New Zealand recently announced its recovery package of NZ$2.1bn ($1.5bn) to aid the recovery efforts following the country’s worst flooding and cyclone in generations. The package has been designed to respond to the recovery needs of today while simultaneously creating greater resilience for tomorrow.
The financing will restore roads, rail, schools and flood protection to areas affected by the natural disasters, including the mental health support of children in the flood-hit Hawkes Bay and Tairawhiti regions and job training. The cost of the disasters is estimated to be up to NZ$14.5bn ($10.4bn), making it the costliest disaster faced by the country since the 2011 Canterbury earthquakes in Christchurch.
The investment comes amidst mounting pressure from political parties on the government to not introduce significant new taxes to fund the recovery in the upcoming budget. The annual budget, due on 18 May, is expected to focus on the cost of living and cyclone and flood recovery. The government also pledged that the recovery package would not result in the introduction of new taxes to fund the recovery process, as the investment would be financed from existing budgets.
The spending also aims to support people and businesses affected by natural disasters, including Cyclone Gabrielle and floods that hit the country’s east coast in February and March 2023. The recovery package will ease the pressure on local communities and contribute to immediate recovery needs. Fellow Cabinet ministers accompanied Finance Minister Grant Robertson when he announced the recovery package in Hawk’s Bay, an area greatly affected by the cyclone.
Prime Minister Chris Hipkins said that the spending would be used to restore damaged infrastructure such as roads, schools and rail links, support child mental health in hard-hit areas, and fund flood protection, creating greater resilience for tomorrow. The investment will rebuild the affected areas, providing essential infrastructure like rail links, and building more sustainable systems that can stand up against future natural disasters.
In 2019, the New Zealand government introduced its inaugural “Wellbeing Budget,” which prioritises not only GDP, but also societal and environmental factors, and the significant policy reforms required to achieve long-term intergenerational well-being. The recent recovery package aims to build on the successes achieved from the Wellbeing Budget and create a more resilient future for the citizens of New Zealand.
In conclusion, New Zealand’s investment in recovery efforts aims to provide much-needed support following significant natural disasters. As a result of the investment, infrastructure will be rebuilt, and more sustainable systems will be established to withstand future catastrophes. With the recovery package created with the future in mind, New Zealand is on track to achieve a more resilient tomorrow.
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