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Five new schools and 69 additional state houses will be built as part of the government's almost $500 million infrastructure package.
The package, which is intended to help kickstart the New Zealand economy, is worth a total $483.7m.
It includes $216.7m for education, $142.5m for transport and $124.5m to be spent on housing.
About $100m is for projects due to begin before June 30.
"These projects will get underway quickly, in many cases the next few months, and will keep more New Zealanders working as the global economic crisis is felt here," Key says.
Most of the projects were already planned and have been fast-tracked to boost the government's economic stimulus plan.
Last week, the government announced a tax relief for small and medium enterprises and earlier a recovery programme for people who lost their jobs due to the recession .
Prime Minister John Key has described the government's approach as an ongoing response.
About 2000 jobs are expected to be created and retained over two years due to the extra infrastructure spending.
Education
Construction on the five new schools - Mt Wellington Primary, Papamoa Primary, Kerikeri Primary, Hingaia Primary and Papamoa Secondary - is due to start by April 2010. Almost $69m has been allocated for them.
Papamoa is in Tauranga, Kerikeri in the Far North, Mt Wellington in Auckland, and Hingaia in South Auckland.
In addition, $114m has been allocated to help build and renovate existing school structures.
Broadband in schools will get a boost with $34m to get broadband to the schools with the "greatest need", Education Minister Anne Tolley says.
She did not say which those were.
The 69 new state houses are to be built within six months and cost $20m. This is in addition to 450 new homes already planned.
Up to 10,000 existing state houses will get a makeover worth $104.5m.
Transport
Five major transport projects have been fast-tracked, at a cost of $42.5m.
These include the Kopu Bridge, near Thames in the Coromandel, and Muldoon's Corner on the Wellington side of the Rimutaka Hill Road, just below the summit.
Up to $100m will be invested in smaller road maintenance and renewal work, $34m to be used on projects set to start before June 30 and $66m in the following two years.
The projects have a "geographical split" aimed at "getting New Zealanders back to work and into work quickly", Key says.
"The aim of these projects are very much projects the government wants to complete, wants to complete quickly, they've been brought forward. Many of them are consented.
"I think it's a good first step at making sure that the construction industry, which is suffering badly from the recession, will have extra work on its plate."
Key stressed this was not the government's only plan for infrastructure and that further announcements will be made in relation to broadband, housing, roading, schooling, he says.
"These are projects that were ready to go today, or very shortly."
The package has been funded entirely through borrowing and is just $500m of a "total envelope" of $5 billion, Finance Minister Bill English says.
"It doesn't amount to new debt as of today, it's already there in the track. Now we're starting to draw down the cash into projects."
The package includes the projects that were easiest to bring
forward, he says.
"This is simply what can be done now".
Defending the package
On Monday, Key defended the recession package before it was even announced, saying that initiatives announced on Wednesday are part of a range of government measures to cushion the effects of the recession.
He says construction is feeling the pinch with builders now sitting on their hands for the first time in years.
Labour has criticised the package, saying it needs to reinstate the home insulation fund. The fund began under the Labour government in which $1 billion was to be spent retrofitting homes to make them healthier and more energy efficient.
Share your thoughts about what impact you think the government's package will have
Add a Comment:
Post new commentChaffe said on 2009-02-11 @ 15:35 NZDT: Report abusive post
Praise the lord that John Key is in the PM's seat! If a Labour-led coalition was still in power it would be build in far more than 2 years. Fantastic to have common sense back inside the decision making halls of power.
bella.m31 said on 2009-02-11 @ 14:58 NZDT: Report abusive post
Yay, Im so glad they are finally doing this bridge. We had to wait for 2 hours to get across it one New Years.
kstew said on 2009-02-11 @ 14:21 NZDT: Report abusive post
Yeah, good. But if we bring forward spending, what will happen a few years down the track?