Earthquake damage in Canterbury put at $2 bln, says PM Key

Sept. 4 (BusinessDesk) – Damage from Canterbury’s 7.1 magnitude earthquake has provisionally been put at $2 billion, Prime Minister John Key says.
The number came from Treasury and Earthquake Commission estimates. Key said while many people will be covered by insurance there will be some who need assistance.

“The Cabinet will have to look through these issues and try to work through a solution and come back with a contribution,” Key told One News.

Christchurch’s CBD was closed to the public as emergency services assessed the damage. The initial quake was at 4.35 a.m. and was followed by several aftershocks between magnitude 3.9 and 5.1.

Civil Defence has warned Cantabrians to expect more aftershocks up to magnitude 6 over the next week.

No-one was killed in the earthquake though one person is in Intensive Care at Christchurch Hospital with serious injuries. The hospital was able to switch to emergency generators though some buildings sustained damage.

The region is bracing for deteriorating weather, with gale force winds forecast which could topple damage buildings. Heavy rain is expected for Monday.

Health authorities are warning there is also a danger from contaminated water because of broken water and sewer mains. Residents were told to conserve water and in the suburb of Rolleston, the water supply has been assessed as contaminated.

Electricity had been restored to 77% of the city by midday and is expected to be back up to 90% overnight, according to a report on the Civil Defence website.

Rural areas are largely without power, creating a dilemma for dairy farmers needing to milk their herds and those that rely of electricity to supply water. There were reports of damaged grain silos and disabled milk processing plants, according to Federated Farmers.

“Thankfully, a number of farmers have invested in backup generators but these are a short-term fix," said Neil Stott, Federated Farmers North Canterbury provincial president. "The welfare of livestock will now be of prime concern to farmers and we appreciate the offers now coming in from fellow farmers."

The Earthquake Commission said people have up to three months to make a claim for damage and Chief executive Ian Simpson says he expects thousands of claims over the next few days.

The quake closed most rail lines in the region and State Highway 77 between Glentunnel and Rakaia River Bridge. Lyttelton tunnel has reopened as has the airport, which opened for business again at 1:30 p.m. on Saturday. Wigram airport is no longer operational, Civil Defence said.

(BusinessDesk)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>