The New Zealand government expects the cost from the devastating cyclone that ravaged the country’s North Island this week to be in the “multi-billions,” Finance Minister Grant Robertson said in an interview with local media Sunday.
(Bloomberg) — The New Zealand government expects the cost from the devastating cyclone that ravaged the country’s North Island this week to be in the “multi-billions,” Finance Minister Grant Robertson said in an interview with local media Sunday.
Robertson told TVNZ’s Q+A programme it was still very hard to judge the true extent of damage given thousands of people in the Hawke’s Bay and Gisborne regions remain without shelter, power and water.
While reiterating that it was still “very early days,” Robertson said the government was expecting the cost of recovery to be on par with the 2011 Christchurch earthquake, which was around NZ$13 billion ($8.1 billion). “That’s around the ballpark that we’re looking at right now in terms of the cost,” he said.
“Clearly the level of devastation in terms of infrastructure, in terms of people’s homes and businesses is very high,” Robertson added. “It’s going to be the biggest weather-related event this century, and it will have a multi-billion dollar price tag.”
The cyclone destroyed orchards, vineyards and farm crops in some of New Zealand’s most productive areas, while ongoing road, power and communication disruptions mean food processors are unable to operate. The death toll from the event stands at 11, with more deaths expected as the recovery continues.
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