Insurance cash set to fuel economic revival of NZ quake region: minister

Insurance cash set to fuel economic revival of NZ quake region: minister

New Zealand's quake-battered Canterbury region is growing faster than any other region in the country and the expected influx of insurance money should further boost its economy, Canterbury Earthquake Recovery Minister Gerry Brownlee said Monday.

Brownlee said the National Bank Regional Trends data showed Canterbury's economy grew by 1.8 percent in the September quarter, following 2.6 percent growth in the June quarter.

The region has been shaken by tremors since the first major quake in September last year, with the worst being a 6.3-magnitude quake on Feb. 22 that left at least 181 people dead. More strong quakes struck on June 13.

"Canterbury's economic growth is the strongest of any region in the country, and I expect it to continue as reconstruction gains momentum," Brownlee said in a statement.

Canterbury's economic recovery would also gather pace as insurance cover for new projects became more available, he said.

International insurance brokers and underwriters had been visiting Christchurch, assessing the opportunities to write cover, and new business was being written, he said.

"The government has worked closely with these groups to ensure they understand the strong case for their re-entry into the market, including future building codes and the declining seismic risk," Brownlee said.

"New Zealand-based underwriters have also begun writing some new cover in the city, and while the situation has been challenging, large scale rebuilding projects are getting under way as insurance becomes more available.

"As the ground settles and more seismic data is made available to insurers and reinsurers, insurance underwriters are better able to price insurance contracts."

The recovery to date had been largely led by export and construction, but new retail businesses were queuing up to become established in the city's shopping precincts, he said.

The tourism industry would also receive a considerable boost from the 80 cruise ships expected to visit Akaroa Harbour during the southern summer.

With hotel occupancy at over 85 percent, hotel operators were exploring opportunities created by the loss of thousands of beds in the city.

"Christchurch is the South Island's tourism gateway. As the accommodation stock is repaired and rebuilt, we can expect tourism numbers to continue to increase."

Earlier this month, the Ministry of Economic Development released figures showing trade through Canterbury's ports and airport hit a two-year high in September of 950 million NZ dollars (717.53 million U.S. dollars). The figure was up 36 percent from September last year.

Editor: Fang Yang

English.news.cn   2011-11-21 13:31:00 FeedbackPrintRSS

WELLINGTON, Nov. 21 (Xinhua)