19 May 2011

$5.5bn for rebuilding Christchurch

10:11 pm on 19 May 2011

The Government has set aside $5.5 billion for the rebuilding of Christchurch over six years, following the devastating Canterbury earthquakes.

In its Budget delivered on Thursday, the Government said about $4.8 billion of this will be provided through new funding, while another $740 million will be absorbed or reprioritised from other areas.

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This is in addition to the Earthquake Commission's (EQC) expected $3 billion share of repairing residential property and land damage, as well as other costs such as ACC.

A four-year Earthquake Kiwi Bond has been created to help raise capital for Christchurch.

The bond will have an initial interest rate of 4% and was available to New Zealand residents from Thursday.

Christchurch mayor Bob Parker said the Government has delivered what it said it would, and the total for rebuilding totals almost $9 billion, once contributions from EQC and others are taken into account.

Mr Parker told Checkpoint the contribution seems in line with the city's needs.

Christchurch Airport chief executive Jim Boult says the money is essential to get business back on its feet.