1. Lessons from Scotland and the UK

2. International Best Practice
In the last ten years Infrastructure New Zealand has lead six highly successful delegations to comparator nations including:
Denmark:
infrastructure investment for strategic advantage
Sweden:
Successful transition to road pricing
Ireland:
Successful use of PPPs to deliver inter regional motorways
UK:
Shift to national infrastructure planning
Value creation and capture through successful integration of transport and development
City Deals
Australia:
Efficient and publicly accepted capital recycling model and privately funded development and infrastructure
Canada:
Successful implementation of P3 pipeline through high calibre procurement agencies
Heading to USA in 2018
Urban growth (Houston sprawl vs Portland compact city); dynamic tolling in Dallas;
Municipal Utility District model; and Satellite Cities

3. Infrastructure for Strategic Advantage:
Connectivity strategic importance
Great Belt Bridge opened 1998
Oresund 2000
SOE delivery model - 30 year concession
Tolled DKK250 ($NZ60) to match ferry
Fully funded by tolls but debt backed with govt guarantee
Extensive assessment of environmental impact
Now constructing Germany Copenhagen link by 2018
Oresund
Copenhagen
Great Belt Bridge
Oresund
Fehmarnbelt Tunnel?
Great Belt Bridge

4. Sweden: Successful implementation of road pricing

5. UK: Vision, Value Creation, Private Capital
“Nine Elms The greatest transformational story at the heart of the world's greatest city...”
High Speed 2 - £50 billion interregional connection

6. Partnership & Collaboration
Public, public, private partnership
Central government incentives
BBC media centre relocation
“Earn Back” scheme
City Deals

7. Australia: Ambitious planning Funding and delivery
2,500 sqm floorplates: Sydney vs Singapore, Hong Kong, London
Global reference point of design excellence and sustainability

8. Canada: Exemplar of specialist procurement agencies
Partnerships BC
Infrastructure Ontario
PPP Canada
Publicly owned governed by independent boards
Specialist capability providing leadership, expertise and consistency
Culture of partnership to spread knowledge transfer and drive continuous improvement.

9. Lessons for New Zealand
Outcomes not inputs
Integration
Partnership, collaboration
Private Capital
Scale
Independent delivery agencies
Lift our vision and be ambitious for New Zealand

10. The delegation to Scotland
33 representatives
March 26-31, 2017
London, Edinburgh, Glasgow

11. What the delegation saw
Mix of planning, governance, health, education, transport, housing, urban regeneration, water, procurement

12. Why Scotland? Democracy, language, culture, small, etc Devolution
Source: Trip Advisor

13. Devolved Reserved Devolution Referendum 1997 (devolution)
Scotland Act 1998
Parliament 1999
Scotland Act 2012
Referendum 2014 (independence)
Scotland Act 2016
Only 20 yrs old, fundamentally an infrastructure government, blank sheet, lots of innovation

14. Key attributes of the Scottish (and UK) approach:
Independent needs analysis and monitoring
National Infrastructure Commission (UK)
Executive Agency of HM Treasury (operational independence)
3 functions
National infrastructure assessment every 3 years
In depth studies
Monitoring progress
Government doesn’t have to follow recommendations, but if not, it has to say why

15. Leadership, growth and engagement through national spatial planning
National Planning Framework
Spatial expression of Economic Development Strategy
Guided by successful Scotland
Guides local government
Presumption in favour of sustainable development
Strategic engagement

16. Centralised, independent environmental regulation
One specialist agency
Non-departmental, independent board
Purpose (2014):
“protect and improve the environment in ways that, as far as possible, also help create health and well-being and sustainable economic growth.”
Expertise + independence + clear mandate = strategic focus
Transformation in environmental regulation

17. Specialised procurement
Infrastructure and Projects Authority (UK)
Integration, collaboration, procurement advice, project delivery
National Infrastructure Delivery Plan, Construction Pipeline
Scottish Futures Trust
Value for money, collaboration, procurement advice, project delivery
£100m - £150m savings per annum
Attracting private finance (PPPs)
Good procurement

18. Combined project delivery
Hub
Scottish Futures Trust initiative to support community infrastructure delivery
Central + local government + private sector partnership
5 regions
Schools, health facilities, community halls, playgrounds, police and fire…
Bulk, bundled, standardised and sequenced procurement
PPPs (DBFM) and private finance

19. Consolidated water service delivery
Scottish Water
Single integrated wastewater and drinking water provider for all of Scotland
Est. 2002
40 per cent reduction in operating costs
20 per cent saving capital programme

20. Independent regulation of the water industry
Ofwat (England and Wales)
Water Industry Commission for Scotland
Price and quality regulation
Support competition

21. Local government alignment with national strategic direction
“Carrots” used to encourage council investment in economic development
City Deal (UK and Scotland)
Central allocations to local for economic investment
Payment upon project delivery
8 in Scotland
Tax increment financing
Local debt paid off with central transfers using increased (business) rates income
6 in Scotland
Growth Accelerator
Central allocations to local for achieving economic outcomes
2 in Scotland

22. Lessons NZ should take a close look at:
A national body charged with identifying infrastructure needs.
Replacing the effects-based RMA system with a plan-led approach.
An independent centre of expertise for project delivery.
A hub model for water and tourism infrastructure.
Consolidating wastewater and water supply delivery at a “regional” level.
A sell down of Auckland’s Watercare to fund Auckland growth.
Shifting to independent regulation for water and the environment.
“Carrots” to align councils with central government strategic direction.

23. Thank you