We examine the role of business interruption insurance in business recovery following the Christchurch earthquake in 2011 in the short- and medium-term. In the short-term analysis, we ask whether insurance increases the likelihood of business survival in the aftermath of a disaster. We find only weak evidence that those firms that had incurred damage, but were covered by business interruption insurance, had higher likelihood of survival post-quake compared with those firms that did not have insurance. This absence of evidence may reflect the high degree of uncertainty in the months following the 2011 earthquake and the multiplicity of severe aftershocks. For the medium-term, our results show a more explicit role for insurance in the aftermath of a disaster. Firms with business interruption insurance have a higher probability of increasing productivity and improved performance following a catastrophe. Furthermore, our results show that those organisations that receive prompt and full payments of their claims have a better recovery, in terms of profitability and a subjective ‘”better off” measure’ than those that had protracted or inadequate claim payments (less than 80% of the claim paid within 2.5 years). Interestingly, the latter group does worse than those organisations that had damage but no insurance coverage. This analysis strongly indicates the importance not only of good insurance coverage, but of an insurance system that also delivers prompt claim payments. As a first paper attempting to empirically identify a causal effect of insurance on business recovery, we also emphasize some caveats to our analysis.
The campervan company, Tourism Holdings, says it doesn't expect the North Canterbury earthquake to have any material impact on its tourism business in either the near or long-term.
The 2010-2011 Canterbury earthquake sequence, and the resulting extensive data sets on damaged buildings that have been collected, provide a unique opportunity to exercise and evaluate previously published seismic performance assessment procedures. This poster provides an overview of the authors’ methodology to perform evaluations with two such assessment procedures, namely the P-58 guidelines and the REDi Rating System. P-58, produced by the Federal Emergency Management Agency (FEMA) in the United States, aims to facilitate risk assessment and decision-making by quantifying earthquake ground shaking, structural demands, component damage and resulting consequences in a logical framework. The REDi framework, developed by the engineering firm ARUP, aids stakeholders in implementing resilience-based earthquake design. Preliminary results from the evaluations are presented. These have the potential to provide insights on the ability of the assessment procedures to predict impacts using “real-world” data. However, further work remains to critically analyse these results and to broaden the scope of buildings studied and of impacts predicted.
This report provides an understanding of the nature of Canterbury subcontracting businesses operating in the space of earthquake reconstruction in Christchurch. It offers an in-depth look at the factors that influence the development of their capacity and capability to withstand the impact of volatile economic cycles, including the 2008 global financial crisis and the subsequent 2010/11 Canterbury earthquakes. There have been significant changes to the business models of the 13 subcontracting businesses studied since the earthquakes. These changes can be seen in the ways the case study subcontractors have adapted to cope with the changing demands that the rebuild posed. Apart from the magnitude of reconstruction works and new developments that directly affect the capacity of subcontracting businesses in Canterbury, case studies found that subcontractors’ capacity and capability to meet the demand varies and is influenced by the: subcontractors’ own unique characteristics, which are often shaped by changing circumstances in a dynamic and uncertain recovery process; and internal factors in relation to the company’s goal and employees’ needs
A video of a presentation by Associate Professor John Vargo during the fifth plenary of the 2016 People in Disasters Conference. Vargo is a senior researcher and co-leader of the Resilient Organisations Research Programme at the University of Canterbury. The presentation is titled, "Organisational Resilience is more than just Business Continuity".The abstract for this presentation reads as follows: Business Continuity Management is well-established process in many larger organisations and a key element in their emergency planning. Research carried out by resilient organisations follow the 2010 and 2011 Canterbury Earthquakes show that most small organisations did not have a business continuity plan (BCP), yet many of these organisations did survive the massive disruptions following the earthquakes. They were resilient to these catastrophic events, but in the absence of a BCP. This research also found that many of the organisations with BCP's, struggled to use them effectively when facing real events that did not align with the BCP. Although the BCPs did a good job of preparing organisations to deal with technology and operational disruptions, there was virtually no coverage for the continuity of people. Issues surrounding staff welfare and engagement were amongst the most crucial issues faced by Canterbury organisations, yet impacts of societal and personal disruption did not feature in BCPs. Resilience is a systematic way of looking at how an organization can survive a crisis and thrive in an uncertain world. Business continuity is an important aspect for surviving the crisis, but it is only part of the bigger picture addressed by organisational resilience. This presentation will show how organizational experiences in the Canterbury earthquakes support the need to move to a 'Business Continuity' for the '21st Century', one that incorporates more aspects of resilience, especially the 'people' areas of leadership, culture, staff welfare, and engagement.
A video of a presentation by Garry Williams during the fourth plenary of the 2016 People in Disasters Conference. Williams is the Programme Manager of the Ministry of Education's Greater Christchurch Education Renewal Programme. The presentation is titled, "Education Renewal: A section response to the February 2011 Christchurch earthquake".The abstract for this presentation reads as follows: The Canterbury earthquakes caused a disaster recovery situation unparalleled in New Zealand's history. In addition to widespread damage to residential dwellings and destruction of Christchurch's central business district, the earthquakes damaged more than 200 schools from Hurunui in the north, to the Mackenzie District in the east, and Timaru in the south. The impact on education provision was substantial, with the majority of early childhood centres, schools and tertiary providers experiencing damage or subsequent, with the majority of early childhood centres, schools and tertiary providers experiencing damage or subsequent operational issues caused by the ensuing migration of people. Following the February earthquake, over 12,000 students had left the school they had been attending and enrolled elsewhere - often at a school outside the region. Shortened school days and compression of teaching into short periods meant shift-sharing students engaged in the curriculum being delivered in more diverse ways. School principals and staff reported increased fatigue and stress and changes in student behaviours, often related to repeated exposure to and ongoing reminders of the trauma of the earthquakes. While there has been a shift from direct, trauma-related presentations to the indirect effects of psychological adversity and daily life stresses, international experiences tells us that psychological recovery generally lags behind the immediate physical recovery and rebuilding. The Ministries of Health and Education and the Canterbury District Health Board have developed and implemented a joint action plan to address specifically the emerging mental health issues for youth in Canterbury. However, the impact of vulnerable and stressed adults on children's behaviour contributes to the overall impact of ongoing wellbeing issues on the educational outcomes for the community. There is substantial evidence supporting the need to focus on adults' resilience so they can support children and youth. Much of the Ministry's work around supporting children under stress is through supporting the adults responsible for teaching them and leading their schools. The education renewal programme exists to assist education communities to rebuild and look toward renewal. The response to the earthquakes provides a significant opportunity to better meet the needs and aspirations of children and youth people. All the parents want to see their children eager to learn, achieving success, and gaining knowledge and skills that will, in time, enable them to become confident, adaptable, economically independent adults. But this is not always the case, hence our approach to education renewal seeks to address inequities and improve outcome, while prioritising actions that will have a positive impact on learners in greatest need of assistance.
A video of a presentation by Bridget Tehan and Sharon Tortonson during the Community and Social Recovery Stream of the 2016 People in Disasters Conference. The presentation is titled, "Community and Social Service Organisations in Emergencies and Disasters in Australia and New Zealand".The abstract for this presentation reads as follows: What happens when support services for issues such as mental health, foster care or homelessness are impacted by a disaster? What happens to their staff? What happens to their clients? The community sector is a unique, valuable and diverse component of Australasian economy and society. Through its significant numbers of employees and volunteers, its diversity, the range of service and advocacy programs it delivers, and the wide range of people it supports, it delivers value to communities and strengthens society. The community and social services sector builds resilience daily through services to aged care, child welfare and disability, domestic violence, housing and homelessness, and mental health care. The sector's role is particularly vital in assisting disadvantaged people and communities. For many, community sector organisations are their primary connection to the broader community and form the basis of their resilience to everyday adversity, as well as in times of crisis. However, community sector organisations are particularly vulnerable in a major emergency or disaster. Australian research shows that the most community sector organisations are highly vulnerable and unprepared for emergencies. This lack of preparedness can have impacts on service delivery, business continuity, and the wellbeing of clients. The consequences of major disruptions to the provision of social services to vulnerable people are serious and could be life-threatening in a disaster. This presentation will review the Victorian Council of Social Service (Australia) and Social Equity and Wellbeing Network (formerly the Christchurch Council of Social Services) records on the impacts of emergencies on community sector organisations, staff, and clients. From the discussion of records, recommendations will be presented that could improve the resilience of this crucial sector.
NUK KORAKO to the Minister of Finance: How does New Zealand’s growing economy and the Government’s commitment to responsible fiscal management mean New Zealand is well-placed to respond to the Kaikōura earthquake?
ANDREW LITTLE to the Prime Minister: Has he spoken to relevant Ministers about the lessons learned from the Canterbury earthquakes to ensure people affected by the recent earthquakes have an easier and faster recovery?
STUART SMITH to the Minister of Civil Defence: What update can he provide about the Government’s response to the Kaikōura earthquake?
RON MARK to the Prime Minister: Can he update the House on the situation in quake-affected areas in the South Island?
JAMES SHAW to the Prime Minister: Is he committed to all his Government’s policies?
Hon ANNETTE KING to the Minister of Health: Does he stand by his statement that following the Valentine’s Day earthquake this year in Canterbury, “it was timely to review whether any additional mental health and wellbeing support was needed”; if so, will he consider reviewing whether any additional support is needed for Canterbury and Nelson-Marlborough district health boards as a result of the recent earthquakes?
JACQUI DEAN to the Minister of Transport: What updates has he received on damage to transport infrastructure following the Kaikōura earthquake?
JAN LOGIE to the Minister for Workplace Relations and Safety: What is his response to yesterday’s call from members of the Joint Working Group on Pay Equity Principles for the Government to “immediately right this historic wrong and implement the JWG principles”?
JACINDA ARDERN to the Minister for Economic Development: When is he likely to announce a recovery or support package for small businesses in earthquake-affected areas?
KANWALJIT SINGH BAKSHI to the Minister of Police: What are New Zealand Police doing to support the Kaikōura community?
CHRIS HIPKINS to the Minister of Education: When did she first discuss the potential impact of Monday’s 7.5 earthquake on NCEA and Scholarship exams with the New Zealand Qualifications Authority?
IAN McKELVIE to the Minister for Primary Industries: What recent reports has he received on the impact of the recent earthquakes on the primary sector?
Sewerage systems convey sewage, or wastewater, from residential or commercial buildings through complex reticulation networks to treatment plants. During seismic events both transient ground motion and permanent ground deformation can induce physical damage to sewerage system components, limiting or impeding the operability of the whole system. The malfunction of municipal sewerage systems can result in the pollution of nearby waterways through discharge of untreated sewage, pose a public health threat by preventing the use of appropriate sanitation facilities, and cause serious inconvenience for rescuers and residents. Christchurch, the second largest city in New Zealand, was seriously affected by the Canterbury Earthquake Sequence (CES) in 2010-2011. The CES imposed widespread damage to the Christchurch sewerage system (CSS), causing a significant loss of functionality and serviceability to the system. The Christchurch City Council (CCC) relied heavily on temporary sewerage services for several months following the CES. The temporary services were supported by use of chemical and portable toilets to supplement the damaged wastewater system. The rebuild delivery agency -Stronger Christchurch Infrastructure Rebuild Team (SCIRT) was created to be responsible for repair of 85 % of the damaged horizontal infrastructure (i.e., water, wastewater, stormwater systems, and roads) in Christchurch. Numerous initiatives to create platforms/tools aiming to, on the one hand, support the understanding, management and mitigation of seismic risk for infrastructure prior to disasters, and on the other hand, to support the decision-making for post-disaster reconstruction and recovery, have been promoted worldwide. Despite this, the CES in New Zealand highlighted that none of the existing platforms/tools are either accessible and/or readable or usable by emergency managers and decision makers for restoring the CSS. Furthermore, the majority of existing tools have a sole focus on the engineering perspective, while the holistic process of formulating recovery decisions is based on system-wide approach, where a variety of factors in addition to technical considerations are involved. Lastly, there is a paucity of studies focused on the tools and frameworks for supporting decision-making specifically on sewerage system restoration after earthquakes. This thesis develops a decision support framework for sewerage pipe and system restoration after earthquakes, building on the experience and learning of the organisations involved in recovering the CSS following the CES in 2010-2011. The proposed decision support framework includes three modules: 1) Physical Damage Module (PDM); 2) Functional Impact Module (FIM); 3) Pipeline Restoration Module (PRM). The PDM provides seismic fragility matrices and functions for sewer gravity and pressure pipelines for predicting earthquake-induced physical damage, categorised by pipe materials and liquefaction zones. The FIM demonstrates a set of performance indicators that are categorised in five domains: structural, hydraulic, environmental, social and economic domains. These performance indicators are used to assess loss of wastewater system service and the induced functional impacts in three different phases: emergency response, short-term recovery and long-term restoration. Based on the knowledge of the physical and functional status-quo of the sewerage systems post-earthquake captured through the PDM and FIM, the PRM estimates restoration time of sewer networks by use of restoration models developed using a Random Forest technique and graphically represented in terms of restoration curves. The development of a decision support framework for sewer recovery after earthquakes enables decision makers to assess physical damage, evaluate functional impacts relating to hydraulic, environmental, structural, economic and social contexts, and to predict restoration time of sewerage systems. Furthermore, the decision support framework can be potentially employed to underpin system maintenance and upgrade by guiding system rehabilitation and to monitor system behaviours during business-as-usual time. In conjunction with expert judgement and best practices, this framework can be moreover applied to assist asset managers in targeting the inclusion of system resilience as part of asset maintenance programmes.
The Canterbury earthquakes in 2010 and 2011 had a significant impact on landlords and tenants of commercial buildings in the city of Christchurch. The devastation wrought on the city was so severe that in an unprecedented response to this disaster a cordon was erected around the central business district for nearly two and half years while demolition, repairs and rebuilding took place. Despite the destruction, not all buildings were damaged. Many could have been occupied and used immediately if they had not been within the cordoned area. Others had only minor damage but repairs to them could not be commenced, let alone completed, owing to restrictions on access caused by the cordon. Tenants were faced with a major problem in that they could not access their buildings and it was likely to be a long time before they would be allowed access again. The other problem was uncertainty about the legal position as neither the standard form leases in use, nor any statute, provided for issues arising from an inaccessible building. The parties were therefore uncertain about their legal rights and obligations in this situation. Landlords and tenants were unsure whether tenants were required to pay rent for a building that could not be accessed or whether they could terminate their leases on the basis that the building was inaccessible. This thesis looks at whether the common law doctrine of frustration could apply to leases in these circumstances, where the lease had made no provision. It analyses the history of the doctrine and how it applies to a lease, the standard form leases in use at the time of the earthquakes and the unexpected and extraordinary nature of the earthquakes. It then reports on the findings of the qualitative empirical research undertaken to look at the experiences of landlords and tenants after the earthquakes. It is argued that the circumstances of landlords and tenants met the test for the doctrine of frustration. Therefore, the doctrine could have applied to leases to enable the parties to terminate them. It concludes with a suggestion for reform in the form of a new Act to govern the special relationship between commercial landlords and tenants, similar to legislation already in place covering other types of relationships like those in residential tenancies and employment. Such legislation could provide dispute resolution services to enable landlords and tenants to have access to justice to determine their legal rights at all times, and in particular, in times of crisis.
