King Gerry ripping off the peasants

Written By: - Date published: 10:59 am, August 6th, 2012 - 22 comments
Categories: disaster - Tags:

The design of the red-zone buy-out puts CERA first, the insurers seconds, and the earthquake victims last. Homeowners could take the 2007 valuation for their property, ignoring subsequent improvements, or the 2007 valuation for their land plus whatever their insurance company would give for the home. That generated a huge incentive for insurers to understate damage to red-zone houses.

That’s been happening with insurers declaring redzone houses inhabitable. Faced with only getting a partial insurance payout for their house if they choose Option 2, homeowners are really left with only Option 1 – sell the land and house at 2007 valuation to CERA.

Now, as it gets hold of redzone homes, CERA is having them revalued for pursuing insurance claims. It stands to make a profit from having not recognised all the improvements made to homes post-2007.

And the insurers will win too. CERA will have thousands of claims to settle and hold ups will delay its plans for the red-zone. They’ll make bulk settlements to expedite things and the insurers will laugh all the way to the bank.

Effectively, the redzoners got ripped off and the insurers and CERA split the profits.

The unanswered question, though, is what will happen to the holdouts who have refused to accept either rip-off option when the offers expire. There’s talk of Brownlee shutting off utilities to these people which would surely trigger lawsuits but, as always with this government, no real thought seems to have been put into the issue.

Also, and I doubt you’ll ever see these words here again, good on the NBR. Journalists were invited to “join the party”in the carefully stage-managed launch of the CBD rebuild plan designed and timed to get uncritical coverage on the 6s. NBR simply refused to be part of the government’s PR machine and broke the embargo. Pity the other journalists allowed themselves to get caught up in the faux party that Brownlee threw.

22 comments on “King Gerry ripping off the peasants”

  1. Dv 1

    This is absolutely DISGRACEFUL.

  2. ghostwhowalksnz 2

    The NBR headline read thus:

    NBR stands by coverage of govt’s ‘infotainment stunt’

    and Hickey was his part as a govt stooge:
    “The move prompted Interest managing editor Bernard Hickey to write to the government, requesting that NBR be banned from under-embargo briefings”
    And the lap-dogs at the main networks having had the message delayed till 6pm played along.
    “What I do need to let you know is that the big event, which will come just a few minutes after 6 o’clock when the prime minister will come back on the stage and on cue he’ll have a few things to say and that will be going out live over both TV1 and TV3 in their news ”
    Thanks NBR

  3. Andy-Roo 3

    Yes – this sucks beyond description.

    And Brownlee – well he is missing in action. Did not have the balls to front up on RNZ this morning.

    Gutless, thieving, asshole.

    • Tom Gould 3.1

      You can never call Gerry “gutless”. Spineless, maybe. But not gutless.

      • Andy-Roo 3.1.1

        Good point – after all his arse has to be connected to something…

        I was wrong to assume a direct link to his mouth – when the evidence was right there for me to see.

  4. vto 4

    All everyone needs is an explanation (a just explanation).

    It has been some days now and the explanation has not been made.

    Why?

    • Dr Terry 4.1

      vto – because they cannot explain the unexplainable!! Least of all a “just” explanation! In other words, business as usual.

  5. Zorr 5

    http://www.thepoliticalscientist.org/?p=913

    Thought this might be relevant to the discussion

    Very very detailed and a disturbing read with regards the Christchurch rebuild

  6. Colonial Viper 6

    Effectively, the redzoners got ripped off and the insurers and CERA split the profits.

    Well its a good thing that the grateful people of Christchurch voted back in all those faithful Labour MPs who can now continue to fight for them against this unjust system.

    • tc 6.1

      Yup you get the gov’t you deserve and the nat vote in chch/SI in 2011 was quite a shock to some after the initial treatment of chch earthquake victims and Pike River assertions by Shonkey and cohorts lying their arses off for votes.

      Sad but inevitable with this mob…..they only care about money/power driven outcomes. Labour once again caught out playing the wrong type of game and giving Csar Gerry unbridled power….fecking insane.

    • Andy-Roo 6.2

      No explanation for the actions of my fellow citizens there. Suspect that the result would be different now, but that is no bloody good to anybody…

  7. Understand Brownlee has serious Flu. Pity

  8. Rodel 8

    Bernard Hickey.s suggestion that breaking the so called ’embargo’ showed “contempt” for the stage managed PR stunt is absolutely correct. There are times when contempt should be used by real journalists. This was one of them. Thanks again NBR.

  9. Wayne 9

    Zorr, I have read thepoliticalscientist. Is there even one thing he supports? And that is the problem. It is inconceivable that a plan could not have a single redeeming feature. In fact everyone I have spoken to likes the frame. Sure investors are involved, but the plan – actually any plan – needs their support. They are the ones who are going to rebuild the bulk of the downtown.

    And as for the compensation package. It is almost certain the Govt will make a loss on the vast majority of the redzone sections where homeowners have accepted the 2007 valuations. The Govt will not get from the insurers what they have paid, and the land by and large will end up as parkland. Overall the deal for homeowners is pretty good. After all if they don’t like the 2007 package they are able to settle their insurance claim, though I appreciate dealing with insurers has its own set of challenges.

    The great advantage of the 2007 valuation package is that it lets people move on. Thereafter the Govt takes all the risk, mostly downside, in dealing with the insurers.

    You need to ask why the Nats did so well in CHCH in the election. People have, by and large, seen the govt dealing with the situation with a package that generally errs in favor of the homeowners. The 2007 valuations were pretty much at the peak, and that is widely understood.

    And Gerry gets on and does things.

    • Colonial Viper 9.1

      Sure investors are involved, but the plan – actually any plan – needs their support. They are the ones who are going to REBUILD the bulk of the downtown.

      sure, they will do the rebuild, with government money.

      designing a livable town where people and the community comes first doesnt even occur to these guys. ROI comes first for them.

      btw the government is stumping up the majority of the money one way or another, the private sector is getting (another) huge free ride.

      And this is going to blow up in their faces big time.

    • Hi Wayne,

      I have read thepoliticalscientist. Is there even one thing he supports?

      Absolutely.

      I support those who put signs up to ‘Save our High Street’; I support those who are against demolishing the Ng building; I support those who believe selling assets to pay for outsized ‘civic facilities’ is inappropriate; I support those who believe that the glitz and glamour around the launch of the Recovery Plan shows the government prioritises (big) business over people; I support those who have put real effort into rebuilding and strengthening their buildings only to have their property fall victim to an arbitrary ‘frame’ that had to be super-wide to shore up the property values of others.

      In short, I support many people. Do you support any of these people or are you one of those ‘naysayers’ who can’t see anyone that they support no matter how long the list of people to support? Are you just trying to get in the way of a people-led recovery out of sheer pugnacity? You see, two can play the “he’s just being negative” card.

      This is about debate and argument. Characterising one side in a debate as ‘negative’ is, in effect, saying that those with the power to say how things will be (i.e., CERA in this case) have to be characterised as being ‘positive’ and those without power have to be characterised as ‘negative’. It’s a neat, discursive trick but it is neither in the spirit of democracy nor fair.

      And,

      It is inconceivable that a plan could not have a single redeeming feature. In fact everyone I have spoken to likes the frame.

      It is inconceivable.

      I like trees (all the artists’ impressions show little trees everywhere); and green technologies being encouraged (despite the complete lack of detail about how that would happen, given the possible extra costs that might impose on property owners planning a rebuild); and height restrictions; and making the Avon a ‘park’ (though no-one was going to build within 30m of it in any case – more a necessity than a brilliant ‘idea’).

      But my main concern, Wayne, is the fundamental motivation behind the plan. The plan is actually very clear on this point and you seem to acknowledge it: It’s about providing a central city that is ‘friendly’ to investors (especially big ones).

      It seems that the belief is that if you make a city small enough so that its rental returns make it friendly to big investors (the only ones who will be able to afford land in the new core) it will therefore become a place for all the citizens of Christchurch to enjoy. I think that is simply wrong, and fatally so.

      As for the frame, if everyone you have talked to likes it will they be disappointed when it is increasingly developed for commercial and residential purposes as is prefigured in the Recovery Plan? (You know, the bit where it explicitly states that the frame will allow for the expansion of the core, given demand (i.e., when sufficient profit can come from it)?).

      Are they keen on it being allowed to dissolve and disappear over the next decades? That would seem odd if they actually do like it. Shouldn’t they – dare I say it – oppose that part of the Recovery Plan, and make their opposition clear?

      Or would that just be being negative?

    • mike e 9.3

      Wayne kerr the only reason national did well in CHCH was that all the labour voters left to Australia mainly but to other parts of the country as well come next election the residents left will turn agaist nactuf.

      • tracey 9.3.1

        And the earthquake prompted them to to put parker back in…. Clearly these poor folks have suffered greatly to have done that. The folks I know in chchch regret their decision to vote for him.

        • ghostwhowalksnz 9.3.1.1

          This shabby little media stunt gets worse and involves a big favour for Parker

          Christchurch Mayor Bob Parker has narrowly missed having his home gobbled up by the Christchurch Central Development Unit (CCDU).

          Parker’s home is in the large central-city block the CCDU has chosen as the site for the proposed metro sports facility, but his house and a couple of neighbouring commercial properties have been left sitting just outside the footprint of the planned facility.

          That means Parker and wife Jo Nicholls-Parker will be spared the designation notices that other properties owners in the block are set to receive.

          http://www.stuff.co.nz/national/christchurch-earthquake/7426018/Christchurch-plan-spares-mayors-home

          So its within the block but misses out ! How convenient

    • Andy-Roo 9.4

      In all of this I don’t see an answer to the question “Why is it OK for CERA to get independent valuations of properties when dealing with insurance companies, when it was not OK for the original owners of the properties to get valuations when dealing with CERA?”

      It is a pretty straight forward question. And one to which we have yet to see a satisfactory answer.

      And before you say that it would have been impractical, or too hard, just remember that you are talking about a large amount of financial loss, for a large number of people, many of whom will be facing considerable hardship as a result.

      Arguments of expediency do not stack up here. Nothing about this process has been convenient or easy for anyone involved.

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    So, those who “know best” have again done their worst. While constantly claiming to be the guardians of democracy and the constitution, and respecters of the 2016 referendum result, diehard Remainers (who have never brought themselves to believe that their advice could have been rejected) have striven might and main ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • Government says it will now build just one really nice home
    Following publication of this article, the Ministry has requested it to be noted that this supplied image is not necessarily representative of what the final house will look like, and it “probably won’t be that nice.” As part of today’s long-anticipated reset of the Government’s flagship KiwiBuild policy, Housing Minister ...
    The CivilianBy admin
    2 weeks ago
  • Imperialism and your cup of coffee
    Over the next week or two we will be running three synopses of parts of the opening chapter of John Smith’s Imperialism in the 21st Century (New York, Monthly Review Press, 2016).  The synopsis and commentary below is written by Phil Duncan. Marx began Capital not with a sweeping historical ...
    RedlineBy Admin
    2 weeks ago
  • Still juking the stats
    The State Services Commission and Ombudsman have released another batch of OIA statistics, covering the last six months. Request volumes are up, and the core public service is generally handling them within the legal timeframe, though this may be because they've learned to extend rather than just ignore things. And ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Hard News: Time for a New Deal: 25 years on
    In 1994, I was editing an ambitious street mag called Planet, from a fabled office at at 309 Karangahape Road. The thirteenth issue of the magazine was published in the winter of that year and its cover embodied a particularly ambitious goal: the end of cannabis prohibition.I wanted to do ...
    2 weeks ago
  • Not impressed
    KiwiBuild was one of the Ardern government's core policies. The government would end the housing crisis and make housing affordable again by building 100,000 new homes. Of course, it didn't work out like that: targets weren't met, the houses they did build were in the wrong place, and the whole ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Solar beats coal
    As the climate crisis escalates, it is now obvious that we need to radically decarbonise our economy. The good news is that its looking easy and profitable for the energy sector. Wind is already cheaper than fossil fuels, and now solar is too:The levellised cost of solar PV has fallen ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • A Step Too Far.
    A Crown Asset? For reasons relating to its own political convenience, the Crown pretends to believe that “No one owns the water.” To say otherwise would re-vivify the promises contained in the Treaty of Waitangi – most particularly those pertaining to the power of the chiefs and their proprietary rights ...
    2 weeks ago
  • Where Money Comes From
    Most people would say, no doubt, that they have a pretty good idea of what money is. They live with the reality of money every day. It is what is needed to buy the necessities of life and to maintain a decent standard of living. You get money, they would ...
    Bryan GouldBy Bryan Gould
    2 weeks ago
  • Banned by the Green Party leadership: Jill Abigail on women’s rights and trans rights
    The article below was an opinion piece that appeared in the Spring 2019 issue of Te Awa (the NZ Green Party’s newsletter) and on the Greens website.  In keeping with their policy of hostility to women defending women’s right to female-only spaces, Green bureaucrats have since removed the opinion piece.  ...
    RedlineBy Admin
    2 weeks ago
  • The fallacy of the proximity argument.
    Longer term readers may remember my complaining that, as a political scientist, it is burdensome to have non-political scientists wanting to engage me about politics. No layperson would think to approach an astrophysicist and lecture him/her on the finer details of quarks and black holes, but everybody with an opinion ...
    KiwipoliticoBy Pablo
    2 weeks ago
  • Where We Stood: Chris Trotter Replies To Stevan Eldred-Grigg.
    Joining The Fight: Stevan Eldred-Grigg's argument for New Zealand staying out of the Second World War fails not only on the hard-headed grounds of preserving the country’s strategic and economic interests; and not just on the soft-hearted grounds of duty and loyalty to the nation that had given New Zealand ...
    2 weeks ago
  • Universities back the climate strike
    On September 27, School Strike 4 Climate will be striking for a future to pressure the government for meaningful climate action. This time, they've asked adults to join them. And now, Lincoln University and Victoria University of Wellington have signed on:Victoria University of Wellington has joined Lincoln University in endorsing ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Another constitutional outrage
    Another day, another constitutional outrage in the UK. This time, the government is saying that if parliament passes a law to stop Brexit before being prorogued, they may just ignore it:A senior cabinet minister has suggested Boris Johnson could defy legislation to prevent a no-deal Brexit if it is forced ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Ending dairy in Canterbury
    Environment Canterbury has finally proposed nitrogen limits to stop dairy farmers from poisoning Christchurch's water supply. And naturally, farmers are whining about it:A proposed move by Environment Canterbury (ECan) to protect Christchurch's drinking water by setting tough – some would say, draconian – nitrate reductions in the decades ahead and ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Is National the party of climate arson?
    The Zero Carbon Bill is currently before select committee. While its targets are weak, its a generally sensible bill that promises to establish a long-term framework to guide emissions reductions. But National hasn't made up its mind on whether it will support it - and according to Andrea Vance in ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Experts warn Harold the Giraffe “well past” typical giraffe life expectancy, may not have long
    Dum-de-doo. Children across New Zealand have known him for generations as the lovable giraffe who tells them to exercise, hydrate and not to shove lit cigarettes up their nostrils. But a world renowned giraffe expert says we shouldn’t be getting attached to Life Education’s Harold the Giraffe, as he is ...
    The CivilianBy admin
    2 weeks ago
  • August ’19 – NZ blogs sitemeter ranking
    Image credit: 22 BLOGGERS WITH ADVICE FOR RESEARCHERS AND EVALUATORS, ILLUSTRATED I notice a few regulars no longer allow public access to the site counters. This may happen accidentally when the blog format is altered. If your ...
    2 weeks ago
  • Bye, bye to the collusion lie
    Sums it up, really. ...
    2 weeks ago
  • Opinion: Treat your car by buying extra petrol to snack on while you aren’t driving
    By Mike Hosking. Yesterday morning, I waltzed into work, and as I walked past the drones aggressively typing out news on the computers I’ve repeatedly asked to be moved further away from, I caught a glimpse of the words “climate change”, and noticed that suspiciously they weren’t in condescending quotation ...
    The CivilianBy admin
    2 weeks ago

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