20 Jul 2025

Watch: Govt says billions being spent on infrastructure will create thousands of jobs

12:56 pm on 20 July 2025

The government on Sunday morning has released an infrastructure update showing $6 billion of government-funded construction is due to start between now and Christmas.

The ministers who were visiting a construction site in Drury were due to speak to media at 10.30am. Their briefing can be viewed at the top of this story.

Prime Minister Christopher Luxon also took part in the briefing.

He said the government would partner with the private sector where necessary, as it launched several major infrastructure projects.

"We've said look, we've got a choice, we can do it all on our own with our own balance sheet and that would mean that projects get delayed, but we will actually partner with private sector where it makes sense for us to do it.

"We are obviously doing a huge amount of investment ourselves as government, but it's a combination of both those things."

Luxon made the announcement alongside Economic Growth Minister Nicola Willis and Infrastructure Minister Chris Bishop at Drury near Auckland's southern border, where the population is forecast to swell over the next few decades.

Willis and Bishop said in a media release the projects would drive economic activity and create thousands of jobs across the country.

"The projects getting underway include new roads, hospitals, schools, high-tech laboratories and other government buildings," Willis said.

"That means spades in the ground, jobs throughout the country and a stronger economy.

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Minister for Economic Growth Nicola Willis. Photo: RNZ / Mark Papalii

"Improving the quality of New Zealand's infrastructure is critical to growing the economy and helping Kiwis with the cost of living.

"Good roads, schools and hospitals help business to move goods and services to market quickly and efficiently, children to learn and doctors and nurses to get patients back on their feet."

The projects getting underway would create thousands of employment opportunities for New Zealanders, Bishop said.

"Numbers vary according to the nature of projects, but data sourced from the Infrastructure Commission suggests each billion dollars of infrastructure investment per year equates to about 4500 jobs.

"In total, workers are expected to start construction on $3.9 billion worth of roading projects in the next few months. They include the Ōtaki to north of Levin expressway, the Melling interchange, the Waihoehoe Road upgrade, and the new Ōmanawa bridge on SH29. All will help to lift productivity by getting people and freight to their destinations quickly and safely.

"Health projects kicking off include upgrades to Auckland City Hospital, Middlemore Hospital, and the construction of a new acute mental health unit at Hutt Valley Hospital. Construction work on the new inpatients building at the new Dunedin Hospital has also just begun."

Projects focused on improving school properties nearly $800 million in value would also be underway before the end of the year, he said.

Chris Bishop fronts media after a surprise adjournment to the debate on the report of the privileges committee

Minister for Infrastructure Chris Bishop. Photo: VNP/Louis Collins

"Other government infrastructure projects due to start before the end of this year include a massive new state-of-the-art biosecurity facility in Auckland for the Ministry of Primary Industries and the Papakura District Court interim courthouse.

"Importantly, this is just the start. The National Infrastructure Pipeline, managed by the Infrastructure Commission, now shows planned future projects totalling $207 billion across central government, local government and the private sector."

Alongside the infrastructure update, Nicola Willis today released an update on the government's Infrastructure for Growth work programme. The update is the first refresh of the Going for Growth agenda launched in February to drive economic growth by backing business, improving infrastructure and skills, and removing barriers to innovation.

The projects beginning construction include:

  • Hutt Valley Te Whare Ahuru Acute Mental Health Unit, Wellington
  • Kidz First and McIndoe Building Recladding, Middlemore Hospital, Auckland
  • Linear Accelerators Replacement, Auckland City Hospital, Auckland
  • Plant Health & Environment Capability Laboratory, Auckland
  • Papakura District Court Interim Courthouse, Auckland
  • Waihoehoe Road Upgrade, Auckland
  • SH22 (Drury) Corridor Upgrade - interim works, Auckland
  • SH29 Tauriko - Omanawa Bridge - Bay of Plenty
  • SH1 Ōtaki to north of Levin, Horowhenua
  • SH2 Melling Interchange, Wellington
  • SH76 Brougham Street, Canterbury
  • Rolleston Access Improvements - Package 1, Canterbury
  • Parliamentary Library - south building and underground carpark seismic strengthening & rebuild, Wellington
  • School property projects across the country including roll growth classrooms, upgrades and redevelopments & learning support satellite classrooms, administration blocks and gymnasiums.

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