Wellington, Dec 13 NZPA - The Government estimates its economic stimulus package created around 2300 jobs through increased infrastructure spending of more than $500 million.

Last February the Government announced it was increasing or bringing forward planned spending on housing, roading and education infrastructure.

Figures released to NZPA show that more than half of that money had been spent with the rest still rolling out through next year.

Some governments have been winding back spending as the world economy shows signs of recovery, but Finance Minister Bill English said the infrastructure spend up would continue as planned.

"The infrastructure stimulus package we announced in February is on track and will continue to support jobs into next year," Mr English said.

Some commentators had expressed concern at the size of government spending and Mr English said next year's budget cap of $1.1 billion in new spending would represent a significant reduction in the growth trend of government spending.

Housing:

Last February the Government announced $124.5 million for state house upgrades and new builds under its "Jobs & Growth" package including:

* "Up to 10,000" houses upgraded at a cost of $104.5 million over the remainder of the 08/09 year and in the 09/10 year, and

*An increase the number of new state houses (over and above the 450 Housing New Zealand were adding to their stock in the 08/09 financial year) by 69 at a cost of $20 million in the remainder of the 08/09 year.

Figures released to NZPA showed by the end of September, Housing NZ had completed 87 new houses at a cost of $19.97 million.

It had also completed 1609 upgrades at a cost of $10 million.

Between June 30 and September 30, Housing NZ awarded contracts for upgrading a further 6100 houses during the 2009/10 year with another 2500 contracts to be handed out during the remainder of the 09/10 year.

The appropriated money for this 2009/10 upgrade programme was $85 million.

"Housing NZ has achieved its 08/09 upgrade target and is on track for its 09/10 upgrade target. In addition it has exceeded its 08/09 new builds target by 18 houses," the papers said.

"Since February, the housing component of the package has on average employed about 1000 people."

Roads:

Also in February the Government announced $142.5 million of transport spending, spanning five state highway projects and a programme of smaller, regional roading improvement projects.

The papers said work had begun on all five of the major roading projects including:

*Earth works on the Rimutaka Hill Corner (Muldoon's) easing,

*Earth works on the Kopu Bridge replacement in the Coromandel,

*Site works on the Hawke's Bay Expressway southern extension with earthworks set to commence shortly,

*Site works on the Matahoura Gorge realignment, and

*Tenders have been received for the Christchurch Southern Motorway extension with the preferred tenderer expected to be announced soon.

The cost of accelerating these five projects was estimated to be $42.5 million.

"In addition, about $54 million of the $100 million set aside for accelerating State Highway renewals has already been spent. At their peak the projects will collectively support about 600 jobs," the papers said.

Education:

Under the stimulus package the Government announced $216.7 million of education spending including five new schools, school refurbishments and information technology infrastructure improvements were brought forward.

"Construction on two of the schools has already commenced. The others are set to start next year. The acceleration of the school building projects will collectively cost $69 million.

"Construction has been completed on over half of 81 refurbishment and maintenance projects and most of the others are well advanced. Collectively the 81 projects are worth $71 million."

The papers said spending to make schools broadband-ready as well as spending on special schools and trades academies was underway but gave no details.

"There is no exact headcount of the number of jobs this (education spending) will support, but education officials estimate the projects will collectively support about 700 jobs at their peak."