INSURANCE GRIDLOCK HAS FLOW-ON EFFECT; THE GOVERNMENT NEEDS TO ACT
A local hotel owner in Kaiapoi is just one of countless local businesses unable to get on with the rebuild due to the insurance gridlock. In this instance, the owner is unable to continue building work, which was due to be completed before Christmas because he is unable to get insurance cover on a $200,000 to $300,000 bank loan. This is despite the fact that he has put $900,000 of his own funds into rebuilding the hotel and that the hotel is being built to the highest building code standards.Time to re-invent State Insurance? Sorry, we sold it.
When such projects have to be put on hold indefinitely it really has got to crisis point. But, it’s not just the hotel owner who is being affected by the insurance gridlock. The local builder also had work up until Christmas. That’s now been put on hold and staff at the hotel won’t get work until it re-opens. As the hotel owner said “these insurance companies are holding everyone to ransom.”
The Government can no longer do nothing; it can’t allow this sort of thing to continue. The gridlock is costing jobs; it’s slowing down growth and it is hurting local businesses that simply want to get on with the rebuild. It really is time for the Government to take some serious action.