Labour plans compulsory EQC levies

Labour would make Earthquake Commission levies compulsory for all home owners with payments made through local authority rates, leader Phil Goff announced as he hit Christchurch on the campaign trail today.

Speaking at Seabreeze Crescent, a street in the badly damaged suburb of Bexley, Mr Goff said EQC levies would be universal in a reform of the commission under a Labour Government.

"The sheer scale of the devastating Canterbury earthquakes severely tested the EQC'', he said.

"While it largely stood up to the challenge, the Natural Disaster Fund is now depleted and it is clear the system needs modernising.''

Labour would ensure widespread EQC coverage by collecting levies through the local authority rates system rather than via an additional fee on private home and contents insurance as is currently the case.

Levies, which National has already said it would treble, leaving most home owners paying $207 a year would be made proportionate based on the rateable value of homes.

"Everyone who owns a home will now be insured - eliminating the "moral hazard'' of covering uninsured homeowners, which penalises people who pay for private insurance cover.''

Mr Goff said a Labour Government would also increase the $100,000 cap on EQC cover after consulting with the commission and the insurance industry.

Labour's earthquake spokesman Clayton Cosgrove said the cap had to be raised to reflect the steep increases in house values and building costs since it was set in 1993.

Mr Cosgrove said raising the cap meant the government would bear more risk, "But right now there's no alternative as the insurance market is not functioning properly and a lot of people cannot get private cover''.

Labour has already said that if it won the election it would act as an "insurer of last resort'' to ensure Christchurch homeowners could proceed with rebuilding or repairing their homes.

Labour would also acquire 1500 sections and sell them to displaced Red Zone residents at cost to rein in high prices.

Mr Goff this morning visited Aranui High School where he paid tribute to the courage and resilience of residents and pledged that rebuild jobs would go to Christchurch's 10,000 unemployed first following upskilling and retraining programmes under a Labour Government.

Mr Goff will this evening face-off against Prime Minister John Key in a public debate at Christ College.

 

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