Red zone bailout is disgraceful and could cause economic calamity

21 AUGUST 2018
FOR IMMEDIATE RELEASE

The Government’s bailout of uninsured red zone homeowners threatens New Zealand’s resilience against future disasters, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union Executive Director Jordan Williams says, “Why pay for house insurance when the taxpayer will just bail you out?”

“This measure sends a loud signal to homeowners across the country to not bother insuring their homes for future natural disasters, and incentivises communities to queue for their own taxpayer-funded bailouts. If you wanted to ensure that the next big shake turns into an economic calamity, this would be exactly how to do it.”

“Red zone home owners who did fork out for insurance will be wondering what their money bought them. And what about taxpayers across the country, struggling to make ends meet, paying to bail out uninsured homeowners?”

“This kind of reckless feel-good policy is unfair on the insured, hammers taxpayers, and seriously threatens New Zealand’s resilience against future earthquakes.”

“It is disgraceful public policy.”

ENDS

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