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

#SaveCampbellLive : Mediaworks Delivered 104,000 Petition Signatures At TV3's Newton HQ
#PonyTailGate #TailGate Full Coverage

Pukeahu Park : ANZAC 100th Anniversary Dawn Service In Pictures

Roughly 18,000 people gathered this morning at Pukeahu Memorial Park for the Anzac day centenary. Anticipating the large turnout, patrons arrived as early as 4.30. It was virtually impossible to get near the Memorial after 5am. By 6, the crowds on Taranaki Street had stretched as far back as the Z Petrol station.

The screens erected around the park displayed the live events to those who had turned up. The heat generated by the huge number of people caused many to take a turn. Medics and ambulances were on hand for the fainting crowd members. Only twenty minutes into the ceremony, one medic said they had already dealt with 15 to 20 spells. More>>

 

PARLIAMENT TODAY:

War: What’s To Commemorate?

Gordon Campbell in Werewolf: Is there anything that can be validly commemorated on this 100th anniversary of Gallipoli? Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915. More>>

MORE IN WEREWOLF:

ALSO:

Peter Ellis Case: Minister Declines Request For Commission Of Inquiry

Justice Minister Amy Adams has declined a request from supporters of Peter Ellis for a Commission of Inquiry on the basis that an inquiry cannot be used to determine the liability of any person. More>>

Quakes: New Process For Red Zone Crown Offers

Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

ALSO:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news