PM’s earthquake appeal to banks, businesses

Prime Minister John Key is hopeful that banks and business owners will continue to assist recovery efforts in the wake of Saturday's earthquake in Canterbury.

Many businesses in Christchurch are unable to open, with owners of central city premises allowed in only to inspect damage, but will still be expected to meet tax liabilities and maintain outgoings on borrowings.

The government intends to work with banks and Inland Revenue to ensure affected businesses receive flexibility and support.

“It’s very important that we don’t put those businesses under simply because they can’t operate over the next day or two, or week or two,” Mr Key told media this afternoon.

He said that it was unlikely that Christchurch’s CBD would be opened up until aftershocks have stopped, though reopening will occur as soon as safely possible.

Mr Key was hopeful that business owners, if financially capable, would continue paying wages over the next week.

Unpaid workers will be able to seek recourse through WINZ hardship grants and the Mayoral Relief Fund – now boosted by $5m from the government coffers - if employers are unable to assist.

The government will discuss the specifics of the fund’s administration with the region’s mayors tomorrow.

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.

A number of companies have already pledged donations to the region.

Bringing in help
Restoring water and wastewater management is considered the top priority on the ground.

“We’ve had expressions of interest from a number of other major water and wastewater providers around the country and that’s the point that we’ve got [Civil Defence Minister] John Carter taking up with the local mayors today,” Mr Key said.

“It is our intention to draw on that support and bring those people to Christchurch so that those issues can be resolved very, very quickly.”

The government's broader focus is on setting up appropriate consents to allow reconstruction to begin.

“If we can get the Earthquake Commission RMA process operating quickly, then we can get people to work quickly,” Mr Key said.

"One of the major things [the Minister for Earthquake Recovery] will be working on is sitting down with the banks, basically with the insurers, and obviously local government to see how we can speed up that process."

Mr Key has received personal offers of assistance from each of the country’s major building companies.

NZ Trade and Enterprise has been asked to use its capability networks to seek out further options for labour and skills provision.