The New Zealand government has allocated a massive NZ$1.1bn to help communities recover from the devastating effects of Cyclone Gabrielle and flooding. This significant investment aims to get the country back on track by addressing the “basics” of rebuilding roads, rail, and schools, as well as flood protection, the government announced on Sunday.
The storm, which hit parts of the North Island in February, caused widespread destruction and killed 11 people, with flash floods prompted by record-breaking rainfall hitting the city of Auckland, New Zealand’s largest, in January. “At budget 2023, the government is investing $941m total operating and $195m capital in the next stage of the recovery,” a statement said. The government has estimated the cost of the disasters at up to NZ$14.5bn, making it the country’s costliest disaster since the 2011 Canterbury earthquakes that severely damaged the city of Christchurch.
The Government’s Big Spend to Help New Zealand RecoverThe prime minister, Chris Hipkins, emphasized that the recovery package responds to the immediate recovery needs of today and invests in greater resilience for tomorrow. The spending will get roads, rail, and schools back to where they were before the extreme weather hit this year, allowing communities to get back to normal as soon as possible.
Under pressure from the main opposition party, centre-right National, the government has assured that it will not introduce any major new taxes to fund recovery in this year’s budget, to be delivered on Thursday. Instead, the funding will be earmarked for child mental health support in the hard-hit Hawkes Bay and Tairawhiti regions, jobs training, and flood protection.
Cyclone Gabrielle, which hit the North Island’s northernmost region and tracked down the east coast, caused widespread destruction, with insurance companies in March reporting receiving 40,000 claims worth around NZ$890m for damage from the cyclone.