Government exposes bill for 'botched' EQC repairs

Government exposes bill for 'botched' EQC repairs | Insurance Business New Zealand

Government exposes bill for 'botched' EQC repairs

The bill for Earthquake Commission (EQC) re-repairs has hit $270 million – well ahead of the $70 million predicted by the previous National Government, it has been revealed.

According to the Minister responsible for the Earthquake Commission Megan Woods, as of April 04, $170 million has been spent remediating claims managed through the repair process with a further $100 million being spent re-settling homes that had been cash settled for initial repairs.

“This is far beyond what the previous government told the public the issue would cost. In opposition, we warned the government they were not acting fast enough on the issue of botched repairs,” Woods said.

The minister noted that “blow outs like this” are the main reason for the appointment of an independent ministerial advisor, who directly reports to Woods, to speed up outstanding EQC claims. Woods said she expects the independent report to be handed to her in a few weeks.

Woods also said she had met with the Treasury to request more information on the issue.

“Endless delays for people stuck in these situations are why we have recently instituted a case management approach at EQC, where claimants have one person who manages their file instead of having to bounce from person to person,” she said.

This exposé, Woods said, further strengthens the need for an independent inquiry into EQC, which the government will be launching.

“This government’s absolute focus is getting faster progress for people still stuck in EQC limbo,” she added.


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