Measuring What Matters

Our latest report with the Helen Clark Foundation calls for a more consistent, evidence-led approach to infrastructure investment in Aotearoa New Zealand.

Despite billions being spent on infrastructure each year, cost–benefit analysis is still not used consistently across government. The report argues that stronger use of this tool would help decision-makers better assess social, environmental and economic impacts, compare investment options more clearly, and deliver greater long-term value for New Zealanders.

At a time of fiscal pressure, climate risk and growing infrastructure demand, the report highlights the need for more transparent and strategic decision-making.

It also points to a major gap in post-implementation evaluation, noting that New Zealand has not systematically checked whether infrastructure projects delivered on the outcomes they promised.

Key recommendations:

• Mandatory use of CBA for all major central government infrastructure investments, supported by enhanced training, clear guidance, and sector specific tools.
• An independent infrastructure assurance framework, with the Infrastructure Commission playing a strengthened independent assurance role, and requiring publication of business cases and cost benefit analysis.
• Routine post implementation evaluation of major projects to assess whether expected benefits were achieved.
• More strategic, cross portfolio use of CBA, supporting more consistent comparison of similar investments across sectors such as health, housing, justice, and transport.
• Closer alignment between the Budget process and long term investment planning, including exploring multi year capital budgeting.