Quake damage bill revised upwards

Last updated 13:05 18/12/2012

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Treasury has revised the cost of recovery from the Canterbury earthquakes to upwards of $30 billion.

It says new information from the Canterbury Earthquake Recovery Authority has caused it to revise up its estimate of damage from $20b to $25b since the last Budget, but those damage estimates were in 2011 prices.

"Allowing for improvements to the previous capital stock, the Treasury estimates that the total amount of fixed capital investment stemming from the Canterbury rebuild may be around $30 billion.

"Factoring in additional costs such as business disruption and contents insurance could lift the total cost of recovery higher still."

Treasury estimates, meanwhile, that $4.6b of the $5.5b Earthquake Recovery fund will have been allocated by June 2013.

"After adding costs incurred by the Earthquake commission, State Owned Enterprises and other Crown entities the total cost to taxpayers is expected to exceed $12.5 billion."

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