The Government is planning to bring together the finance community with people representing development and construction interests to figure out a plan to solve New Zealand’s infrastructure financing problems.

Minister of Housing Phil Twyford says the event will be going ahead “within the next couple of months.”

Twyford said lack of access to capital is “crippling the supply of houses,” adding that one of the Government’s biggest priorities is cracking down on the problems around infrastructure financing.

“There is a planet of cash out there that would love to invest in our cities’ growth, but they have no way of doing it at the moment.”

He says the Government is exploring the idea of “value capture” – the ability to capture uplift in property values around new transport infrastructure – as well as issuing infrastructure bonds and tapping into longer-term debt financing.

The event, which will happen “quite soon” will workshop these ideas with the finance community and players in the construction and development sectors.

When it comes to the bonds, Twyford says he wants to attract overseas investors from the private, and public sector.

“The trick is to find a balance sheet where that debt can sit, and put together the revenue ideally from the properties in that new development to service the debt.”

Under the Government’s fiscal responsibility rules, Labour promised to reduce net core Crown debt to 20% of GDP within five years and to keep spending at roughly 30% of GDP.

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