web analytics

Christchurch – economic hindrance?

Written By: - Date published: 2:15 pm, May 25th, 2012 - 16 comments
Categories: jobs, john key - Tags: , , ,

The Government have been pushing a line that Christchurch is holding us back as an economy.  The poor people of Christchurch are to blame for all our woes apparently, with their earthquake.  We shouldn’t blame National, just Cantabrians.

But it’s not true.

Since the earthquake Canterbury has been our main source of economic growth.  This is not surprising – it’s a classic case of how GDP fails as a measure of success.  All those broken lives and buildings need… rebuilding.  That costs money, that means spending, that means GDP growth.

If it wasn’t for Canterbury the Government’s GDP record – 0.5%/year, the worst growth for any government in over 75 years – would be noticeably worse.

And indeed John Key is now citing this as to why the economy is going to be as rosy as Treasury’s figures – even though most economists think this is ‘at the top end’ of possibilities, and every forecast so far by this government has been wildly over-optimistic.  He needs it to be of course, or his promised surplus won’t materialise.  You need to growth to get your surplus.

It’s yet another case of Key wanting it both ways: Christchurch is dragging us down, and Christchurch is our saviour.

Just like Labour’s saving allowed us tax cuts (for the rich), but Labour’s profligacy is what got us into such trouble (not the tax cuts).

It’s just not my fault, see?

16 comments on “Christchurch – economic hindrance?”

  1. tsmithfield 1

    “It’s yet another case of Key wanting it both ways: Christchurch is dragging us down, and Christchurch is our saviour.”

    Sorry Ben, but you haven’t really thought this through. Key can have it both ways.

    Firstly, the earthquake did damage a lot of the productive parts of the economy in the region, reducing tax take etc. The government has already poured a lot into the region in the region in terms of financial assistance. But not a lot of the rebuild has happened yet due to continuing aftershocks that have been slowing down the insurance companies (we just had another 5.2 quake 15 minutes ago BTW). So the quake has mainly been a handbrake on the economy up until now, and the economic benefits are still largely ahead.

    For instance, have a look at the various stages for Wigram Skies, one of the large subdivisions being developed in Christchurch at the moment. How many unsold sections can you find?

    All these sold sections represent houses that will be built on this subdivision over the next several years.

    • Colonial Viper 1.1

      Christchurch depopulating; disaster for most. Delays to serve the free market.

    • Shane Gallagher 1.2

      You must not be looking at the same data set that we are – and since it is from the RBNZ it can hardly be called biased… Chch has been contributing to the GDP of the entire country for every quarter apart from the two with the earthquakes. And this covers overall GDP so the point you make about productive sector is not relevant except to highlight how rubbish it is as an indicator.

    • Yep, the Chch rebuild is the only reason we’re not still in recession under current measures. John Key should be on his knees kissing the feet of passing Cantabrians, not whining that they’re dragging down the economy one minute and saying that the stimulus of repairing all this stuff will grow our economy the next.

      If we put the same effort into infrastructure projects during recessions as we did into the rebuild, our economy would be booming. 🙂

  2. Tom Gould 2

    Looks like these Tories led by that financial wizard Key, the money markets guru, are much worse at running an economy as the Greeks. Seems that the Greek net government debt to GDP has gone up by 65% since 2008 whereas New Zealand’s has gone up 120% since 2008. So instead of slagging off the Greeks, Key should get up there and ask them how come they did twice as well as he did in controlling debt.

    • True Freedom is Self-Governance 2.1

      Precisely, but people are still buying the lines and jumping on the “we dont want to become another Greece” bandwagon. I’m astounded every day by people claiming John Key is doing the right thing for the country because he knows what he’s doing financially. I like to ask them what proof they have of his financial nous and they can never answer aside from to mention his personal fortune.

      • Colonial Viper 2.1.1

        Investment banks caused Greece, John Key is an investment banker.

      • Colonial Viper 2.1.2

        John Key said we should be a financial centre like Ireland. Ireland is now a financial basket case.

  3. lefty 3

    Its partly true.

    Some Cantaburians are Nats

  4. ghostwhowalksnz 4

    The only budget item for Christchurch earthquakes is $90 mill for CERA. There may be smaller amounts in other budgets , eg Education for schools damage.

    But its nowhere near the ‘costs’ that English is continually claiming.

  5. Stop the bloody quakes please – then we can get on with the rebuild.
    There is a lot of money waiting to be spent in the Christchurch region.
    I understand NZ$12 billion from insurance is waiting to pay for rebuild.
    The Government has another NZ$9 billion ready.
    But until the shocks/aftershocks cease/slow to a small trickle, nobody can go anywhere.

    • Colonial Viper 5.1

      In other words, Christchurch, you are on indefinite hold. You also forget to mention the hold up not caused by the aftershocks – but by the private insurance companies.

      No wonder the city is depopulating.

      • Fortran 5.1.1

        Colonial

        Insurance is based on a basic premis – risk.
        The Insurance Industry is anticipated to pay NZ$12 billion for the quakes already. And more if new claims occur.
        The total New Zealand premium for all Fire & General insurance is something likje NZ$2 billion per annum, and that has to pay for everybodies anything insurance claims – even the car crash in Northland.
        Do you think that if we had State Insurance back it would make a difference ? – Risk is the factor and with further quakes it cannot be quantified.

        • Colonial Viper 5.1.1.1

          yep Christchurch your lives are all on hold, until the free market of overseas private sector insurers say so.

      • muzza 5.1.2

        Wonder how much the consultants. lawyers and general parasites are sucking out of the “cash funds”..

        Those “after shocks” are awfully convenient…

        Starting to wonder if Ch Ch is actually finished as a city, with the insurers dictating!

        Argh, but the insurers are going to lead in ways to “save the planet”, so thats all ok!

        • Treetop 5.1.2.1

          The insurance companies certainly dictate. Without knowing how long the unsettling earthquakes will continue for there has to be a better way of helping out those who no longer want to reside in Christchurch. This option has to be fast tracked by insurance companies as this would help to give all parties more certainty, (reducing the risk of another earthquake payout). The insurance companies are like the government holding onto as much Christchurch money as they can for as long as they can, as well as paying out as little as they can. The sad reality is that the earthquakes have had a high personal financial toll to everyone who owns property and that it is the insurers who are ripping them off. For some the earthquakes are bearable but being ripped off tens of thousands is harder to accept.

          Insuring property is all about the risk to profit that an insurer takes on. Landlords typically get as much rent as they can while paying out the least they can for property maintenance.

Recent Comments

Recent Posts

  • Revolutionary art in Palmerston North
    Last night I was a judge at the May Day Cup, an annual theatrical event which celebrates International Workers Day. The event was organised by stalwart unionist Dion Martin and included a range of performers competing for the Cup. This year… ...
    GreensBy Catherine Delahunty
    28 mins ago
  • Revolutionary art in Palmerston North
    Last night I was a judge at the May Day Cup, an annual theatrical event which celebrates International Workers Day. The event was organised by stalwart unionist Dion Martin and included a range of performers competing for the Cup. This year… ...
    GreensBy Catherine Delahunty
    28 mins ago
  • Andrew Little visits Zaatari refugee camp
    Leader of the Opposition, Andrew Little, has visited the largest Syrian refugee camp in the world, Zaatari in Jordan, a day after seeing New Zealand troops at Camp Taji in Iraq. Mr Little spent several hours in the camp, meeting… ...
    20 hours ago
  • Com Com’s Z Energy decision anti-competitive
    The Commerce Commission’s decision to allow Z Energy to buy Caltex can only undermine the competition in the fuel industry that is needed to ensure New Zealanders pay the lowest price for petrol, Labour’s Consumer Affairs spokesperson David Shearer says.… ...
    1 day ago
  • Com Com’s Z Energy decision anti-competitive
    The Commerce Commission’s decision to allow Z Energy to buy Caltex can only undermine the competition in the fuel industry that is needed to ensure New Zealanders pay the lowest price for petrol, Labour’s Consumer Affairs spokesperson David Shearer says.… ...
    1 day ago
  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    2 days ago
  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    2 days ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    2 days ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    2 days ago
  • OIO must explain Argentine pollution prosecutions
    The Overseas Investment Office (OIO)has questions to answer about how it safeguarded our sensitive land by allowing foreign investors with criminal prosecutions to purchase Onetai Station in Taranaki, says Labour’s Land Information spokesperson David Cunliffe.   “Rafael and Federico Grozovsky… ...
    2 days ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    2 days ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    2 days ago
  • Murray McCully needs to come clean over Tokelau ferry debacle
    Foreign Minister Murray McCully needs to come clean on why a New Zealand aid-funded vessel intended to service the Tokelau Islands is delayed, over budget and failed its sea trials, Labour’s Foreign Affairs spokesperson David Shearer says. “The new ship… ...
    2 days ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    2 days ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    2 days ago
  • Andrew Little visits NZ troops in Iraq and refugees in Jordan
    Opposition Leader Andrew Little has visited New Zealand troops at Camp Taji, Iraq. Mr Little also met with Iraqi Defence Minister Khaled Al-Obedih and senior military officials from the Coalition forces in Iraq. He now heads to Jordan to see… ...
    3 days ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    3 days ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    3 days ago
  • Minister must come clean on implications of landmark settlement
    Gerry Brownlee has urgent and serious questions to answer in the wake of today’s landmark EQC settlement, which potentially has major implications for thousands of Cantabrians, says Labour’s Canterbury spokesperson Megan Woods. ...
    3 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    3 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    3 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    3 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    3 days ago
  • Dam not out of doldrums yet
    Ruataniwha Dam promoters Hawke’s Bay Regional Investment Company (HBRIC) still has hurdles to clear and a lot of work to do before ratepayers and taxpayers will have confidence in the scheme, says Labour’s MP for Ikaroa-Rāwhiti Meka Whaitiri.“We need sustainable… ...
    3 days ago
  • New study shows Smith’s insulation fails Kiwi kids
    A new Otago University study shows Nick Smith’s inadequate insulation standards will see hundreds of children unnecessarily hospitalised for housing-related illnesses every year, Labour’s Housing spokesperson Phil Twyford says. ...
    4 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    4 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    4 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    4 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    4 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    4 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    4 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    4 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    4 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    4 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    4 days ago
  • John Key’s land tax could push up rents
    A land tax proposed by John Key as the answer to the housing crisis could push up rents and risks having no effect on skyrocketing prices, Labour’s Housing spokesperson Phil Twyford says. “The Government needs to explain why the thousands… ...
    5 days ago
  • Government should ban foreign speculators
    The Prime Minister’s musings about a land tax on non-resident buyers is just more tinkering, and the Government should just ban foreign speculators as the Australian Government has done, says Labour’s Housing spokesperson Phil Twyford. “This is classic John Key.… ...
    5 days ago
  • Government must protect Pharmac as promised
    John Key must tell New Zealanders that he will not bow to pressure from wealthy drug companies or their US negotiators and put Kiwi lives at risk, Labour’s Health spokesperson Annette King says.   “News reports today have the drug… ...
    5 days ago
  • Action not words, needed on housing speculation
    John Key should be taking action to crack down on speculation in our overheated housing market, instead of random musings on land tax, Labour Housing spokesperson Phil Twyford said.  "John Key suggested today on TVNZ's Q and A programme that… ...
    7 days ago
  • Tertiary education cost rising 7x faster than inflation
    New figures show the cost of tertiary education is rising seven times faster than inflation, putting post-school education out of the reach of many, Opposition Leader Andrew Little says.  “Figures release this week show how much more students or their… ...
    1 week ago
  • Buying Lotto is not an arts funding strategy
    The Government must rethink the way the arts are funded after falling Lotto sales has left the sector with declining resources and increasingly vulnerable, Labour’s Arts, Culture and Heritage spokesperson Jacinda Ardern says.  “Our arts sector is in a sorry… ...
    1 week ago
  • Parents hit in pocket by Government under-funding
    Parents and families are left forking out more and more for their kids’ education as a direct result of Government under-funding, Labour’s Education spokesperson Chris Hipkins says.  “The latest data shows that the cost to families of primary and secondary… ...
    1 week ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    1 week ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    1 week ago
  • Water for grass
    Last Saturday, my colleague Eugenie Sage took me for a drive across the Canterbury Plains. I had seen from the air the landuse changes across the plains in recent times; a patchwork of crops and stock raising has been transformed… ...
    GreensBy Catherine Delahunty
    1 week ago
  • Water for grass
    Last Saturday, my colleague Eugenie Sage took me for a drive across the Canterbury Plains. I had seen from the air the landuse changes across the plains in recent times; a patchwork of crops and stock raising has been transformed… ...
    GreensBy Catherine Delahunty
    1 week ago
  • Thousands of invalid votes likely after National refuses to change rules
    National’s refusal to make it easier to enrol and vote could result in tens of thousands of votes continuing to be ruled invalid at general elections, Labour’s Justice spokesperson Jacinda Ardern says. The Justice and Electoral select committee today released… ...
    1 week ago
  • Social Development stats don’t add up
    Today’s figures released by the Ministry of Social Development show that despite a drop in the number of beneficiaries, fewer people are going into paid employment or study, says Labour’s Social Development spokesperson Carmel Sepuloni. ...
    1 week ago
  • Fonterra sticks with high pollution goal of increasing milk supply
    This week’s reported comments by Fonterra chair John Wilson that dairy “volumes were only going to keep increasing”  are troubling. Mr Wilson was supporting a potential renegotiation of the New Zealand-China Free Trade Agreement (FTA). Under the FTA dairy products such… ...
    GreensBy Eugenie Sage
    1 week ago
  • Coleman’s ‘efficiencies’ strangling health
    New Zealand’s district health boards have made ‘efficiencies’ of more than $672 million over the past five years at the expense of everything from new drugs to elective surgery, says Labour’s Health spokesperson Annette King.  “This is a body blow for… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere