Major changes coming for quake relief agency

A highly critical report of the Earthquake Commission (EQC) suggests it is hamstrung by disorder and dysfunction and calls for ministerial intervention to resolve outstanding claims.

The report, from ministerial adviser Christine Stevenson, calls for major changes to resolve the 3600-odd outstanding claims from the Christchurch earthquakes. EQC Minister Megan Woods said she accepted all the recommendations and had asked interim EQC board chair Dame Annette King to begin implementing them ‘‘right away’’.

Stevenson’s report said she had ‘‘been unable to obtain reliable data on the exact number and status’’ of the unresolved claims. She said a lack of confidence, including by EQC staff, in the available data on Canterbury claims activity was ‘‘of considerable concern’’.

She recommended a team of experienced staff ‘‘pull out all of the physical claims files’’ on remaining claims to sort, review, confirm and record the key data.

The report also noted claimants’ lack of trust in EQC and stories of broken promises, and the unreliability of publicly available information.

It recommended all claimants’ information be made available on request; EQC’s website be kept updated; and that staff communications with claimants must be ‘‘respectful, empathetic, honest, timely’’, and that staff ‘‘do what they say they will do’’.

Recommendations include EQC settling over-cap claims for on-sold homes, then seeking reimbursement from private insurers.

Stevenson said the minister could direct EQC to settle claims for on-sold homes, as buyers of homes with botched repairs are not covered by the original private insurer.

Changing the EQC law would be problematic as it would be slow, have to be retrospective and if done hastily risked unforseen effects, the report said.

Stevenson recommended EQC boost its staff to reduce the number of cases managed by each team from 150 to 100; urgently develop a consistent system to ensure claims are handled to a high standard; and make all information in a claimant’s file available to them on request.

Stevenson also advised setting up a Claimant Reference Group made up of claimants and community advocates; extending the Residential Advisory Service for another two years in an expanded role that includes psycho-social support; and increasing Government monitoring to improve accountability.

Woods said the recommendations were a ‘‘great start to helping restore hope that after all these years people’s homes will be sorted and they can move on’’.

‘‘The report reveals sizeable issues with staffing levels, data quality, record keeping and organisational culture and structure that are holding back resolution of claims.’’

The report said the Government must clarify EQC and private insurers’ positions on the limitations period, which sets a six-year deadline for legal action from a variety of dates.

The report is part of a wider pool of work relating to EQC, including an inquiry into EQC’s performance post-quake.

‘‘The report reveals sizeable issues ... that are holding back resolution of claims.’’ EQC Minister Megan Woods