Addressing New Zealand’s infrastructure asset management challenge

Rationale's Lucy Riddle breaks down what's happening in the Asset Management space below.

Regardless of its importance, Asset Management isn't generally regarded as the most exciting topic to some, and doesn’t get a of airtime in the media - however, this week it has moved into the public spotlight.

Asset Management is critically important to New Zealand’s significant assets – this includes, property, transport, water networks, information systems, parks and reserves, our power network – basically anything that requires managing appropriately over a its lifetime to ensure we get the best out of it.

Asset management requires us to think more strategically about the assets we already own – how can we do better with what we already have?

Most of the infrastructure we will need over the next 30 years is already around us. That’s been made possible by the $287 billion of infrastructure inherited from past generations, with some 90% of this built over the past 70 years. What comes next is a significant renewal cycle to keep it all working, so managing it properly comes with significant downstream economic benefits.

On May 14th, the Minister for Infrastructure Hon Chris Bishop, announced Central Government's new work programme to improve public infrastructure asset management.

The objective of this programme is to “lift asset performance and service outcomes for New Zealanders, ensure there is adequate investment in planned asset maintenance and renewal activities, ensure new investment decisions can be made within the overall context of agencies’ asset management plans, and improve accountability, capability, and oversight of our infrastructure.”

The announcement outlined a number of short-term and medium-term initiatives, some of the exciting and relevant initiatives that will impact our clients include:

Updating the Better Business Case and Gateway framework.
Long term planning performance indicators and guidance for Government agencies.
A ‘national underground asset register’ potentially based on scaling Wellington City Council’s asset register.
Development of 10-year investment plans and performance requirements by capital intensive agencies.
Refresh of Cabinet Office circular CO (23) 9 – this cabinet circular determines Government’s expectation on investment planning, assurance and asset management practices. Each Government agency must attest to the requirements on an annual basis.

This work programme announcement indicates a step change for how central government will plan, invest and manage our infrastructure assets. By improving central government’s asset management, we ensure we are squeezing the most value out of what we already have. However, as they say - the proof will be in the pudding.

However, good asset management is not new in New Zealand – Local Government has been doing it for decades, and unlike Central Government, they are legislatively required to do so.

If turn our heads to local government legislation we can learn lessons from over 30 years of intensive asset management practice.

Since 2002, the Local Government Act has required local authorities to undertake comprehensive long term infrastructure planning for transport and three water assets that includes the following requirements all of which are subject to a report by the Auditor General:

Long-Term Plan (LTP) to cover a period of at least 10 years (usually 30 years) that describes the decision-making process, asset management activities, subsequent community outcomes and resource committed implementation plan (people an financial).
- This requires detailed asset registers and asset management plans (per asset group) that detail the ‘quality of information and assumption underlying the forecast information provided in the LTP.
Financial Strategy for the consecutive years covered by the LTP. The Financial Strategy must outline the expected capital and operational expenditure on network infrastructure and provide transparency on the activities in the plans impact on local authority’s services, rates, debt, and investments.
Infrastructure Strategy that covers at period of at least 30 years that looks at options for managing the local authority’s infrastructure asset. The Infrastructure Strategy must outline how local authorities intend of replace/renew existing assets, respond to changes in demand and allow for increases or decreases in levels of service.

Central government agencies are not subject to the same level of legislation asset management planning which has resulted in agencies varying widely in practice. This is demonstrated by agencies reporting to between zero and twelve out of sixteen ‘non-compliance’ performance results.

As Minister Bishop rightly pointed out in his press release this week, ‘In practice, years of poor asset management means leaky hospitals and schools, mould in police stations and courthouses, service outages on commuter rail, and poor accommodation for Defence Force personnel and their families. It’s not good enough. New Zealanders deserve better.’

The Government’s new works programme demonstrates commitment to a more rigorous asset management environment, which moves towards a closer alignment of local and national asset management practice in the future – this has to be applauded (even if it’s decades overdue).

Here at Rationale, we wholeheartedly support this new focus on getting the best out of what we already have – it’s a space we’ve been working in for over 25 years.

Asset management is at the core of what we do, and we have considerable experience in the following:

Integrated Asset Management Planning - supports clients in developing robust, integrated asset management plans that align with broader organisational goals, including financial sustainability, risk management, and service delivery.
Strategic Advisory - We provide strategic advice on infrastructure investment, lifecycle management, and renewal strategies. This includes helping our clients prioritise projects based on need, risk, and funding constraints - ensuring limited resources are directed where they’ll have the greatest impact.
Data-Driven Decision-Making - combining analytical expertise with clear reporting. We use tools and frameworks that turn complex asset data into insights, helping our clients to make evidence-based decisions.
Long-Term Planning Alignment - We specialise in matching up asset management planning with long term planning. This includes linking technical asset performance with what the community wants and is willing to pay for.
Infrastructure Strategy Development - Beyond routine asset planning, we help organisations craft infrastructure strategies that look 30 years ahead, addressing challenges such as climate change resilience, growth, and aging infrastructure.
Collaborative and Tailored Approach - We work closely with clients to develop fit-for-purpose solutions, tailoring their planning to each organisation’s scale, resources, and regulatory obligations. We have a reputation for innovation and know that a ‘one size fits all’ approach simply doesn’t work.

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