Deeper pools of capital are available to invest in infrastructure and grow NZ’s productive assets
This economic shift means:
- We have the modern infrastructure we need to enable our transition to a low emissions economy
- Kiwis have confidence to invest in innovative NZ firms
- Regions and businesses have access to the world’s knowledge and innovation through stronger international connections
- NZ businesses have timely access to capital to innovate and grow.
Investment in early stage capital markets
The Government has committed to growing early stage markets through the new venture capital fund of funds.
In May 2019, the Government committed $300 million to invest in New Zealand’s early stage capital markets to enable more innovative, knowledge-intensive, high-value firms and start-ups to grow and scale-up within New Zealand.
This initiative addresses the gap in expansion capital that exists in New Zealand for firms looking for funding beyond the stages of seed or angel investment.
The aim of the programme is to increase investment activity, incentivise private capital and institutional investors to enter the early stage capital markets, and commercialise a greater volume of technology.
A new independent infrastructure body, the New Zealand Infrastructure Commission - Te Waihanga, is being established to ensure that New Zealand gets the quality infrastructure investment needed to improve our long-term economic performance and social wellbeing.
The Commission will help improve how New Zealand coordinates and plans our infrastructure, make the most of the infrastructure we already have, and plan long-term to ensure our investment delivers what we need, where and when we need it.
It will be an autonomous Crown entity with an independent board of between five and seven members, to bring a range of perspectives, including private sector expertise.
Working with central and local government, the private sector and other stakeholders, the Commission will develop a 30-year infrastructure strategy. It will also have procurement and delivery support functions.
Green Investment Fund
The New Zealand Green Investment Finance (NZGIF) is a crown-owned investment vehicle that seeks to invest in large-scale emission reduction activities, enablers and technologies to support the Government’s target to reduce greenhouse gases.
Established with an initial investment capital of $100 million, NZGIF has a mandate to invest in business opportunities that accelerate domestic greenhouse gas emissions reductions, provide a commercial return on the investment and serve as a catalyst for the green investment market.
Urban Growth Agenda: funding and financing options
The infrastructure funding and financing pillar of the Urban Growth Agenda (UGA) will enable responsive infrastructure provision and appropriate cost allocation, including the use of project financing and access to financial capital.
It aims to reform infrastructure funding and financing through:
Providing a broader range of tools and mechanisms to enable net beneficial bulk and distribution infrastructure to be funded
Rebalancing development risk from local authorities to the development sector
Making long-term debt finance available to developers willing to take on the commercial risk, with the debt serviced by revenue from the new properties in a development.
Auckland City Rail Link
The Auckland City Rail Link (CRL) is New Zealand’s largest public transport infrastructure project - a $4.4 billion investment jointly funded by Auckland Council and the Crown. CRL is currently under construction and is scheduled to open in 2024.
The CRL is a 3.45 km twin-tunnel underground rail link running beneath Auckland’s central business district (CBD) from Britomart to the Western Line near the existing Mount Eden Station, with two new underground stations in the CBD at Aotea and Karangahape.
When operational, CRL will increase capacity on the entire rail network in Auckland by at least double, carrying up to 54,000 passengers an hour at peak times - the equivalent of three Auckland Harbour Bridges or 16 extra traffic lanes into the city. CRL stations are being built to accommodate nine-car trains to ensure CRL can meet the demands of future patronage growth.
The CRL will improve travel options and journey times and double the number of Aucklanders living within 30 minutes travel of the CBD. More people will have access to a viable transport option over private vehicles, easing congestion on roads and freeing up buses.
Government Policy Statement on Land Transport
The Government Policy Statement on Land Transport (GPS) 2021 will update the Government’s strategy for investing $4 billion per year in the transport system across the nationwide land transport network for 2021/22–2030/31.
The current GPS 2018 seeks to progress the objectives of ensuring a safe transport system that provides inclusive access to economic and social opportunities. Central to the priorities is the theme of mode shift, ensuring that our transport choices deliver the greatest outcomes regardless of mode.
Local Government funding and financing
The Finance and Funding programme seeks to investigate and address funding challenges facing local government. Specifically, it will assist the Government in its response to the Productivity Commission’s independent inquiry into Local Government funding and financing, with an emphasis on further investigations of affordability issues and financial management and planning processes.
New Zealand Trade and Enterprise (NZTE) investment matching
NZTE’s investment team originate and develop propositions and then connect these with domestic and international investors for the good of New Zealand. NZTE focuses on growth-stage companies and large-scale greenfield projects. These investment opportunities offer significant benefits shared across New Zealand support the Government and NZTE’s goal of a diversified, high-value, productive economy.
NZTE is actively focussed on three key areas:
Advancing investment into the regions, supporting NZTE’s engagement with the Provincial Growth Fund and regional economic development agencies
Supporting successful and sustainable Māori economic development.
Working with, and in support of NZ Inc, to deliver a cohesive and impactful approach to investment attraction.