Tradespeople price gouging in Greymouth, says Insurance Council

Some tradespeople have been hiking their estimates for repairs in tornado-hit Greymouth, according to reports received by the Insurance Council.

The council said unconfirmed reports received from residents and insurance representatives to date included allegations of "price gouging" and claims from unqualified tradespeople that they were qualified.

The allegations came as Greymouth Mayor Tony Kokshoorn spoke out about offers of help from carpenters outside the region, saying that enough local carpenters had already pledged their help.

The tornado last Thursday morning seriously damaged 40 homes and 30 businesses.

Insurance Council chief executive Chris Ryan said in a statement today reports had been received of some builders doubling their rates, knowing there was a labour shortage in the region.

"Additionally, we have also had reports of tradespeople who are not qualified indicating they can do work to the acceptable standards for the local authority."

Mr Ryan said repairs needed to be done to adequate building code safety standards and carried out by properly skilled tradespeople where required.

"If insurers don't maintain building standards during this stressful time the Greymouth community will be paying for shoddy repairs for many years to come," he said.

The insurance industry estimates it will put up to $10 million back into the community and has placed additional staff in the town to help cope with the aftermath of the tornado.

Mr Ryan said locals had shown resilience during the clean u p and urged the community to be patient while repairs were carried out to the required level.

Mr Kokshoorn said discussions were taking place regarding temporary housing for those left homeless, but a lack of spare housing in the area wasn't helping.

- NZPA