Govt could face bill for businesses in red zones

Photo / Mark Mitchell

The Government may be asked to stump up cash for businesses in Christchurch's new residential red zones who do not qualify for the land buyouts homeowners do.

The Canterbury Employers' Chamber of Commerce estimates there are up to 500 businesses in the red zones.

The Government says it will pay out homeowners for their land in the red zones but its offer does not include businesses.

"There's no point having a corner dairy where there are no houses any more," said chamber chief executive Peter Townsend.

Earthquake Recovery Minister Gerry Brownlee said the Government was looking into the issue.

While most of these businesses in the red zones are operating out of people's homes, Mr Townsend said up to 100 were small businesses "in their own right, on their own properties".

"We will be keeping a close eye on it. We have said to the Government we are not going to come to them cap in hand yet, but if we see a need ... then we will be taking that to the Government."

Mr Brownlee said many businesses would be registered in the residential red zones, but far fewer would have commercial premises based there.

Each commercial premises would have its own particular situation, and these would be identified in the coming weeks, the minister said.

Mr Townsend said the businesses in residential red zones were facing a similar situation to the businesses based in the cordoned-off area of the CBD. The biggest difference was that businesses in the suburbs could keep trading for as long as it took those areas to be cleared out.

He said that of the chamber's 350 members in the CBD, only 28 had gone out of business as a result of the earthquakes. He hoped for a similar outcome for businesses in the affected suburbs.