"We also had reports of people getting caught in the powerful water surges that make up a tsunami," he said.
"New Zealanders who didn't heed the national tsunami warning issued in the wake of the Chilean earthquake need to realise this was a serious event.
"There was definitely potential for loss of life in our waters and it is a credit to the team who managed this event that that didn't happen."
Mr Carter said most people heeded the warnings and he was proud of the way Civil Defence, local Civil Defence Emergency Management groups, police, fire, coastguard and volunteers worked together to manage the situation.
"Mostly, they were able to warn people and keep them off the beaches and out of the water," he said.
"The media also played a crucial role in keeping people up to date and informed as the situation unfolded." Mr Carter said the distance from the earthquake meant there was plenty of time to prepare.
"However, if an earthquake of this magnitude strikes 20 kilometres away from one of New Zealand's major cities, there will be no warning time," he said.
"We have some of the best civil defence emergency planning in the world, but in this event there would be a period of time when households and communities might be isolated and without essential services."
Mr Carter said the reality was that New Zealanders were vulnerable to unpredictable natural disasters such as earthquakes and tsunamis.
"We are also geographically isolated from our nearest neighbours on whom we might call for help, so any international emergency response might take days," he said.
"Every household should have an emergency plan that includes knowing what to do during and immediately after a significant earthquake."