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Source: ONE News -
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The government has put aside $5.5 billion for Canterbury's rebuild in the Budget announced today.
The money will go to the Canterbury Earthquake Recovery Fund and
will pay for the rebuilding of water and roading infrastructure, as
well as damaged schools and hospitals.
It will also pay for welfare support for those who have lost their
jobs as a result of the earthquakes.
"The government has created a new fund for the Canterbury earthquake to ensure transparency of the money we spend in rebuilding greater Christchurch," Earthquake recovery minister Gerry Brownlee said.
"Rebuilding the city and its surrounds will be a long and complex task, but the government is committed to providing the necessary resources to make this happen over the coming weeks, months and years."
The money, combined with EQC and ACC costs, makes up the government's $8.8 billion estimated total investment in rebuilding Canterbury.
The Canterbury Earthquake Recovery Fund will cover:
- Repairs to infrastructure
- Repairing state owned assets such as highways, schools and hospitals
- Welfare support through job loss cover and wage subsidies
- The government's financial support package for AMI Insurance
Around $3.2 billion of the fund's money is yet to be allocated.
Earthquake Bond launched
The government is also launching a four-year bond scheme, similar to a term deposit, to help cover the $5.5 billion rebuild bill.
The Earthquake Kiwi Bond is aimed at keeping overseas borrowing at a minimum.
"This is a great opportunity for Kiwi investors who want to help fund the government's contribution to the multi-billion dollar recovery in Canterbury, while still getting a solid return on their money," Finance Minister Bill English said.
"Investors can be assured that all money invested will be used to help meet the expected $5.5 billion in direct costs to central government from the two Canterbury earthquakes.
"The government is borrowing the bulk of that money in the short-term and the Earthquake Kiwi Bond provides a way for local investors to contribute and help reduce the amount New Zealand needs to borrow overseas."
The bond will be issued by the New Zealand Debt Management Office.
Investors in the bond will get 4% interest on their money.
$25.5 million for rebuild agency
The new Canterbury Earthquake Recovery Authority (CERA) will get $25.5 million in funding for set-up costs.
CERA was established in March as a stand-alone government department to oversee the recovery effort in Canterbury.
"This new authority is an important step towards restoring the social, economic, cultural, and environmental well-being of Canterbury."
Family support
An extra $10 million will also be spent to support Cantabrians.
Social Development Minister Paula Bennett said the funding will go to local agencies and will support counselling services, assist non-government organisations' case management, co-ordinate services for families and support additional community-based services for those affected by the earthquakes.
"It is important to have well coordinated services on the ground
as Christchurch recovers and the government is committed to making
this happen," Bennett said.
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Add a Comment:
Post new commentchrisinus said on 2011-06-06 @ 10:28 NZDT: Report abusive post
Most of the students who are overseas are there because they're having problems living in NZ with low salaries and very high taxes but rip-off costs of living. If you want to keep them here, NZ needs to increase salaries and taxes to match those in Australia and UK. Then they would continue to pay their loans and new laws wouldn't be necessary. KEEP UP WITH THE WORLD, NZ!!!
JayKay22 said on 2011-05-21 @ 21:12 NZDT: Report abusive post
Why take away all course related costs for part-time students - why not simply halve it instead - make the entitlement $500 instead of $1000. That makes far more sense.
pioneer said on 2011-05-20 @ 12:04 NZDT: Report abusive post
TO MANY FAMILIES WANT HAND OUTS. THE FAMILY ON TELEVISION LAST NIGHT HAD 5 CHILDREN AND A DOG THE CHILDREN WERE OLD ENOUGH FOR THE MOTHER TO GET A JOB PLUS SHE HAD SPENT MONEY ON A STUPID TATTOO IF YOU CAN'T AFFORD CHILDREN DON'T BREED AND EXPECT THE COUNTRY TO BORROW FROM CHINA AND jAPAN FOR THEM. WE HAD 3 CHILDREN I WORKED AT NIGHT AND IN THE WEEKEND WHILE THEY WERE BABIES UNTIL THEY WENT TO SCHOOL THEN WORKED PARTIME 1 IS A SOLICITOR,2 A CEO IN AUS,3 BUSINESS MANAGER
big2al said on 2011-05-20 @ 09:06 NZDT: Report abusive post
As usual with a Nat govt, the only ideas they can come up with are selling the family jewels (SOE's) which we already know is only a short term gain & a long term loss (NZ Rail) and cutting public services. A billion dollars lol, where do they think the money is coming from? Essential services & jobs will be cut, which will lead to more spending pressure on WINZ as more unemployment benefits are paid. No matter how this Govt cleans it up, it is the poor & middle income earners who suffer.
smithy said on 2011-05-20 @ 07:48 NZDT: Report abusive post
It may lack flair and inspiration but I think it is a very sensible budget given the economic climate. I dread to think where we would be with Labour in charge who have not yet made a valid argument on any subject