Earthquake a gamechanger - Garner's blog

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Wed, 08 Sep 2010 11:56a.m.

So far John Key has got things right on the Christchurch earthquake

So far John Key has got things right on the Christchurch earthquake

By Duncan Garner

For days there has been an unofficial non-aggression pact between Labour and National over the Government's response to the devastation in Christchurch.

Anything else would be a political disaster for both parties. But don't expect the political peace to last forever.

The Prime Minister's handling of the crisis so far has been sharp. The only criticism perhaps is that he should have cancelled his European trip on Monday - but he realised that by Tuesday morning and it was off.

Labour Leader Phil Goff also knows this is no time to be criticising the Government. He also knows the power of incumbency. Labour can do little. It can offer support. At best it can hitch itself to National's juggernaut - and Goff has done just that.

Key did the right thing taking Goff to Christchurch last night. It does no one any harm to see our political leaders turning up together. Would Clark have taken Brash? Would Clark have taken Key? I actually doubt it.

The response to this earthquake will be one of the defining issues this term. It may be the defining issue. Key knows that now.

So what should we make of the official response so far?

Key has been down twice, as has Goff. Being there, being seen is everything.

The $5m contribution to the mayoral fund looked small initially - but it shouldn't be seen in isolation. This disaster will need rolling Government initiatives for months, perhaps years to come.

Yesterday, the Government rightly moved to subsidise small businesses who cannot pay wages. Workers will get $350 a week for four weeks. Business may top that up. $350 a week is less than the minimum wage. But it's a lot more than the emergency benefit. It's also a challenge to companies to do the right thing.

But it really was the least the Government could do. Without a short term wage subsidy - Key would have looked exposed. It's no good turning up at welfare centres, posing with little kids, if you don't bring gifts.

It could cost taxpayers $75m over the next four weeks. I don't hear anyone moaning about that. Remember the Government paid investors in the failed South Canterbury Finance company $1.6 billion. Key had to stump up to the workers without work in Christchurch. There was no option.

But what happens in four weeks. Some of these businesses will shut down. Others won't open for months - if at all. The Government now probably needs to be working on a plan to come into place next month - for those workers who do lose their jobs. Paying them welfare won't work. Officials should be looking for jobs for these people now. With a disaster also comes opportunity. There will be plenty in the months ahead down south - but right now the short term pain is severe. The long term economic gain, the building boom, is still some time away.

So Labour's support for the Government over this issue should last for at least the next four weeks.

But expect Labour to start asking serious questions again soon when the workers’ welfare package dries up. It's why Key, his Ministers and their officials need to start thinking ahead.

Work and Income officials have impressed me. They have contacted 11,000 pensioners living alone. They are now knocking on the doors of another 7,000 they have failed to reach by phone. That's a big effort - an impressive deed from the much maligned 'bureaucrats on the frontline. Good on them.

Then there's the issue of the uninsured. And the Government has so far, rightly so, been non-committal about them. It's a tricky moral issue. Indeed a moral and political hazard. Key has suggested if the uninsured elderly on fixed incomes can prove hardship then the Government may look at some form of insurance pay-out. But it was really only Key musing at this stage.

Around 5% of Christchurch is thought to be uninsured - and this tricky issue may pop up later down the track.

But so far the political response has been measured and impressive.

Appointing a senior Minister to be based in Christchurch was a good call. Labour's support and decision to stand shoulder to shoulder with Key and National was all it could do. That must be frustrating after years of having the hands on the pump - but that's why it's called opposition. Voters gave you the flick.

So politically this earthquake may well define Key. Unlike Brash, he's pitched as a compassionate conservative, a caring conservative. And so far his response has matched that. But he will need to stay in touch. He will need to keep playing banker to the people for a while yet.

If Labour feels National is dropping the ball, it will in time rightly pounce.

Key won't want that to happen. It's why he ditched having high tea with the Queen, scones with David Cameron and croissants with the French president.

Key looks in control, and the images so far have been good. That's called incumbency.

But Labour holds most of the seats down in Christchurch and the hard luck stories are likely to be fed to its MPs in the months to come. They in turn, and in time, may choose to embarrass the Government. Key will be aware of that. The earthquake response will define Key and his Government. So far it has passed the test. But the challenges and risks in the days, months and year ahead can't and shouldn't be underestimated.

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Comments

04 Sep 2011 05:16p.m.

barbara S wrote:

Hello. How can you possibly say John Keys got it right when he plans to build a $320m Conference Centre in Auckland? Christchurch residents are losing out with their damaged homes - John Key obviously thinks a conference Center for foreigners is more important than family homes. Also, do the calculation here, $320m divided 3200 equals $100,000 which could be given to 3,200 NZ families who dont yet own a home coz they pay sooo much rent to capital;ists. This must be what John Key is all about. By the way, I voted National last election!! This country need leaders with morals and some consideration for humanity. I am ashamed of the way John Key is behaving towards the people of my country that he is leading. Actually Im disgusted.

09 Oct 2010 09:20p.m.

Nicko wrote:

Message for Angry in llam. Your comments are pathetic. It is this sort of lefty social engineering BullS**T that caused us voters to axe Labour and their allies in the last election. I feel Key and the Govt have done a great job given the circumstances since this happened last month. I suggest you think sbout what u are saying and have your facts straight before spreading your socialist Propaganda.

11 Sep 2010 11:07a.m.

Barney wrote:

Maybe Angry in Ilam should be whinging to Jim Anderton.
He represents the losers. Seeing Goff and Key side by side is warming I have never understood why this doesn't happen more often. Surely if we combined the cream of both parties we would have a very able management team. Leave the nitpicking to the Greens and Act.

10 Sep 2010 08:49a.m.

romald wrote:

Political views cannot be compared to this devasting event in Canterbury. Media is to manipulative during this present crises. It is in the best interest for both party leaders to work together to rebuild canterbury.

09 Sep 2010 09:57p.m.

Dean wrote:

One thing through out this whole crisis that has really annoyed me is the comments & behaviour of TV1,s Paul Henry. First his stupid interview with Bob Parker and then his dumb comments on The Breakfast programme regarding the lack of response by Air New Zealand. Give us a break & give him the boot!.

09 Sep 2010 09:48p.m.

Dean wrote:

I think that Bob and John have done an excellent job respectively given the circumstances, who would have predicted this? You never know what is around the preverbial corner. I agree with Jeremy re John Key, he is our JFK our Churchill, the man for the time as it were. He also appears to be "normal" not a stuffed suit like previous MP/PM,s

09 Sep 2010 06:50p.m.

jason hall wrote:

As sorry as i feel for the people who live in our great city of christchurch, what with the devastation of our business's, loss of many many homes and terrified children who have no idea what is going on or what their future is going to be, and dont take me the wrong way, but now they know how my family has felt for the last year. yes it has been a year to the day, 4th sept.,since we were forced out of our home in hampshire st so often refered to as "The House Of Horrors". Well dosnt that say it all. We have been living a life of horror ever since. With all the aid being offered now to the victims of 'earthquake horror' it makes me wonder why our family was given no help from any of these official bodies, and still havnt. Was it a little too far out from election time. I dont know, has a year of stress made me bitter but i see no difference in that situation and this.

09 Sep 2010 01:31p.m.

Nicole wrote:

Great to see the news are covering the distress in Christchurch..
How hard is it to correctly refer to a piece of machinery???
Clearly they are NOT using BULLDOZERS to pull the buildings to bits. It would be AMAZING to watch the news tonight & have the presenters refering to the so-called "bulldozers" as DIGGERS!!!

08 Sep 2010 11:46p.m.

I'm with Angry wrote:

Kiwi, Key said on Monday he was going. On Tuesday morning, John Armstrong and Tracy Watkins wrote articles attacking that. an hour later key changed his mind. so, do you think key wanted to go? yup. it was only politics that made him stay.

08 Sep 2010 06:57p.m.

Ross wrote:

In response to "Angry in Ilam" the Govt guarantee on finance companies was introduced by Helen Clark in her speech opeing her re-elction campaign. Both parties agreed it was essential to do this in view of Australia introducing a similair scheme. So if we want to be picky we could call it Labour's $1.7m handout.
But what Key does with the large number of soon to be unemployed will be decisive

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