Woods Megan: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeWoods Megan: Oral Questions — Questions to Ministers[Sitting date: 17 February 2016. Volume:711;Page:9070. Text is incorporated into the Bound Volume.]10.Dr MEGAN WOODS (Labour—Wigram) to the Minister responsible for the Earthquake Commission: Does he have confidence in EQC’s oversight of all claims related to the Canterbury earthquakes?Hon GERRY BROWNLEE (Minister responsible for the Earthquake Commission): I was not sure it was me for a minute there but yes. As of 31 January the Earthquake Commission has managed more than 67000 home repairs made 97000 cash settlements and resolved more than 60000 land claims. Ninety-nine percent of homeowners scheduled for cash settlements have been paid. Ninety-eight percent of those in the managed repair programme have had their repairs completed. The Canterbury earthquakes were one of the largest insurance events ever anywhere in the world. The Earthquake Commission has managed hundreds of thousands of claims and has made good progress although it has not always been easy for either the Earthquake Commission or its customers.Dr Megan Woods: Why should Cantabrians share his confidence when the Earthquake Commission is having to redo thousands of those repairs and thousands of other homeowners have unresolved claims 5 years on?Hon GERRY BROWNLEE: Of the 67000 completed home repairs just over 5000 homeowners have indicated that they would like to have a second look at some of the work that related to that repair. That is a rate of 8 percent—an 8 percent return rate on 67000 homes. I present to the House and will seek leave to table a Building Research Association of New Zealand report indicating that when someone gets a new home built it is not uncommon for more than 80 percent of those homeowners to call the builders back. I think the 8 percent rate on the Earthquake Commission repairs is exceptional.Dr Megan Woods: Does he think it is a reflection on his leadership of the Earthquake Commission when 60 percent of staff do not have confidence in the leadership of the organisation and nearly three-quarters of staff do not believe that the Earthquake Commission delivers on the promises it makes to customers?Hon GERRY BROWNLEE: The answer fundamentally is no. What I would say is that when you look at a set of results from a survey picking out specific questions without seeing them in the context of the whole survey is hardly reasonable. I would suggest for example that this means that there is a 40 percent confidence rate. Let me be clear: if that were a result in any poll for the Labour Party the member would be dancing in the aisles.Dr Megan Woods: I seek leave to table the survey that shows that the Earthquake Commission—Mr SPEAKER: Order! [Interruption] Order! Whose survey?Dr Megan Woods: It is the IBM Earthquake Commission engagement survey 2015—Mr SPEAKER: On the basis that that is not freely available I will put the leave. The House can decide. Leave is sought to table that particular survey. Is there any objection? There is not.Document by leave laid on the Table of the House.Dr Megan Woods: Does he consider that the Earthquake Commission spending $23.5 million in legal bills fighting the people of Canterbury is a good use of taxpayer money or could it be better used fixing people’s houses?Hon GERRY BROWNLEE: Once again you would have to look at each of the individual cases that are finding their way to the courts. If you look at the headline analysis of the work that has been done it is overwhelmingly positive. We are talking about a very small percentage of cases at the end of a programme. What I would say is that the Earthquake Commission is like any other insurer: it cannot step outside its policy bounds. If it does so it comes at a cost in this case to the taxpayer but in the long term because of the effect it may have on the purchase of reinsurance to every single New Zealand household insurance purchaser. So I think it has acted appropriately. I think the board has managed the situation well and frankly for an event of this size the litigation surrounding it has been absolutely minimal.Dr Megan Woods: Why should Cantabrians believe that the Earthquake Commission’s response to claims from Sunday’s earthquakes will be any better handled than the mess of the last 5 years?Hon GERRY BROWNLEE: Firstly I do not accept that there is a mess from the last 5 years and any reasonable person looking at the statistics would have to agree remembering that it is the taxpayer of New Zealand who backs this scheme to the hilt. There have so far been as I understand it at just around about midday today some 1700 claims lodged as a result of Sunday. It is expected that up to half of those could be for contents only and we would expect that the assessment process will be carried out as efficiently as is possible but the work will be done first for those who are still waiting.