Marc Greenhill at Stuff reports:
Canterbury Earthquake Recovery Minister Gerry Brownlee has rejected suggestions he ignored officials’ advice in making reduced offers to uninsured red-zoners.
The Press reported yesterday the Canterbury Earthquake Recovery Authority (Cera) advised Brownlee last August that property owners in the residential red zone who did not qualify for the initial Crown compensation deal – mainly commercial properties and undeveloped land – should have the same offer extended to them.
A decision was made to offer those in limbo half the rateable value (RV) of their land and avoid the “moral hazard” of a government safety net for the uninsured.
I think it would have been very bad to offer the same price for an uninsured property as for those insured. It would have set an awful precedent and encourage people not to insure.
Labour earthquake recovery spokeswoman Lianne Dalziel said the “low-ball” offers would form part of a formal complaint she had made to the auditor-general about the Government’s handling of the residential red zone.
Labour – campaigning for the rights of the uninsured to get the same payouts as the insured. That’s true equality for you comrades!Tags: CERA, earthquake, Gerry Brownlee, Lianne Dalziel