75 confirmed dead; hundreds missing; Key pledges to rebuild Christchurch

By Alex Tarrant

The government has declared a national state of emergency after the Christchurch earthquake devastated the city, Prime Minister John Key told a news conference after an emergency cabinet meeting.

Key said police had advised him that 75 deaths have been confirmed, with 55 identified, and that hundreds were missing.

He pledged that the government would do everything it could to rebuild Christchurch.

Meanwhile Finance Minister Bill English said in the House of Representatives this afternoon he wanted to assure New Zealanders there were sufficient economic resources to cope with the latest quake.

"It is really too soon to look at these [economic] questions in detail, but we do want to reassure New Zealanders that both the Earthquake Commission, the government, the Crown agencies and private insurers have all assured us that they have the resources to meet these challenges and the will to overcome them," English told the House.

"I’m absolutely confident that our community, and our economy, has the resilience to come through this. It will be a priority for this government to recover from the Christchurch earthquake," he said.

National state of emergency

At Cabinet on Wednesday morning, Ministers received the latest advice on the situation on the ground and discussed all elements of the rescue and recovery, Key said in Wellington before leaving to fly back to Christchurch. See his full speech below.

"Cabinet agreed with the decision made under Civil Defence legislation by the Minister to declare a national state of emergency," Key said.

"As required by the legislation, John Carter will make a statement to Parliament this afternoon," he said.

"I have been in contact with Mayor Bob Parker to inform him of the decision, and to reiterate my assurance that central Government will provide all necessary resources to deal with this natural disaster. I have also spoken by telephone with Leader of the Opposition Phil Goff to inform him of this decision and I also thanked him for his efforts on the ground in Christchurch.

In practice the national state of emergency enabled the strongest possible focus of local, national and international resources working together to achieve the best possible response in the shortest timeframe, Key said.

"Under the Civil Defence Emergency Management Act, this declaration means the Director of Civil Defence Emergency Management John Hamilton may control the exercise and performance of functions, duties, and powers of CDEM Groups and Group controllers. There are no other differences between the powers under a state of local emergency and a state of national emergency," he said.

"Of course, these powers will be exercised working in close support of and cooperation with Bob Parker and the Christchurch Civil Defence team," Key said.

There was already a state of emergency in Christchurch, while Cabinet last night signed off emergency spending powers in order to spend whatever it needed to cope with recovery efforts in Christchurch, Stuff reports.

See the Civil Defence Emergency Management Act 2002 here. Part 5 focuses on powers available under the Act in a state of emergency.

Economic impact

At the press conference, Key reiterated comments from Finance Minister Bill English last night that the country could cope with the cost of the quake

"The first earthquake [in September] was estimated to cost somewhere between NZ$6 billion and NZ$8 billion. That was covered through a NZ$1.5 billion payment under EQC, a NZ$2.5 billion recourse to refinances, or reinsurers overseas, and then the additional costs being borne by either private insurance companies or the government itself," Key told media.

"We don’t know the scale yet of the second earthquake, but we do know it will be treated as a separate event. In other words – the best advice I’ve had – NZ$1.5 billion from EQC, a further NZ$2.5 billion from reinsurers overseas, and then the balance to be borne by the private insurers or ourselves [government]," Key said.

"We can afford that, but obviously that’s a significant dent in both the resources of EQC and a significant impact on the reinsurers to the tune of NZ$5 billion," he said.

Asked about a JP Morgan Chase figure of NZ$16 billion for insurance claims, Key said he could not rule those numbers out.

“No-one’s in a position to asses that. You’ll remember when the first earthquake took place there were initial numbers [for the cost of the September quake] that were NZ$2 billion, then it went to NZ$4 billion. The advice we had from Treasury is maybe NZ$6-NZ$8 billion [for the Setptember quake], my guess is they [JP Morgan Chase] probably just doubled what we said," Key said.

“What we do know is that we think there may be another 100,000 claims. There were 180,000 claims, I think, in the first earthquake. We know that different properties have been affected. Some properties that had no impact at all in the last earthquake have been severely damaged," he said.

"It’s the central CBD district where a significant number of buildings will be destroyed and will have to be rebuilt. This is quite different from the first earthquake in that, the feel you got when you’re on the ground there yesterday, it’s quite clear that there will be a major rebuilding and the centre of Christchurch will have a very different feel to it in years to come."

Asked whether government might consider an extra tax on New Zealanders outside Christchurch to help pay for the costs of the quake, like the levy seen in Australia after the devastating floods there, Key said Cabinet had not had discussions on that.

“Our hope would be to not to have to do that, in that the one thing that helps us in New Zealand is because we have EQC, in a way we pay through that levy process, and Australia hasn’t had that," Key said.

"So in a sense, we’ve preserved for this, if you like, or preconditioned for this. But we’ll have to take some advice on that in due course." he said.

Significant economic impact on Christchurch, March quarter growth

In the end there was no question the quake was going to have a significant economic impact on Christchurch, Key said.

“Unlike last time, where essentially it was significant residential damage with some damage in the CBD, and we were able to remove that cordon quite quickly, get businesses back going [and] be operational, I’m not an engineer, but my on-the-ground assessment of looking at those buildings, it is going to be quite some time before the CBD is operational," he said.

That would pose a number of issues.

"You will remember that we had packages last time in terms of businesses, in terms of employees, and the government’s going to have to go away and consider those issues very quickly and soon," Key said.

"My guess is the CBD will be out of operation for quite some time," he said.

The economic impact on the government’s books would be twofold, Key said.

"One is anything over and above anything that’s been provisioned under EQC, and then secondly we were all anticipating an economic stimulus from the Canterbury rebuild of about 1% [of GDP]," he said.

"The reality is there will be an even bigger rebuild, but there will be a delay in how long that can take.

"It’s taken six months to get to this point – you’ve had a lot of aftershocks. We’re going to have to go back and assess every building to be sure it’s safe, we’re going to have to be absolutely satisfied that people can go back to their place of work before we can let people back in there [to the CBD]," Key said.

"As you saw in Q3 [the September quarter last year], as a result of the first earthquake, that was a negative impact on the national accounts, and it will be felt in Q1 [March quarter this year] now," he said.

Death toll

Meanwhile, National Radio reported at 10.35am there were 24 people rescued, seven fatalities, and more than 22 still missing in the CTV building in Christchurch as of a couple of hours before the report. In the Pyne Gould Building 24 had been rescued, and seven more have been detected still alive by dogs – there was no detail on any fatalities, political reporter Brent Edwards said.

In the Christchurch Cathedral 22 were missing, with approximately 20 fatalities expected. The building was described as dangerous and off limits, Edwards said.

Four had been rescued from the Press building, with one fatality, but there would probably be more, while in the Smiths City carpark search and rescue dogs had not picked up any signs of life.

There were also six fatalities from where the facade of a building on the corner of St Asaph street and Columbo Street collapsed onto two buses, and there had been three deaths at the Cashel street bakery.

Meanwhile, Social Development Minister Paula Bennett said financial assistance will be made available to those who need it. See her release below:

Assistance for Cantabrians is available now and all possible help will be offered to those in need says Social Development Minister.

“The situation is changing, but currently there are two welfare centres which are operating, at Hagley Park and at Burnside High School,” says Ms Bennett.

“More welfare centres will open as soon as buildings are declared safe to use,” says Ms Bennett.

“The advice is to stay at home if people can and to check on their neighbours and if they need any help or advice, call the Government helpline,” says Ms Bennett.

The 0800 779997 helpline will operate 24 hours, providing information, advice and transferring calls through to other appropriate agencies.

That helpline has so far taken more than 2000 calls.

“Food and water is being delivered to the welfare centres and people will be cared for there as we deal with immediate need,” says Ms Bennett.

“Financial assistance will also be made available to those who need it, we have the ability to provide Civil Defence emergency payments and other assistance is available,” says Ms Bennett.

People should call the Government helpline to discuss the assistance they need.

Three Work and Income centres are open, in Ashburton, Hornby and Rangiora today for emergencies only, but people are advised not to travel through the city if they can avoid it and call the Helpline instead.

“We’ve had many generous offers to donate of food and blankets, which are much appreciated but right now we’d ask people not to travel into the city to make donations, call the Helpline instead and they will co-ordinate those donations, says Ms Bennett.

Fonterra to send water

Fonterra said this morning delivered 200,000 litres of fresh water from its Clandeboye plant to Christchurch in rail pods normally used to transport milk. The water was being distributed around central water centres set up at six local Christchurch schools.

The co-op said it was looking to send one million litres of water to the city.

Fonterra farmers in the district had come through largely unscathed and were keen to offer help and accommodation, Fonterra said in a statement.

Here is Prime Minister John Key's full speech from in the Beehive this morning:

New Zealanders have woken to a tragedy unfolding in the great city of Christchurch.

The earthquake that struck the Canterbury region at ten to one yesterday has wreaked death and destruction on a dreadful scale.

There is no reason that can make sense of this event.

 No words that can spare our pain. 

We are witnessing the havoc caused by a violent and ruthless act of nature. 

Many people have lost their lives.  Families have lost their cherished loved ones.  Mates have lost their mates. 

These deaths are the greatest loss.

They remind us that buildings are just buildings, roads just roads, but our people are irreplaceable. 

Today all New Zealanders grieve for you Christchurch. 

To all those who woke up in Christchurch today feeling lucky to be alive, we know that you too are shocked, unnerved and grieving.

We know that your loss is sharpened by fear.

Our minds go to the mothers and fathers comforting children struck by anxiety and disbelief.

They go to the elderly, infirm and isolated who experienced this event alone and who remain blunted by shock.

And they go to each and every Cantabrian who has stoically endured six months of aftershocks, only to be hit by the biggest shock of all.

On behalf of New Zealand let me say to all of you:  We feel your pain, as only a small nation can, for none of us feel removed from this event. 

I am a proud son of Christchurch.  I was raised there, I got my first job there, my sister lives there, my mother died there, I know what a wonderful place it is.

But my connection to Christchurch is no rare thing.  

All New Zealanders have a piece of our heart in Christchurch.

All of our lives are touched by this event. 

A friend or family member who lives there.  A time spent studying there or a memorable experience had there.

We feel connected to your suffering.  Your tragedy is our tragedy. 

Today I want Christchurch to hear this message:

You will get through this.

This proud country is right behind you and we are backing you with all our might.

The world is with us.

Our Australian neighbours, our British and American friends, the great countries of this world, all are putting their shoulder to your wheel.  They are sending their support, their expertise, their people to help us. 

Christchurch, today is the day your great comeback begins. 

Though your buildings are broken, your streets awash, and your hearts are aching, your great spirit will overcome.

While nature has taken much from you, it can not take your survivor’s spirit.

This devastating event marks the beginning of a long journey for your city. 

It will be a journey that leads us from ruins and despair to hope and new opportunities.  From great hardship will come great strength.  

It will be a difficult journey, but progress is certain, things will get better, Christchurch will rise again. 

On behalf of the Government, let me be clear that no one will be left to walk this journey alone. 

New Zealand will walk this journey with you.  We will be there every step of the way. 

Christchurch; this is not your test, this is New Zealand’s test.

I promise we will meet this test. 

Today and tomorrow our focus must be on preserving lives, on rescuing those who are trapped and treating those who are injured.

We pay tribute to the hundreds of search and rescue workers, emergency personnel, medical professionals and each and every person who is contributing to this effort.

You are heroes amongst us. 

Already the bravery and resilience of Canterbury is on show. 

In the weeks ahead our journey will take us to new obstacles, new challenges.

We have a city to rebuild.  We have peoples’ livelihoods to restore.   We have a community’s confidence to inspire.

We will rise to these challenges.    

We will rebuild this city resolutely, and with the conviction that this is what it is to be a Cantabrian, what it is to be a New Zealander.

We are a country of pioneers.  Whether we came by waka, sailboat, or aeroplane, we came with the conviction that we could build a new life in this country.

 That great pioneering spirit will come to the fore in Christchurch over the coming months and years.  

Though lost lives will never be replaced, and though your city will never look the same again, you will rebuild your city, you will rebuild your lives, you will overcome. 

We have seen many cities in the world come back from disasters on this scale, and Christchurch will be no exception.

I know that all New Zealanders stand ready to help.

Right now, we can help by rallying around those who are grieving, supporting those whose livelihoods are in peril. 

My message to all Kiwis who want to help is -  act on that desire.   

No act of kindness is too small. 

Right now, you can help by offering support to friends and family who are hurting.    Offer them a bed or a roof over their head if that is what they need.  Make your donations to help those who have been hit hardest.   

As infrastructure recovers, your visits to Christchurch will be welcome. 

Above all, throughout this journey, offer those affected your love.  Know that your humanity is more powerful than any act of nature.

As we look to the future, New Zealanders should know that the Government is going to do everything we can to support the recovery and rebuilding of Christchurch.

We are a resilient nation, and we will not bow down to this challenge.

Now let me turn to events of today.

In the past half hour, I have been advised by the Police commander on the ground, Superintendent Dave Cliff, of the latest information available on the loss of life.

I need to emphasise that this information remains under constant review and will be updated during the course of the day.

I am advised that the Police have confirmed 75 fatalities at this point, 55 of whom have been identified.

There are many others missing, the status of which remains unknown.

I have just finished chairing an Emergency Cabinet Meeting, the third since the earthquake struck less than 24 hours ago.

At Cabinet today Ministers received the latest advice on the situation on the ground and discussed all elements of the rescue and recovery.

Cabinet agreed with the decision made under Civil Defence legislation by the Minister to declare a national state of emergency.

As required by the legislation, John Carter will make a statement to Parliament this afternoon.

I have been in contact with Mayor Bob Parker to inform him of the decision, and to reiterate my assurance that central Government will provide all necessary resources to deal with this natural disaster.

I have also spoken by telephone with Leader of the Opposition Phil Goff to inform him of this decision and I also thanked him for his efforts on the ground in Christchurch.

In practice this enables the strongest possible focus of local, national and international resources working together to achieve the best possible response in the shortest timeframe.

Under the Civil Defence Emergency Management Act, this declaration means the Director of Civil Defence Emergency Management John Hamilton may control the exercise and performance of functions, duties, and powers of CDEM Groups and Group controllers. There are no other differences between the powers under a state of local emergency and a state of national emergency.

Of course, these powers will be exercised working in close support of and cooperation with Bob Parker and the Christchurch Civil Defence team.

At the end of this press conference I will be leaving for the airport to once again travel to Christchurch.

I expect to arrive at about 1pm, and I will go directly to Civil Defence Headquarters to meet with Bob Parker and be updated on the situation.

I would like to, if possible, visit some of the welfare centres that have been established.

It is also my hope to be able to survey the damage in Lyttelton in some way.

I intend to return to Wellington tonight for further meetings with Ministers.

I’d like to take a moment now to acknowledge the international offers of help we have received, and to thank our friends around the globe for their sympathy and support.

I have spoken with several leaders since the Earthquake and we have received messages from all over the world. I cannot note them all right now simply because there are so many. But I have been touched by the support.

There have been foreign nationals caught up in this disaster and it is possible that some of the fatalities from this earthquake are visitors to New Zealand.

Foreign Affairs officials are providing all the support they can to consular staff from other countries, as they work to assist their own nationals caught up in the disaster.

To date, we have accepted offers of assistance from Australia, the United States, Singapore, the United Kingdom, Japan and Taiwan. We are constantly assessing the requirements in Christchurch and have offers of help from many other countries pending at this point which we are keeping under review.

A statement will be coming from Foreign Minister Murray McCully’s office shortly outlining further details of this overseas assistance.

(Updates with videos, more Key comments on economic impact, Key speech, state of emergency, Radio NZ report on deaths, changed time for Key press conference from 11am to 11.15am with ASB statement, Bennett statement, link to emergency spending powers)