New Zealand's infrastructure and investment needs remain significant, with substantial work required to improve reporting and meet expectations.
The Government has released its second Quarterly Investment Report (QIR) showing that agencies still need to improve their investment reporting. The report covers the period from April to June 2024 and reveals significant investment activity across the pipeline, with 198 investments in various stages of delivery worth around $85.7 billion.
However, the report also highlights issues with data quality and completeness. Agencies are expected to meet Cabinet's reporting expectations, which is critical for robust decision-making. Furthermore, agencies need to improve their long-term planning to enable proper sequencing of investment decisions and effective prioritization.
The QIR also includes annual reporting on agency investment intentions, benefits realization, and Chief Executive attestations. A key area needing improved performance is asset management, with large gaps in understanding the state of the Crown's assets and a lack of comprehensive planning to maintain, renew, replace or dispose of assets.
Despite 83% of investments tracking to agreed delivery budgets, there are cost escalations across the portfolio worth $2.1 billion. Worryingly, only 54% of investments are reported as tracking to original timeframes, with 58 investments facing delays of 20% or greater over the original timeframe.
The Government has committed to publishing these reports quarterly to provide transparency and improve investment discipline. The next QIR covering the July to September 2024 quarter will be released early in 2025.