The Government does not know what the final cost will be to cover all Southern Response earthquake claims, Canterbury Earthquake Recovery minister Gerry Brownlee says.
Many houses, such as this one in Cramner Square, were damaged beyond repair in the Christchurch earthquakes. Photo: 123RF
Southern Response was formed by the Government to take over the liabilities of AMI policy holders following the Canterbury earthquakes.
Chief executive Peter Rose said $1 billion from the Government would not cover the claims, with hundreds of millions of dollars more needed.
Mr Brownlee today said it was not known what the final cost would be.
"Southern Response was a company formed by the Government to take over the liabilities of AMI and the claimants to those policies would have been in a dreadful state if we hadn't moved in and done that.
"But what the end cost will be is yet to be determined, so I'm not sure where that figure has come from."
Mr Brownlee said the Government had made a commitment to cover all claims regardless of what the final figure might be.
