O'Rourke Denis: General Debate 
O'Rourke Denis: General Debate 
[Volume:678;Page:1391] 
DENIS O’ROURKE (NZ First) 
: 
 It has been more than a year since the earthquakes. The Minister for Canterbury Earthquake Recovery said that he was generally satisfied with progress in Christchurch but in fact progress is very unsatisfactory and it needs to be a lot better.  
People are voting with their feet. The Earthquake Commission says that of 100000 homes to repair only about 10000 have been done. Commercial capital is taking flight. Profiteers are having a field day. Stress-related health problems are epidemic amongst red-zoners and orange-zoners. Winter of course is coming—another winter of discontent for the city. In the central business district demolitions are to take up to another 2 years before they are finished because the rate of demolition is painfully slow. Of 1200 to demolish there are still about one-half to go and some of the biggest buildings are included.  
It is difficult to see why progress cannot be faster. The Earthquake Commission has been too slow as have the insurance companies and the Canterbury Earthquake Recovery Authority. The commission had about half a million land and building claims but only 41500 full repairs have so far been attended to. There is a 20000-person shortage of key tradespeople in the city.  
Too little is being done and too late. Central city business owners need certainty. Capital is taking flight. Much good work is being done to develop a central city recovery plan but when will it be done and who will pay for it? Additional Government financial support—say over 5 years—is needed to provide a fund for grants and loans to encourage early rebuilding and for council public projects as per the central city plan.  
But the red zone issues are the most serious. There have been winners and losers. In one block of maybe 100 houses in Kaiapoi there is no land or building damage but they are still red-zoned. No insurance claim is possible; they want their land zoned green. The Government is forcing people out of undamaged homes unnecessarily but it does not know what to do if red-zoners refuse to leave either. Rating values of 2008 in Kaiapoi are not enough to fund a new home and there is commonly a gap of $50000 to $100000. People have no means to raise this. No mortgage is available for people on lower incomes.  
A practical solution is needed. The Government should immediately establish a loan fund for people in the red zone if they accept the Government’s offer but then find they are unable to fund the purchase of a replacement home. The Government should provide bridging finance of up to $100000 for up to 10 years at zero interest repayable upon sale or other disposition.  
Retirement complexes also have some failed Government policy. Some occupiers have no interest in land only an agreement to occupy. They get only a minimum sum as per contract. New Zealand First calls on the Government to use its powers to ensure that the same 2007 value is given to these people as for the rest of the red zone on the basis that the compensation be provided firstly by the complex owner under contract and then secondly by the Government to make up the balance. That is only fair.  
In the orange zone the issue as we know is delay. There should have been no orange zone by now but for some reason there still is. The excuses have worn thin and leadership and action are needed now.  
Insurance problems still abound. The Government’s policy seems to be “wait and hope” but insurance cover is hard to get. Some insurance companies have departed and people cannot find another insurer. New homeowners commonly cannot get insurance either. The Government’s intervention is essential to ensure that cover is available to all. Insurance companies are taking an unconscionably long time at approving reinstatements and they appear to me to be using delay as a tactic to encourage cash settlements because that is cheaper.  
There is a rent crisis as well. That is out of control too. Winter is coming and action is needed.