A complaint has been lodged with New Zealand’s Ombudsman regarding recent adjustments to the On-Sold Programme (OSP), managed by the Natural Hazards Commission (NHC), formerly known as the Earthquake Commission (EQC).
The programme addresses unresolved damage and repairs from the Canterbury earthquake sequence, but the new measures have drawn criticism over fairness and procedural transparency.
The changes, introduced earlier this month by Associate Finance Minister David Seymour, aim to expedite claims processing.
However, Ali Jones, a former Christchurch city councillor and advocate for claimants, has called the changes problematic. She claimed that the new deadlines imposed on homeowners create inequities, potentially forcing them out of the programme if timelines are not met.
“This leaves them no choice but to take legal action, and ironically, that was one of the key things the On Sold programme was set up to avoid,” she said.
Jones also highlighted issues with the treatment of independent structural engineering reports. She claimed that some homeowners’ reports, prepared by qualified professionals, are being rejected without explanation by the NHC.
“This will happen more and more as NHC has been directed to wrap the OSP up, and this is how Minister Seymour is making them do that,” she said.
She alleged that the process is now more restrictive, with homeowners being directed on how to repair their properties, sometimes contrary to expert advice.
The On-Sold Programme was introduced to address problems such as missed damage and substandard repairs from EQC’s earlier work.
Jones argued that the changes could lead to a repeat of the issues that initially prompted the programme.
“It’s like a recurring nightmare, deja vu. I am reminded of the then Prime Minister John Key’s promise more than 12 years ago to Cantabrians that no-one would be worse off. They seem rather hollow words now,” she said.
While acknowledging the programme was never meant to be indefinite, Jones asserted that delays and increased costs often stem from inefficiencies in NHC’s processes. She criticised the imposition of rigid deadlines, stating it punishes homeowners trying to ensure repairs are done properly.
Tina Mitchell, chief executive of the NHC, stated that the adjustments are intended to help homeowners complete their claims in line with the government’s updated framework.
“The government has made changes to how Natural Hazards Commission (NHC) Toka Tū Ake administers the crown’s On-Sold support package to help homeowners to progress through the scheme and complete their repairs,” she said.
Mitchell noted that extended timelines were previously provided to accommodate delays caused by COVID-19 disruptions.
“Extended timeframes were given between early 2020 and early 2023, to allow for covid disruptions, including supply chain pressures and the availability of industry experts,” she said. “With the COVID pressures eased, the government has said it wants applications to progress, so it has reinstated or adjusted timeframes.”
To date, approximately 900 claimants have completed the programme and returned to their homes. Another 270 have reached settlement and are in the construction phase, while 250 are advancing with engineering reports, according to Mitchell.
“Every homeowner in the programme has assigned settlement specialists who make contact regularly to support progress. Since the government announced the recent changes, NHC has also contacted each applicant to ensure they understand how the changes impact them,” she said.
She added that initial feedback following the announcement prompted the NHC to provide additional guidance, which has helped move applications forward.
