New Zealand opposition party rejects criticism its road plan will lead to Chinese debt trap
- The National Party has pledged to spend some US$14.6 billion on public infrastructure, including welcoming Chinese cash to build new roads
- Some New Zealanders accused leader Christopher Luxon of ‘selling’ the country to foreign investors at a time of concerns over Chinese investments in the Pacific
New Zealand’s opposition leader Christopher Luxon has brushed off criticism that his National Party’s plan for a multibillion-dollar road network funded with Chinese money could push the country into a debt trap.
The conservative party this week pledged in its election manifesto to invest NZ$24 billion (US$14.6 billion) in public infrastructure, including building massive expressways and transport systems, if voted to power in October’s general election.
“New Zealand is the same size as Britain and Japan, we have 5 million people in it, a strong and resilient road network will be absolutely critical to our future,” he said.
Luxon added the party’s National Infrastructure Agency would take a call on letting Chinese workers in to build the roads. “They will really work with partners to develop the right sort of financing and the right sort of partner for the right sort of project,” he said.
The former Air New Zealand chief executive, who took the party’s helm in 2021, also played down concerns over attracting Chinese investment in the Pacific, where previous infrastructure programmes have seen Chinese workers migrating and island nations reportedly being saddled with debt.
“That’s not going to happen,” he said. “That’s quite a xenophobic sort of response and a pretty simplistic response.”
Luxon said he was in touch with potential investors, including Canadian and Australian pension funds, broadcaster 1News reported.
Prime Minister and Labour leader Chris Hipkins cast Luxon’s road-building spree as a “la-la land dreaming”, claiming the projected budget was billions of dollars short.
New Zealand backs ‘tough conversations’ with China to manage ‘complex’ ties
A survey last month found New Zealand was heading towards a hung parliament after the October election, with support for both the National Party and the ruling Labour slipping to the benefit of several smaller rivals.