1 00:00:00,080 --> 00:00:03,680 Speaker 1: Now apparently the old EQC levees are going to go up. 2 00:00:03,760 --> 00:00:06,520 Speaker 1: David Seymour, Minister in charge of the commission, reckons Yep, 3 00:00:06,559 --> 00:00:08,799 Speaker 1: it's almost certainly going to have to rise. Generative Traineye 4 00:00:09,039 --> 00:00:11,080 Speaker 1: is the Wellington Business Editor and with us now, hey, 5 00:00:11,160 --> 00:00:14,080 Speaker 1: Jen a, hey, how much extra are we talking. 6 00:00:14,600 --> 00:00:17,720 Speaker 2: About two or three hundred dollars more each year? So 7 00:00:17,760 --> 00:00:21,079 Speaker 2: currently those levees are set at about five hundred and 8 00:00:21,120 --> 00:00:24,040 Speaker 2: fifty dollars a year. That's we used to call it 9 00:00:24,079 --> 00:00:26,440 Speaker 2: the EQC, but it's now called the Natural Hazards Commission, 10 00:00:27,400 --> 00:00:30,680 Speaker 2: So so that that is, you know, proportionately quite a 11 00:00:30,760 --> 00:00:34,760 Speaker 2: large increase. Now, the reason that these levees need to 12 00:00:34,760 --> 00:00:39,519 Speaker 2: go up is because the Natural Hazards Commission simply hasn't 13 00:00:39,520 --> 00:00:42,680 Speaker 2: been able to you know, top up its coffers since 14 00:00:42,720 --> 00:00:46,559 Speaker 2: the twenty ten and eleven Canterbury earthquakes that all the 15 00:00:46,600 --> 00:00:50,360 Speaker 2: way back then, all the way back then. So basically 16 00:00:50,400 --> 00:00:54,960 Speaker 2: it only has about five hundred million dollars in its kitty, yes, 17 00:00:55,000 --> 00:00:58,040 Speaker 2: and if there's a big disaster it needs to cover 18 00:00:58,080 --> 00:01:02,760 Speaker 2: the first two point one billion dollars so before it's 19 00:01:02,800 --> 00:01:06,039 Speaker 2: reinsurance cover can kick in. So at the moment it 20 00:01:06,080 --> 00:01:08,600 Speaker 2: only has five hundred million in there. That leaves quite 21 00:01:08,600 --> 00:01:13,880 Speaker 2: a large shortfall before it's reinsurance cover would kick in. Okay, 22 00:01:13,880 --> 00:01:16,600 Speaker 2: so it's yeah, it's an interesting situation really because David 23 00:01:16,640 --> 00:01:21,200 Speaker 2: Seymore Well, he's the Minister responsible for the Commission. He's 24 00:01:21,240 --> 00:01:23,720 Speaker 2: also the leader of the ACT Party, and we know 25 00:01:23,760 --> 00:01:27,240 Speaker 2: that the ACT Party likes low taxes, small government. So 26 00:01:27,280 --> 00:01:29,640 Speaker 2: it's just he's put he's in an interesting situation where 27 00:01:29,680 --> 00:01:32,520 Speaker 2: he's the guy who needs to put these levees up. 28 00:01:32,959 --> 00:01:35,399 Speaker 1: Does he have a range of options available to him? 29 00:01:35,440 --> 00:01:37,720 Speaker 1: Is it like it must go up by this march 30 00:01:37,840 --> 00:01:39,520 Speaker 1: or is it this much or the much of this much? 31 00:01:39,560 --> 00:01:42,680 Speaker 2: You know, Yeah, he does have a range, and the 32 00:01:42,959 --> 00:01:46,319 Speaker 2: Treasury did a consultation with the industry earlier this year 33 00:01:46,800 --> 00:01:50,120 Speaker 2: and put forward a few different options. That's why that 34 00:01:50,800 --> 00:01:52,560 Speaker 2: we could see the levees go up by you know, 35 00:01:52,640 --> 00:01:55,560 Speaker 2: about between two or three hundred dollars a year. I 36 00:01:55,640 --> 00:01:58,240 Speaker 2: feel like, you know, David wouldn't tell me what he 37 00:01:58,320 --> 00:02:00,760 Speaker 2: was leaning towards, but I feel like he might put 38 00:02:00,760 --> 00:02:05,120 Speaker 2: them up by a lesser amount. The insurance industry has 39 00:02:05,240 --> 00:02:08,160 Speaker 2: raised concerns with the Treasury that if you put it 40 00:02:08,240 --> 00:02:13,120 Speaker 2: up too much, that's affordability issue, and the insurers are 41 00:02:13,160 --> 00:02:16,200 Speaker 2: worried that, you know, that means people might water down 42 00:02:16,240 --> 00:02:19,480 Speaker 2: the other insurance cover they have. The insurers also, yes, 43 00:02:19,480 --> 00:02:22,480 Speaker 2: they're probably they haven't said this, but I think they'd 44 00:02:22,480 --> 00:02:25,920 Speaker 2: be worried that, you know, because these levees attacked onto 45 00:02:25,919 --> 00:02:29,120 Speaker 2: your private insurance premiums. When you look at how much 46 00:02:29,160 --> 00:02:31,120 Speaker 2: you have to pay the insurer, you don't look at 47 00:02:31,160 --> 00:02:33,480 Speaker 2: which part of it is for the Natural Hazards Commission 48 00:02:33,480 --> 00:02:35,760 Speaker 2: and which part is for your private insurer. You just 49 00:02:35,800 --> 00:02:37,640 Speaker 2: see the total, and if you see the total go 50 00:02:37,760 --> 00:02:40,160 Speaker 2: up a lot, you probably point the finger at your 51 00:02:40,240 --> 00:02:43,240 Speaker 2: private insurer. So I can see why they might be 52 00:02:43,280 --> 00:02:45,600 Speaker 2: a bit hesitant as well about these going up going 53 00:02:45,760 --> 00:02:46,200 Speaker 2: too much. 54 00:02:46,320 --> 00:02:50,080 Speaker 1: Janay, Thanks has always appreciated. Jane tob trainee, Wellington Business Editor. 55 00:02:50,800 --> 00:02:54,000 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 56 00:02:54,080 --> 00:02:57,120 Speaker 2: news talks the'd be from four pm weekdays, or follow 57 00:02:57,160 --> 00:02:58,920 Speaker 2: the podcast on iHeartRadio