Billions spent on abandoned road projects while New Zealand's health system struggles
The government has allocated nearly half a billion dollars to business cases for road projects that were later shelved, sparking criticism as the health system faces severe shortages.
Recent reports reveal that the government has invested close to $500 million in business cases for road schemes that have since been put on hold, including $323 million for Roads of National Significance projects and $106 million for an Auckland Harbour crossing study. The Infrastructure Commission warns that, despite high infrastructure spending as a share of GDP, New Zealand ranks near the bottom of OECD nations for the returns on that investment.
The National Infrastructure Plan 2025 recommends shifting funds toward social infrastructure, notably doubling the share of GDP devoted to hospitals. Health services are under intense pressure, with a severe flu season tripling demand in clinics and emergency departments, causing wait times of six to twelve hours. Additional challenges include long delays for eye-care appointments, missed cervical-screening notifications, limited mother-and-baby mental-health units, and inequities in access to advanced cardiac procedures, especially for Māori and Pacific patients. These issues underscore the competition between road spending and essential health services.
Why it matters
It shows how costly, abandoned road projects divert funds from a health system already under severe strain.
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