Foss Craig: Questions for Oral Answer — Questions to Ministers 
Foss Craig: Questions for Oral Answer — Questions to Ministers 
[Volume:666;Page:13764] 
1. 
CRAIG FOSS (National—Tukituki) 
 to the  
Minister of Finance 
: How is the Government helping households and businesses affected by the Canterbury earthquake? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government is prioritising help for households and businesses affected by the Canterbury earthquake. The Government yesterday announced a wage subsidy to support employees of small businesses seriously disrupted by the earthquake. The aim of the initiative is to keep people in jobs and to support small businesses that are unable to operate or pay their staff. We have put aside $15 million for the wage subsidy because those businesses have been hard hit and they need some help through the worst of it. 
Craig Foss 
: How will the subsidy work? 
Hon BILL ENGLISH 
: The subsidy will be paid to businesses with fewer than 20 employees where earthquake damage means they cannot operate or pay wages. It will be paid for up to 4 weeks initially and businesses can reapply if after 4 weeks they are still unable to operate. The Prime Minister has indicated that businesses with just over 20 workers may also be accommodated on a case by case basis depending on their circumstances. Eligible employers will receive a wage subsidy of $350 per week gross paid in advance as a lump sum and backdated to the date of the earthquake and of course employers will be free to top up the subsidy. 
Craig Foss 
: When will the subsidy become available? 
Hon BILL ENGLISH 
: Affected businesses can apply to Work and Income for the subsidy from tomorrow and they will be paid within 24 hours—that is the next day. The Government has deliberately fast tracked this response because we are aware that small-business people who for instance turned up to work on Monday and had nothing to sell could find themselves very rapidly under financial pressure and unable to pay their staff who in many cases are personally vulnerable at this time as well. 
Craig Foss 
: What assistance is available to homeowners with damaged land or buildings? 
Hon BILL ENGLISH 
: Any business or homeowner with insurance cover is eligible for assistance from the Earthquake Commission. In the first instance they can claim up to $100000 plus GST at 15 percent for damage to buildings and $20000 plus GST for damage to contents. After that their own insurance kicks in. If land requires remediation or cannot be built on the Earthquake Commission will pay out that cost. The exact amount of required remediation and payment will be determined by an Earthquake Commission engineer. As at midday today the Earthquake Commission had received about 30000 claims. In total it is expecting to receive about 100000 claims with a cost somewhere between $1 billion and $2 billion. 
Craig Foss 
: What challenges does the Earthquake Commission face in assessing claims? 
Hon BILL ENGLISH 
: There are huge challenges in assessing the large number of claims. Along with private insurers the Earthquake Commission faces the massive task of compiling and processing up to 100000 claims. It has staff on the ground now and it hopes to have the first of 10 field offices opened by Friday. Each of the 10 offices will have around 40 staff. We have been assured that they are working as fast as they can to assess and process claims but this still could take some time. Of course once claims are processed it may be some time before building services are able to be procured. But the Earthquake Commission is working with the councils private insurers and the Government; in fact they have been having a meeting since 2 o’clock to find out how this process can be expedited. In the meantime the Earthquake Commission advises that the best way for homeowners to lodge their claim is through the Earthquake Commission website. 
Hon Annette King 
: Is it the Government’s approach to err on the side of generosity when assessing the eligibility of Cantabrians for Government support? 
Hon BILL ENGLISH 
: In respect of welfare assistance and the wage subsidy I think that has been the case. In respect of insurance cover we want to be sure that all the available insurance cover is fully understood. It seems likely that much if not most of the potential liability is covered by the private insurers which have reassured us that they have the capacity to pick up costs and by the Earthquake Commission which equally has the capacity to pick up the likely costs.