Labour quake policy issued

4:23 pm on 19 September 2011

The Labour Party says it will buy 1500 sections to sell to residents in the earthquake red zone in Canterbury if it becomes Government following the November election.

The main opposition party launched its recovery package on Monday.

Red zone residents would also receive up to $50,000 more towards reimbursements for home improvements on top of payments they will get under the current buy-out scheme.

Labour leader Phil Goff says his party will be holding the National Government to account on its performance rebuilding quake devastated areas.

Labour says it would buy sections and sell them at cost to residents who have to leave their properties because the land is too damaged to rebuild.

It says special earthquake recovery laws could be used to buy land at a fair price if there is evidence of price-gouging by developers.

However, Mr Goff says residents may still end up paying more than they receive under the current Government's buy-out package.

The policy also includes the establishment of an Insurance Commissioner to help resolve disputes.

A Labour Government would intervene in the market on a short term basis to make sure it is working properly. However, it says this would be as a last resort.

The election will be held on 26 November.