Christchurch earthquake bill may top $4b | Canterbury News | Local News in Canterbury

The final bill for the Christchurch earthquake may reach $4 billion, almost double initial estimates, Treasury Secretary John Whitehead said afternoon.

Dr Whitehead said Treasury was working on the assumption the Earthquake Commission was likely to pay out $2 billion in claims resulting from the earthquake but the wider bill would be far higher.

"If you take the effect on others beyond that you're probably talking about something in order of doubling that," Dr Whitehead said.

"The costs faced by the EQC, by individuals, by businesses, by insurance companies will probably be in the order of $4 billion."

Dr Whitehead said there were chances the actual bill would come in higher or lower.

One factor that might see it increase was whether homes could be rebuilt on the same land.

"Until geologists and others do their work we don't really know."

Treasury has a four person team working earthquake related matters which reports to the taskforce from the Department of the Prime Minister and Cabinet which is coordinating the overall Government response to the 'quake.