The government is expected to make further announcements about Canterbury earthquake recovery assistance after meeting with local mayors this afternoon.Small business owners in Christchurch's CBD in particular are worried about cashflow and how they will
The government is expected to make further announcements about Canterbury earthquake recovery assistance after meeting with local mayors this afternoon.
Small business owners in Christchurch’s CBD in particular are worried about cashflow and how they will pay staff without access to their buildings.
Some parts of the CBD were reopened this morning.
Prime Minister John Key said today that the government hopes to be in a position to announce a compensation package for unpaid workers this afternoon.
He suggested this could occur through the emergency welfare benefit.
Last night, Mr Key was hopeful that business owners, if financially capable, would be willing to continue paying wages over the next week, even if the doors stay shut.
The government is working with banks and Inland Revenue to provide support and flexibility for affected businesses.
Most banks have already announced earthquake assistance packages, including temporary overdrafts, repayment suspensions and special loan facilities.
So far, the government has announced:
- an extra $5m for the mayoral relief fund;
- access to the $94m national emergency roading works fund;
- the appointment of senior cabinet minister and MP for Ilam Gerry Brownlee as Minister for Earthquake recovery, to be based in Christchurch;
- a new cabinet committee on Canterbury reconstruction, to be chaired by Mr Brownlee; and
- three new Earthquake Commission field offices in Christchurch.
Both Mr Brownlee and Mr Key will be in Christchurch today, along with other ministers and MPs from across parties.
Costing the quake
Finance Minister Bill English today remained uncertain about the effect of the earthquake on the government’s books.
Costs from the earthquake are expected to run into the billions of dollars, with damage to about 100,000 homes in Christchurch and significant damage to infrastructure in the region.
The Earthquake Commission and private insurers have the capacity to deal with most insurance claims.
The government is expected to step in to assist with up to 90% of infrastructure costs and is considering options to assist the uninsured.
