Government makes first payout to red zone homeowner

3:36 pm on 12 September 2011

The Government has made its first payout to homeowners living in Christchurch's residential red zone.

About 6000 people in Canterbury have been told they will have to abandon their land due to earthquake damage.

In each case, the Government has offered to buy both the land and house, or to purchase the lad only leaving homeowners to deal with their insurers for the house.

On Monday, Keith and Margaret Moran of Dallington received the first Government payout for the Fleete Street property they had owned for 40 years.

The Canterbury Earthquake Recovery Authority says the Morans sold their land to the Government and dealt with their insurer and EQC on the home claim.

The Authority says that, of almost 5000 offers sent to homeowners, almost 250 have indicated they will sell both their land and home to the Government.

A further 285 have said they'll sell the land and work with their insurer on the house claim.

Earlier, Christchurch East MP Lianne Dalziel, says residents in the orange zones of Brooklands, Spencerville and Southshore - areas which are still being assessed for damage - are at breaking point.

She says the Government had told them at the beginning of August that a decision on their land would be made in four to six weeks, but no announcement has been forthcoming.