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• Appendix A

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The purpose of this project is to develop a "best practice" infrastructure policy framework that takes account of conditions in New Zealand, particularly sustainable development objectives, against which existing settings can be compared and areas where enhancements may be made identified.

Issues that the Policy Framework is expected to cover are as follows:

• The framework is expected to have a high level cross-sectoral focus and be sufficiently flexible to account for differences between sectors. A cross-sectoral focus takes into account inter-relationships between infrastructure sectors and trade-offs and complementarities in achievement of objectives.
• The framework take account of best practice sectoral and cross-sectoral policy settings observed in the literature and in other jurisdictions, noting the particular characteristics of the New Zealand situation which may impact on the applicability of international models of best practice.
• The framework will set out principles that can be used when developing policy settings to ensure infrastructure supports sustainable development objectives. Issues that will be covered include:
  • What are the key defining characteristics of infrastructure?
  • What analytical frameworks can be applied to infrastructure sectors?
  • What level of service do we expect from infrastructure and what magnitude of investment is appropriate for a first-world country?
  • How should demand-side factors be addressed in infrastructure policy, e.g. demand management?
  • What are the roles of central and local government in:
  • facilitating infrastructure investment decisions?
  • coordinating infrastructure investment decisions?
  • planning and prioritising infrastructure investment?
  • regional and national infrastructure policy?
  • What are the key impediments to infrastructure investment and what is the role of central (and local) government in relation to these impediments?
  • What are the factors dictating whether investment in a particular infrastructure is most appropriately undertaken by central government, local government or private enterprise?
  • How should risks be shared between government and the private sector?