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DISASTER MANAGEMENT
N.Zealand quake to hit growth: finance minister

N.Z. PM wants answers on collapsed quake buildings
Christchurch, New Zealand (AFP) March 1, 2011 - New Zealand Prime Minister John Key on Tuesday pledged to find out why two Christchurch office blocks collapsed last week in the supposedly "quake-proof" city. The Canterbury Television (CTV) and Pyne Gould Corporation buildings tumbled in last Tuesday's 6.3-magnitude quake, killing dozens, including more than 60 Asian language students predominantly from Japan and China, and their teachers. City engineers deemed both buildings safe after a major tremor last September which miraculously resulted in no deaths in Christchurch, a result attributed at the time to New Zealand's stringent building standards.

Key said there were legitimate questions about why the buildings were reduced to rubble in last week's earthquake, which killed at least 155 people and is expected to result in a final death toll of more than 240. Relatives deserved an explanation about why their loved ones perished, he said, promising a thorough inquiry into both the fate of the office blocks and New Zealand's building codes. "Obviously the earthquake was something that's beyond our control (but) we are going to get answers for those families about what's gone wrong," he said.

Key said the CTV building, which housed the English language school, was "a place where far too many people have lost their lives". The deaths of so many young students from foreign shores was keenly felt in his country, he said. "We know that they were entrusted to the people of New Zealand," he added. New Zealand has promised Japan and China that it would "vigorously" probe the collapse of the CTV building, which was engulfed by flames after the quake, meaning remains of many of the dead at the site may never be identified. The building was constructed during the 1980s, while the Pyne Gould office block went up in the 1960s.
by Staff Writers
Christchurch, New Zealand (AFP) March 1, 2011
The Christchurch earthquake will cripple growth in New Zealand, possibly pitching the nation into recession and forcing down interest rates, Finance Minister Bill English said Tuesday.

English said the disaster, which is believed to have claimed more than 240 lives, would have a major impact on an already-struggling economy, providing little prospect of growth in the 12 months to June this year.

"June-to-June could be close to zero growth," he told Radio New Zealand.

"It's a different outlook from what we expected six months ago but we'll just have to roll with the punches on it."

Economists estimate Christchurch, New Zealand's second largest city, accounts for about 15 percent of the country's economy and have predicted the damage bill from the quake could reach NZ$16 billion ($12 billion).

The damage is expected to create opportunities in construction. However English said the disaster would certainly hurt growth and refused to rule out a recession in the wake of last week's 6.3-magnitude quake.

"I simply don't know the answer to that," he said.

"We're going to have very low growth, whether you have a recession or not, whether it's called a recession is largely something decided by the statisticians."

New Zealand's farming-reliant economy shrank 0.2 percent in the August-September quarter after another 7.0 tremor rocked Christchurch, miraculously claiming no lives but weakening buildings that collapsed in last week's quake.

English said October-December growth figures, due out later this month, were also set to show the economy was "pretty flat".

"What I know is that people aren't rushing up their spending, retail and housing are pretty flat. When they're pretty flat you don't get a lot of strong growth in the economy," he said.

"Now we have the earthquake, which is going to knock the numbers around a bit."

If the October-December data shows a contraction, New Zealand will technically be in recession, with two consecutive quarters of negative growth.

With the first half of this year set to be hobbled by the latest quake, English said the Reserve Bank may lower interest rates to stimulate flagging activity.

Reserve Bank chief Alan Bollard has kept rates at 3.0 percent since July as New Zealand struggles to shake off the impact of a previous recession from early-2008 to mid-2009.

But economists have predicted the central banker, whose monetary policy decisions are made independently of government, will slash rates by 0.5 points when the bank meets on March 10.

"The market is telling that's what they think is going to happen," English said.

"The Reserve Bank governor, when he makes his decisions, he'll be taking into account not just the earthquake but the fact that economic growth has been a bit flatter than the Reserve Bank expected three or four months ago.

"That may well enforce this decision, but we'll see next week."

New Zealand's stock market closed 0.41 percent higher at 3,384.39 on tiny volumes.

Fletcher Building shares are up 5.30 percent since last week on expectations of increased construction work due to the quake. Engineers say a third of Christchurch's city centre faces demolition.

"The risk is that the market is underestimating the impact of this event on the economy, consumers and consumer sentiment," said Goldman Sachs broker Peter Sigley.







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DISASTER MANAGEMENT
Can-do army lifts Christchurch from quake
Christchurch, New Zealand (AFP) Feb 28, 2011
Tanks and trucks may roll through their earthquake-shattered city but the people of Christchurch are blessed with a ragtag army all of their own. Armed with spades, shovels and tonnes of goodwill, more than 3,000 volunteers fan out daily across New Zealand's largest city to dig silt, clean homes and let people know they are not alone. "You sit there and you look at the television, you fe ... read more







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