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Speaker 1: The government has released it's refreshed Public Private Partnership framework.

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Speaker 1: It was part of the National Act coalition agreement and

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Speaker 1: the government says it'll help deliver a new generation of

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Speaker 1: vital infrastructure projects. Interestingly, the fore word written by Labor's

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Speaker 1: Barbara Edmonds. So is that a sign of some bipartisanship

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Speaker 1: on this issue. Nick Leggett is Chief Executive Infrastructure New

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Speaker 1: zealandies with me this morning.

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Speaker 2: Hey Nick, Hi Ryan?

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Speaker 1: What sticks out for you here? I mean the first

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Speaker 1: one that they look at is the risk, So who's

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Speaker 1: taking on all the risk? And at the moment we

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Speaker 1: might be putting people off by putting too much risk

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Speaker 1: on the contractors.

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Speaker 2: Yeah, I mean that's that has been a bit of

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Speaker 2: an issue here. And of course if you want public

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Speaker 2: private partnerships to be successful, you've got to actually attract

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Speaker 2: the private sector and having is much understood upfront about

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Speaker 2: the project and if you think about you know that

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Speaker 2: the underlying land the New Zealand's got some rocky parts

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Speaker 2: of the country, but also getting in and buying land early,

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Speaker 2: establishing as much as you can know, so risks can

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Speaker 2: be properly allocated. The thing is that the private sector's

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Speaker 2: prepared to take risk. Of course, it just will be

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Speaker 2: priced into the job. But this is you know, we're

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Speaker 2: very immature where it comes to public private partnerships. We've

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Speaker 2: only built eight the last labor government paused them, so

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Speaker 2: we haven't sort of evolved them properly. So this frameworks

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Speaker 2: really important and it means the government doesn't have to borrow.

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Speaker 2: And the other point about a public private partnership and

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Speaker 2: there'll be people driving on roads now that aren't in

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Speaker 2: good conditional taking their kids to schools, to school buildings

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Speaker 2: that should have been replaced and renewed. We need to

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Speaker 2: do better where it comes to our infrastructure assets. And

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Speaker 2: it's the thing about a PPP. It's not just about

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Speaker 2: building the road or the school. It's about taking a

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Speaker 2: whole of life approach to that particular asset. And the

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Speaker 2: private sect not only owns and builds it, but they

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Speaker 2: maintain it. And Ryan, I think Kiwis know the government

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Speaker 2: has been pretty poor over many decades at maintaining our

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Speaker 2: public assets and so.

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Speaker 1: Them is just one tole my car our testament to that.

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Speaker 1: Just on that because it's related to your point. So

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Speaker 1: the part of this framework is that any PPP must

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Speaker 1: stack up against other potential models of delivery, which seems

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Speaker 1: entirely reasonable. Are there types of projects that actually wouldn't

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Speaker 1: be suitable for PPPs and if so, what types of projects?

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Speaker 2: Yeah, look, it's a good point. I mean I think

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Speaker 2: you know, there'll be many, many projects that aren't suitable.

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Speaker 2: I mean, you have to have scale so our road

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Speaker 2: would be suitable. But frankly, Ryan, it's another conversation we've

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Speaker 2: got to have because it's better to have an income

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Speaker 2: stream from these assets that are public private partnerships. So

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Speaker 2: a road with a toll on it is going to

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Speaker 2: be much more appropriate than a road without a toll.

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Speaker 2: And you know people will also go to Australia and

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Speaker 2: other parts of the world. We're road tolling for good,

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Speaker 2: decent pieces of road standard and people don't mind paying

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Speaker 2: more if they get places quicker and more safely. And

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Speaker 2: as you know, you say, the rooms of their car

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Speaker 2: are not damaged. And so it would be those large

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Speaker 2: projects or a whole lot of individual, smaller projects bundled together.

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Speaker 2: And you know, we have we've had school PPPs and

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Speaker 2: you know what, the schools love them because it means

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Speaker 2: that teachers and principals get to educate kids. They're not

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Speaker 2: focused on being property managers every time the light fails.

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Speaker 1: Or yea, and they're in a room that's not covered

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Speaker 1: in mold. Nick, thank you very much for that this morning.

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Speaker 1: Great to have you on the show as always. Nick

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Speaker 1: Leggative executive at Infrastructure New Zealand. They've put the PPP

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Speaker 1: framework up online for those who might be interested. Extually,

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Speaker 1: I was having a look at the report by Stephen Joyce.

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Speaker 1: They looked into the new agency they're setting up to

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Speaker 1: as their funding vehicle for PPPs this morning.

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Speaker 2: For more from Early Edition with Ryan Bridge, listen live

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