$2b for Christchurch

April 29th, 2013 at 1:00 pm by David Farrar

Vernon Small at Stuff reports:

The Government has taken another $2 billion hit to its books as the estimated cost of the rebuild continues to escalate amid signs the bill could grow even more.

Yesterday, Prime Minister John Key revealed the forecast cost to the Government had risen from $13b to $15b since the Treasury’s December update was issued.

The new figures, to be included in the May 16 Budget, would also show the overall capital cost of the rebuild would soar by a third to reach $40b against December’s $30b estimate.

Speaking at the National Party’s Mainland Region conference in Hanmer Springs, Mr Key said the new figures showed the extent of the challenge of rebuilding the -damaged city.

“This is the largest and most complex, single economic project in New Zealand’s history. The scale of the rebuild is unprecedented,” he told delegates, who had earlier negotiated a mock “toll booth” placed by anti-privatisation protesters at a bridge on the way to the conference venue.

Even the Crown’s spend of $15 billion must be several times bigger than any other project in NZ? What would be the biggest to date before the earthquake?

UPDATE: I’m informed that the only “project” that has been a larger spend for New Zealand was WWII. Puts it in perspective.

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9 Responses to “$2b for Christchurch”

  1. berend (1,709 comments) says:

    Well, the government is redesigning and rebuilding the city centre, isn’t that the problem?

    If this government simply had paid out everyone at 100% value, and left the city to repair itself (well, which that city council that would never have happened anyway, but then the voters shouldn’t have voted in these incompetents), wouldn’t that have been cheaper?

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  2. pq (728 comments) says:

    getting real Farrar,..

    at the end of the first earthquake the reported costs were 10 billion,
    then 20 billion, now 40 billion.
    Farrar believe me this is a dying city, and your country is going to spend 80 billion.
    Repeat here Farrar, that’s the gross national tax, pay here Farrar

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  3. NK (1,244 comments) says:

    Even the Crown’s spend of $15 billion must be several times bigger than any other project in NZ? What would be the biggest to date before the earthquake?

    Working for Families, Interest Free Student Loans, ToW payouts…..you can keep going.

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  4. bhudson (4,740 comments) says:

    You don’t turn your back on your own people.

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  5. berend (1,709 comments) says:

    bhudson: no one is saying that. But I think we may have an opinion on the way that was chosen. And that was the worst, most government involved bureaucratic way possible.

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  6. Ross Nixon (559 comments) says:

    The DPB?

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  7. GPT1 (2,122 comments) says:

    Probably that bloody train set Clark and Cullen paid about a gazillion over spec for.

    Clyde dam? The whole “think big” project?

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  8. Kimble (4,440 comments) says:

    You don’t turn your back on your own people.

    Yeah, you never know what they’d do… left to their own devices.

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  9. OneTrack (3,107 comments) says:

    No worries. The incoming Green, Labour, Mana, NZ First coalition government will solve Christchurchs problems.

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