RIP CBD SMEs
A week has just passed when some Christchurch CBD business and property owners, angry and desperate from the lack of communication from Civil Defence and fearful of the fate of their businesses, joined together in protest at the Art Gallery to try and get answers.
It was a gathering that lacked co-ordination and direction, gaining momentum as time went by and no one from Civil Defence fronted up to hear their concerns. Those vocal enough gave vent to the media, who were mingling in and out of the gathered protesters, showing more interest in their concerns than Civil Defence.
By this account, you might rightly conclude that I was there too.
Last week I arrived home from a short break in the North Island to discover our premises in the Old Weekly Press Building, unbeknown to us, had been demolished. Abbie, our designer, had posted footage on her Facebook page that had been shot by Civil Defence and shown at the memorial service in Hagley Park the previous Friday.
The extracted photos shown were taken of our office after the quake, before and after demolition.
Weeks ago I had rung and registered on the Recover Canterbury website as businesses had been advised to do. I had been receiving email undates from the Canterbury Business Recovery Group and Colliers, our Property Management Company. But that had dried up after the 7th March (Recovery Group) and 12 March (Colliers). It was evident, from comment supplied to the Press by Colliers Managing Director, Warren Glassey, that they were aware of the demolition, and despite their responsibility to advise tenants when a building is being demolished, had said to the Press that he didn’t have a problem with the situation.
As I said during an interview with Jim Mora on Radio New Zealand, I don’t dispute the need to demolish our office, distressing as it is, but what really wound me up was that no one had thought it necessary to tell tenants about it. Tenants with leases and property in the building. In not carrying out their legal duties, they hold up tenants’ ability to move forward with insurance claims, which in our case have hung in limbo since Boxing Day. If I hadn’t seen the video I would still be none the wiser.
Whilst attending the protest I decided to join a short queue of other business owners outside two tents beside the Art Gallery. I had no idea what I was queueing for and neither did the business owner in front of me. The only evidence of anything related to business owners was a scribbled sign saying ‘business owners’ with an arrow pointing down, attached to the outside. When my turn came, I was asked where my business is located and to fill in a form with the same details I had already supplied on the Recover Canterbury site. Pointless, I thought, but this time I received a call about 30 minutes later from a CCC rep inside the Art Gallery building, who said they were waiting to receive an engineering report from our landlord and I should contact him.
So I did, and to my surprise he replied very quickly. The engineering report had been supplied to the council. It was his engineer’s view that the buildings are too dangerous and will need to be demolished. However this report had to be ‘peer reviewed’ by the insurance company’s engineers and the City Council. So whilst video shows our section of office has been demolished in the Old Weekly Press Building, the bulk of our contents remain in limbo in the neighbouring Whitcoulls Building.
Unlike many businesses, I hope that this is a small step out of insurance ‘no mans land’, but we could well be moving from one hopeless process to another.
What we are seeing now is businesses being slowly choked to death because Civil Defence or insurance companies are simply not communicating as they should with business owners or moving fast enough. The problem is quickly becoming one of lack of cashflow. Many SMEs don’t have large chunks of money sitting around in case an earthquake cripples their business. There are those, like businesses in our neighbouring building in the Shades, whose buildings are OK, yet they are unable to enter to recover equipment and records that would enable them to continue. Their tenancy agreement or insurance often doesn’t cover this situation. Unless they have a sympathetic landlord, they are still liable to pay their rents, and they still must pay their employees and creditors. For those businesses outside the CBD cordon, not much business is being done as the inner city resembles a ghost town. The latest government package looks like it won’t cover them for loss of trade so we are looking at a case of RIP CBD SMEs!
The Minister of Civil Defence says we must ‘exercise patience’. Some small businesses have been experiencing a slow death since the first earthquake in September 2010. For how much longer are we expected to ‘exercise patient’? We are not children to be scolded (nor celebrities commanding red zone guided tours), but mature business people who have responsibility for the livelihoods of our families and our employees.
Posted on March 29th, 2011 by Wendy Riley-Biddle
Filed under: General | No Comments »


There is no doubt that it has been a tumultuous year for many up and down the country. For the Hot PJ team, the year ends with change and some exciting news.
I’ve just started reading Brian Clark’s booklet written in May this year, “