Christchurch aftershock knocks confidence

Posted 26 May 2012 by Media3News Popular
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The quake struck at 2.44pm yesterday (file pic)

The quake struck at 2.44pm yesterday (file pic)

Finance Minister Bill English says the attitude of insurance companies will determine whether or not a 5.2 earthquake in Christchurch yesterday has an impact on plans to rebuild the city.

The quake struck at 2.44pm on Friday. No damage was reported but work in the central city red zone was called off for the day. Work resumed today.

GNS Science has reported several smaller earthquakes since then, including a magnitude 3.0 quake at 2.58am this morning.

"There's not a lot of physical damage from it but a critical issue in Christchurch has been the confidence of the insurance companies," Mr English told The Nation.

Insurance companies preferred to be reinsuring people against a "backdrop of no quakes", he said.

The response of insurance companies had yet to be seen, and the people of Christchurch had a very resilient attitude, Mr English said.

"This earthquake is a reminder that it is not just a matter of policy or process to get the rebuild going. There is the ongoing concern that there can be further earthquakes."

The earthquake was the 41st quake of magnitude 5 or above since September 4, 2010.



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