Parker David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeParker David: Questions for Oral Answer — Questions to Ministers[Sitting date: 17 June 2014. Volume:699;Page:18526. Text is incorporated into the Bound Volume.]5.Hon DAVID PARKER (Deputy Leader—Labour)to the Minister of Finance: Does he stand by the Cost to the Crown of the Canterbury Rebuild presented in Budget 2014?Hon BILL ENGLISH (Minister of Finance):Yes. That is Treasury’s best estimate based on current information and according to the criteria it has to apply for the accuracy of the estimates.Hon David Parker: Does he agree with the Prime Minister’s statement last week that the cost to the Crown of the rebuild will increase to around $20 billion?Hon BILL ENGLISH: I think the Prime Minister suggested that it could. Of course that is yet to be seen but the best estimate at the moment is around $15.4 billion. There has been some airing of differences of view for instance around how much of the cost councils should carry compared with the Government and we are engaged in constructive discussions about that. That could possibly see the costs rise.Hon David Parker: Given that even before the Budget the Christchurch City Council said its share of infrastructure rebuild costs was higher and the Prime Minister has lately said that he thinks the costs are going up too why did the Minister present a Budget showing the Crown’s share of those infrastructure rebuild costs had dropped compared with the prior Budget?Hon BILL ENGLISH: Because that is and I have to say remains the best assessment of the cost of the infrastructure. The council has been becoming much more familiar with its current financial circumstances and its outlook. It has some views about what costs it should carry and those of course will be constructively discussed with the Government. But in the end Treasury sets the amount according to the valuations of the insurance liabilities and the best estimates of future costs to the Government.Hon David Parker: Why would anyone have confidence in his numbers when at the last election the Pre-election Economic and Fiscal Update booked the proceeds of asset sales but failed to account for the decrease in dividends?Hon BILL ENGLISH: As was extensively discussed after the last election as part of Labour’s usual relitigation of election results where it thinks the public got it wrong including back in 1975 which it is still relitigating—as part of that discussion it became quite clear that Treasury followed the correct statutory processes as it has for this Budget.Hon David Parker: Can he assure the House that the rebuild figures published by Treasury in this year’s Pre-election Economic and Fiscal Update will be accurate and will fully represent the true and higher costs of the rebuild as belatedly acknowledged by the Prime Minister just last week?Hon BILL ENGLISH: As the member will know the Pre-election Economic and Fiscal Update is prepared by Treasury in its capacity under the Public Finance Act as an independent statutory agency. It will decide what those numbers are and I expect it will apply the same objectivity and integrity it has to the Budget 2014 number. It could be higher. That is up to Treasury. It depends on a lot of moving parts in respect of Christchurch funding.