1. AARON GILMORE (National) Link to this
to the Minister of Finance
What steps are the Government and the Earthquake Commission taking to streamline the Canterbury earthquake claims process?
Hon BILL ENGLISH (Minister of Finance) Link to this
The Government has taken steps to ensure the Earthquake Commission can assess and settle minor claims as quickly as possible. For claims where there is no structural or land damage the Earthquake Commission will settle with homeowners promptly, which it began doing this morning. In the case of houses that have damaged chimneys only, homeowners can choose to have the Energy Efficiency and Conservation Authority manage repairs and/or replace chimneys with a clean-heating device. These steps are expected to speed up the claims process for almost 40,000 home and building owners.
Why has the Earthquake Commission taken these steps to speed up the process?
The Earthquake Commission has already received about 53,000 claims, and is expecting to receive many more in the coming weeks. If the commission followed the usual processes, these claims would take several years to complete. Of these claims, about 25,000 are expected to be for superficial damage involving claims of less than $10,000. Another 14,000 are expected to be for repairs to chimneys. Dealing with that large number of less serious claims quickly will free up the Earthquake Commission to focus on the many more serious and complex claims that have arisen from the earthquake.
What steps are the Earthquake Commission, private insurers, and banks taking to fast track the more serious claims?
With some encouragement from the Minister for Canterbury Earthquake Recovery, Gerry Brownlee, the Earthquake Commission, private insurers, and banks have shown a real willingness to work together. Officials are leading discussions with these parties to bring about a more integrated response to serious claims. These details are being worked through and will be announced shortly. The objective will be to ensure that payouts are made as expeditiously as possible and are used as intended—that is, for repairs and the restoration of damage, not for other purposes—and also to ensure that the work is of a consistent standard.
Hon Ruth DysonWhat assistance will the Government give to people who need to employ tradespeople and engineers to undertake home assessments and then significant repairs, and who have to pay for them within 21 days, in advance of any money from the Earthquake Commission being paid to them, but who just do not have the money to proceed with assessment and repair work?
The member would do well to direct that inquiry to Mr Brownlee. Work is being done on a direct payment system to try to avoid a situation where homeowners would be out of pocket, but I am sure that Mr Brownlee could answer that question in some detail.
Brendon BurnsCan the Minister give the House and the people of Canterbury an assurance not only that the Government will provide all possible financial resources for the rebuilding of as many heritage buildings as is feasible across our province, most notably in my electorate of Christchurch Central, but also that where such rebuilding is not possible the Government will work with the city council and the Christchurch community to ensure replacement buildings are funded and designed in harmony with those that simply have to replaced?
That matter is under discussion between the Prime Minister, the local bodies, and the relevant Minister in charge of the Historic Places Trust. It will be important that some parameters are laid down about the extent to which the Government may or may not participate but also that the decision making ultimately lies with local interests and those who have a strong stake in the look of the city.