Christchurch Earthquake bulletin edition 118
new-zealand-labour-party
Wed Sep 28 2011 13:00:00 GMT+1300 (New Zealand Daylight Time)
Christchurch Earthquake bulletin edition 118
Wednesday, 28 September 2011, 1:03 pm
Column: New Zealand Labour Party
Christchurch Labour MPs
28 September 2011
Christchurch Earthquake bulletin edition 118
A regular bulletin started by the Labour Party’s Christchurch electorate MPs, Clayton Cosgrove (Waimakariri), Ruth Dyson (Port Hills), Lianne Dalziel (Christchurch East) and Brendon Burns (Christchurch Central) to keep people in their electorates and media informed about what is happening at grass roots level.
CLAYTON COSGROVE: There is an article on the front page of today’s Christchurch Press article exposing the unfairness of the Government’s offer to red zone homeowners using the rateable value system - a system which Gerry Brownlee knows was never designed to make pay-outs on properties but simply designed to provide a valuation for rating purposes only. As I have pointed out for some weeks now Mr Brownlee knew about this because his own Cabinet papers told him that 63% of properties in Kaiapoi were selling above the rateable valuation a year before the September earthquake. The dishonesty of the Government’s spin and Mr Brownlee’s repeated statements that the equity of homeowners would be preserved is now laid bare for all to see. Week after week, month after month, Gerry Brownlee told people that they should not be concerned about their equity and that it would be protected – all the time knowing from advice he’d received that this was not going to be the case. Is it any wonder that we as local MPs have had the message from our constituents that they have little confidence in the integrity of the Government deal? This erosion of trust was reinforced when Gerry Brownlee misled people by promising to factor in the cost of their home improvements only to renege on that promise. Not only are homeowners in Kaiapoi likely to lose out by an average $16,000 – $22,100 but it gets worse for them with land prices continuing to rise. The end result of the Government refusing to offer affordable land or housing options is that most people will be out of pocket by tens of thousands of dollars. One of my constituents is likely to be short by $130,000.
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BRENDON BURNS: Numerous wrangles with insurers are emerging, with even the Insurance Council now recommending people getting legal advice. The Canterbury Community Law Centre is providing excellent assistance. I’ve been able to get Dr Duncan Webb, who specialises in insurance law with Lane Neave, to begin providing some advice to residents groups. On Monday night, we met Avon Loop homeowners. Dr Webb outlined how people should start by reading their insurance policies carefully and understand what they are entitled to. It is easy to miss or overlook the benefits that are available - such as for stress or storage. He made it clear that insurers won’t give something if they are not asked; that any initial rebuild offer will suggest something you might visit as a show-home but in fact if you had, say, a weatherboard house with wide skirtings, you are entitled to specify that. Certainly some trade-offs will be necessary – you will not get everything you want. However, insurers don’t like going to court or complaints processes as this ties up resources. Sometimes simply asking to speak to someone more senior can provide a resolution. Dr Webb’s advice is that homeowners must avoid any stretching of the truth as that will risk insurers digging in their heels. Equally he says insurers are not dishonest – but nor are they disposed to being generous.
LIANNE DALZIEL: Bexley Residents Association is the latest group of red zone residents to call a rally to raise concerns about the Government’s approach to the zoning of land and the offer. It is scheduled for 2pm on Sunday 9th October. I have called for people who are unaffected by the zoning decisions not to make judgments about how people are responding to the offer. The Government spin is that the offer is fair because on average property prices fell by 5% from 2007-2010. But the average disguises the reality that confronts many people. The establishment of a simple dispute resolution process that would enable any ‘material discrepancy’ between rating valuations and market valuations would resolve the issue as the Government noted in its June Cabinet papers. If the Government had implemented this decision then perhaps I wouldn’t be being visited by elderly widows and other vulnerable constituents wondering how they are going to cope with the government offer or how to challenge the insurers. How is this situation fair? Many of them would be happy to just stay in their homes until they need to go into care. But they are being forced out so the government can “de-risk” the insurance market. Maybe the process should be “de-risked” for the most vulnerable residents.
RUTH DYSON: The Ferry Road to Sumner master plan is starting this week. The Council has agreed that there will be 60 master plans prepared following the two pilots in Sydenham and Lyttelton.These two plans are due for consideration by the Council in October. They cover quite limited areas of both suburbs, mainly what could be described as the CBD of the suburbs, and in both areas received huge public engagement on the plans. Both master plan consultations said they should consider the bigger picture rather than just this limited area. The Ferry Road to Sumner plan is a great response to community feedback that the distinct but related suburbs need to have an integrated plan. As yet, this does not include Heathcote Valley, but I am working on that. Sumner, Redcliffs and Heathcote have already done a huge amount of work in advance of Council planning. The Sumner Urban Design Group has basically done all the work but as yet has been unable to source financial recognition of this which I think is unfair and I hope it is rectified soon.
ENDS
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