Canterbury Earthquake Recovery

The Christchurch earthquakes have left many residents in a state of limbo over their lives, homes, jobs and insurance. New Zealand First MPs have inspected the damage and listened to people trying to recover from the disasters. As a result we have put forward policies to help those struggling to cope. These include providing bridging finance for people in the red zone, ‘licence to occupy’ retirement units being given the same value as unit holders, establishing a government-backed insurer and regulating rents immediately. Rents should be regulated for as long as necessary to ensure the stability of the market and a fair and reasonable cost to tenants. We believe that our policies offer some constructive, practical ideas for improvement.

ACTION

Contact Denis O'Rourke with your thoughts

Where we've got to

We are keeping in touch with residents and community leaders to keep abreast of problems.
We are also in contact with the minister and CERA to press for prompt action and fairness in dealing with issues as they arise.

What's next

Red zone purchases: Many residents are being left severely out of pocket because the rating valuation of their properties is not high enough to purchase another house. New Zealand First wants concessionary bridging finance up to $100,000 for people in this position for 10 years - at zero or concessionary interest - repayable upon sale or other disposition of the land.
Retirement units (licences to occupy): We want the same value given to these unit holders as the rest of the red zone, as though they had an interest in the land and the unit, on the basis that the purchase be funded by (a) the complex owner under contract (as at present), and (b) the government to make up the balance.
Insurance: New Zealand First would establish Kiwi Insurance as a government backed insurer.
Residential rent crisis: Our policy is to regulate rents in Christchurch immediately for as long as necessary to ensure the stability of the market and fair and reasonable rents.

History

There is now a very serious housing shortage in Christchurch and the rental market is out of control. As more and more homes and apartment buildings are demolished, and more workers arrive for the rebuild, the situation has become chronic. New Zealand First is concerned for people trapped in the red zone, who are finding it difficult to accept the government offer and move on. Many find that the rating value used is not enough for a new home - a gap of $50,000 to $100,000 is commonplace - and many have no means to raise this or qualify for a mortgage. Where people who live(d) in retirement units (licences to occupy) have only an agreement to occupy, they often get a minimal sum as per contract, and find it impossible to buy another unit on the proceeds. Insurance cover is too hard to get. Some companies and a significant number of people cannot find another insurer. New homeowners often cannot get insurance either.

Why you should care

The Christchurch earthquake is one of the most serious disasters in our history, and people are still suffering badly. Many serious issues are not being dealt with adequately or promptly enough. Recovery is one of the Government’s top priorities but we feel not enough is being done and some of the issues appear to be slipping off the radar. Public pressure can help bring faster and more effective government action which is urgently needed.