Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Centreport to demolish Stats House, fate of land unclear


Centreport to demolish Stats House, fate of land, BNZ Building unclear

By Sophie Boot

Oct. 10 (BusinessDesk) - Centreport will demolish Wellington's Statistics House following the damage the building sustained in the November 2016 Kaikōura earthquake, it has confirmed.

In a statement, Centreport said the 12 year-old building's insurers have decided the building is not economically viable to repair and it will now apply to Wellington City Council for consents to safely demolish the five-storey office block.

A spokesperson said the future use of the land was yet to be determined, and Centreport hasn’t taken a decision yet whether to rebuild on that site, or to use it for other purposes. The port company is still working with its engineers and insurers on the status of the BNZ building, it said.

In March, an investigation commissioned by the Ministry of Business, Employment and Innovation found the building performed unacceptably in the shaking and could have caused fatalities. Two floors of the building partially collapsed in the Nov. 14 earthquake, and the building was declared a no-go zone the next morning, with entry prohibited since. The nearby headquarters of the Greater Wellington Regional Council were also declared unsafe, as was the Bank of New Zealand's Wellington headquarters, also on port land.

CentrePort was forced to suspend operations immediately following the Nov. 14 Kaikoura earthquake as it dealt with damage to its buildings and liquefaction. Since then it has been able to modify its operations to resume services such as ferries, oil terminals, log exports, break bulk cargo and cruise shipping.

The company reported a $35.7 million loss in the first half of its financial year due to earthquake damage, which it described as the biggest adverse event in its history.

The first-half result included $68.7 million of asset impairments, excluding land, due to the earthquake, and a $20.4 million hit to the value of its property. The value of its equity at Dec. 31 fell to $127 million, from $213 million at June 30 2016 as the value of port land was written down by $50 million.

The company said it had received $54 million in insurance proceeds to date and expected additional funds in the second half of the year to bolster its annual result. Centreport's annual results are due this week.

When the independent report was released in March, Building and Construction Minister Nick Smith said the government would amend the Concrete Structures Standard this year to ensure new buildings can cope with beam elongation during earthquakes, one of the factors found to have contributed to the partial failure of lower floor segments. Smith also said he had asked MBIE to report whether it needs additional powers under the Building Act to require building owners to follow up on problems.

Stats NZ staff have occupied other buildings in central Wellington since late 2016 and have leases in place for at least another year. The Government Property Group (GPG) is now looking more broadly at accommodation for Wellington-based agencies, including Statistics NZ.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>