Cabinet discusses Christchurch quake

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Cabinet has convened to talk about the Government's response to the Christchurch quake.

Civil Defence Minister John Carter took up a seat next to Prime Minister John Key before the meeting got under way this morning.

Key is expected to outline any decisions at his post-Cabinet press conference this afternoon.

Key said last night that central government would look at where it could step in to fix local infrastructure, such as rail, road and water, that was usually funded by local government.

"We can't expect them to pick up that tab twice."

Police and army resources would also be considered.

Key said Cabinet would also appoint a civil defence commissioner to oversee reconstruction and aid. "This isn't a short-term thing."

The Earthquake Commission expects claims from at least 100,000 households to cost $1b.

The Government will have to decide if it gives help to people without insurance, which Mr Key said was "a moral hazard".

Providing assistance to those people would discourage others from buying policies. But not helping could leave people in "financial hardship".

Key said he was pleased at how Civil Defence had responded to the emergency.

Civil defence planners warned, however, that many people in the country were without adequate emergency kits or plans, and some households risked significant financial hardship after a natural disaster because they were uninsured.