Supporting the rebuilding of Christchurch
Mr Speaker,
The Government's fourth priority is to support the rebuilding of Christchurch.
Since the first earthquake, almost three years ago, the Government has made it clear that it will stand beside the people of Canterbury as they rebuild their lives and their communities.
I want to pay tribute to my colleague, Canterbury Earthquake Recovery Minister Gerry Brownlee, and the many public servants, community organisations and families who continue to work so hard to help each other through the many challenges that remain in their community.
Considerable progress is being made. The SCIRT Infrastructure alliance has completed $700 million worth of work, with another $400 million under construction. The demolition of nearly 1,000 buildings in the Christchurch CBD has almost finished and the cordon will be removed at the end of June. And, by the end of this month, the Earthquake Commission will have completed 38,000 repairs and paid out more than $5.3 billion in claims.
The Treasury has recently increased its estimate of total rebuilding costs from $30 billion to $40 billion - the equivalent of almost 20 per cent of New Zealand's annual GDP.
The Government's share of that total cost will be significant.
On current estimates, around $7.6 billion will be incurred by the Earthquake Commission and other Crown entities.
Direct government support amounts to another $7.6 billion, making a total Crown contribution of around $15.2 billion.
Of the Government's direct support, $5.5 billion has already been allocated through the Canterbury Earthquake Recovery Fund, which was established two years ago and is now fully committed.
This Budget confirms an additional $2.1 billion of operating and capital spending to further support the rebuilding of our second-biggest city.
Over $900 million of this funding comes from the Future Investment Fund, for projects including redeveloping Christchurch hospitals, establishing a justice and emergency services precinct and supporting tertiary education institutes.
The Government is also investing $300 million in anchor projects for the Christchurch city centre. And almost $650 million of additional capital funding from departmental balance sheets will be used for health and education projects in Canterbury.
