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Why is it so expensive to build infrastructure in NZ?

Author
Newstalk ZB,
Publish Date
Fri, 1 Dec 2023, 7:44AM
Photo / NZ Herald | File
Photo / NZ Herald | File

Why is it so expensive to build infrastructure in NZ?

Author
Newstalk ZB,
Publish Date
Fri, 1 Dec 2023, 7:44AM

Several factors may contribute to New Zealand being the most expensive country in the world to build infrastructure. 

Some projects cost four to five times as much to complete here as they do in Europe. 

City Rail Link Chief Executive Sean Sweeney says the industry has suffered a market failure. 

Infrastructure New Zealand Chief Executive Nick Leggett told Mike Hosking that it's partly due to our geography, partly due to slow consenting, and partly due to the ability of officials to negotiate. 

He says they try and screw down the market because they think they can get out of the risk, but the market then prices the risk into the contract and things get more expensive. 

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