WELLINGTON - The New Zealand government on Tuesday announced the establishment of a new authority to lead the rebuilding of earthquake-hit Christchurch.

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A 7.1-magnitude quake hit Canterbury on Sept 4 last year, followed by a 6.3 quake on Feb 22 that caused severe damage and loss of life. Much of the central city has been badly damaged.

The Canterbury Earthquake Recovery Authority is to be established for five years and will be reviewed annually.

The stand-alone authority will be given wide powers to relax, suspend or extend laws and regulations to help the region recover.

New Zealand Deputy State Services Commissioner John Ombler will serve as its interim chief executive from Wednesday while an urgent search is conducted for a permanent appointment.

New Zealand Prime Minister John Key said on Tuesday that it has become clear the rebuilding task is too large to be completed by existing institutions.

Legislation giving the authority the power to act will be introduced in Parliament in coming weeks.