Borrowing to invest in infrastructure sound strategy

Business welcomes and enthusiastically endorses the Government’s policy prescription launched today for maintaining and expanding New Zealand’s infrastructure, the Employers & Manufacturers Association (Northern) says.

“Making sure our transport, electricity and ICT networks are efficient and reliable is fundamental to achieving higher national productivity,” said EMA’s chief executive, Alasdair Thompson.

“With $110 billion of assets at stake it makes sense to plan their upkeep and development with care; the Infrastructure Plan will go a long way to ensuring that.

“It makes sense too, to borrow to fund infrastructure development since the assets created typically deliver better returns on investment than others.

“Having this plan and regularly updating it will help prioritise investment decisions, which are important for making the most from the funds available.

"Most important is the plan’s function in identifying potential infrastructure deficits before they start to cripple our business and economic performance.”