Volume 6 – Number 4 – November 2010 Special Issue: Infrastructure Infrastructure: New Findings for New Zealand A Culture of Lead Infrastructure Arthur Grimes 3 Colin Crampton 32 Planning New Infrastructure: Some Issues Investing in Infrastructure Arthur Grimes 9 Michael Deegan 36 Infrastructure Investment: Supporting Empty Talk? University Voices on the Better Decisions Global Financial Crisis John Boshier 14 Todd Bridgman 40 Strategic Decision-Making Frameworks Executive Power: 60 Years Stephen Selwood 19 On Has Anything Changed? Transport Infrastructure, Lock-Out and Harshan Kumarasingham 46 Urban Form: Highway Development in Health, Employment and Recession: Auckland and the United States The Impact of the Global Crisis on Andrew Coleman 23 Health Inequities in New Zealand Infrastructure Investment Clair Mills 53 Under Uncertainty Lewis Evans 28 dependence created by specific urban forms, and, with particular reference to Auckland, considers the chal- Editorial lenge of increasing public transport use in low-density cities; Lew Evans discusses problems of decision- making with regard to infrastructure investments in the context of various kinds of uncertainty, such as Note rare events (like major earthquakes), and volatility in Volume 6 – Number 4 – November 2010 economic conditions (including uncertain demand for Nations cannot flourish without well-designed physical infrastructure services); Colin Crampton describes the infrastructure. This includes transport infrastructure Policy Quarterly (PQ) is targeted at readers approach of the New Zealand Transport Agency to plan- (e.g. roads, railway networks, cycle paths, seaports, ning and providing land transport infrastructure, using in the public sector, including politicians and airports and navigation systems), water management the state highway network as an example; and Michael their staff, public servants and a wide variety of infrastructure (e.g. water supply, sewage collection Deegan outlines Infrastructure Australia’s approach to professions, together with others interested in and disposal of waste water, drainage systems, flood improving the coordination and quality of infrastructure public issues. Its length and style are intended control and irrigation), energy infrastructure (e.g. investment across the Tasman. to make the journal accessible to busy readers. generation plants, power grids and pipelines), and Collectively, these papers provide a rich source The journal welcomes contributions of communications infrastructure (e.g. phone services, of information, evidence and analyses. They contain about 4,000 words, written on any topic fibre-optic cable, undersea cables and satellites). much wisdom, insight and practical advice. They relating to public policy and management. Infrastructure is critical not only for the production and deserve careful attention by all those involved in the Articles submitted will be reviewed by distribution of goods and services – and therefore for funding, maintenance and governance of this country’s members of the journal’s Editorial Board and/or economic development and prosperity – but also for infrastructure. by selected reviewers, depending on the topic. social interaction and connectedness, environmental This issue of Policy Quarterly also includes Although issues will not usually have single protection and sustainability, and human well-being. three articles on three very different topics. First, Yet the provision of infrastructure poses many themes, special issues may be published from Todd Bridgman explores the (limited) contribution of complex and challenging policy issues. For instance, time to time on specific or general themes, university academics in New Zealand to public debate what is the appropriate level and mix of infrastruc- perhaps to mark a significant event. In such about the global financial crisis (GFC) during 2008-09. ture investment? How should such investment be cases, and on other occasions, contributions His analysis is sobering. Despite the gravity of the GFC funded and managed? How should access to, and may be invited from particular people. and the significant reservoir of relevant knowledge use of, infrastructure be rationed and priced? What Subscriptions: The journal is available in PDF within the academic community, the public voice of the discount rate should be used in evaluating the costs format on the IPS website: www.vuw.ac.nz/ips/ universities was decidedly muted. Few of those with and benefits of particular infrastructure projects? Is it pq. Readers who wish to receive it by email relevant expertise – whether in accounting, economics, possible to avoid inefficient forms of path dependence, should register as PQ subscribers finance, law, management and public policy – contrib- such as long-term ‘lock-in’ to antiquated technologies [email protected]. This service is free. uted to public discussion. Instead, public commentary or undesirable patterns of human settlement? To what was led from elsewhere, in particular by economists For all subscription and membership enquiries extent should infrastructure be designed to cope with employed by the major banks. Bridgman examines the please e-mail [email protected] or post to potential long-term developments, such as the impacts reasons for the relative silence of academics, why this Institute of Policy Studies, P.O. Box 600, of climate change (e.g. more severe storms, sea level is inconsistent with the ‘critic and conscience’ role of Wellington. rise, and heat waves)? And what lessons are there universities, and what should be done to rectify the Electronic Access: The IPS directs interested from both domestic and international experience about problem. individuals to its website: www.vuw.ac.nz/ the strengths and weaknesses of different decision- Harshan Kumarsingham poses a very different ips/index.aspx where details of the Institute’s making models with respect to infrastructure invest- question: has the move to proportional representation publications and upcoming events can be ment and management? In particular, is it possible to since 1996 really diminished the power of the execu- found. construct policy processes that reduce the tendency for tive, including that of the prime minister, or does New Permission: In the interest of promoting debate negative externalities to be underpriced and for users Zealand remain, in effect, an ‘elected dictatorship’? and wider dissemination, the IPS encourages of infrastructure to be inappropriately subsidized? Drawing on various recent examples, Kumarsingham use of all or part of the papers appearing in These and related questions were the subject of a argues that the power of the executive remains very well-attended workshop hosted by Motu and the Insti- PQ, where there is no element of commercial much alive, and goes on to consider some of the ways tute of Policy Studies on 13 July 2010 in Wellington. The gain. Appropriate acknowledgement of both in which this power might be better checked and fet- workshop brought together researchers, policy advisers author and source should be made in all tered. The prospects, however, do not look good – all and decision makers from around the country. Amongst cases. The IPS retains copyright. Please direct the more so given recent events, such as the enact- other things, the event provided an the opportunity requests for permission to reprint articles from ment in September 2010 of the Canterbury Earthquake to consider the findings and policy implications of a this publication to [email protected]. Response and Recovery Act which, amongst other major research programme on infrastructure issues led Editor: Jonathan Boston things, gives ministers the power to exempt, modify by Motu and funded by the Foundation for Research, Guest Editor: Arthur Grimes or extend virtually any statute by Order-in-Council in Science and Technology. Editorial Board: David Bromell, Paul Callister, pursuit of the general purpose of facilitating a response This special issue of Policy Quarterly includes Valentina Dinica, Michael Di Francesco, Mike to the earthquake. most of the papers presented at the infrastructure Finally, Clair Mills explores how economic reces- McGinnis and Jim Veitch workshop. It commences with two scene-setting sions affect health outcomes, and in particular the ISSN: 1176 - 8797 (Print) contributions, both by Arthur Grimes. These papers implications for inequalities in health. Overall, the ISSN: 1176 - 4325 (Online) summarize the aims of the research programme and evidence suggests that recessions impact negatively Volume 6, Number 4 – November 2010 its main empirical findings, and explore some of the on the key determinants of health, such as employment Design, Cover Photograhy & Layout: Aleck Yee major policy issues generated by the research – in and income, and that the effects fall differentially on Production: Alltex Design particular, the problems of uncertainty, discounting, population groups, with the least advantaged suffering Copy Editors: Rachel Barrowman and Vic Lipski strategizing and priority-setting. Following this are five most. Appropriately targeted policy measures can help contributions covering a range of policy issues: John to mitigate such outcomes, but fiscal pressures and Boshier assesses various methods for evaluating infra- limited political will are likely to constrain their applica- structure proposals; Stephen Selwood addresses the tion. Reducing health inequalities, therefore, can be problem of project prioritization and the lessons from expected