New Zealand unveiled an initial support package to assist with recovery in the aftermath of Cyclone Gabrielle, with ministers reiterating the financial cost will be in the billions of dollars.
(Bloomberg) — New Zealand unveiled an initial support package to assist with recovery in the aftermath of Cyclone Gabrielle, with ministers reiterating the financial cost will be in the billions of dollars.
The first tranche of support is NZ$300 million ($187 million), which includes NZ$250 million to start repairing roads, and NZ$50 million to support businesses and farming communities, Finance Minister Grant Robertson said Monday in Wellington. The government has formed a cabinet committee to coordinate its response, with Robertson named Cyclone Recovery Minister.
New Zealand is assessing the costs after Cyclone Gabrielle smashed across the upper North Island last week destroying bridges, displacing thousands of people and flooding productive farms, orchards and vineyards. Eleven people have died and there are concerns for some still missing. The government today extended a national state of emergency for another seven days to coordinate the ongoing response.
“Recovering from Cyclone Gabrielle will be one of the major areas of focus for the government in the coming weeks and months,” Prime Minister Chris Hipkins told reporters Monday. “We are committed to working in partnership with business and the community while we do this.”
The government is setting up a task force to ensure local voices will have an input into all phases of the recovery process, he said. As well as investment, the government will look at immigration settings to ensure it has the labor needed to carry out the work.
“The required investment to reconnect our communities and future proof our nation’s infrastructure is going to be significant, and requires hard decisions, and a whole of government approach,” Hipkins said. “We will not shy away from those hard decisions and are working on a suite of measures to support New Zealanders by building back better, building back safer and building back smarter.”
Robertson said the financial support announced Monday is interim and more will be needed. For example, the transport funding is for emergency works to get essential transport operating again and reopen key supply chains. The business and farming funding is to meet immediate costs and further assist with clean-ups.
Robertson also said the tax department will provide concessions for affected businesses, while previously announced exemptions to lending regulations to smooth access to credit will be extended.
The government will assess whether longer term support is needed for businesses, including wage subsidies, he said, adding that the overall financial cost of the disaster can’t yet be estimated.
“It is very hard to scope it out,” Robertson said. “I’ve been clear that I think it will be in the billions of dollars. I think that’s clear from what we’ve already seen. Beyond that, it’s still very early days to be able to make that assessment.”
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