Tommy's First Word - Issue 113, current to 28 September 2010

For the last year or two our lives have been consumed by the state of the economy locally and globally. So much has been written and spoken on the subject with everyone (including myself) having an opinion as to where it was all heading.

The recent failure of the South Canterbury Finance Company fuelled the fires and there has been much speculation and debate over the reasons for their demise and the subsequent government payout to investors.

Government has already stated that it will take care of a large portion of the costs involved in repairingChristchurch's infrastructure and with a lot of this damage being below ground level, the costs and extent of this remedial work will be considerable and difficult to estimate at this stage. Various funds have been established to assist those in need and the country as a whole will give generously, I am sure.

The effects on the residents of the affected areas are hard to imagine but from a distance, we can only offer support and sympathy as they reconcile their losses and plan for the future. Despite the support of the Earthquake and War damage fund and private insurances, money will never repair the losses and damage sustained by many small business enterprises nor the personal psychological effects of this event. Ongoing after shocks are constant reminders of the disaster they are coping with.

From a real estate point of view, Christchurch was a beautiful city by any standards and it is a tragedy that so many of their iconic heritage buildings are the ones that appear to have suffered the most damage. Despite the need to restore the city to its former glory as quickly as possible, I hope that the integrity and appearance of these classic buildings can be recovered.

There would be very few people who would have predicted that such a disaster would descend on Christchurch, after all, floods and major earthquakes are usually associated with overseas locations and while newsworthy, generally we pay scant attention to them. Hitting so close to home as this earthquake has, makes us appreciate the vulnerability of our own city and there will be lessons to learn in terms of preparation for a possible disaster such as this one in the capital city.

There have already been stories of personal sacrifice and the dedication of Canterbury residents towards friends and neighbours in their time of need and this will be ongoing. New Zealanders are a resilient lot and most will respond to the challenge of recovering from this disaster. Cantabrians have been led from the front by their Mayor Bob Parker who has displayed an uncanny calm and logical thinking to the recovery process. Press reports have aligned him with Rudy Giuliana, Mayor of New York at the time of the Sept 11th Terrorist attacks, though Mr Parker himself stated that he has only done what any mayor would do in a time of crisis.

With any crisis or disaster it is helpful to look for the bright side of the event and in this situation, the good news was obviously the lack of any loss of life. With the extent of the destruction, it is remarkable that no losses were sustained and we can all be thankful for that. The events as they have unfolded can only make us appreciate just how precious life is and to enjoy what we have. Another positive will undoubtedly be the creation of vast amounts of work for the construction industry.

Our heartfelt sympathy goes out to all involved in the earthquake and we extend our sincere best wishes for a return to normality as soon as possible. With 100,000 homes needing either repairs, strengthening or in some case demolition and replacement, this will take time though. Our thoughts are with you all.

TOMMY HEPTINSTALL

Managing Director

Suddenly though, this has all paled
into relative insignificance with the
disastrous earthquake that has hit
Christchurch and the Canterbury
region and few will envy or question
the South Canterbury investors who
will recover their investment funds.
In fact, on the question of funding,
millions of dollars will need to be
injected into Canterbury and more
specifically Christchurch and its
immediate surrounds to restore that
area to its former glory.
Government has already stated that
it will take care of a large portion of
the costs involved in repairing
Christchurch’s infrastructure and with
a lot of this damage being below
ground level, the costs and extent of
this remedial work will be
considerable and difficult to estimate
at this stage. Various funds have
been established to assist those in
need and the country as a whole will
give generously, I am sure.
The effects on the residents of the
affected areas are hard to imagine
but from a distance, we can only offer
support and sympathy as they
reconcile their losses and plan for
the future. Despite the support of the
Earthquake and War damage fund
and private insurances, money will
never repair the losses and damage
sustained by many small business
enterprises nor the personal
psychological effects of this event.
Ongoing after shocks are constant
reminders of the disaster they are
coping with.
From a real estate point of view,
Christchurch was a beautiful city by
any standards and it is a tragedy that
so many of their iconic heritage
buildings are the ones that appear to
have suffered the most damage.
Despite the need to restore the city
to its former glory as quickly as
possible, I hope that the integrity and
appearance of these classic buildings
can be recovered.
There would be very few people who
would have predicted that such a
disaster would descend on
Christchurch, after all, floods and
major earthquakes are usually
associated with overseas locations
and while newsworthy, generally we
pay scant attention to them. Hitting
so close to home as this earthquake
has, makes us appreciate the
vulnerability of our own city and there
will be lessons to learn in terms of
preparation for a possible disaster
such as this one in the capital city.
There have already been stories of
personal sacrifice and the dedication
of Canterbury residents towards
friends and neighbours in their time
of need and this will be ongoing. New
Zealanders are a resilient lot and
most will respond to the challenge of
recovering from this disaster.
Cantabrians have been led from the
front by their Mayor Bob Parker who
has displayed an uncanny calm and
logical thinking to the recovery
process. Press reports have aligned
him with Rudy Giuliana, Mayor of
New York at the time of the Sept 11th
Terrorist attacks, though Mr Parker
himself stated that he has only done
what any mayor would do in a time
of crisis.
With any crisis or disaster it is helpful
to look for the bright side of the event
and in this situation, the good news
was obviously the lack of any loss of
life. With the extent of the destruction,
it is remarkable that no losses were
sustained and we can all be thankful
for that. The events as they have
unfolded can only make us appreciate
just how precious life is and to enjoy
what we have. Another positive will
undoubtedly be the creation of vast
amounts of work for the construction
industry.
Our heartfelt sympathy goes out to
all involved in the earthquake and we
extend our sincere best wishes for a
return to normality as soon as
possible. With 100,000 homes
needing either repairs, strengthening
or in some case demolition and
replacement, this will take time
though.
Our thoughts are with you all.
TOMMY HEPTINSTALL
Managing Director