2. Question No. 2—FinanceRACHEL BROOKING (Labour) to the Minister of FinanceQuestion No. 2—Finance2. RACHEL BROOKING (Labour) to the Minister of Finance: What will be the economic impact of the recent extreme weather events and how is the Government responding to those events?Hon GRANT ROBERTSON (Minister of Finance): I would first like to acknowledge the impact of the recent extreme weather events on those affected particularly those who have lost loved ones their homes and their livelihoods. I'd also like to recognise the exceptional efforts of all those who have responded within our communities and supported one another in this tragic and upsetting time. The Government is committed to working with local communities so that affected families farmers business people and others are back on their feet and regions are back moving. This has been a significant event and it is still early days to be able to put a specific figure around the economic and fiscal impact of these disasters but we do know that it will be considerable and we do know that the bill the Government will need to meet will be in the billions of dollars. The Government has taken action quickly to provide certainty and assurance in these early stages of the response. A little over $352 million of additional support has been provided for. We know that significant further resources will be needed to support New Zealanders through the response recovery and rebuild phases. Rachel Brooking: What support is the Government providing to the primary sector in response to the cyclone and flooding?Hon GRANT ROBERTSON: We've announced an initial package of $25 million to go with the earlier $4 million announced for the primary sector. Of this $25 million in grants part of it will support pastoral farmers and growers. This will mean that they will be eligible for up to $10000 worth of support to help initial on-farm recovery such as repairs to water infrastructure for stock and fencing. Grants for growers of $2000 per hectare up to $40000 will be available to do among other things: removing silt and debris from orchards supporting clean-up and minimising future losses. Applications for this $25 million fund begin today.Rachel Brooking: What other action is the Government taking in response to the recent extreme weather events?Hon GRANT ROBERTSON: It is worth noting that today represents the 12th anniversary of the 22 February earthquake in Christchurch. There is a lot to learn from those circumstances and we think of those people today on the anniversary. One thing in particular to learn from that period of time is the importance of locally led responses. We are driving forward our response based on the needs of those in communities. The Prime Minister has appointed regional lead Ministers to work with every affected community to ensure that what we do meets the needs that are on the ground. Alongside this a task force is being established to be led by Sir Brian Roche. That will ensure that all parts of the private sector community sector and those involved in specific industries who will be key to the recovery and rebuild are at the table their voices are being heard and they can interact with Government and local government and iwi in whatever way is necessary. We will need to be nimble and adaptable but there are plenty of lessons for us to draw on.Rachel Brooking: How well placed is New Zealand to deal with the consequences of the extreme weather events?Hon GRANT ROBERTSON: The extreme weather events will have an impact on this year's Budget and those in following years and it may mean changes to the Government's economic and fiscal approach as was outlined in the Budget Policy Statement. We are taking the time now to work through all of those decisions. No final decisions on those matters have been made at this point but we will be actively considering how we meet additional costs how we may prioritise what we're doing and planning to meet any needs that are identified. If further resources are required we are in a good position to manage that. The Government has been resilient in a challenging global environment. Our debt levels sit at just over 21 percent of GDP well below our debt ceiling and among the lowest in the OECD. We are well positioned to handle the impact of the recent extreme weather and any future economic shocks.