This was published in the New Zealand Herald 28 June ,2012entitled Earthquake Levy
We received our latest policy and the costs have gone up from around
eight hundred dollars to in excess of three thousand two hundred dollars
for the earthquake and war damage levy. This increase is due to the
Christchurch earthquake and international reinsurance costs which have
also affected other parts of our policy.This decision disadvantages
Auckland, because the population is so great and the houses worth more
than many parts of the country, we seem to be recapitalizing the
earthquake and war damage fund.
Substantial numbers of residents in this city will also face
substantial residential rates increases. There will be an impact on
many, especially those on fixed incomes.
These increases will
also impact on churches and community halls, and the businesses on the
high streets that contain the heritage and character buildings. These
streets are important for nation building and telling the stories of
our cities. With these increased premiums their very existence may well
be under threat .The increase will not be one off and may increase year
Heritage neighborhoods are important for the tourism industry which
is our second largest industry for earning foreign exchange. Without
interesting heritage neighbourhoods the tourism income that helps
sustain employment in our cities would be severely affected. Had AMI
been bought by local interests when it had problems last year,we would
have some leverage and negotiating ability with these foreign owned
insurance companies, and our position may be better .
This is a national issue and the government needs to provide assistance for residents and business.