Infrastructure, rates and taxes – be careful what you wish for

Comment: We live in dynamic times, with shifts in government, population, climate, and the need to boost our economic productivity. This can all seem overwhelming, but there are aspects that we can control in all of this.  
So how can we navigate the complexities of our changing world and what it means to us? 
“walking backwards into the future” 
One of the ways we can channel our focus, is by learning from the lessons passed down by parents, grandparents and great grandparents. Let’s consider how the adages and proverbs of history can be applied in our context. 
Through borrowing, taxes, rates, Public Private Partnerships or user pays mechanisms, the bill is coming to us and future generations, one way or another. 
If climate-related events damage or destroy our infrastructure or property and is then replaced, we end up paying for it more than once and potentially at a price premium. Once these insurance policies are called upon, we may face increased premiums and insurance retreat.  
The Government has made the New Zealand Infrastructure Commission – Te Waihanga responsible for an Infrastructure Priorities Programme to identify proposals and projects that meet New Zealand’s strategic objectives, represent good value for money and are able to be delivered. It will then develop a 30-year National Infrastructure Plan, sending a strong signal to decision-makers and the public that these are infrastructure priorities. The National Infrastructure Plan will be delivered in December 2025 and anyone can now submit a proposal for unfunded projects and programmes to feature on the Infrastructure Priorities list that will inform that plan. 
This is a unique opportunity for businesses, community groups, councils, government agencies and individuals to shape Aotearoa’s Infrastructure future. Given we all pay for infrastructure investments, and elected politicians will be guided by what their electorate wants, it is important we take this opportunity to put forward unfunded projects and programmes that are important to us.  
Given how expensive new infrastructure is, our first priority should be looking after what we already have by properly maintaining our existing assets and safely extending their life wherever possible. It is, for example, possible to extend the life of 10 existing bridges for the cost of building one new one.   
By understanding the state of their assets, councils will be in a strong position to make good investment decisions on maintenance and renewals, before they start down the track of investing in new infrastructure. 
Maintenance and renewal work generally comes with some level of disruption, through traffic cones and redirections, temporary lanes or bridge closures. We might be more tolerant of these disruptions if we viewed them as saving us money in the long run. 
When we do build new infrastructure, we must ensure it can serve us long into the future. Climate change risks, such as rainfall events, flooding and sea level rise are making places we have built in the past less safe to build in the future.  
As we saw in the Auckland Anniversary floods, Cyclone Gabrielle, and Dunedin’s floods, the impacts of climate change and extreme weather events on housing, infrastructure and livelihoods, can be catastrophic and cause individual suffering long after the event. In addition to the funds spent on developing and maintaining affected places, there is the economic impact on lost business income, insurance claims and wages.  If we were to simply rebuild exactly as before, then we run the risk of history repeating.  
Every cent we spend on infrastructure and housing must be in places where they can be used for generations to come. We can only, after all, spend the money once. 
When we improve infrastructure in a particular area, such as through better flowing transport networks and water service connections, we make it easier to work and live in those communities, often stimulating population growth. When the population of the area increases, so the cycle continues. More infrastructure is needed and subsequently built to sustain the bigger population, and then more people move there, and so on.  
It is therefore crucial to make the right infrastructure investment decisions in the first place.  When we continue to invest funds and resources in locations that are at-risk or not sustainable for long-term inhabitation, we could incur greater costs in the future when assets and communities need to be moved.  
To prevent this from happening, when it comes to adapting to and mitigating the worst effects of climate change, hard calls will need to be made. Local and central government need to engage with affected communities early to discuss the level of connectivity and ongoing maintenance or replacement of assets in affected areas, as well as the possibility of relocation. The time to start doing that is now. 
Local government is now required to make 10-year infrastructure and 30-year housing plans. Difficult decisions will need to be made that will affect how and where we live. Property and business owners will not want the value of their investment to go down, but this may happen if they have bought in an area that is at-risk, or if it becomes uninsurable, damaged or destroyed by a climate event.  
If we invest in protecting places and property values that really cannot be justifiably or sustainably protected, we will not be able to afford other things that we value as a society. Things like updating our hospitals or schools, improving water quality, creating more sustainable and resilient energy supplies, or better roads and public transport.   
Tools like Auckland’s Hazard Viewer are being published by councils to provide information about the risks in specific areas across Auckland. In the report on climate adaptation from the Finance and Expenditure Select Committee, it suggests that if there was publicly available information on the risks to your property when you bought it, then you should not expect government assistance if you lose your business or home. We cannot afford for the government to become insurers of last resort. 
If businesses and homeowners have their properties devalued, they are likely to be very vocal and challenge any decisions that may result in this. How will the difficult decisions then be made? It may not feel kind or neighbourly, but when those affected request funding to stay where they are, consider what won’t get funded as a result. If you disagree with this reprioritisation of public money, make your voice heard.
Whilst national information like this Climate Projections Map is being released, we do not currently have a national spatial plan that identifies all areas that are potentially at risk from climate change and related weather events in different emissions scenarios over a long-term time horizon. If we had this information and published scenarios showing how this may affect our land use over time, then these could be used to: 
Councils will have done work on this already and developing this further to contribute to the national picture is a tangible step that councils can take to best prepare for the inevitable trade-off decisions that will need to be made. We may not know which region will be impacted by the next weather-related event, but we know from experience, that the more tools we have in our kete, the more equipped we are to respond. 
The challenges posed by aging infrastructure, and how to pay for it to be maintained, renewed or replaced, are complex and multifaceted. While lower rates and taxes are attractive, our nation’s infrastructure still needs to be funded. By having a long-term view of our infrastructure future, and delivering it when we say we will, there will be lower total costs in the long run. 
It is crucial we learn from the past, as how we engage with difficult decisions will impact the people and communities of tomorrow.  
By engaging, voicing informed opinions, and considering the financial impacts of what we ask for, each of us can take action to create resilient infrastructure to serve current and future generations. Engaging through the Infrastructure Priorities Programme, Local Government consultations and Select Committees are all ways to ensure that your voice is heard and represented, so stay informed and actively participate in the conversation.