23 May 2011

*59% back borrowing to fund Canterbury quake recovery *

A nationwide post-Budget HorizonPoll finds 59.4% support extra Government borrowing to help fund Canterbury’s earthquake recovery.

The Government says the Canterbury earthquakes will cost the Government an extra $5.5 billion over several years.

This is on top of costs being met by the Earthquake Commission, Accident Compensation Corporation and private insurers.

Canterbury Earthquake Kiwi Bonds will be issued by the Government, with funds going to the Canterbury Earthquake Recovery Fund.

A nationwide HorizonPoll of 1,154 people the day after the Budget shows 23.4% don’t support Government borrowing for the quake recovery, while 594% do.

Some 1.5% say they will definitely invest in the new bonds, and 11.3% will probably invest.

This represents 412,000 people among the 3.2 million people in New Zealand aged 18+.

Raising the $5.5 billion from this number of people would require an average investment of $12,607 each.

New Zealanders don’t want the Government caught short like this in any future disaster.

Some 43.7% think the Government should both set aside funds and insure to make sure any future disaster recovery costs are covered and the need to borrow is avoided.

The post- Budget HorizonPoll of 1,154 people, was conducted between 11.5am Friday May 20 and 6.30am Saturday May 21 and has a maximum margin of error, at a 95% confidence level, of +/- 2.9%.

The poll continues at www.horizonpoll.co.nz

Other post Budget HorizonPoll results:

Households feel worse off, 34% will cut spending

One if four major policy changes would get public mandate

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