Think tank calls for government to get policies in place

New Zealanders know a lot about earthquake preparedness; now the government must attend to its own earthquake preparedness, says one policy think-tank.

The New Zealand Initiative, in its newest critical report, is calling on the government to plan ahead and make post-disaster recovery simpler.

Pointing to issues left by the Christchurch earthquakes, the report said the government must avoid creating a prolonged policy and regulatory uncertainty that hinders recovery.

Co-authors Bryce Wilkinson and Eric Crampton, from the New Zealand Initiative, suggest that insurance arrangements are improving. However, both expect more satisfactory experiences for claimants and providers in the future.

In the report, the authors outlined some policy recommendations for the central and local government. These include:

Disaster preparedness

• Focus on providing early certainty to households and businesses about responses to natural disasters;
• Establish a pre-existing framework for any post-disaster recovery agency;
• Long-term plans should include disaster contingencies;
• Provide greater clarity pre-event about post-event cost-sharing arrangements;
• Implement the proposed EQC changes, if supported by the Kaikoura earthquake experience;
• Consider mechanisms like the Reserve Bank’s Open Banking Resolution framework for failed insurers.

Post-disaster response

1. Recognise regulatory (regime) certainty to aid organic development within cities;
2. Expeditiously set up a new recovery agency;
3. Avoid anchor projects and precinct designations;
4. Ensure any post-disaster emergency legislation incorporates provisions for takings based on the Public Works Act rather than bespoke measures;
5. Quickly seek declaratory judgments in key test cases arising from a major disaster.

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