Southerly: Tower Insurance Have Some Bad News For You
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Key, rather than Emperor B, responds to Labour's policy announcement - "blank cheque", "free lunch", while not ruling out doing similar should the gods of international capital fail to respond favourably to leaving the situation to fester for "a bit more time".
The sublime political art of doing nothing. Even Bob Hawke, who basked for close to a decade in an illusory "love affair" with the Australian electorate until the bubble rudely burst, was highly proactive for most of his political career. Key really is a phenomenon.
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The Avonside Blog on Labour's quake policy. Worth a look.
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Sofie Bribiesca, in reply to
Key really is a phenomenon.
And Bill English is surplus to requirements it would seem.
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I haven't read Labour's plan directly but beyond the language about working with industry and being fiscally responsible am I right in assuming they are likely to beef up the govt's stake in AMI or some such approach?
That is, intervening through competition in the local insurance market the same way Kiwibank did (remember those usurious fees from the Aussie banks at the time). Buying up some sections and selling at cost would rely on the same market pressure to keep all the other required sections cheaper. Along with easier access and more teeth for a body to regulate industry behaviour rather than relying on expensive lawyers.
Of course intervening in private sector profits is anathema to the Nats and Act. The Nats seem to be proposing to 'support' the insurance industry the same way they bailed out SCF beyond what was required - so that most costs fall on taxpayers rather than the industry.
With respect, that's quite active reallocation of resources. Like the deliberate gutting of public sector jobs, it is far from "doing nothing". That's an unfortunate line that simply has not worked with voters because it's so obviously untrue.
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Of course intervening in private sector profits is anathema to the Nats and Act.
Right, though as you've illustrated with the SCF example, bare-faced intervention is fine when profits stand to be adversely affected.
So far, the Government appears to believe that any outrage arising from the rank injustice of favouring the interests of insurers over homeowners can be contained. There are large swathes of Christchurch, such as where I currently live, where you wouldn't know that the country's biggest natural disaster had happened, provided you don't travel too far. While a big chunk of the former tourist theme park is gone there are still tourists. Here's the Avon last Friday.
There's no indication that Brownlee intends to use his extraordinary powers for anything beyond demolish and hope, while protecting the interests of those to whom he's beholden. Despite his returning humiliated from somewhere over the rainbow, Key's essentially ratified that by stating that it's over to the market.
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3410,
So far, the Government appears to believe that any outrage arising from the rank injustice of favouring the interests of insurers over homeowners can be contained.
So far, it has been contained. Personally, I'm surprised.
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Sofie Bribiesca, in reply to
Thanks for that link Joe. I think it is comprehensive and is an indication of Labour having listened to the residents, used common sense and does care about your city. I do think it's a good policy which can benefit all New Zealanders. I do think it shows that by getting out amongst you all at meetings, has had an effect on the policy that's been rolled out. Good on Lianne, Brendon, Ruth and Clayton, for expressing on behalf of the people what needs addressing. Good solid believable policy that can work for everyone. I don't mind my tax helping there, fully support buying into that.
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Joe Wylie, in reply to
It does look good up there on the party site. The Christchurch MPs' hard-bitten experience finally seems to have percolated to policy level. No talking down to, no fluff about suffering victims or plucky Cantabrians, just straight social justice.
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merc,
"The company's underlying business and earnings - without the impact of the earthquakes and the need to provision for them - remain strong," English said.
http://www.stuff.co.nz/business/industries/financial-results/5654452/Quake-claims-push-AMI-into-redWhy would he say that?
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Sofie Bribiesca, in reply to
remain strong,”
That's probably why. "Always finish on an upbeat positive note", would be fitting to the Crosby Textor schooling of the art of bullshit. As in whenever addressing or being questioned about the opposition, "short sharp negative soundbites" like "Blank cheque, costly, expensive ill informed" which Key used earlier.
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merc,
"Where the taxpayer ends up will depend on two uncertainties, one being any potential sale value and the other being the actual claims that are paid out and at the moment we're speculating on both. We've learned not to underestimate the costs in Canterbury."
http://www.nzherald.co.nz/christchurch-earthquake/news/article.cfm?c_id=1502981&objectid=10753199 -
"Daddy, I want to be an earthquake scientist"
"Thats nice son, just don't go to Italy."
Seismologists for the highjump.
I am concerned that scientists were said to have not "foretold" the quake. Ken Ring, where are you.
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Rich Lock, in reply to
Ken Ring, where are you.
The prosecution have him sequestered.
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Rob Stowell, in reply to
Just talking to a Merivale person who is currently orange zoned, but will be red in the next six months. This person reported that the first person to visit them was not from insurance, or interested in assessing the house- just there to assess what the land would be worth in ten years, on the market, after remediation.
NZ Govt 'help out' Chch by speculating on real estate ?! -
Joe Wylie, in reply to
I am concerned that scientists were said to have not "foretold" the quake. Ken Ring, where are you.
If they're prepared to wear Berlusconi's antics, a pantomime dame in an akubra should go over a treat.
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merc, in reply to
Yes I suspect the Red Zone is a land grab. The Crown has a known history of it.
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Fooman, in reply to
The reason for that was contained in the following link (from an earlier posting):
The decision to red-zone or green-zone was, in part, based on the estimated value of the land after remediation. If the remediation was more expensive than the estimated value of the land, zone it red. If the land (after remediation) would be worth more than the cost of the remediation, zone it green.
This does have the effect of those owning more valuable land (e.g. Merivale, Fendalton) being more likely to retain ownership of said land, and actually be able to take advantage of insurance to repair or rebuild.
If you have cheap land, e.g. east Chch, you are more likely to have no such choice, as the cost of remediation is likely to be approximately the same, regardless of which electorate you live in.
FM
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Sacha, in reply to
speculating on real estate
national hobby, sadly. just ask voters...
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merc,
Plus la meme chose http://situationsvacant.wordpress.com/auckland-antipodean-portal-of-empire/
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Link that might interest:
http://www.communityed.canterbury.ac.nz/earthquake_lectures.php
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Joe Wylie, in reply to
Hope Cosgrove shows for that meeting . . .
A few pics, with your boy Clayton in there. Self-effacingly charming guy in person. No minder lurking nearby with a tranquiliser-filled veterinary-size syringe, as I imagine you'd get with Trevor Mallard.
The good folk of Kaiapoi are less given to carrying placards than the unruly Avonsiders. Also Lianne Dalziel sent her regrets at being unable to show.
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Sofie Bribiesca, in reply to
A few pics, with your boy Clayton in there.
Gee thanks Joe , although not my boy, was hoping more that you guys had some support. ;) Hope you all got something out of going even though it must feel like the never ending saga. I'm assuming there is no pics of you then?
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Insurance problems almost solved?
At last the Government can do something useful in this deadlocked situation.
Apparently AMI has breached ..."...both the Reserve Bank's draft solvency standards for insurance companies and the solvency standard in the Crown Support Deed which provides $500m of back-up capital.
Failing to meet that standard is a "trigger event" that would allow the Crown to take ownership of the company."Lily-livered and responsibility-shy as usual the National Government is resisting that option - choosing to support the company's recapitalisation. They should start by knocking the CEO's pay and bonuses back a bit until such time as the company makes better choices and can stand on its own two feet.
Of course if the usual gang of idiots in Government were to take possession of AMI they wouldn't see it as a chance to help citizens in Canterbury by providing insurance for them - they'd just sell it to the first multinational corporation that fluttered its eyelids at them...
As I type the entry gates to Chchch are having their signs changed from the recent "Demolition work will set you free" to "Abandon all hope ye who enter here"...
...and so it goes... -
Joe Wylie, in reply to
Apparently AMI has breached ...
Isn't that an old whale-watching term?
They should start by knocking the CEO's pay and bonuses back a bit . . .
Flense the bastards I say. Boil them down for their blubber. A salary of $869,369 plus a bonus of $122,700 for someone who's manifestly failed at their job? That'd lift a few red zoners out of the debt hole they're currently facing through no fault of their own.
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You’ve all been waiting for it, so here it is…
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