Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Financial commitment to rebuild Canterbury

Financial commitment to rebuild Canterbury

The Government has reaffirmed its commitment to provide the financial resources necessary to rebuild Christchurch and the Canterbury economy, Finance Minister Bill English says.

"The earthquake has clearly dealt a considerable human and economic blow to Canterbury, and this will have a significant impact on the Government's finances and the wider New Zealand economy. Its effects will be felt for some years to come.

"But I'm confident that New Zealand will come through this. Certainly, the Government will provide the financial resources needed in both the short and longer term."

Based on the limited information available at this early stage, the Treasury has provided a preliminary assessment of the earthquake's cost and economic impact - and it will issue a more detailed analysis later this week.

According to its preliminary assessment, the total cost of the damage from the latest earthquake is likely to be two or three times the $5 billion estimated cost of the quake on 4 September last year, including private insurance and government costs.

There will be additional economic impacts, including:


* A loss of output from the Canterbury region and a delay in the reconstruction effort from the previous earthquake.
* At a national level, economic growth in the first half of 2011 will be lower than forecast previously.
* As growth slows, Government tax revenue will be lower than expected previously.
* The Government will bear extra costs to support Christchurch and rebuild the city and its infrastructure.

"Financially, New Zealand is well covered for disasters by world standards - through the Earthquake Commission disaster fund, the Government's own finances and ability to borrow, and through insurance companies and their own global reinsurance arrangements," Mr English says.

"The Government has the resources and commitment to do what is needed. Supporting and rebuilding Christchurch will be the most important thing the Government does this year and into the future. We won't be cutting corners.

"Most of this spending will be on essential infrastructure such as roads, water and sewerage systems.

"We will pay for this work by prioritising spending on Canterbury above other areas of government spending, and by taking on a bit more debt in the short term."

Mr English says the earthquake has made it more important that the Government presses ahead with policies to build a faster growing economy based on savings and exports - and, over the next few years, to reduce New Zealand's reliance on borrowing from foreign lenders.

"In particular, it's essential that we continue working to get the Government's finances in order, so money is freed up for Canterbury and so that we don't build up debt that is a drag on growth and is a burden future generations.

"Ministers will work on the next steps in that programme over coming weeks, as we prepare for the Budget on 19 May."

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Greens: Russel Norman To Stand Down As Co-Leader

Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party’s Annual General Meeting in May. Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM.

“After nearly a decade as Co-leader, now is a good time to find a new challenge for myself, and to spend more time with my family” said Dr Norman.

“This is my ninth year as Co-leader and I think it’s time for a change. Now is a good time for new leadership for the Party. My replacement will start from a strengthened base and will have a full parliamentary term to establish himself in the role and take the Greens into government in 2017." More>>

 

Gordon Campbell: On The Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point… More>>

ALSO:

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news