86 staff from the Kaiapoi supermarket have lost their jobs because the building is so badly damaged it will be demolished. Kaiapoi was badly hit by the earthquake. About 200 homes there have been badly damaged. Building inspectors will check 300 homes in the east of Christchurch tomorrow which was also badly hit. A red sticker on the house means nobody can live there.
Many buildings in the Christchurch central city will be demolished. If owners have insurance, the insurance company might pay for a new building. However, employers will lose business in the meantime. The government will help to pay workers for a few weeks until the business opens again. However, when a business moves to a new part of the city, it takes time to get new customers. Workers could lose jobs.
Farmers have lost buildings too, including milking sheds and large silos which store wheat. They have damage to their land too.
Rent for homes and businesses could increase because so many homes and buildings have been badly damaged.
Insurance premiums will increase throughout New Zealand because this earthquake will cost insurance companies so much.
The cost for taxpayers will be huge. Already the government is saying it will cost $4bn to repair public buildings, roads, electricity, water and sewerage systems. The government is also providing $7.5m to social services to help people in the community who are in need.
However, there is good news for the construction industry – builders, plumbers, bricklayers, electricians, roofers, painters and all the other people involved in building. Recently many of these people have been out of work. Some of them talked about moving to Australia. There will now be plenty of work in Canterbury for a long time.
Questions
1. The earthquake will have an emotional impact on people as well as an economic impact. Can you explain what this is?
2. Children have also been affected by the earthquake. Why? What can parents do?
3. Many old and interesting buildings will be demolished. Should the Christchurch City Council control the design of new buildings?