1. INTRODUCTION AND SUMMARY

1.1 This submission on the Public Works (Critical Infrastructure) Amendment Bill[1] is made by The New Zealand Initiative (the Initiative), a Wellington-based think tank supported primarily by major New Zealand businesses. In combination, our members employ more than 150,000 people.

1.2 The Initiative undertakes research that contributes to developing sound public policies in New Zealand. We advocate for the creation of a competitive, open and dynamic economy and a free, prosperous, fair and cohesive society.

1.3 The Initiative’s members span the breadth of the New Zealand economy; efficient infrastructure development is critical for economic growth and business competitiveness. The views expressed in this submission are those of the authors rather than the New Zealand Initiative’s members.

1.4 New Zealand faces a significant infrastructure deficit. The Public Works (Critical Infrastructure) Amendment Bill aims to accelerate land acquisition for nationally important projects by streamlining the compulsory acquisition process.

1.5 The New Zealand Initiative supports the Bill’s objective of faster infrastructure delivery. However, compulsory acquisition represents one of the most significant intrusions on property rights. Such powers must be exercised as a last resort, follow due process and provide full compensation.

1.6 The New Zealand Initiative submits that the Bill should proceed, subject to the following recommendations:

• Provide compensation to a flat percentage above market value without arbitrary caps
• Provide for an independent panel appointed by the Chief Justice, rather than Ministers, to review submissions
• Create a stronger presumption through clearer permissive criteria and greater transparency in favour of recourse to less intrusive opt-out processes
• Retain limited appeal rights to the High Court on errors of law, breaches of natural justice, or failure to observe mandatory considerations
• Enhance transparency through published cost-benefit analysis for all accelerated takings
• Provide a sunset clause for these amendments and consider requiring a further review after the three-year review.

[1] See Public Works (Critical Infrastructure) Amendment Bill 149-1 (2025), Government Bill – New Zealand Legislation