Christchurch Rebuild Is Key To Unlock New Zealand’s Return To Surplus: KPMG
Statement made by Alex Skinner, Partner, KPMG
The timing and impact of the Christchurch rebuild are central to the Government’s planned return to surplus by 2014/15,
says KPMG.
The Government spend on Christchurch and the related growth assumptions underline the importance of rebuilding
Christchurch for both Cantabrians and the New Zealand economy.
This growth assumption means that there is some urgency to establish the vision and lay the foundation so business can
plan and rebuild with certainty.
We realize there is a tradeoff between urgency and getting it right but it needs focus to ensure we can get the growth
dividend.
The Budget assumptions imply a weaker recovery in the rest of the New Zealand economy. This has implications for
businesses relying on stronger growth which may not eventuate. By contrast, it provides some upside for the Government
if growth elsewhere is stronger than Treasury predicts.
ends