The Canterbury Earthquake Recovery Authority has confirmed land zoned red in Christchurch has no legal status.
The Labour MP for Christchurch East, Lianne Dalziel, says that means people in the affected areas have no way of legally challenging Government decisions about their land.[image:4773:third:right]
Land designated in the red zone means repair would be prolonged and uneconomic.
The authority appeared before Parliament's finance and expenditure select committee on Wednesday where chief executive Roger Sutton acknowledged there is still uncertainty for people with homes on land zoned red.
Under questioning from Ms Dalziel, Mr Sutton conceded that the land had no legal status.
Earthquake Recovery Minister Gerry Brownlee has made it clear those who do not accept the Government's offer for their properties will have them compulsorily acquired.
Ms Dalziel says with that threat hanging over people's heads, it does not feel like a voluntary offer at all.
Outside the meeting, Mr Brownlee made it clear that there is no point in people not accepting the Government's offer for their properties.
"I hope not - because at that point, the value put on any compulsory acquisition would be market value on the day. It's not going to be very high, so I don't think we'll get huge numbers of holdouts."