Christchurch – economic hindrance?
Written By:
- Date published:
2:15 pm, May 25th, 2012 - 16 comments
Categories: jobs, john key -
Tags: christchurch, GDP, growth, rob salmond
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?
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- Release: Govt forgetting the 6000 jobs they’ve cut
The real problem in the public sector is ongoing job losses and cuts to the front line. ...2 weeks ago
- Government undermines public service with WFH crackdown
The Green Party says the Government’s retrograde move to tighten up on Work from Home arrangements is the latest in a series of blows to the Public Service. ...2 weeks ago
- Release: Ministers oblivious to cuts’ effect on families
The National Government is oblivious to the impact cuts to services will have on New Zealanders who are doing the hard yards caring for mentally ill family members. ...2 weeks ago
- Release: Public service set up to fail under National
Nicola Willis has set up the public service to fail to pay for reckless tax cuts for landlords and the tobacco industry. ...2 weeks ago
- Release: Coalition cooking up costly RMA replacement
National continues to dismantle environmental protections in the interests of rushing through unsustainable development that will ultimately cost communities. ...2 weeks ago
- Release: National red-faced as benefit numbers skyrocket
The economy has stagnated and the National Government is having to face the consequences of its atrocious lawmaking, as beneficiary numbers skyrocket past even Treasury’s predictions. ...2 weeks ago
- Release: National allocating police officers not hired yet
There are 104 fewer police officers now than there were when National came into Government. ...2 weeks ago
- Economic decline further cause for tax transformation
Today’s GDP figures combined with the injustice of our tax system will mean more pain for our lowest-income households while those at the top remain relatively unscathed. ...2 weeks ago
- Release: No growth under National, just cuts
The National Government’s decisions have hindered, not helped the economy. ...2 weeks ago
- Govt must act to avoid the worst of NIWA’s climate projections
New climate projections from NIWA underscore how urgently climate action is needed. ...3 weeks ago
- Release: More job losses as Government fails on manufacturing
The Government is failing the manufacturing sector with no plan for its future. ...3 weeks ago
- Ruakākā recreation centre opened
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Agriculture Minister Todd McClay, and Rural Communities Minister Mark Patterson announced up to $50,000 in additional Government support for farmers and growers across Southland and parts of Otago as challenging spring weather conditions have been classified a medium-scale adverse event. “The relentless wet weather has been tough on farmers and ...2 days ago
- Government welcomes move to delay EU Deforestation Regulation
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- Response to Ministerial Inquiry into School Property
The Government is taking decisive action in response to the Ministerial Inquiry into School Property, which concludes the way school property is delivered is not fit for purpose. “The school property portfolio is worth $30 billion, and it’s critically important it’s managed properly. This Government is taking a series of immediate actions ...2 days ago
- New Government support for residential construction market announced
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- New appointment to the EPA board
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- Strengthening resilience with critical road improvement projects
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- Doubling road rehabilitation this summer to prevent potholes
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- Sir Jerry Mateparae appointed in Bougainville post-referendum moderator role
Foreign Minister Winston Peters has welcomed the announcement of Sir Jerry Mateparae as an independent moderator, to work with the Government of Papua New Guinea and the Autonomous Bougainville Government in resolving outstanding issues on Bougainville’s future. “New Zealand is an enduring friend to Papua New Guinea and the ...3 days ago
- Latest census data highlights New Zealand’s growing ethnic diversity
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- FamilyBoost payments make ECE more affordable
Parents and caregivers are now able to claim for FamilyBoost, which provides low-to-middle-income families with young children payments to help them meet early childhood education (ECE) costs. “FamilyBoost is one of the ways we are supporting families with young children who are struggling with the cost of living, by helping ...3 days ago
- South Pacific defence meeting fosters collaboration
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- Minister welcomes larger Police recruitment wings
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- Speech to the Minerals West Coast Forum
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- Positive progress on Government health targets
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- Supporting better access to data for Kiwis
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- Progressing remote building inspections
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- PPTA accepts charter schools
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- New TAIC Chief Commissioner appointed
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- Government secures market access for blueberries to Korea
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- South Pacific Defence Ministers meet in Auckland
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- Keytruda, CGMs, and FamilyBoost welcomed
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- Children’s Unit opens at Rotorua Hospital
Health Minister Dr Shane Reti today opened the refurbished Children’s Unit at Rotorua Hospital, which will provide young patients and their families in the Lakes District with a safe, comfortable and private space to receive care. “The opening of this unit is a significant milestone in our commitment to improving ...5 days ago
- Minor variations no longer major problem
It is now easier to make small changes to building plans without having to apply for a building consent amendment, Building and Construction Minister Chris Penk says. “Previously builders who wanted to make a minor change, for example substituting one type of product for another, or changing the layout of ...5 days ago
- New diplomatic appointments
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- SuperGold Information Hub live
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- New fund to clean up old landfill and dump sites
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- Increased medicines access welcomed following budget boost
Associate Health Minister with responsibility for Pharmac David Seymour has welcomed the increased availability of medicines for Kiwis resulting from the Government’s increased investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our Government assumed office, New ...5 days ago
- Foreign Minister completes successful week of international engagements
Foreign Minister Winston Peters today wrapped up a week of high-level engagements at the United Nations in New York and in Papeete, French Polynesia. “Our visit to New York was about demonstrating New Zealand’s unwavering support for an international system based on rules and respect for the UN Charter, as ...6 days ago
- Final 2024 Action Plan focused on infrastructure
The Government’s Quarter Four (Q4) Action Plan will be focused on making it easier and faster to build infrastructure in New Zealand as part of its wider plan to rebuild the economy, Prime Minister Christopher Luxon says. “My Government has been working at pace to get the country back on ...6 days ago
- Four new laws to tackle crime passed in Q3
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- Government partnership boosting vineyard productivity
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- Strong support for NZ minerals strategy
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- Snapper catch limits up, orange roughy down
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- Reforming the building consent system
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- Cost-benefit analysis for potential third medical school completed
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- Government delivers sensible approach to speed limits
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- Minister to meet with Pacific Island climate leaders
Climate Change Minister Simon Watts is travelling to Fiji on Monday to attend a Ministerial Meeting (Talanoa) with Pacific Island Countries, Australia, and New Zealand. “Attending the Talanoa will reinforce New Zealand’s commitment to supporting climate resilience in the Pacific and advancing action in the areas of climate change,” Mr ...1 week ago
- Human rights recommendations accepted
The Government is accepting the majority of human rights recommendations received at the fourth Universal Period Review in Geneva, Justice Minister Paul Goldsmith says. “We have considered all 259 recommendations from the United Nations. We are supporting 168 and partially supporting 12 of these recommendations. “Recommendations related to women’s rights, ...1 week ago
- Geotech work begins on Warkworth to Te Hana Road of National Significance
The Government is continuing to move at pace on the Northland Expressway, with significant geotechnical investigations now underway for phase one from Warkworth to Te Hana, Transport Minister Simeon Brown says. “With thousands of motorists and freight travelling through Northland, we’re focused on delivering for this region to grow our economy. ...1 week ago
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Temporary SetbackLord Kenyon and Lady Charlotte walk down the rampOf their magenta and lime green hot air balloon Hubris,In matching Polar Bear fur coats, wraparound shadesEncrusted with diamonds, and a hundredweightOf subtle and discreet chunky gold accessories.At the bottom of the ramp, a squad of burly Bailiffs wait.“What ho, good ...6 hours ago - Health NZ deputy commissioners being paid $200k a year in fees
The three deputy commissioners are trying to turn the public health system around. ...6 hours ago - What’s next for Lebanon and the Middle East?
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- Fresh Rangers on fast-track to football No.1
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“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.
Christchurch depopulating; disaster for most. Delays to serve the free market.
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. 🙂
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.
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.
Investment banks caused Greece, John Key is an investment banker.
John Key said we should be a financial centre like Ireland. Ireland is now a financial basket case.
Its partly true.
Some Cantaburians are Nats
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.
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.
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.
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.
yep Christchurch your lives are all on hold, until the free market of overseas private sector insurers say so.
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!
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.