Exporters well placed to assist with Christchurch earthquake recovery, expert says

The Christchurch earthquake may serve as an opportunity for Australian businesses to assist with construction and rebuilding, with the city facing an insurance bill now topping over $2 billion, one industry representative believes.

The city is still in a state of emergency, with electricity restored to about 90% of Christchurch residents, according to local authorities, while about 60 streets are still without running water. The army is now assisting police in the still restricted city centre.

Australian Institute of Export general manager Peter Mace says Australian construction companies have an opportunity to travel and assist with building and relief efforts, especially when the state of emergency is lifted and business begins recovering.

He says many Australian businesses have experience in rapidly building temporary accommodation, with others qualified to assist in long-term rebuilding.

“The amount of building to be taken on is probably a stretch for New Zealand’s own construction capabilities, so there could be opportunities for companies to participate in development,” he says.

The main city of Christchurch still remains off-limits for about 50,000 business owners and employees, with public buildings including the library still shut down. Businesses have been completely demolished, with mayor Bob Parker warning it could take months for normal operations to resume.

Employers outside the inner-city zone have been warned to accept responsibility for their building and ensure their buildings are safe enough for business to continue.

“It’s horrible this disaster has occurred. But with the amount of damage being as it is, there are opportunities for Australian businesses to assist. There will be people needing to rebuild their homes, buying new articles, replacing possessions, and so on.”

New Zealand is Australia’s number one trading partner, with over 17,000 businesses exporting to the country in 2008-09, according to figure from AusTrade economist Tim Harcourt.

“Many exporters actually find exporting ‘across the ditch’ relatively easy and that Kiwiland is a good ‘nursery’ to start with when learning the craft of exporting,” he says.

“The Closer Economic Relationship agreement – now nearly three decades old – really gave Australian companies, especially small businesses, a kick-start into exporting by giving them a start in the land of the long white cloud.”

Mace says this trading relationship will help Australian businesses enter Christchurch to start building rapid accommodation for those who have lost their homes, along with the refurbishment of offices and residential areas.

“The trading relationship here will help Australian SMEs. Of course, many businesses in New Zealand will have taken out insurance for damage, but there is still an opportunity here to assist.”

A night curfew has been imposed on the city following reports of looting, with police superintendent Dave Cliff telling RNZ that “known criminals” have been arrested after they tried to enter the city centre posing as council members.

Some business owners were the only members of the public allowed in so they could view the damage to their properties. Many buildings have been declared too dangerous to enter, with assessments to take some days yet.