New Zealand quake could take ten years and $15 billion to clean up
David Carter, New Zealand’s acting economic development minister, estimates that it could take ten years to rebuild Christchurch after a 6.3 magnitude earthquake rocked the town last month; the cost of rebuilding is estimated at $15 billion and climbing; nearly a third of the buildings in its business district have been declared unsafe; New Zealand prime minister John Key ruled out an earthquake tax for fear it would hurt the economy, which has been hit hard by the recession; New Zealand is actively soliciting international aid to help with its recovery; Christchurch has a population of roughly 377,000 and makes up about 15 percent of the nation’s economy
Nearly a third of Christchurch's structures are unsafe // Source: solariasun.com
David Carter, New Zealand’s acting economic development minister, estimates that it could take ten years to rebuild Christchurch after a 6.3 magnitude earthquake rocked the town last month. The cost of rebuilding is estimated at $15 billion and climbing.
Christchurch was also recently hit by a larger but less destructive earthquake last September, and nearly a third of the buildings in its business district have been declared unsafe. 148 people have been confirmed dead and rescue teams are still searching for more than 200 people who have been declared missing.
As the country begins to recover from the quake, New Zealand prime minister John Key ruled out an earthquake tax stating, “I don’t want to put on another levy because I think it will slow the economy.”
New Zealand’s economy has been deeply affected by the recession and to jumpstart the earthquake recover, Key announced an emergency business-recovery package worth an estimated NZ$120 million for businesses in Christchurch.
Chris Green, an economist at First NZ Capital, says that by “conservative assumptions,” relative to GDP, the cleanup for the earthquake could cost five times as much Hurricane Katrina.
Christchurch’s downtown area still remains restricted as officials fear that damaged buildings are susceptible to collapse at any moment. New Zealand police have also evacuated residents from some surrounding areas due to concerns over the stability of a rock face
Acting Economic Development Minister Carter, said, “It’s a big project. Having said that I think we can get underway very quickly on some of the rebuild.”
He says that weakened buildings that may damage neighboring properties must be pulled down to ensure that areas are safe for people to enter.
In the rebuilding process, “We’ve now got to acknowledge that there will be some reprioritization having to occur to make sure we’ve got enough resources to pour into Christchurch.”
Prime Minister Key echoed this statement, when he said that rebuilding Christchurch would consume the “core” of the government’s budget until May.
The government of New Zealand is actively soliciting international aid, launching a fund-raising campaign to generate money to help with its recovery.
Christchurch has a population of roughly 377,000 people and is a major commercial center in New Zealand’s agriculture and tourism-dependent southern region. The city makes up about 15 percent of the nation’s economy.
