Cyclone-ravaged orchardists facing balance sheet woes
Many companies are financially mortally wounded by the effects of Cyclone Gabrielle and may have to sell up because of their high debt levels.
The $6 billion will specifically go towards a National Resilience Plan, with a further $100 million set aside for a new infrastructure delivery agency named Rau Paenga.
Finance Minister Grant Robertson says the recent weather events which have impacted the North Island have added a level of urgency to infrastructure investment planning and have highlighted the importance of ‘strong and resilient’ infrastructure.
“It was unacceptable that basic lifeline services like telecommunications, power and transport links were knocked out for so long. It identified a serious basic infrastructure problem that this investment will help to fix,” Robertson says.
He says the investment in the National Resilience Plan will initially focus on “building back better” from the recent weather events.
He says it will also include future proofing road, rail, and local infrastructure wiped out by both Cyclone Gabrielle and the flooding events of January as well as telecommunications and electricity transmission infrastructure.
“Addressing vulnerabilities in our infrastructure systems to function during adverse conditions and quickly recover after an event is fundamental to the wellbeing of communities,” Robertson says.
“I expect to continue to build on the plan over many years to reduce the severe infrastructure deficits that have held New Zealand back.”
Also introduced in Budget 2023 was the repurposing of the Christchurch rebuild agency to help Government organisations deliver infrastructure projects.
Previously known as Ōtākaro Limited, the entity will be renamed as Rau Paenga and is set to support organisations without the day-to-day experience of delivering large, complex projects, to get projects completed efficiently and effectively.
“Rau Paenga will use the lessons learnt in driving forward major Christchurch rebuild projects post-quake to help deliver construction projects,” says Infrastructure Minister Megan Woods.
“We need to keep up the momentum on our vital infrastructure build, while keeping a lid on spending, so Rau Paenga‘s experience in project delivery and robust processes will help us keep up with the good work we’re doing on our large programme of work,” she says.
