Asia Pacific Infrastructure: August - September 2020

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August - September 2020 room was reportedly told by Infrastructure Minister Shane Jones that the rest would be announced in coming weeks, some by ministerial visit. "I wouldn't want to break a habit," he told the news agency Finance Minister Grant Robertson said "this is about that certainty that we constantly hear from the construction sector they want". Civil Contractors New Zealand chief Peter Silcock says while the funding announcements were welcome, details were urgently needed, or people would lose their jobs. “There was a big difference between making announcements and providing meaningful employment opportunities through economic activity,” Silcock says. The latest “in principle approvals subject to contract negotiations” provide support or total funding to $1.365 billion of $2.151 billion worth of projects. Investment values are also subject to change. “The current situation is incredibly frustrating,” says Silcock. “We know the work is out there, but unless we know where, what and most importantly when projects will start, contractors are left totally in the dark. They will have no choice but to put workers off or face the risk of companies going under.” A joint letter from industry leaders was sent to ministers in mid-June stating the urgent need. Ministers responded that answers were ‘imminent’, but the actual project details are still trickling out slowly, “Companies are running out of options,” say Infrastructure New Zealand chief Paul Blair. “Timing is everything. Projects starting construc-

tion today had planners, designers and architects at work last year. Contractors began allocating resources, scaling up or down based on predictions of work. “The problem now was that no one could see six to 12 months ahead, so they were taking risks retaining staff on assumptions work would appear or having to cut back hours. “It’s very stressful, it’s increasing costs and it’s completely avoidable. The full list and timing of shovel ready projects needs to be released now with a clear commitment to project timeframes.” Association of Consulting and Engineering Chief Executive Paul Evans said the situation was looking dire as local government cut spending on infrastructure projects. “Unless urgent action is taken, the infrastructure and construction industries stood to lose a huge amount of skilled workers.”

Job creation • Auckland City Mission - 200 jobs during construction and 150 once completed. • Bay of Plenty - Wharenui Road and SH30 with Rotorua Lakes District Council and NZTA - 300 jobs. • Canterbury: Coastal Pathway with Christchurch Coastal Pathway Group and Christchurch City Council - 100 jobs over a year. • East Coast: Rugby Park Grandstand with Poverty Bay Rugby Football Union - 30 jobs • Hawke’s Bay: Whakatu Inland Port with Port of Napier Ltd - 46 full-time jobs over two-years then 28 jobs once completed. • Northland: Whangarei Rejuvenation with Whangarei District Council, Whangarei Boys High School, Hihiaua Cultural Centre Trust, Northland Rugby, Bike Northland Incorporated and Ruakaka Recreation Centre - 200 jobs. • Taranaki: Thermal Drying Facility Replacement with New Plymouth District Council - 77 jobs during construction. • Top of the South: Blenheim Art Gallery and Library with Marlborough District Council - 30 direct jobs. • Southland: Invercargill Inner City Development with Invercargill City Limited - 350 jobs • Waikato: Taupo Town Centre with Taupo District Council - 92 jobs Source: Newsroom

Grant Robertson calls it the certainty the construction industry was looking for, and when it comes to announcements, Shane Jones "wouldn't want to break a habit." Photo: Mark Mitchell infrastructurenews.co.nz

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