Maori Party Supports Financial Support for AMI

te-pati-maori

Thu Apr 07 2011 12:00:00 GMT+1200 (New Zealand Standard Time)

Maori Party Supports Financial Support for AMI

Thursday, 7 April 2011, 5:00 pm
Press Release: The Maori Party

Ministerial Statement Regarding Back Up Financial Support for AMI Policy Holders

Te Ururoa Flavell, Maori Party Whip

Thursday 7 April 2011

The Maori Party stands in support of the policyholder support package for AMI and we do so, in taking a whanau approach. This is about protecting the interests of whanau – whanau in Christchurch; whanau elsewhere who have already faced significant costs from not just the earthquakes but the collapse of finance companies.

This is about providing a level of confidence to us all, that if financial assistance is required, the Government will take extraordinary steps to minimise the cost to taxpayers. We will be watching very carefully to ensure that happens – we are opposed to bailing out the private sector.

The events emerging out of the Canterbury earthquake have placed many sectors within our nation under great pressure. Today’s announcement responds to the considerable tension that AMI has experienced in direct response to the earthquakes last September and in February of this year.

It is an unusual situation – and from the viewpoint of the Reserve Bank it does not appear to have impacted on the bulk of the mainstream insurance sector – only AMI.

The Government has described the policyholder support package as a last resort approach – only kicking in once the company’s own reserves have been exhausted unless the Crown believes it is in the public interest to take control sooner.

This is about taxpayers supporting other whanau who through no fault of their own, have sought support from a residential insurer which now finds themselves in a precarious position as a result of two natural disasters of massive scale.

The Maori Party supports the Government in this initiative.

ENDS

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