Infrastructure and Energy Supply
High-quality, reliable infrastructure and a secure supply of energy give firms the confidence to invest and to be internationally competitive. Infrastructure investment needs to keep pace with economic growth so that it is not choked off. New Zealand's infrastructure is reasonably sound, but there are signs of under-investment in some areas. There are also risks to energy supply.
- New Zealand ranks 19th in the OECD for the overall quality of our infrastructure, and 21st for the adequate planning and financing of infrastructure. These rankings match those for per capita income - suggesting a close association between the two.
- In 2004, a stocktake of the adequacy of infrastructure in New Zealand highlighted a number of national and local infrastructure concerns. Particular issues were identified with security of electricity supply, lack of investment in electricity transmission, road congestion in some key areas (particularly Auckland), deficiencies in the framework for allocating water between competing uses, and poor quality drinking water in some areas.
- Following wide-ranging reviews of infrastructure provision and regulation, new policies are being implemented. These include new regulatory regimes for the electricity and gas sector as well as changes to the Resource Management Act.
Overall Infrastructure Quality
Source: WEF (2005), Global Competitiveness Report 2004/2005.