Christchurch earthquake: Govt aid 'a start, but more needed'

Peter Townsend. Photo / Supplied

Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said the earthquake assistance package announced yesterday was "fair and a good start".

"But it's certainly not all that will be required to assist businesses in Canterbury," he said. "We've got a serious amount of rebuilding to do here, and then we'll go into a business recovery phase and we'll be expecting Government support all the way through that."

The Government yesterday announced a six-week assistance package for both Christchurch businesses and workers.

An initial support package would be made up of two parts; an Earthquake Support Subsidy to help employers keep paying wages and an Earthquake Job Loss Cover to support workers whose employer believes their business is no longer viable.

Eligible employers will receive a payment of $500 gross per week for each full-time employee, which will be paid to the affected worker. For part-time workers the payment will be $300 gross per week.

Earthquake Job Loss Cover will also be available to employees who are unable to contact their employer.

Full-time workers in this situation will receive $400 net per week, to help them find another job or seek other welfare assistance. Part-time workers will receive $240 net per week.

Paul Lonsdale, manager of Christchurch's Central City Business Association, said the package was suitable.

"Obviously some people will be earning more than that [$500 gross per week for each worker], but ... we're restricted on water, we're restricted on power so we're going to have to restrict our spending [as well]," Lonsdale said.

In addition to financial support, he said that for some businesses to get back into operation it was critical they gained access to buildings in the cordoned-off CBD in which crucial information was left on IT systems.

"If some of those businesses are able to access that information and documentation they can get themselves back operating," Lonsdale said.

He said it was crucial that critical information was removed from buildings facing demolition.

"We've got some trying times ahead and we've got to make sure we're offering hope to the people that we'll get this thing sorted and we will rebuild the city."

BusinessNZ chief executive Phil O'Reilly said the rapid support for Christchurch businesses and staff would be welcomed by those affected by last week's earthquake.

"This will help reduce the uncertainty and disconnection felt in many Christchurch businesses while providing practical funding," said O'Reilly. "This is a good start that will help Christchurch businesses move towards recovery." additional reporting NZPA