Govt announces $6.85m economic package for Christchurch

Photo / Greg Bowker

The Government has announced a $6.85 million economic recovery plan to help Canterbury businesses get back on their feet.

The package includes money for business recovery coordinators, international visits for exporters to key clients, a trust fund for those in need following the quakes, and more money for workshops and business training.

Earthquake Recovery Minister Gerry Brownlee said while a significant number of businesses were fully operational, others were struggling to get back on their feet.

"This is a needs-based package developed in conjunction with the Canterbury business community - it reflects what they've told us they need and we'll continue talking in the months ahead to respond as their needs change," he said.

"By taking a partnership approach to economic recovery, we're aiming to put the right people and the right services where they can make the most difference."

Mr Brownlee and Acting Economic Development Minister David Carter made the announcement in Christchurch today alongside Canterbury business leaders.

Mr Carter said the funding would go towards local initiatives that would help restore the confidence of businesses.

It includes:

- $1.7 million toward recruiting new business recovery coordinators

- A one-off donation of $2.5 million for the newly created Canterbury Business Recovery Trust Fund, a private sector initiative to facilitate business-to-business donations

- A $2 million fund to support visits to international markets by export businesses

- $650,000 for businesses to access training, workshops and business coaching.

The package will be funded via a realignment of funding within the Ministry of Economic Development and New Zealand Trade and Enterprises baselines.

Mr Brownlee and Mr Carter said the government would continue to work in partnership with Canterbury's business sector to develop further initiatives to help local businesses get trading again.

A previous Government assistance package which enabled employers to pay workers for six weeks finishes next week.

Canterbury Chamber of Commerce CEO Peter Townsend said he was delighted to hear the Government's package was the first in a series of commitments to getting Christchurch back up and running.

He said many of the 6000 businesses in the central city had been concentrating on survival so far but now needed to start to look at rebuilding and in some cases re-creation of their businesses.

Central City Business Association manager Paul Lonsdale said the money committed by the Government is a start, but it comes at a time when people are very concerned about their futures.

"We have to look at some practical steps to try to reestablish some of the businesses elsewhere," he said.