUE 2. JULY 2021   11
Beyond the Resource Management Act 1991
– from one to three
 The government released an            • the Bill’s purpose and related
 exposure draft of the Natural and       provisions (Part 2)
 Built Environments Bill (the Bill)    • a national planning framework
 on 29 June. The resulting Natural       (Part 3)
 and Built Environments Act will be
 one of three Acts to replace the      • natural and built environments
 Resource Management Act 1991            plans (Part 4).
 (the RMA), the others being the
 Strategic Planning Act and the        The exposure draft marks another
 Climate Change Adaptation Act.        step in replacing the RMA, though
                                       questions are being raised over
 The Bill’s proposed purpose           how much of an improvement the
 is broader than the RMA’s; it         Bill really is over the RMA, including
 emphasises protecting and             concerns around further cost
 enhancing the natural environment     pressures on councils and erosion
 (instead of just managing it) and     of local democracy.
 considers future generations’ well-
 being.                                Timelines
                                       The Bill’s exposure draft is a
 The exposure draft covers land-use    partial one, and the Environment
 and environmental regulation and      Committee will consider it between
 includes draft clauses on:            29 June and 18 October.

                                       The closing date for public
                                       submissions is 4 August.
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  Te Kawepūrongo Waihanga                                 ISSUE 2. JULY 2021    12
The select committee will report         and having particular regard to
its findings to Parliament. Changes      cumulative effects; one of the
will be made before the entire Bill is   criticisms of the RMA has been its
formally introduced to Parliament        inability to account for cumulative
in the first quarter of 2022, followed   effects adequately. Also, this list is
by the usual select committee            more like a shopping list than a key
process.                                 list of principles. MFE need to cut
                                         these down to a core few.
The government is looking to pass
the Bill and the Spatial Planning Bill   Natural and built environments
into law before the second half of       plans
2023.                                    A further key proposal in the
                                         exposure draft is having planning
We ran a survey from 7-18 July           committees in each region
seeking member input – thank you         to prepare natural and built
to those who completed the survey.       environments plans. The proposal
We will make a submission on the         follows the Resource Management
exposure draft.                          Review Panel’s proposal to develop
                                         one natural and built environments
A national planning framework            plan per region.
The Bill proposes a national
planning framework which would           The government has indicated
have the effect of regulations,          it is still considering the best
i.e. the government will be able         approach to plan preparation and
to prepare, update or review the         decision-making. It will look to
framework without going through          the feedback received from the
the Parliamentary process. While         select committee inquiry. Natural
it could serve as a key catalyst to      and built environments plans will
making the resource management           consolidate over 100 RMA policy
system agile, responsive and             statements and regional and
enabling the government to               district plans into about 14 plans,
respond quickly, the framework           which the government considers
could look very different depending      vital to simplifying and improving
on the government of the day.            the integration of the system.

The exposure draft also puts             A concern of the reforms is that
forward a list of indicative             there will now be three Acts to
principles under Part 2, such as         navigate and interpret and that
taking a precautionary approach          this may lead to further delays to
                                         planning and developing.
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 Te Kawepūrongo Waihanga                                    ISSUE 2. JULY 2021    13
Auckland Light Rail
 The government announced earlier
 this year it was making a “fresh
 start” on the Auckland Light Rail
 project.

 Transport Minister Hon Michael
 Wood said this was because            urban development, economic
 the previous process had not          and environmental outcomes for
 involved Aucklanders enough.          everyone.
 The government subsequently
 set up the Auckland Light Rail        The Auckland Light Rail Group
 Group to develop a business case      will include the feedback into its
 and make recommendations. The         business case and it expects to
 group consists of Waka Kotahi NZ      provide its recommendations to
 Transport Agency, the Ministry        the government in September. We
 of Transport, Auckland Council,       encourage you to visit the light rail
 Auckland Transport, and Kāinga        website and complete the online
 Ora.                                  feedback form.

 Auckland’s light rail will run from   The government will make a
 the city centre to Māngere and is     decision about the route, mode and
 intended to provide the backbone      delivery entity later this year.
 for future light rail to North and
 North-west Auckland.                  Later phases of consultation will
                                       address more detailed issues like
 The group is currently holding        the location of stops or stations and
 community focussed “listening”        how disruption will be managed.
 sessions until 31 August to
 understand what people want           Infrastructure New Zealand will be
 and build the project’s social        holding a member event in August
 licence. This engagement period       on the Auckland Light Rail. More
 is about finding the solution that    details will be released soon.
 gives the best transport, access,

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  Te Kawepūrongo Waihanga                                 ISSUE 2. JULY 2021   14
An emissions reduction
plan
 The Climate Change Commission’s
 final advice to the government
 on how New Zealand can reach
 its climate target was tabled in
 Parliament last month.                 vehicles; and supporting a more
                                        efficient freight system.
 The government now has until
 31 December 2021 to set the first      Submissions closed late last
 three emissions budgets out to         month and we made a submission
 2035 and release its first all-of-     primarily focussed on the need
 government emissions reduction         for integration between urban,
 plan. If it chooses not to accept      transport and land-use planning,
 the commission’s advice, it must       and broadening the first theme
 publish an alternative plan for        to ‘changing why and the way we
 addressing climate change in New       travel’.
 Zealand and reaching its targets.
                                        Full public consultation on
 Work on an emissions reduction         initiatives to reduce transport
 plan has already begun. The            emissions will occur in the second
 plan will include a chapter on         half of this year and then refined
 transport and the Ministry of          further for inclusion in the transport
 Transport recently consulted on a      chapter of the emissions reduction
 consultation document Hīkina te        plan.
 Kohupara – Kia mauri ora ai te iwi -
 Transport Emissions: Pathways to       The Climate Change Commission
 Net Zero by 2050.                      will begin monitoring how the
                                        government’s emissions reduction
 The consultation document              plan is being implemented from
 focussed on identifying                2022, including how well New
 opportunities to reduce emissions      Zealand is tracking to meet the
 across three themes: changing the      2050 net zero target.
 way we travel; improving passenger

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  Te Kawepūrongo Waihanga                                  ISSUE 2. JULY 2021   15
Local government wraps
up long-term budgets
 The process of councils consulting
 on and adopting their long-term
 plans has concluded.

 Long-term plans are councils’ 10-
 year budgets which are renewed         even projects without confirmed
 every three years. The themes of       funding, can be timed for later
 emissions and climate change,          years and then again pushed out in
 environment, infrastructure,           the following iteration resulting in a
 COVID-19 impacts and recovery          vicious cycle.
 have been consistent across the
 plans, with rates rises remaining a    In the case of Auckland, a decision
 contentious issue for ratepayers.      to introduce congestion charging
                                        will have significant implications for
 Some commentators have                 the RLTP; not only will there be a
 expressed their amazement as to        need for infrastructure to establish
 how easily councils can increase       and run a pricing scheme, but
 rates – often significantly – with     increased investment will also be
 negligible to no pushback from         needed to cater for the increased
 those who pay them.                    mode shift that will result from
                                        congestion charging. The newly
 Alongside long-term plans, regional    adopted RLTP does not include the
 councils and Auckland Transport        cost of implementing congestion
 have also adopted their respective     pricing.
 regional land transport plans
 (RLTPs). RLTPs lay out a region’s      Meanwhile, Parliament’s Transport
 land transport objectives, policies,   and Infrastructure Committee
 priorities and measures for at least   is undertaking an inquiry into
 10 years. They include capital as      congestion pricing in Auckland at
 well as operational spending and       the request of Transport Minister
 identify a range of projects, but      Hon Michael Wood. We made a
 as the saying goes, the devil is in    high-level submission in May.
 the detail. Some much bigger and
 potentially contentious projects,      The select committee is expected
                                        to report back later this year.
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  Te Kawepūrongo Waihanga                                  ISSUE 2. JULY 2021    16
Three Waters Reform
Programme
 The government has made a
 number of recent announcements
 regarding its proposal for three
 waters reform.
                                       It is too early to speculate on how
 The government is proposing to        successful the reform programme
 create four large publicly-owned      will be given the response from
 water entities to take on the role    several councils continues to be
 of public water providers in New      lukewarm. The possibility of the
 Zealand.                              reform being mandated by the
                                       government is a possibility.
 A $2.5 billion package has also
 been announced for councils           Infrastructure New Zealand,
 who participate in the reform         in conjunction with co-hosts
 programme – $500 million will         Chapman Tripp, held a lively
 be spent on supporting councils       question and answer session with
 through the transition process and    Hon Nanaia Mahuta last Thursday
 to ensure the reform’s financial      (22 July).
 impacts will be managed, and $2
 billion will be awarded to councils   The event was well-attended, and
 to invest in the future for local     the Minister used the opportunity
 government, urban development,        to reflect on the progress and
 and their communities’ wellbeing.     implications of the Three Waters
                                       Reform Programme.
 Details of how the package
 will be divided across councils
 or how exactly growth-related
 infrastructure would be funded is
 not yet clear.

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  Te Kawepūrongo Waihanga                                 ISSUE 2. JULY 2021   17
Other note-worthy government
announcements

KiwiRail’s inaugural Rail Network Investment
Programme
Commits $1.353 billion for freight, tourism and the Auckland and Wellington
Metro networks. Spending will be across network maintenance, operations,
management, renewals and improvements.

Infrastructure Acceleration Fund
A contestable process to allocate funding to infrastructure projects for
housing development, part of the government’s $3.8 billion Housing
Acceleration Fund announced in March 2021.

Productivity Commission inquiry into immigration
settings
An inquiry into what immigration policy settings would best facilitate
New Zealand’s long-term economic growth and promote New Zealanders’
wellbeing.

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   Te Kawepūrongo Waihanga                                ISSUE 2. JULY 2021   18
UPCOMING
EVENTS

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Te Kawepūrongo Waihanga   ISSUE 2. JULY 2021   19
AUGUST

  Auckland Light Rail

  Leaders Lunch with Hon David Clark, Minister for the
  Digital Economy and Communications (full capacity)

SEPTEMBER & OCTOBER

  NX2 Project site visit

  Low Emission Vehicle Infrastructure

  Renewable Energy and Hydrogen

NOVEMBER

  Building Nations

    More information on these member events will be released soon.

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 Te Kawepūrongo Waihanga                             ISSUE 2. JULY 2021   20
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