In this week’s Infrastructure Policy Watch, New Zealand considers fair service charging, and London report makes UK-wide climate action recommendations.
New Zealand identifies what’s fair when paying for services
The New Zealand Infrastructure Commission (NZIC) has published the findings of its research study on what’s fair when funding and pricing services.
The study came from a key recommendation set out in the country’s Infrastructure Strategy on the need to improve the public’s understanding of how infrastructure is funded.
The study focused on fairness because it helps to create a clear picture of whether or not the wider public will accept new approaches to paying for infrastructure.
It also allows for an understanding of:
- How the different prices paid for infrastructure influence households.
- How spending is related to the quality of services provided.
Drawing on a literature review, stakeholder interviews, statistical and survey analysis, the study revealed the following finding in relation to water, electricity, telecommunications and transport:
- The average household spends 16% of their after-tax income on infrastructure services.
- Higher household spending on services is linked to higher incomes, number of individuals in a household, car ownership, and being located outside large cities.
- While location was not expected to influence the cost of infrastructure, service quality may differ in urban areas in relation to more rural ones.
- Changes to infrastructure charging structures should consider how it affects a range of households, including what provisions such as subsidies can be put in place for low-income households.
- Pricing was key to ensuring access to infrastructure and household affordability.
The findings noted that the concept of fairness was interpreted differently by the public, making it difficult for policymakers to take decisive action.
The study also wasn’t able to identify differences between Māori and non-Māori households.
The ICE’s view
Gathering insights on fair ways to pay for infrastructure services provides a good baseline for making more informed decisions about planning and delivering infrastructure.
A benefit of this approach is obtaining long-term support from the public and other key stakeholders. This ensures decisions taken by government can be impactful over the long term.
Both form part of Enabling Better Infrastructure principles, which outline the need to scope ahead to drive success in infrastructure funding (principle 4).
Research studies like the one prepared by the NZIC can help to make better-informed decisions infrastructure.
It’s also a good example of establishing trust between government bodies and the public. End user voices are heard and incorporated into long-term infrastructure planning (principle 7).
London Climate Resilience Review recommends actions for national government
An independent report commissioned by the Mayor of London has taken stock of London’s activities to address the climate crisis.
Published on 17 July 2024, the report outlined key recommendations for the City of London and the wider national government to ensure the capital is well-prepared for climate impacts.
The report identifies how the city can achieve its goals through collaboration with other levels of government.
Centred on improving preparedness for more frequent and intense climate risks, the five areas where urgent action is needed from the national government are:
- Developing a national heat risk strategy.
- Acknowledging flood events are a nationwide concern.
- Developing a systems approach by coordinating sectors to understand how one infrastructure sector relates to another e.g. transport and energy.
- Investing in climate resilience along with regional and local levels of government.
- A clear strategic approach to fully adapt to the effects of climate change.
The chair of the London Climate Resilience Review said that, with the new Labour government in power, “there has never been a better time to make smarter, more resilient choices in the long-term interest”.
Find out more about what the chair had to say about London’s readiness for weather extremes.
The ICE’s view
The impacts of the climate crisis aren’t limited to specific levels of government.
Taking steps to identify key roles and responsibilities across different levels of government is essential to adequately prepare for climate changes now and in the future.
Cooperating on shared concerns and responsibilities and finding opportunities to build communication and trust between levels of government is essential.
With national direction, cities in the UK can more effectively prepare for climate hazards.
In case you missed it
- Find out how Wales is using the UN SDGs to support long-term planning.
- Learn what the new Labour government means for UK infrastructure.
You can also sign up to ICE Informs to get a monthly digest of the latest policy activities from ICE, including calls for evidence to support our ongoing advice to policymakers.
