Around 5,000 home owners across the Christchurch eastern suburbs of Avonside, Avondale, Bexley, Dallington and New Brighton finally heard the news they have been waiting for since September 2009 - the land around them has suffered significant, extensive damage which is uneconomic to repair.  As a result the Government has made two offers to these home owners:

Prime Minister John Key said 5,000 homeowners in the 'red zone' will get a statement from Government offering to buy their land in the next eight weeks.   And, all residents who live in the red zone will be invited to special community meetings this weekend.   Home owners will be given nine months, until March 2012, to consider the offer.

John Key mentioned that home owners should consult with their banks and insurers before deciding which option would best suit their situation.

Earthquake Recovery Minister, Gerry Brownlee, said those who decided to accept the Governments offer of cash for their homes, can expect a quick transaction, and believes many people would have a very strong idea whether they will take up the offer today.

Treasury estimates the net costs to the government to buy all 5,000 properties at between $485 million and $635 million. With costs expected to be met from the Government's $5.5 billion Canterbury Earthquake Recovery Fund (CERA).