Christchurch, New Zealand, will never be the same again.

That was the message Peter Townsend, CEO, of the Canterbury Employers’ Chamber of Commerce, delivered to the NZILA Conference.

But far from it being a negative message, Mr Townsend’s take was very positive. Dispelling a myth the Canterbury region was well-advanced in its post-earthquake recovery, he said: “We will never be back to normal. But we can’t return to yesterday. We are recreating Christchurch to be something else.”

Canterbury did not want NZ to “feel sorry for us, just to know where we’re at”.

He said the website www.futurechristchurch.co.nz showed plans for the city’s key projects, stressing they were solid plans, not speculation. The rebuild was only 10% completed, with a $NZ4.5 billion spend so far, but it was a 15-to-20 year project.

Mr Townsend said once the turmoil and tragedy was put aside, it was exciting to be part of a city being reborn.

The successive quakes caused about $NZ40 billion of damage and the rebuild would cost up to $50 billion because of cost escalation, including betterment. “Sometimes I think, man, this is big. But big doesn’t mean bad, it means opportunity.

”People don’t understand the scale of what we’re doing.”

The damage bill included about $20 billion in housing and $10 billon in horizontal infrastructure.

Mr Townsend dispelled what he called “some urban myths”, which were “dangerous, because they screw the scrum”.  

He argued Christchurch had no population flight, with the availability of accommodation for tradespeople moving into the city to assist with the rebuild a major constraint. The city needed another 20,000 ‘tradies’ to help.

He also argued there was no capital flight. “People are not taking their insurance money and leaving. Capital flies, but it will land in Christchurch,” he said. Cash settlements were being invested back in housing, which reflected in property and rental prices.

Mr Townsend said there was no economic downturn. Unemployment in the region was low and the business failure rate was “normal”. Most businesses forced to shift out of the CBD had relocated elsewhere.

For example, a cheesemonger had rebuilt his business on the back of a truck, collecting customers’ email addresses so he could notify them where the business would be because it had become mobile. Turnover was now 20% higher than before the quakes. “Businesses are reinventing themselves; creating success from misery.”

NZ Government assistance, with $210 million injected immediately to help businesses pay wages, had ensured the business fabric was “in good shape”. “It was a huge support mechanism because it kept cash flow going.”

Business owners’ “sheer bloody mindedness” helped. “Businesses were smacked around, but they kept going.”

After the February 22, 2011, quake there had been some “stupid behaviour”, with business owners risking their lives to go into the red zone to collect records and equipment required to help them continue operating their businesses. “That’s part of who we are. A limited liability company can be part of your soul, your being, your fabric.”

Mr Townsend rejected claims the CBD would become a desert or a donut. “It was that before the quakes. We had a lot of shonky buildings, but [the quakes] got rid of them. From an insurance perspective, we’re now the best risk because buildings are reinforced to earthquake standards.”    

Canterbury faced cascading constraints on the rebuild. Initially seismic activity was one. “Things were still moving around.”

The complexity of the insurance system and scale of the disaster meant settlements were taking a long time. The Earthquake Commission was “overwhelmed and had to reinvent itself”. Insurance was no longer a constraint, but there was a long tail and a lot of litigation still to come.

The consent process for rebuilds was slow; and builders were constrained by human resources and material supplies. “We were well insured, but people are putting betterments into their rebuilds.”

Christchurch of the future would be well laid out, respect its river and be a city with “amazing designs” and “the best airport in NZ”. There would be no cheap concrete-slab replacements.

Quizzed on building quality, Mr Townsend said the city could not afford any “shonky” rebuilds, but agreed there were always exceptions.

The Canterbury region had 70% of NZ’s irrigated land, but used only 4% of its available fresh water. Mr Townsend said the region had a future in more than dairy, with the ability to harvest water. It grew 42% of the world’s carrot seeds and a similar amount of the global radish seed supply.

“Our grandchildren will see we have created a city that people want to live in and work in and that’s the ultimate reward,” he said.

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