21 Aug 2018

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Mayor Lianne Dalziel is welcoming the Government’s announcement it will offer uninsured property owners in the residential red zone the same buy-out terms offered to those with insurance.

“This is a compassionate decision and one which Christchurch City Council has been advocating for a number of years. We have always said that every property owner in the residential red zone should have received the same offer for their property, regardless of their insurance status,’’ the Mayor says.

“We set this out very clearly in our 2015 submission on the Government’s draft Residential Red Zone Offer Recovery Plan.’’

In June 2011 the then Government offered to buy insured residential red zone properties at 100 per cent of the value of land and improvements, as at the most recent valuation in 2007.

However, the offer it made to owners of uninsured red zone properties in September 2012 was at 50 per cent of 2007 land value only.

A group of uninsured property owners have spent years battling through the courts, challenging the fairness of that offer. Known as the Quake Outcast case, the result was for the Government to recast its offer as a recovery plan.

Today the Government announced that it would pay former residential red zone owners 100 per cent of the 2007/08 rateable value for uninsured homes.

The payment is for those property owners who have not already received a payment for their uninsured improvements.

"It is time to resolve this longstanding issue and provide certainty for everyone involved so I am implementing this decision immediately,'' says Greater Christchurch Regeneration Minister Dr Megan Woods.

"Ex gratia payments will be made to the former owners of 103 uninsured and underinsured red zone properties over the next few weeks. The total cost of the payments is forecast to be around $12 million.''

Mayor Dalziel says the announcement should come as a huge relief to those who are finally receiving the offer that they should have received at the outset.

“It has been a long struggle and has caused a huge amount of stress and anxiety. I warmly welcome today’s announcement and congratulate the Government for demonstrating good faith.’’

Minister Woods also announced today that the Crown is willing to purchase privately-owned red zone properties, if the owners are interested in selling their property.  The new Crown offer will be on the basis of 100 per cent of the 2007/08 rateable value for land and improvements, regardless of insurance status.

"We need to stress this offer is voluntary. It is not a blanket or compulsory offer,'' says Dr Woods.