Limit to rent hikes in Christchurch suggested

Labour Party deputy leader Annette King. Photo / Mark Mitchell

Limiting increases in rents in Christchurch would stop residents being hit by profiteering landlords, Labour deputy leader Annette King suggested today.

During question time in Parliament this afternoon, Ms King raised the idea when questioning Deputy Prime Minister Bill English about the Government's response to last month's Christchurch earthquake.

"Does he agree with Mayor Bob Parker that landlords who are hiking up rents on houses and business premises in Christchurch are 'looting by another name', and has he considered taking action similar to that of the Federal Government of the United States following Hurricane Katrina, when it limited the increase in rents, etc ... to no more than 10 per cent, to prevent greedy landlords from profiting from other people's misery?"

Mr Parker was commenting on reports that some rents have risen 150 per cent in a city where many have been left homeless by the magnitude 6.3 quake on February 22. He said there was not much the council could do about it, but the Government might be able to look at some form of control although even that could create new distortions.

Mr English said the Government would share the mayor's concern if there was significant profiteering.

"The Government will be listening to the advice of the Minister for Canterbury Earthquake Recovery, who is on the ground and also shares those concerns."

Ms King also grilled Mr English about paying for rebuilding work after Mark Whitehead, a director of the NZ Society of Master Plumbers, and builder Nick Rogers said they were struggling after doing rebuilding work for the Earthquake Commission because they do not get paid and required upfront payments.

Many contractors and subcontractors were owed thousands of dollars for emergency work done after the September quake, and some were having difficulty staying in business.

Mr English said the EQC knew it needed to do as much as possible to speed rebuilding.

"I understand the pressure particularly on contractors who were expecting the rebuild from the first earthquake to be well under way now. That has been delayed by maybe a month or two. But we will work with the commission to ensure it does it as fast as it can."

- NZPA