Thinking long-term: why the National Infrastructure Plan matters

On 19 February, the New Zealand Infrastructure Commission (Te Waihanga) officially unveiled the final National Infrastructure Plan to Government. Big moment, big document and an even bigger signal that New Zealand is finally getting serious about how we plan, fund and deliver infrastructure for the long term.

From a Property Council perspective, this is a conversation we’ve been asking for. Infrastructure isn’t a short-term political cycle issue, it’s an intergenerational one. The roads, pipes, power, public transport and social infrastructure we build (or don’t build) today will shape how our cities function, how affordable housing can be, and how productive our economy is for decades to come.

A long-overdue reset

The Commission’s Plan is refreshingly honest about the challenge ahead: New Zealand has a historic infrastructure funding deficit, rising costs, ageing assets, and more projects on the books than we can realistically afford to deliver. Add climate resilience, population change, historic underinvestment and fiscal constraints to the mix, and it’s clear the status quo isn’t cutting it.

What the Plan does well is move the conversation away from shiny announcements and towards discipline – prioritising maintenance, sequencing investment, and making better use of what we already have before reaching for the next mega-project. That shift matters for our members. Certainty, affordability and good planning are the foundations of a healthy property market and thriving cities.

What we welcomed and why it matters

Property Council made a detailed submission on the draft Plan, and we’re pleased to see several of our key advocacy positions reflected in the final version. These are some of our key wins:

Smarter land-use and infrastructure alignment

The Commission has backed our call for land-use policies that make better use of existing and planned infrastructure. Optimising corridors, using urban land more efficiently, standardising planning rules and enabling transit-oriented development all help reduce costs and unlock housing in the right places.

Moving beyond development levies as the default

We welcomed support for giving local government access to alternative funding and financing tools, rather than relying so heavily on development contributions and levies. Overuse of levies pushes costs onto new development and worsens affordability. A broader funding toolkit is essential if we’re serious about enabling growth.

A fairer user-pays conversation

The Commission will investigate gaps in user-pays frameworks, including whether Crown exemptions from paying rates remain appropriate. This is a meaningful step toward fairer, more transparent and sustainable infrastructure funding.

Making infrastructure dollars go further

Another standout feature of the Plan is its focus on affordability through efficiency. Rather than assuming we can build our way out of every problem, the Commission points to practical ways to reduce costs and lift value:

prioritising maintenance and renewals before new builds
making incremental upgrades instead of waiting for mega-projects
enabling higher-density housing around transport corridors
using pricing and demand management to get more out of existing networks

For Property Council, our message doesn’t change: long-term planning, smarter funding, and better alignment between infrastructure and land use are essential to delivering affordable, well-functioning cities. This needs bipartisan support. We’re encouraged to see the Infrastructure Commission leading this conversation, and we’ll continue to advocate for the reforms needed to turn the Plan’s direction into on-the-ground outcomes.

The Government has 180 days to respond to the Commission and their plan.

Author | Bella Leddy

As an Advocacy Advisor, Bella supports the development of policy and advocacy initiatives that reflect the real-world experience of our members.

With a Bachelor of Laws and Politics from Otago University and previous experience as a policy intern at the Department of Internal Affairs, Bella brings both a sharp analytical mind and a genuine passion for public policy. She’s particularly energised by engaging with members to ensure our advocacy is grounded in industry insight and practical solutions.

Extroverted, thoughtful and service-focused, Bella thrives in roles that connect people and ideas. Outside the office, she channels her energy into teaching group fitness classes – including yoga, pilates and spin – and is always up for a good political yarn.