Budget 2013: $900m of asset sales money allocated to Chch rebuild

Photo / Simon Baker

The Government has allocated $900 million of new money from the asset sales programme as part of the $2 billion increase in funding for the rebuild of quake-damaged Christchurch.

Christchurch Earthquake Recovery Minister Gerry Brownlee confirmed the Budget would increase funding for the city's recovery from $13b to $15b.

"This Government has recognised the substantial financial support Christchurch needs, not just to get back on its feet, but to position itself on the world stage as a great, small city where people want to live, visit and invest," Mr Brownlee said.

This $2b increase over five years included $642m of funding from existing balance sheets.

The total cost of the rebuild was revised earlier this year from $30b to $40b.

The new funding included $924m from the Future Investment Fund, which held the earnings from the Government's asset sales programme.

The money from the partial float would go towards the redevelopment of Christchurch and Burwood hospitals, and would also help fund tertiary institutions in the city and the justice and emergency service precinct.

The Government has set aside $300m for the central city, which Mr Brownlee said would help redevelop Christchurch into a world class city.

"Plans are well under way for how the city will look in the years to come. This funding is about enabling that to happen."

Of the $15.2b the Crown has contributed to the rebuild, $7.6b has come from the Earthquake Commission and other Crown entities. Direct Government support has paid for the remainder.

The total cost of the rebuild was equivalent to 20 percent of New Zealand's GDP.

Christchurch recovery

- $900m for hospitals, universities, justice and emergency services

- $303m for Christchurch central city

- $200m for land zoning, CERA costs, education initiatives

- $642 for health and education projects