The Government is set to make a major announcement on the post-earthquake “on-sold programme” as costs continue to climb and delays leave hundreds of homeowners still waiting for settlement.
The support package was created in 2019 to provide ex gratia payments to eligible homeowners in Canterbury to cover the over-cap portion of the cost to repair natural disaster damage.
It covers properties that were repaired post-earthquake and signed off, but once resold it became clear the work was not to standard, with many homes needing entire rebuilds.
The original budget for the programme was $300m, but Treasury has revealed to 1News under the Official Information Act that the figure has more than doubled to $717m.
Building costs have risen by 40% and more homeowners have come forward.
Around half of the settlements are still yet to be paid out, with hundreds of homeowners left waiting.
Ali Jones is one of around 1500 homeowners who are part of the programme and said receiving her settlement was “challenging” but that “we got there in the end”.
“I’m glad we did it when we did, because from what I’m hearing, it’s not as easy now as it was two, three, four years ago.”
She said the delays to settlements “should be and could be overcome”.
Hundreds of homeowners are waiting on settlements, but the Minister responsible for the Natural Hazards commission says “at some point, the music’s got to stop”. (Source: 1News)
“People should not still be dealing with claims this long after the earthquakes. It’s unacceptable because of the stress and pressure, I’ve seen people’s mental health being affected by this.”
‘The music’s got to stop’ – Seymour
Associate Finance Minister David Seymour said he was “shocked” by the figures when he become the responsible minister at the start of this year.
“It’s now over $700m and it’s still not finished, at some point the music’s got to stop,” he said, describing the program as a “very good example of Government costs blowing out”.
Jones said she would “push back” on the increase being labelled a blowout.
“I think that the on-sold program costs whatever it is going to cost.”
Natural Hazards Commission chief executive Tina Mitchell said “good progress” was expected in the next 12 months.
“Our key priority is wrapping support around those people,” she said.