National wants new infrastructure agency

The National Party says it will create a government agency to build big infrastructure projects, and will introduce a ‘‘value capture’’ tax.

Opposition leader Christopher Luxon unveiled his party’s infrastructure policies yesterday, which he said would set it apart from the Government and ensure major construction projects could be funded and delivered on time.

The policy included introducing ‘‘value capture charging’’, which had been a controversial topic within the National Party.

The idea last surfaced when the cost of Auckland Light Rail was revealed. Finance Minister Grant Robertson said the Government was considering imposing a ‘‘value capture’’ tax on properties that would benefit from the project’s completion.

The idea behind value capture taxes is that publicly-funded projects can boost the land value of nearby properties. Robertson said it would be fair to take a cut from property owners who could ‘‘make a windfall’’ from the Auckland Light Rail.

At the time, then National Party finance spokesperson Simon Bridges agreed value capture charges were a good idea – but transport spokesperson Simeon Brown disagreed.

Brown said value capture schemes were taxes that would punish working class families. Nevertheless, National has listed value capture charging as an election campaign promise.

Finance spokesperson Nicola Willis said Brown’s concerns related only to Auckland Light Rail, which the party did not support.

‘‘We believe that they are a tool that could have some benefits.’’

In its policy document, National said the construction of new highways and public transport projects, such as the City Rail Link, could be partially funded through value capture taxes.

Luxon said a new ‘‘National Infrastructure Agency’’ would help find private investors and manage the contracting for major infrastructure projects.

The Government already owned a company, Crown Infrastructure Partners, to seek commercial investment in public infrastructure projects. It expanded its role in 2020, after starting out with a focus on broadband.

‘‘We’re going to build out of the great work of Crown Infrastructure Partners, and make sure there is delivery capability in that,’’ Luxon said.