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Have your say: John Key accelerates NZ$500 mln of infrastructure spending
The new government has announced further plans aimed at kick-starting New Zealand's economy out of recession. Prime Minister John Key's 'Jobs and Growth Plan' includes planned spending of NZ$216.7 million on education and school related projects, NZ$142.5 million on transport infrastructure projects and NZ$124.5 million on projects based around the renovation and building of state houses.
"These projects will get underway quickly "“ in many cases in the next few months "“ and they will keep more New Zealanders working as the global economic crisis is felt here," Key said. "They were chosen because they are quality projects, they will make lasting contributions to our economy and they are ready to go."
"They will employ New Zealanders and create work for businesses in regions, whether they are builders, plumbers or electricians. And their benefits will flow through communities by helping keep suppliers and sub-contractors, shopkeepers and sales staff in business," he said.
The education plan will allocate the following:
- NZ$68.7 million towards building five new schools in Mt Wellington (primary), Papamoa (primary), Kerikeri (primary), Hingaia (primary) and Papamoa (secondary).
- NZ$30 million to allow 64 schools to have better administration buildings, halls and libraries.
- NZ$9 million to expand facilities at special schools and satellite units.
- NZ$34 million to upgrade ICT infrastructure in schools so that more of them are broadband ready.
- NZ$30 million to improve four Upper Hutt schools: Upper Hutt College, Heretaunga College, Fergusson Intermediate and Maidstone Intermediate.
- NZ$11 million to replace outdated and rundown buildings in seven schools: Pt Chevalier School, Manurewa East School, Cambridge High School, Karanui School, Somerfield School, Christchurch South School, and Lyttelton Main School.
- NZ$6 million to establish a trades academy on Southern Cross Campus in Mangere.
- NZ$28 million to help schools accelerate existing building projects that have stalled.
The new transport infrastructure plan will bring forward five state highway projects at a cost of NZ$42.5 million, transport minister Stephen Joyce said. It will also involve NZ$100 million worth of "road maintenance and renewal work around the country, with NZ$34 million to be spent on projects commencing before June 30, and a further NZ$66 million in the following two years," Joyce said.
The five highway projects being brought forward are:
- The Kopu Bridge replacement in Waikato (brought forward 12 months)
- The Matahorua Gorge Realignment in the Hawkes Bay (9 months)
- The Hawkes Bay Expressway southern extension (3 months)
- Muldoon's Rimitaka corner easing in Wellington (28 months)
- The Christchurch Southern Motorway (4 months)
However, the figure of NZ$42.5 million only relates to the cost of bringing the projects forward. The new plan has brought forward the completion dates of the projects, so would seemingly have also brought forward the payment dates. The estimated cost of the five put together is NZ$302 million.
Housing Minister Phil Heatley said that NZ$104.5 million would be allocated to renovating 10,000 state houses. There will also be another 69 state homes built within the next six months, he said, at the cost of NZ$20 million. This will amount to NZ$289,000 spent on building each new home.
Related Topics
"This work will be spread across the country and will deliver economic stimulus in almost every region," Heatley said.
10 Comments
If the infrastructure spend is
If the infrastructure spend is a rolling maul, then what is the opposition player that dangerously collapses it? And will we get a penalty or just a free-kick?
Anon With all the rule
Anon
With all the rule changes currently flying around in the sport, it's hard to tell.
For instance, do they have to touch the opposition before they engage in anything?
Some would argue it's a free kick at the next generation. Playing for possession now instead of a longer-reaching view of playing for territory and being in a better field position later on in the game.
The rugby analogies are endless really.
Cheers
Alex
How does this help us
How does this help us Generate the export earning we require to reduce our deficit.
What has the huge increase in the past 10 years in education done to improve the standard of education for our children.
We are borrowing more and not improving our ability to repay. I say cut civil servants pay by %20 Now! We dont need more debt.
Sounds to me we are
Sounds to me we are all at the bottom of a ruck OUCH!!
andrew Build that Kopu bridge
andrew
Build that Kopu bridge now! that improves productivity! Im not kidding, thats how they measure it for a road! the 40 minutes per car is given an hourly rate and hence an 'economic benefit' (never mind that they just closed the sawmill)
The rest of us might think it just allows Jaffas faster access to their Coromandel Batches but we'd be the ignorant uninformed masses wouldn't we?
Neven
This so called stimulus spending
This so called stimulus spending is economic madness. First of all where is this money coming from? Borrowing it means that we will be paying interest on this money for years to come. Secondly Key says that it will support 2,000 jobs. That means that each job costs $250,000! This is just insane. Let's face the fact that NZ'ers have been overspending for too long, it is now time to take the medicine.
"cut civil servants pay by
"cut civil servants pay by 20% " and give those bloody Drs and nurses a damn good lecture on the economy as they board planes for Oz.
A 500bln packet of peanuts
A 500bln packet of peanuts to keep a few monkeys happy......pissing into the wind JK!
Again I suggest is it time to print the 'Tasman'(NZT) a dual currency to pay for the infrastructure projects and bail outs. A currency only redeemable in NZ!
Stephen Hulme, would it cause inflation and how would it affect the NZD (The Kiwi)? Such fiat currency can such currency be created without causing public debt? Such a currency could also serve as a contingency coupon if non profit production was needed to feed people ....even before the current financial disaster I think it is estimated 20% of NZ's children come from homes on the "breadline" ??
I am apalled at the lack of resolute action in NZ in preparation for what NZ will ultimately face......WAKE UP! The sirens, alarm bells and drums are booming all over the world....nah she'll be right...yeah right!
Perhaps contingency planning is taking place down below the Beehive that we don't know about???? If it isn't ...hey, it had better start JK ...I would come back to NZ and volunteer for the team (experienced!)
With S&P watching, they can
With S&P watching, they can not spend freely. They can not sales much of those debt anymore.
Andrew - exactly, if the
Andrew - exactly, if the spending doesn't create a return, it's one off, in fact worse than that it's got to be paid back. It's digging a hole.
Reduce taxes, so the productive sector gets to keep what they make, reduce non-productive public spending, eliminate barriers to investment (like aquaculture) sell or partially float SOE's and put every cent into a development bank, top it up with new printed money.
Invite proposals to use this money for start up projects, there will be people in this country with ideas other than developing real estate . . . . . I hope :)