Christchurch earthquake: SMEs struggle to find feet in quake-torn city

Businesses face a challenge. Photo / Getty Images

One of the biggest frustrations facing Christchurch business owners following last week's earthquake is finding new premises.

One CBD refugee business has tried to secure a lease on seven different properties so far, with no luck.

The manager did not want to be identified for fear of affecting the company's chances of finding new offices but he described the market as the "Wild West".

The company had been gazumped several times by desperate large corporates needing big spaces.

Landlords were exploiting the situation, demanding eight to 10-year leases and hiking prices to as much as $300 a square metre.

"I'm told that is very high for Christchurch," he said. "You have to wonder about the community spirit of some of these landlords."

Bill Joblin, owner of heavy duty truck and commercial vehicle specialist Scotts Motors, has also been searching for an alternative to his damaged workshop.

"They're asking double the price and there's just nothing around."

He was is in the process of accessing the Government's business assistance package but that would pay only half the wage bill for his seven employees.

"I've got to pay the staff the full amount because they're all fully qualified technicians. Otherwise you lose them. They're threatening to bugger off to Aussie - they can get jobs tomorrow."

He was frustrated at not being able to access his Moorhouse Ave premises within the central city cordon, and at the lack of information.

Melanie Morrie, director of Opawa training company Training and Beyond, has set up an organisation called the Business Recovery Centre, offering small and medium enterprises help in getting back on their feet. It was initially aimed at accountancy and law firms, but was now receiving inquiries from a wide range of businesses.

"The main stories we're hearing are they can't get in, they can't get to their data."

The Government's business assistance package was working well, with firms able to go online and get funds paid into their bank accounts overnight. But it required them having information such as their employees' IRD numbers and dates of birth.

"It's all achievable but they probably just need someone to calmly help them through that."

A lot of the SMEs it was hearing from did not have business interruption insurance, and even if they did, "small print" in policies meant they couldn't claim in many instances, Morris said.

Fibre network company Enable Networks is working seven days a week helping businesses relocate to new premises. It was also trying to be proactive and predict where businesses might want to go, chief executive Steve Fuller said.

"We are extending our network to places which have just been constructed."

But the company relied on a vibrant Christchurch economy for growth.

"If there are businesses which are struggling to make ends meet or cannot find another place to relocate or decide they want to close their business down, that obviously has an impact on us."

BACK IN BUSINESS

The volume of transactions going through the Paymark electronic payment network in Christchurch has been slowly rising as the week has gone on.

Paymark records show there were 152,800 transactions worth $8.24 million on Thursday, with 2141 merchants connected.

That's up from 113,600 on Monday, with a value of $6.65 million and 1883 merchants connected.

The retailers reaping the most benefit from the increase in transactions were supermarkets and petrol stations.