An announcement from Associate Finance Minister David Seymour shows a misunderstanding of the issues claimants are managing in the NHC On Sold programme.

Christchurch woman Ali Jones says she applauds any changes that will improve the process for homeowners to get their earthquake houses repaired or rebuilt however the changes announced today regarding how the Natural Hazards Commission delivers the On-sold support package are severely flawed.

“I agree with the Associate Minister’s comment that the On Sold programme was never intended to continue indefinitely however the costs and delays are more often than not the result of NHCs processes and behaviour. Putting deadlines on homeowners is going to add to the stress and upset they are already suffering after years of this palaver,” she says.

Associate Minister Seymour said in his media release today “we’re putting a full stop on the programme in a way that allows applicants fair settlement” however Jones says the programme is already providing an opportunity for fair settlement when it is allowed to operate the way it was intended.

“To now say that no application can be settled in excess of 1.5 times the current rateable capital value (CV) of the property and expect homeowners to abide by the repair required under the On Sold programme is grossly unfair. I am aware of people who have had to find significant funds to complete the repair because the money from NHC didn’t cover the work required. How do you think that’s going to work for people in their twilight years or who are unwell or have no way of finding extra money. And to be frank, why should they?” says Jones.

The changes also dictate that On Sold applicants need to meet new deadlines to remain in the programme. For example, they have 30 business days to sign their Settlement Deed (from the date of offer) and six months to begin construction from the date of agreement.

“Where are the deadlines for NHC?” asks Ali Jones. “There are claimants in the On Sold programme who have been trying to get to the settlement deed stage for a very long time, some for several years. I have had three phone calls this morning from people in exactly this situation. The delays, obfuscation and poor process from NHC has stalled the progress of their claims and the homeowners have no control over that. How is a deadline on homeowners going to address the problem here? It won‘t,” she says.

Ali Jones has contacted Associate Minister Seymour’s office this morning to express concern that his announcement may be based on incorrect information from NHC.

“We saw this with Gerry Brownlee in the EQC CE Ian Simpson years, and I am sure Mr Seymour doesn’t want a repeat of that. It is admirable that Government wants to see earthquake damage to residential properties repaired as soon as possible so Cantabrians don’t continue to live in earthquake-damaged homes but unfortunately this announcement today may see homes incorrectly repaired and we are right back to where we were that required the On Sold programme in the first place,” says Jones. “If Mr Seymour wants to control the costs to the taxpayer resulting from the On Sold programme, perhaps he should speak to claimants who will be able to give him a very clear picture of the delays, obfuscation, litigation and other behaviour that is causing the costs to be higher than they should be – and it is definitely not the homeowners who are the architects of this behaviour, says Jones.

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