It is easy to sympathise with Local Government NZ's misgivings about the Labour Party's plan to take Earthquake Commission levies off insurance premiums and add them to rates bills. Local councils are always under pressure to justify rate increases, and the last thing they need is an added cost. But whatever the tarnishing of the local government brand, that does not make Labour's policy wrong. The Christchurch earthquakes offered definitive proof that the change is necessary.
If not, the problem created by uninsured householders is likely to increase. And it is those who have gone to the trouble of insuring their properties who will pay the cost.
Something like 5,000 uninsured houses were damaged in the Christchurch quakes. The owners, for whatever reason, had taken the chance that they would not require cover for such a catastrophe. This presented a dilemma for the Government. Compassion demanded that the uninsured received some financial help. But, as the Prime Minister noted, "the very strong message we need to send to New Zealanders is that they need to have insurance".
In the end, the uninsured were bailed out to the extent that those facing "true hardship" and not eligible for direct state assistance were able to seek assistance from a newly established mayoral fund.