Waikeria Prison Riot Costs Blow Out
The costs of damages from the six-day riot at Waikeria Prison continue to mount, while Corrections Minister Kelvin Davis remains missing in action, says Simeon Brown National Party Spokesperson for Corrections.
“The settlement value arising out of the insurance claim for the damage causes sits at nearly $24 million. This is an enormous amount of money being spent to pay for the damages caused by a riot that was allowed to last six days.
“The Department of Corrections insurance payout is at the policy limits – if another riot were to occur this year with another prison being burned down the taxpayers would have to fork out the cash to repair the damage.
“The Government has had to sign off a multimillion-dollar write-down of the jail, so the bill could balloon even more when everything is tallied up.
“To make matters worse, the Corrections is refusing to disclose what the total cost of writing off the assets is, as well it being revealed by Kelvin Davis that the insurance payout will not cover the cost of demolishing of the prison.
“The whole situation at Waikeria was a Kelvin Davis catastrophe from start to finish. Here we are now, months later, footing the bill for his incompetence. The Minister has proven time and again that he is capable only of opening the doors to let prisoners out.”
Reply 32165 (2021) has
been answered
Portfolio:
Corrections (Hon Kelvin Davis)
Question:
In response to Reply 28780, what are the established
insurance costs of the Waikeria
Riot?
Reply: I am advised that, in
submitting Corrections’ insurance claim, an estimation of
costs to the extent of the claim limits under the material
damage and business interruption policies was made. The
Material Damage policy includes buildings scheduled per site
and, in the case of the Top Jail, provided demolition cover
of $4.5 million plus GST. In addition, Plant and Contents
and Business Interruption policies provided cover for $12.5m
and $10m respectively. I am further advised that Corrections
received an insurance payout at these policy limits. This is
also my response to WPQ 32166.
32165
(2021)
Reply 30612 (2021) has been
answered
Portfolio: Corrections
(Hon Kelvin Davis)
Question: How much
money has Correction received to date in insurance payouts,
if any, following the Waikeria
Riot?
Reply: I am advised that the
settlement value as a result of the insurance claim for the
Waikeria riot is $23.2 million. This settlement value is
after the related insurance policy excess’ have been
deducted from the claim. The payment is full and final
settlement in relation to claims for business interruption
and the physical buildings, plant and contents. This is also
my response to WPQ 30613.
30612
(2021)