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Christchurch Rebuild Is Key To Return To Surplus: KPMG

Christchurch Rebuild Is Key To Unlock New Zealand’s Return To Surplus: KPMG

Statement made by Alex Skinner, Partner, KPMG

The timing and impact of the Christchurch rebuild are central to the Government’s planned return to surplus by 2014/15, says KPMG.

The Government spend on Christchurch and the related growth assumptions underline the importance of rebuilding Christchurch for both Cantabrians and the New Zealand economy.

This growth assumption means that there is some urgency to establish the vision and lay the foundation so business can plan and rebuild with certainty.

We realize there is a tradeoff between urgency and getting it right but it needs focus to ensure we can get the growth dividend.

The Budget assumptions imply a weaker recovery in the rest of the New Zealand economy. This has implications for businesses relying on stronger growth which may not eventuate. By contrast, it provides some upside for the Government if growth elsewhere is stronger than Treasury predicts.

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