Majority of quake red zoners take offer

The government buyout of Canterbury red-zoned homeowners has been a “roaring success", Canterbury Earthquake Recovery Minister Gerry Brownlee says.

He made the announcement today that about 70%, or 5054 homeowners out of 7253 houses in the red zones, have accepted the offer.

Of those who have signed an agreement, 3956 have already settled at a cost to the Crown of $762 million.

But those yet to sign may prove a thorn in the government’s side.

Local reports have highlighted the plight of red-zoned homeowners whose rateable values - the basis of the payout - are too low to find an equal replacement.

The settlements have seen house prices in Canterbury rise strongly as the new supply of residential homes has lagged.

Other homeowners have resisted the government offer because their homes are undamaged even though they are situated on land deemed unsuitable for continued occupation.

A Kaiapoi group is planning to complain to the United Nations over pending evictions in the area.

On the other hand, several hundred people with badly damaged homes in green zones think they should be zoned red.

Mr Brownlee’s announcement of a new review process for red zoners wishing to query their land zoning may take the heat out of some of these complaints.

They have until June 30 to make an application for review to the Canterbury Earthquake Recovery Authority.

About 550 people have contacted CERA over the past year to request a review of their zone status.

The majority are in the green zone and wish to be zoned red, while 80 red-zoned property owners are seeking re-designation to the green zone.

An advisory group has been set up comprising three CERA officials with expertise in public policy, law and geotechnical engineering.

An independent member, Dr Keith Turner, has also been appointed.

He is chairman of NZX-listed Fisher & Paykel Appliances and is a distinguished fellow of the Institute of Professional Engineers New Zealand.

Several hundred homes on the hillside suburbs (white zoned) are unlikley to hear about their fate for at least a month.