Bill for Kaikoura quakes $500m
More than $17 million has been distributed to businesses.
The Kaikoura earthquakes are expected to cost New Zealand about half a billion dollars.
A new Governmentcommissioned report estimates in the 18 months from the November 2016 earthquakes, New Zealand’s gross domestic product will suffer by $450 million to $500m.
The report, released by Economic Development and Transport Minister Simon Bridges, details the economic impact of disruptions caused by infrastructure damage and road closures on tourism and other businesses. Of the total, Canterbury is expected to bear a quarter of the cost, suffering by $110m to $130m. The cost to the rest of New Zealand is estimated at $340m to $370m.
‘‘Increased freight transport costs and impacts on businesses from infrastructure damage and transport disruptions are the two key contributing factors,’’ Bridges said.
He said the Government had so far incurred costs including beginning reinstatement of State Highway 1, upgrading the alternative route between Picton and Christchurch, supporting tourism and primary industries, a grant to help restore Kaikoura Harbour, and providing temporary accommodation for residents.
Bridges announced $1m of grants for earthquake-affected businesses in Kaikoura, Hurunui and Marlborough.
‘‘The new Business Recovery Grants Programme is intended to support local businesses until State Highway 1 reopens,’’ he said. ’’Businesses throughout the area have made good use of the Government’s Earthquake Support Subsidy, with more than $17 million distributed to businesses.
However, with fewer businesses accessing the support, it’s time to move to the next stage.
To be eligible for the grant, businesses must have the potential to recover, no other options such as insurance available.
They must be on State Highway 1 from Seddon to Cheviot, on Highway 70 between Lyford and Culverden, or in the Kaikoura District.
An independent panel is being established to review applications for the grant.