NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Small Business

Christchurch earthquake: Govt counts economic cost of rebuild

By Peter Wilson and Dave Williams of NZPA
Herald online·
28 Feb, 2011 07:30 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Destruction on Manchester Street in Christchurch. Photo / Brett Phibbs

Destruction on Manchester Street in Christchurch. Photo / Brett Phibbs

As the Government commits itself to rebuilding earthquake-ravaged Christchurch, it is looking at costs running into tens of billions with an economic impact that will last for years.

Prime Minister John Key said today Treasury's early estimate of the damage caused by last week's 6.3-magnitude quake was between $10 to $15 billion - two to three times the $5b estimated cost of September's 7.1-magnitude quake and 7 to 8 per cent of the GDP, compared to Hurricane Katrina's one per cent impact on the US economy.

The Government will have to pick up about $5b of the combined $20b cost, and there are future costs still to be assessed as revenue falls while the country's second largest city recovers.

"A vibrant city provides jobs for its people and this is a broken city, one that needs to be repaired," Mr Key said today.

"There's no getting away from the fact that this has had an enormous impact, beyond our control or expectations."

Mr Key had just announced emergency assistance for businesses and workers hardest hit by the earthquake which will cost between $100 million and $120m.

It will last for six weeks while the Government works on its next steps, and a modified assistance scheme is likely to follow.

The first payments will be made by Wednesday, with eligible employers receiving $500 gross a week for each full-time employee so they can continue to pay wages.

Mr Key said the aim was to keep businesses connected with their staff, and he also announced support for workers who had lost their jobs because their employers couldn't keep going.

Those full time workers will receive $400 net a week to tide them over while they look for other jobs.

"The idea is to put money immediately into people's pockets," Mr Key said.

"This isn't means-tested, it's a universal payment."

Mr Key said the Government's commitment was going to have an impact on its budgets, and was likely to mean it wouldn't return to surplus as soon as it had expected.

Finance Minister Bill English said the economic effects would be felt for years to come.

"I'm confident that New Zealand will come through this," he said.

"Certainly, the Government will provide the financial resources needed in both the short and longer term."

Mr English said loss of output from Canterbury and a delay in reconstruction from the previous earthquake would have an economic impact.

At a national level, economic growth in the first half of this year would be lower than expected.

Mr English said the Government had the resources and the commitment "to do what is needed".

"Supporting and rebuilding Christchurch will be the most important thing the Government does this year and into the future - we won't be cutting corners," he said.

"We will pay for this work by prioritising spending on Canterbury above other areas of government spending and by taking on a bit more debt in the short term."

Mr Key again said the Earthquake Commission levy paid through private insurance would rise, although the Cabinet did not discuss that today.

He repeated his belief that the levy could be doubled or even tripled so the fund could recover after paying out on both Christchurch earthquakes.

Labour leader Phil Goff said the assistance announced by Mr Key was a good start but a comprehensive, flexible recovery package was needed to secure Christchurch's future.

"In 1931, Napier was rocked by a devastating quake," he said.

"Hundreds were killed and injured but a stunning and vibrant city rose very quickly from the rubble... the same can happen in Canterbury."

BusinessNZ welcomed the support for Christchurch businesses and staff.

"This will help reduce the uncertainty and disconnection felt in many Christchurch businesses while providing practical funding," said chief executive Phil O'Reilly.

The Council of Trade Unions (CTU) questioned whether the assistance went far enough to meet the needs of workers.

CTU secretary Peter Conway said most families lived on full wages each week and costs like mortgages, rents, petrol and food did not decrease because of the earthquake.

- with NZ Herald staff

Discover more

New Zealand

Christchurch earthquake: Key eager to enlist Oprah, Letterman

27 Feb 04:30 PM
New Zealand

Christchurch earthquake: Only child's unknown fate torture for family

27 Feb 04:30 PM
New Zealand

Christchurch earthquake: 'This is no place to live any more'

27 Feb 06:30 PM
New Zealand

Christchurch earthquake survivor: My legs or my life

27 Feb 04:30 PM
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Small Business

Premium
Small Business

On The Up: Small Business - Wheelie good branding with The Cartery

04 May 09:00 PM
Premium
Crime

Inside the secret 3-year criminal case against Auckland's luxury doggy daycare

03 May 05:00 PM
Premium
Technology

Legaltech firm VXT raises $2.5m at $45m value with Silicon Valley backing

01 May 03:01 AM

One tiny baby’s fight to survive

sponsored
Advertisement
Advertise with NZME.

Latest from Small Business

Premium
On The Up: Small Business - Wheelie good branding with The Cartery

On The Up: Small Business - Wheelie good branding with The Cartery

04 May 09:00 PM

Charlene White talks to Tom Raynel about her event-management business, The Cartery.

Premium
Inside the secret 3-year criminal case against Auckland's luxury doggy daycare

Inside the secret 3-year criminal case against Auckland's luxury doggy daycare

03 May 05:00 PM
Premium
Legaltech firm VXT raises $2.5m at $45m value with Silicon Valley backing

Legaltech firm VXT raises $2.5m at $45m value with Silicon Valley backing

01 May 03:01 AM
Premium
Small Business: How Otto is gamifying savings to encourage financial habits

Small Business: How Otto is gamifying savings to encourage financial habits

27 Apr 07:00 PM
Connected workers are safer workers 
sponsored

Connected workers are safer workers 

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP