The Government has so far spent $1.1 billion on Christchurch's two earthquakes, Prime Minister John Key said today.
The bill for both the September 2010 and February 2011 earthquakes includes over $800 million on Earthquake Commission (EQC) claims, and about $175m on welfare assistance packages.
Mr Key said the Government has more spending to come, pointing at an EQC net cost estimate of $1.5b for the latest quake.
EQC now has 282,000 claims for both earthquakes, and the estimate was in the Government accounts released by Treasury today.
Finance Minister Bill English said the EQC projection was the main reason why the $9.2b estimated deficit went up by $1.7b in the eight months to February.
"All of this points to the fiscal challenges we face at Budget 2011," Mr Key said.
"There is a long way to go, but the rebuilding of the city is one of the Government's highest priorities."
The Government plans to axe all new spending in the upcoming budget - being labelled the zero budget.
It had originally intended to add $800 million "new money" but now between $600-$800 million would have to be found from other areas due to the cost of rebuilding Christchurch.
Some Government programmes will be axed and cuts to Working for Families payments for high income earners were being considered.
- NZPA
The Government has so far spent $1.1 billion on Christchurch's two earthquakes, Prime Minister John Key said today. Photo / Christchurch Star
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