Engineering New Zealand Chief Executive Dr Richard Templer says the delay on infrastructure projects coming to market is impacting Kiwis. He says the Government must “urgently firm up the infrastructure pipeline and free up funds for delivery.”
“We know funds are ringfenced for projects – like schools, hospitals, roads, energy and water – but we need them to come to market so New Zealanders get the services they need,” he says.
Templer says the impact of the “stop works” on infrastructure projects really began to hit home in March when money earmarked for projects wasn’t released by the Government, with housing and transport projects most affected. High interest rates have also cut into client budgets, resulting in projects not being commissioned or scaled back.
Anna Bridgman, Water NZ Operations Manager at Stantec, says engineers understand that work may look different, but firms need “certainty” to be able to plan and respond. “Certainty of work would allow companies to invest in people … even if the quantum is smaller.”
She says there is “a focus on delivery and value rather than excellence, and clients needing to show costs coming down.”
Although fiscal restraint is a sign of the times, Templer says this focus “could cost Kiwis in the long run if decisions are taken too quickly and prioritise cost over quality.”
New Zealand needs up to an additional 2,300 engineers annually to support its growth, even before replacing those who retire or move overseas. But the homegrown supply of engineers is desperately short of what’s needed. Worryingly, the number of NCEA graduates being assessed for and achieving senior maths and physics papers has dropped by over 20 percent in the past decade. The same trend is seen in higher education, where the proportion of STEM graduates is below the OECD average.
Engineers – like doctors, teachers, nurses and other professionals with skills in demand – are leaving to countries like the United Kingdom and Australia, where the demand for jobs is immediate. Yet New Zealand is struggling to recruit or retain talent, and the halt to projects is making things worse.
Templer says engineers are vital for our country’s growth and productivity, generating about $18 billion each year for our economy. “We simply can’t afford to lose more engineers. Once they’re gone, they’re gone – it can take years for engineers to come back,” he says.
Bridgman thinks “community-wide long-term vision” and apolitical, regional solutions would be timely. “I’d like to see what is best for each region and how we might work towards that,” she says.
Templer is keen to see funds for infrastructure projects released. “This Government has high hopes for productivity and growth – but engineers are needed to help deliver major projects so that New Zealanders enjoy prosperous lives.
“That’s why Engineering New Zealand is calling on the Government to do what it can to bring much needed infrastructure projects back online,” he says.
