PM expects more on dole

Prime Minister John Key. Photo / Mark Mitchell

Prime Minister John Key says he is expecting thousands, rather than tens of thousands, of Christchurch people to be out of a job when the Government assistance packages for earthquake-affected people run out.

His comments come as more than 500 workers at Christchurch Casino were offered a redundancy package, and given until the end of yesterday to take it.

Mr Key said he remained hopeful the casino could re-open by the end of May.

Almost 64,000 Christchurch workers are receiving Government assistance - either through Job Loss Cover, or the Employment Support Subsidy - but the schemes are being trimmed back and will run out on May 31.

The Council of Trade Unions has called on the Government to extend the schemes because as many as 20,000 people could still be jobless by then.

"[That] would be a disaster," said CTU earthquake response co-ordinator Marty Braithwaite.

"We will see many leave Canterbury, confidence will evaporate, and there will be considerable hardship for a long period."

Mr Key said numbers had not been crunched, though he expected a "bulge" in the number of those on the dole.

"There is a significant state of flux in Christchurch, a great deal of uncertainty ... but people are starting to get work."

Asked if there would be thousands, rather than tens of thousands, more jobless as a result of the earthquake, Mr Key said: "I don't know exactly, but that's more my sense."

He said the Government was looking at other ways of helping once the assistance packages expire.

"The focus of the Government should be on how we can keep as many people employed as we practically can."

Labour leader Phil Goff said the Government should be helping people into training that would help with rebuilding.

"We'll have a huge shortage of people in the building and related trades," Mr Goff said. "We should be preparing people to take up those skills. We should be preparing people in the industry to advance the skills they already have."