Red zoners set for more compo

A group of Christchurch redzoners is set to be fully compensated for their earthquakedamaged properties following a rethink by the Government.

Another group, however, is unhappy with a potentially lesser offer and will head to the Supreme Court to fight for more.

The Canterbury Earthquake Recovery Authority (Cera) yesterday released a revised proposal for the owners of vacant, uninsured and commercial property in the residential red zone.

Acting chief executive John Ombler said vacant and commercial land owners should receive compensation of 100 per cent of their 2007-08 rateable value (RV), in line with other red zone payouts. They were initially offered 50 per cent of RV.

Owners of uninsured properties would be offered 80 per cent of RV under the proposal.

The proposal is open for public feedback. It is yet to be approved by Earthquake Recovery Minister Gerry Brownlee.

The Quake Outcasts, a group of around 50 property owners, won a fight for more compensation at the Supreme Court in March. The court directed the Government to reconsider its compensation offers to vacant, commercial and uninsured property owners in the red zone.

Co-spokesman for the group Ernest Tsao said the new proposal for vacant and commercial land owners was good news but the potentially lower offer to the uninsured was ‘‘despicable’’ and contrary to the Supreme Court decision.

‘‘The fact that Cera made a distinction between the insured and the uninsured is wrong.’’

The Supreme Court ruled the insurance status should not be ‘‘determinative’’ in calculating compensation for red zoners but was ‘‘not irrelevant’’ either.

Quake Outcasts solicitor Grant Cameron said the proposed offer to the uninsured was ‘‘illogical and inappropriate’’, and completely inconsistent with the judgment.

The Quake Outcasts group would seek intervention by the Supreme Court on the issue.

Chief human rights commissioner David Rutherford said the commission may follow the Outcasts in intervening in court. ‘‘We are pleased the offers are substantially better than those originally made, however the artificial distinctions [between the insured and the uninsured] remain.

‘‘These people have been left in limbo for years, fought to the courts . . . the Government needs to be consistent.’’

The draft recovery plan will be open to public feedback until July 9. Brownlee’s final decision on the offers was expected by the end of July, Cera said.

To submit feedback, go to http:/ /cera.govt.nz/draft-residentialred-zone-offer-recovery-plan.