FOR IMMEDIATE RELEASE

EMPOWERED CHRISTCHURCH

Hugo Kristinsson

WeCAN

Brent Cairns

WeCAN and Empowered Christchurch challenge those responsible for the Christchurch recovery

Christchurch, New Zealand, 17 March 2015 — The Christchurch earthquake sequence is the most serious natural disaster ever to hit New Zealand. It is of critical importance to learn from this disaster and to look constructively at what has been done and the way in which the recovery has been handled.

WeCan and Empowered Christchurch have examined the recovery management process and found while many aspects have been well handled some very important aspects have been handled badly.

Retaining insurance for their homes and possessions is vital for the residents and it has now become abundantly clear that insurance companies and banks will be retreating from high hazard areas. No effort has been made to communicate this to the affected residents and insurance companies are pressing to settle claims on high hazard land in the full knowledge that cover will be withdrawn at some point in the future.

Many residents in this situation are still paying off mortgages and when insurance companies withdraw cover, banks will, in all probability, call in loans on a property if the owner is unable to obtain insurance.

We consider this recovery to be unsustainable and would ask the authorities responsible to take these matters to heart and address the obvious problems as a matter of urgency.

Transparency and factual information you can rely on are key components in a successful recovery.

• Houses moved during the 'quakes…in some areas as far as 1 m laterally, meaning that some homes are now on neighboring properties. Residents may be obliged to move their home back to where it was before the earthquakes at their own cost.

• The insurance industry was aware of this, yet companies were permitted to repair or rebuild homes on the same location, purely in order to save money and transfer risk to policyholders

• Many homes are being (or have been) rebuilt or repaired at a height that will leave the property uninsurable due to the flood risk.

• Legislation was changed to absolve EQC from the obligation to settle claims within a year of a claim being made. This means, on the one hand, a huge cost saving for EQC and government through the deferment of payments, while on the other, long-term hardship for homeowners who are awaiting settlement of their claims. The big winners are the insurance industry and the government budget.

• Many red zone decisions were political decisions that were not based on actual data…Once again, the object was to save the insurance industry money at the residents' expense.

• Insurance and EQC land payments for the 7400+ Red Zoned homes are still owed. The Government will now receive this money, as homeowners were forced to give up their homes and land. The costs to purchase the ‘red zoned properties’ will be fully covered when these payments are paid to the Government. Therefore, there will have been no cost to the tax payer. However the crown now has the ability to sell this confiscated land, which will result in the New Zealand Government making a financial profit from forcibly removing earthquake victims from their homes.

Quote from Brent

“We want to see earthquake issues behind us, for that to happen, there needs to be transparency instead of fudging of figures. At risk is peoples’ largest investment, their family home. We want to see the power brokers to come clean and advise home owners truthfully, identifying the areas that are either below sea level or whose homes have moved laterally, and are now situated on the neighboring property, making these homes uninsurable as a direct result of the earthquakes. These people need to be told the truth and to be given options enabling them to get on with their lives. These issues should have been dealt before these homes were repaired or rebuilt.

On the 23rd Feb 2011, Prime Minister John Key stated “On behalf of the Government, let me be clear that no one will be left to walk this journey alone” now is the time to keep your promise, Mr Key.” Brent said.

Quote from Hugo:

“Ever since the earthquakes occurred, I have become progressively more concerned about the post-earthquake land damage, and how the information, critical to the earthquake recovery, has been omitted from calculations and dangerous hazards were not being identified. Responsible planning should be the first part of any recovery. It is extremely troubling to see what is going on in Christchurch. The movement and subsequent damage to the land during the earthquakes is the cause of the majority of damage to houses here in Christchurch. Land movement, sinking and fracturing are issues that simply cannot be left until last or ignored. We must learn from the mistakes that have been made and when problems are found they need to be addressed immediately. The longer these problems are left, the greater the become. We need the mistakes and omissions made identified, to avoid a repeat of such travesty during future catastrophic events. New Zealand has one of the highest levels of insurance cover in the world, so it should not pose a problem to restore people's homes, in which they have invested their life savings and allow them to move on with their lives. Instead, the victims of the Christchurch Earthquakes, whose land has been severely displaced and/or damaged, have been left at risk of imminent loss and danger, with an uninsurable future”.

About WeCAN

If you would like further information or to file a claim please go to the WeCAN website

www.wecan-nz.com

About Empowered Christchurch

Empowered Christchurch is an apolitical community group set up to support victims of the Canterbury earthquakes, to find answers to their questions and to help achieve fair settlements for homeowners.

Empowered Christchurch publishes a recovery newsletter and is working with councils to assist residents getting a fair treatment by the building consent authorities. Empowered Christchurch was initiated after a presentation to the CERA community forum on behalf of TC3 residents.

www.empoweredchristchurch.co.nz

Attached:
Copy_sent_to_ministers_17_March_2015.pdf
Chch_Recovery_0315.pdf

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