Christchurch Earthquake bulletin edition 66

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Tue Jun 28 2011 12:00:00 GMT+1200 (New Zealand Standard Time)

Christchurch Earthquake bulletin edition 66

Tuesday, 28 June 2011, 11:19 am
Press Release: New Zealand Labour Party

The Labour Party's Christchurch electorate MPs, Earthquake Recovery spokesperson Clayton Cosgrove (Waimakariri), Ruth Dyson (Port Hills), Lianne Dalziel (Christchurch East) and Brendon Burns (Christchurch Central) have started a regular bulletin to keep people in their electorates and media informed about what is happening at grass roots level.

CLAYTON COSGROVE: Local authorities in Christchurch and Waimakariri run out of insurance in two days, with questions about what would happen if another quake caused more damage. The Government has indicated vaguely someone will pay, but this issue has been around quite a while and should have been anticipated by Gerry Brownlee. On the issue of personal cover, some companies are playing ducks and drakes and saying that if a house in the red zone is deemed repairable --- even if the owner has to move --- they will only pay the value of repairs and not for a new home. This gives residents no choice but to accept the Government's offer. Problems are emerging with that offer, however. The 2007 value doesn't include chattels --- estimated to be $20,000 to $30,000 on average --- while constituents are also reporting a gap between their 2007 land value and what they will pay for an equivalent section. Real estate sources tell me people are unlikely to be able to buy under $150,000, even though their existing value may be about $100,000. This means some residents could be up to $80,000 out of pocket --- it will be difficult for some in their retiring years to sustain a mortgage for that amount. Another problem is that people moving quickly to a new property are finding their insurance companies won't cover them --- so no mortgage can be secured and they are stuck. The Government could have foreseen and addressed these issues --- instead of at the 11th hour in the case of local authorities or, for residents, after last week's so-called generous deal was announced. The Government must provide remedies swiftly. Gerry Brownlee can do what I did in terms of insurance company project management contracts --- get the companies in a room together and nut out solutions. Tonight's CERA meeting in the Pines Beach Hall at 7.30 for Kairaki Beach residents is a crucial one. These residents want to know why they are now red zoned and toast a few days after rebuilding was due to start. I'm disappointed only one Kaiapoi resident, Residents Association deputy president Linton Gray, is apparently on the community forum. He is a superb choice, but where are the others? CANCERN's Tom McBrearty is living in the district temporarily, and will add his voice, but as Waimakariri Mayor David Ayers says, the 2.6 per cent representation doesn't equate to Waimakariri's 11 per cent of the region's population.

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RUTH DYSON: I have met a strong and steady flow of constituents concerned about their zoning. In the Port Hills electorate most of us are in the white zone which is of most concern. Much of this land appears undamaged, but we feel as if we will be slow to resolve. I will urge Gerry Brownlee to ensure that any pockets which can be green zoned are given this status as quickly as possible. We understand land movement and rock fall issues, but it is a huge blanket of land zoned white and I hope some definitive zoning will be resolved soon. We have one whole subdivision at Ferrymead zoned orange, and then some pieces of orange through the electorate. These people have at least heard a timeframe for resolution of within 3 months, and have seen the package offered to red zone people, so they can start thinking about the future. For some in the green zone, concerns have been expressed about the long term security of their land and I was able to point to the landcheck website which enables you to register concern if you think something has been missed. Whatever zone people are in, it is hard - they either face a very new and uncertain future, or frustrating waiting times not knowing what options there may be. It is a critical time to look out for and after one another so we can get through. I attended a great meeting of artists in Lyttelton last evening. They are keen to have an arts complex of some sort as part of the future Lyttelton. It is obvious to everyone who knows our beautiful Port town that not only is it a working Port, but is full of creative and talented artists of all descriptions. The positive get-together all agreed such a complex would be an excellent asset not just for Lyttelton, but for the region, now so many of our art facilities have been lost. Today we farewelled 10 amazing students from Victoria University, who came down on Saturday night to help with earthquake work. Getting their offer of help, meeting them and working with them has given me great confidence in our future. They have been generous with time and energy, very respectful of the stress people are under, and I only wish that such great young people got as much media coverage as the few who do bad things! They have worked really hard and have been overwhelmed by the positive attitude of people here and also the genuine gratitude shown by people receiving help. A big thank you from Canterbury to these young men and women!

LIANNE DALZIEL: The reality of the offer is starting to dawn on people. There are winners and losers - unfortunately the high number of losers seems linked to the Government's approach to land valuation and the approach insurers have collectively adopted on their obligations under a replacement policy. A very interesting letter to the editor in yesterday's Press sums it up by reference to a ship that has run aground on the rocks and cannot be economically salvaged making it a constructive total loss. The writer says an insurer wouldn't get away with just paying the estimated cost of repairing the hole in the hull. "Under the doctrine of proximate cause, insurers are liable only for the damage flowing directly from an event - in this case the series of earthquakes. However, these same earthquakes have undermined the stability of the land to which these red-zone houses are irretrievably attached... Every house in the red zone is a constructive total loss as a direct result of earthquake activity." A constituent made that point at a CERA briefing yesterday. He had land damaged by rockfall a few years ago, and had to abandon his property though his house wasn't that damaged. His insurer argued it didn't have to pay for a replacement, but had to concede finally. He got his rebuild. I also think the Government has misinterpreted the legislation relating to the repair of land - that cost does not seem to be part of an EQC cash settlement process where the repair is not taking place. Under such circumstances the area covered by EQC up to the minimum section size in the city plan is what should be paid. I think there must be a lot more work done on existing rights and entitlements before the Government formalises the offer and everyone heads to court.

BRENDON BURNS: It is sombre to think of the hundreds of homes in the tongues of river side land in Avonside and Richmond which are designated RED. The RED line goes up the river side of Retreat Rd from Avonside Drive to around the Gayhurst Rd bridge. The other side of Retreat Rd through to Cowlishaw and along areas like Highfield Place are marked Orange, meaning yet to be determined. A similar RED zone is declared along River Rd from opposite Avonside Girls through to Banks Ave and including back streets or parts of back streets such as Glade Ave, the even side of Evelyn Couzens, the even numbers on Flescher Ave and Woodchester Ave, parts of Medway St, and North Avon Rd. I believe only public and political pressure saw last week's announcements being made at that time. Until as recently as last weekend, the Government was talking about a package involving insurers. People deserved to know about their land even if they had to wait for full compensation details One thing that leaves me very frustrated is the fact that three months ago, TV3 reported that the suburbs of Avonside, Dallington and Bexley would be abandoned. I asked the reporter where that information, which has proved largely correct, had come from. He said from within the Beehive. If that information was known three months ago, it deserved to have been communicated, even if it was not complete. It would have been painful but helped people plan their lives. However, we now have more pressing issues. If you are in a RED zone, you should get a personal phone call. CERA has also been running a series of community meetings, and I will also run some cottage meetings.

We're happy to take questions and seek answers for you. Contact: Clayton Cosgrove 021 829 562; Ruth Dyson 0274 461 674; Lianne Dalziel 0275 480644; Brendon Burns 0274 305501.

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