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(Last updated: 12 Apr 2011)

Christchurch Earthquake Current Situation

This database enables Austrade to identify needs and align Australian services and technologies to support the rebuild effort following the devastating earthquakes of 4 September 2010 and 22 February 2011.

We welcome Australian businesses with capabilities across a wide range of sectors to supply skills, resources and technologies for the rebuilding of Christchurch and the restoration of essential infrastructure and services. If you wish to register as a potential supplier please click here:

Registration with Austrade will ensure that:

  • Your company’s business details and capabilities are entered on the database of suppliers for earthquake recovery.
  • Your company is included in project updates.
  • You are promptly notified of relevant opportunities and can discuss these with Austrade staff in market.
  • Your business will be included in relevant industry briefings.

Background

On 4 September 2010, a 7.1 earthquake struck Christchurch followed on 22 February 2011 by a 6.3 magnitude earthquake. This caused further significant and widespread damage and over 160 fatalities. Many buildings were destroyed or damaged beyond repair, and much essential infrastructure has been seriously damaged. The Christchurch CBD has been destroyed and rebuilding will take up to 10 years. Australia was involved in rescue and recovery efforts right from the start. Australia continues to stand shoulder to shoulder with New Zealand by assisting with the appropriate introduction of capabilities and resources from Australia.

A Royal Commission has been established and will be chaired by Justice Mark Cooper, a sitting High Court judge. The Commission will provide an interim report in approximately six months and will include recommendations relevant to the construction of new buildings in the Christchurch CBD. The final report due in approximately 12 months will include recommendations on any remaining areas of inquiry.

The New Zealand Government has created a new, stand-alone authority - the Canterbury Earthquake Recovery Authority (CERA). CERA will be in charge of the Christchurch earthquake recovery effort. New Zealand Prime Minister, John Key, says it will provide leadership and coordination of the ongoing recovery effort.

CERA will have a life-span of five years and its operations will be reviewed annually. Its interim chief executive will be Deputy State Service's Commissioner John Ombler.

“Rebuilding Christchurch and the wider region following the earthquakes is one of the government's highest priorities and we are committed to providing the necessary resources to make this happen over the coming weeks, months and years,” Mr Key says.

The New Zealand Government will pay for the rebuilding of Christchurch by borrowing money in the short term, but also by prioritising spending on Canterbury over other forms of Government spending.

The total financial cost of damage from the earthquake is estimated between NZ$10 billion and NZ$15 billion, two to three times the estimated NZ$5 billion cost of the first earthquake last September.

The wider economic impact of the earthquake, combined with slower economic growth than forecast in December, could leave nominal GDP a cumulative NZ$15 billion lower over the five year period to 2015. This is equivalent to approximately 1.5 per cent of the total value of GDP over this period.

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to New Zealand. This is regularly updated, and should be checked before planning travel.

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Country facts

Capital city: Wellington
Surface area: 271,000 sq km
Population: 4.4 million
Official language(s): English
Head of State: H.M. Queen Elizabeth II, represented by Governor-General HE The Hon Sir Anand Satyanand
Head of Government: Prime Minister The Rt Honourable John Key
Australian exports to New Zealand: A$8,030 million
Australian imports from New Zealand: A$6,998 million
New Zealand's principal export destinations: Australia, USA, China
New Zealand's principal import sources: Australia, China, USA

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Economic climate

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

The NZ economy is a mixed economy based on free market principles. It has a large agricultural sector, as well as sizeable manufacturing and service industries.

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Political climate

New Zealand is an independent state within the Commonwealth, with a parliamentary democracy political system. Unlike Australia, there is no upper house. There are two main parties, the Labour Party and the National Party and a number of smaller parties. Voting is on a proportional representation system. The present government is a coalition of National, ACT and the Maori Party.

New Zealand enjoys very close ties with Australia both politically and economically. It has a modern welfare system, and is politically and economically stable.

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Trade relations and statistics

On 1 January 1983 the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), more commonly known as Closer Economic Relations (CER), took effect.

The CER between New Zealand and Australia is one of the most comprehensive, effective and WTO-compatible free trade agreements in the world.

Since 1983, trans-Tasman merchandise trade has increased by 10.6 per cent annually.

On 27 February 2009 New Zealand and Australia signed a Free Trade Agreement with the ASEAN regional block of 10 countries. The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) aims to liberalise and facilitate trade in goods, services and investment between New Zealand, Australian and the ASEAN economies. It contains measures to improve the business environment and promote cooperation in a broad range of economic areas of mutual interest.

New Zealand also has Free Trade Agreements with China (2008), and Singapore (2001) Brunei (2005) & Chile (2005). Others are in negotiation and details can be found on the New Zealand Government website www.mfat.govt.nz.

Preferential duties are offered to Pacific nations (under SPARTECA), to less developed countries such as Romania and the Philippines, and to countries such as Zambia and Rwanda.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.

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The current fact sheets are available on the IP Australia website.

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Site Information

Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.