In the Global Settlement document, the Crown claimed to have spent $14b in Canterbury. (Remember these figures aren’t just for Christchurch.) This appears to have been accepted by the negotiating team as correct.
The CCC negotiator, Brendan Anstiss, supplied to us the Treasury document to show how the figure was arrived at. On the Treasury document supplied it showed that expenditure was actually $15b. I am not sure why the two figures are different. If you say it quickly, what’s $1b between friends? Cam Preston informed me that Treasury have taken down this figure, so they probably don’t believe it now either.
However, top of the Treasury list was $7b for EQC. This is not government spending. It is the fund, held in trust by the Crown, for all of us. We pay into this fund when we pay our house insurance. Cam Preston argues that EQC funds have been plundered by successive Governments. It is NOT government spending. The only spending which could be added to this figure as Government expenditure, is whatever they have had to pay to top the fund up.
So, let us say that the figure is $15b, minus $7b. Which equals $8b. Attached is a calculation which claims that the Crown has earned an extra $7b in tax as a result of the earthquakes, which could be reasonably close to the mark. This could mean that the Crown has spent around $1b net if this calculation is correct.
That could mean that CCC has spent more than 4 times what the Crown has spent.
Which means that a claim on the Crown to assist with the rebuild of our horizontal infrastructure could be a good idea.
Somebody, prove our numbers wrong.
Here is the CALCULATION on extra tax earned by the crown from canterbury earthquake repairs
The table below shows the estimated initial output and impact on taxation revenue. It is estimated that government will collect around $7 billion in taxes from the initial $40 billion spent.
Table One: Initial Estimated Output and Impact on Government Taxation Revenue $ million
| Infrastructure | Residential | Commercial and Social | Total | |
| Materials and plant spend[1] | 1,308 | 10,367 | 10,050 | 21,726 |
| Labour spend | 1,319 | 8,580 | 8,375 | 18,274 |
| Profit | ||||
| Total | 2,627 | 18,947 | 18,426 | 40,000 |
| GST revenue | 196 | 1,444 | 1,356 | 2,996 |
| Income tax revenue | 240 | 1,273 | 1,325 | 2,838 |
| Corporate tax revenue | 651 | 590 | 1,241 | |
| Total estimated tax revenue | 436 | 3,368 | 3,271 | 7,075 |
The induced impacts were calculated using the multiplier approach[1] and GST was applied to the additional output (above initial, direct and indirect).
All results are in 2011 dollars.[2]
[1] It is assumed that all materials are produced in New Zealand or imported by a NZ based subsidiary.
Leave a Reply