Quake a fillip for ailing construction sector

Canterbury's earthquake will have a silver lining for Christchurch's ailing construction industry, with repair work likely to pump tens of millions of dollars into the pockets of struggling builders, plumbers and painters.

Mainzeal construction manager Graeme Earl said the earthquake was a tragedy, but it would mean more work.

"There are a lot of buildings that are going to need to be demolished or rebuilt," he said.

Structural engineers were already busy on Saturday, clearing buildings to be safely re-entered and work would flow on to builders, painters and plasterers, he said.

Construction activity had slumped this year, with building consents at a record low.

Last week, the New Zealand Institute of Economic Research said the industry was on the brink of collapse, with as many as 20,000 construction jobs at risk.

The Earthquake Commission said it could pay out up to $1 billion in residential insurance claims, with much of the money eventually going to construction contractors.

The commission covers up to $100,000 damage per dwelling, but does not include the massive cost of repairing commercial buildings.

Demolition contractor Adrian Winne had struggled to find work until Saturday, but had pulled down eight unstable chimneys for Housing New Zealand in the past two days.

"It was pretty patchy there, but I'm flat out now," he said.

Winne said building demolition and repairs would keep him busy until next year.

Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said while the earthquake would force some businesses to close, it would also create economic benefits.

"There is a huge amount of rebuilding that's going to go on," he said.

Townsend said business conditions were tough before the earthquake "and there will be some that simply won't make it".

Central City Business Association spokesman Paul Lonsdale said the closure of the inner city, which was substantially damaged during the earthquake, could affect between 40,000 and 50,000 workers.

Some retailers who had been struggling during the recession may never reopen, Lonsdale said.

- © Fairfax NZ News