September 2010

current issue:
Efficiency gains to spur growth continues at the top of Government’s agenda

September 2010

The Department of Building and Housing’s project to overhaul the building regulations process is a good example of the current Government’s philosophy. It’s anchored in a belief that the best way to promote economic development is to remove roadblocks and promote efficiency. This is being reflected in a raft of initiatives appearing in the public arena. Other instances are the new rules earlier this year to allow trucks of increased weight and length, which will enable New Zealand’s growing freight task to be moved at less cost. The nine ‘Roads of National Significance’ project also strongly reflect the ‘efficiency first’ stance.

We see two particular challenges in making efficiency gains work.

The significant upfront investment requirements will require strong business cases. For example, consolidation of back office systems for building consents across 75 Councils could be significant (although possibly very worthwhile given the savings over time).

Recent Treasury guidelines reinforce the need for proposals to demonstrate value for money and communicate a widely shared ‘investment logic’.

In our view the biggest challenge is obtaining the buy-in of stakeholders and ensuring the practicalities of making it work . Moving the hearts and minds of those involved in implementation of any initiative is critical to success.

Recent projects .

  • Review of the Building Act
    Working with the Department of
 Building and Housing’s Building Act 
Review team to consider how to make
the building consenting system more
nationally consistent and efficient.
  • Solid Waste Management
    Working with two Councils to identify where joint operations can add value for the customer and ratepayer.
  • Local government funding
    Working with a regional council to review the allocation of costs to users and how the public costs should be spread across the region.

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