The Treasury

Global Navigation

Personal tools

Note 28: Canterbury Earthquakes

These consolidated financial statements include both revenue and expenses for the Government as well as the best estimate of the Government‘s significant assets and liabilities in relation to the earthquakes and aftershocks that occurred in the Canterbury region in late 2010 and 2011.

As time elapses the ability to directly attribute costs to the original events in 2010 and 2011 becomes more difficult. To ensure expenditure is not unnecessarily included in future, costs associated with the Canterbury earthquakes will be limited to the reassessment of insurance claims by EQC and Southern Response, or the construction of large capital projects such as the Justice and Emergency Services Precinct.

Amounts recognised in the statement of financial performance (operating expenses) as well as capital expenditure incurred to date in respect of the Canterbury earthquakes were:

Actual
  30 June 2017
$m
30 June 2016
$m
Total
to date
$m
EQC insurance claims (308) 21 7,026
Southern Response support package 309 204 1,420
Christchurch central city rebuild 110 153 1,030
Crown assets 254 498 1,223
Other earthquake costs 395 481 4,361
Total Crown net earthquake costs 760 1,357 15,060

Operating and capital expenses

 
Operating expenses 347 587 12,431
Capital expenditure 413 770 2,629
Total Crown net earthquake costs 760 1,357 15,060

The negative “costs” in relation to EQC insurance claims represents a re-estimation of EQC's outstanding claims liability, resulting in a reduction in the overall costs of the Canterbury earthquakes.

Page top