Wednesday, February 13, 2013

Post Christchurch Insurance Costs Are Short Sighted

Brian Rudman is correct and the Auckland City Council in their submission to the Ministry of Business and Employment about the impost being placed on building owners is working in the best interests of our neighbourhoods and economy. He is right to point out that volcanoes are the major natural risk to Auckland - not earthquakes.  However, this is not enough.

A national policy needs to be formulated and the recommendation by the Royal Commission into The Christchurch Earthquake should be put on hold to this policy is discussed. Heritage buildings throughout New Zealand return to their communities where they are situated and also return real money to New Zealand through tourism.

Auckland wins all the way to the bank because of the heritage stock of our older neighbourhoods and what buildings remain in the city. To replace theses gems is not in our economic interest. Throughout the country people are reacting to the insurance imposts and costs that are being lumped on them to protect these buildings.

Some examples of buildings we can lose and their economic return include the Art Deco buildings of Napier. If they can’t afford to maintain them, Napier will lose $20,000,000 annually through tourism income. Whanganui is another provincial city whose heritage buildings are under threat. These buildings return much to that community through tourist spending.