Parliament

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

 

Crown accounts reflect extra earthquake costs

Hon Bill English
Minister of Finance

4 April 2012
Media Statement
Crown accounts reflect extra earthquake costs

An updated valuation of estimated Canterbury earthquake costs – including $450 million relating to the quake on 23 December 2011 – are reflected in the Government’s accounts for the eight months to 29 February.

Combined with core Crown expenses remaining significantly below forecast, and core Crown tax revenue continuing to track below forecast, the extra earthquake costs left a $5.5 billion operating deficit before gains and losses in the eight months, Finance Minister Bill English says.

“This is about $395 million higher than the $5.1 billion deficit forecast in the Pre-Election Update last year,” Mr English says. “These extra cost estimates from the earthquakes are outside our control, but it reinforces the need to remain focused on things we can influence, such as government spending.

“So we will have to remain disciplined to meet the challenging goal of getting back to surplus by 2014/15, when we can start repaying debt.”

The main reasons for the difference in the OBEGAL deficit reported for the eight months to February and the Pre Election Update forecast were costs of the 23 December earthquake and an updated actuarial valuation of the Earthquake Commission’s insurance claims liability.

The estimated cost of the earthquakes has increased by about $500 million, net of reinsurance. Of this, about $450 million related to the 23 December earthquake (around $300 million was estimated in the Budget Policy Statement and the January financial statements), and the remainder reflected an actuarial update.

“These earthquake cost estimates will continue to be updated as more information becomes available,” Mr English says. “But I’m encouraged that we’ve kept core Crown expenses $1.4 billion below forecast at $45.2 billion for the eight months to February. As we move towards the Budget in May, this discipline around spending will remain our strong focus.”

ends

________________________________________


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The
America’s Cup

The fact New Zealand now reigns supreme once again in the most sophisticated contest in the world’s most elite sport – yacht racing – can’t help but reflect the trajectory the country has been on since the 1980s...

Elite sport used to feel more like a collective, shared experience. It was our team, composed of people who lived and worked like us. Now, not so much. More>>

 

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

In Court: Hamilton Student's Lawsuit Over Climate Change Policy

A law student from Hamilton is preparing to challenge the Government in the High Court on Monday over what she says is a “failure” to properly address climate change. More>>

ALSO:

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement. As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog