Govt Releases First Quarterly Investment Report, Highlights Need for Improved Investment Discipline and Data Quality

Finance Minister Nicola Willis and Associate Finance and Infrastructure Minister Chris Bishop announced the release of the report, which covers the period up to March 2024.

The New Zealand Government has unveiled its inaugural Quarterly Investment Report as part of its commitment to enhancing the value and efficiency of government spending and restoring fiscal discipline. Finance Minister Nicola Willis and Associate Finance and Infrastructure Minister Chris Bishop announced the release of the report, which covers the period up to March 2024.

Willis noted that the first report, prepared by The Treasury, reveals troubling issues. Many agencies are failing to meet their reporting obligations, resulting in significant gaps in data quality and completeness. Some agencies have not submitted necessary investment proposals to The Treasury, and there is a lack of long-term planning and inconsistent application of investment management rules.

In response, Willis and Bishop have outlined new expectations for investment discipline and agency reporting for the April to June 2024 quarter. Cabinet is demanding improved data accuracy, more robust business cases, and better asset management from agency Chief Executives. The Infrastructure and Investment Ministers Group will oversee these enhancements.

The report also raised concerns about potential cost escalations and delivery delays in ongoing investments. Ministers are committed to closely monitoring these issues and will take necessary actions to ensure projects stay on track.

Looking ahead, the Government will prioritize investments based on value for money, importance, and readiness for funding decisions. Additionally, a review of the Treasury’s Better Business Case and Gateway frameworks is underway to ensure they effectively support fiscal sustainability and deliver value.

The next Quarterly Investment Report, covering April to June 2024, is scheduled for release in October.