Wednesday, 26 September 2012

It is important to keep where we are at in the recovery process in Christchurch in perspective.

 Key Factors of significant concern are:
  • 70% of buildings in the central business district (CBD) were severely damaged and have been or will be demolished.
  • 346 restaurants and bars have been lost from the central city area and at least 60% of the hotels in the central city will be demolished.
  • Property related insurance claims from the earthquakes are currently estimated to total $30 billion.
  • Around 100 schools require repairs or rebuilding.
  • 37% decline in International education enrolments post-earthquake.
  • 50,000 people who worked in the CBD became displaced and most have found temporary premises elsewhere.
  • There have been job losses, workers have left the region and participation rates in employment have fallen, particularly among women and young people.
  • More than 770 buildings in the central city have been demolished (August 2012) with a further 200 expected to be demolished in coming months.
  • 46% of greater Christchurch’s urban sealed roads, water and sewerage infrastructure have been damaged.
  • Insurance cost to the Lyttelton Port of Christchurch rebuild is thought to be around $500 million.
  • Within the Canterbury District Health Board approximately 9,000 out of 11,000 hospital rooms need repairs at the cost of at least $400 million to bring CDHB facilities up to the minimum building code.  The business case for the new hospital infrastructure is awaiting approval.
Opportunities arising from the Earthquake:-
  • We have incurred costs in excess of $30 billion but will be the recipients of enormous cash flow from insurance and other sources. (Total damage was at least 80% insured and Government has committed at least $8.5 billion).
  • The recently released CCDU Blueprint is brave and visionary and provides a framework to move the central city forward. We are going somewhere new and exciting!
  • Our education institutions are reinventing themselves to meet   the need of the new environment.
  • Horizontal infrastructural work valued at $2.5 billion is underway. (96 road crews on the job, building to 150).
  • Fletcher Building is currently completing  up to 100 homes  per day in the 10K to 100K  damage category ($3.0 billion contract, involving 14000 contractors and subcontractors)
  • Insurance issues are beginning to be sorted and new insurance is becoming available in the Christchurch market.
  • EFTPOS transactions are above 95% normal, signifying strong retail activity (in the context of New Zealand’s biggest ever natural disaster).
  • Regional export activity remains strong and ahead of the previous two years.
  • At least two major irrigation projects are making good progress to increase irrigated land in Canterbury (to above 70% of all irrigated land in New Zealand).
  • Hotels are reopening and accommodation across the city is increasing in capacity.
  • Unemployment in Christchurch is lower than New Zealand’s average and job/career opportunities are building daily.
  • Business survival post-Earthquake has been high and business churn increases post- Earthquake negligible.
  • Very few businesses above usual have relocated from Christchurch.
  • There has not been significant population flight (7200 net loss since Sept 4 2010 from a base population of close to 500,000).
  • As we build scale to cope with the recovery challenge there will be opportunities right across New Zealand for Companies to collaborate with Canterbury based companies to participate in the rebuild.

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