Radio New Zealand - Te Reo Irirangi o Aotearoa

Red-zone residents angry over valuations

Updated at 1:30 pm on 6 August 2012

The Earthquake Recovery Authority is being accused of making money out of the misery of people in Christchurch's red zone.

The authority is getting valuations done on the red-zoned properties it now owns to ensure the insurance payouts it receives on them reflect their market value.

Kaiapoi red-zoner Brent Cairns says the Government was willing to pay residents only the 2007 rateable value of their homes, and may end up making money on the deal.

"This current red-zoning debacle that has come out has essentially shown that the government have got one intention in mind," he says, "and that is to make money from the misery of those within the red zones."

Mr Cairns says the difference between the rateable value and the market value can run into hundreds of thousands of dollars.

But the authority says the payouts are more likely to be less than what the Government paid for the properties.

Red-zoners were given two options when the Government first made its offer. They could take the payout due to them on their house from their private insurer and get a government payout on the land based on its 2007 rateable value, or they could sell their land and home to the Government, which would then deal with the outstanding insurance claim itself.

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