The Government has announced a sweeping $1 billion pre-Budget package for cyclone and flood-related recovery, targeting schools, transport, mental health, employment and future flood protection.
Summary of announcements
- $35 million - mental health initiatives in Hawke's Bay and Tairāwhiti. Read more
- $725 million - for transport-related work, such as fixing roads and railways. Read more
- $117 million - to repair, redevelop or relocate 500 schools. Read more
- $152.4 million - for future flood protection, rural community support, business retention and retraining support. Read more
Prime Minister Chris Hipkins said it responded to the "immediate recovery needs of today" as well as investment in future resilience.
“This is about doing the basics - repairing and rebuilding what has been damaged and making smart investments, including $100 million of protection funding to ensure future events don’t cause the same devastation."
He said the package would get roads, rail and schools "back to where they were" before the extreme weather hit this year "so communities can get back to normal as soon as possible".
Prime Minister Chris Hipkins says it's about "doing the basics - repairing and rebuilding what has been damaged and making smart investments". (Source: 1News)
“These investments will help ease the pressure on local communities already struggling with the cost of living from having to foot the full recovery bill. We’re partnering with local government to make sure cost isn’t a barrier to the recovery work getting done.
“Cyclone recovery is a core focus of this year’s Budget, and today’s package adds to the $890 million already provided in a rolling maul of repair works and business support.
“The Government promised to stand beside these communities as they recover and rebuild from New Zealand’s second most costly natural disaster."
He said the package announced today affirmed that commitment.
Finance Minister Grant Robertson said the package was about providing communities and businesses with the confidence they can invest in their own rebuilds "knowing the Government is fixing the core infrastructure around them".
Treasury has estimated the damage from Cyclone Gabrielle and the Auckland Floods could range from $9 billion to $14.5 billion, second behind only the Canterbury earthquakes in terms of damage from natural disasters New Zealand has faced.
Of this, $5 billion to $7.5 b of damage is expected to relate to infrastructure owned by central and local government.
“These costs relate to damage, and don’t include all of the immediate and ongoing support for communities and businesses provided by the Government in our programme of rolling support
“Cyclone Gabrielle hit the country when the Budget 2023 process was relatively advanced. As a result, we made the call that the response would be prioritised over other initiatives which were in the draft Budget package at the time.
“Earlier this week, I announced that $4 billion worth of reprioritisations and savings had been identified through the Budget process to go towards more pressing priorities, like the cyclone recovery.
“This package is significant but is not the end of our support to weather-affected regions as we continue to work alongside them on their road to recovery.
“As regions and sectors finalise recovery plans and decisions are made on future land-use, the Government will continue to stand beside these communities, their people and businesses,” Grant Robertson said.
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