The Prime Minister, John Key, said today that the government will buy 5000 houses that have been badly damaged after the earthquakes in Christchurch. This is because the land in those areas is not safe for houses. These houses are mostly beside the Avon River in the east of the city.
Housing areas in Christchurch have been divided into four zones – red, orange, green and white. Houses in the green zone are not badly damaged and can be repaired. Houses in the orange zone are waiting to be checked. Some of them can be repaired and others will be demolished. Houses in the white zone are still in danger from rock falls and it is not clear what will happen to them. If there are more big after-shocks in that area, it will become a red zone. Houses in the red zone cannot be rebuilt in that area for many years as the land is too badly damaged by liquefaction.
John Key said that home owners had two choices. The first choice is to take the government’s offer to buy their land and house at the GV – the Government Valuation. The second choice is to let the government buy the land but then owners should talk to their insurance company about replacing their house in another place. Most people have replacement insurance which means the insurance company will build them a similar house.
The Government Valuation was done in 2007 but the Prime Minister said that house values have not changed much since then.
To find out more about earthquakes and liquefaction in Christchurch, enter “earthquake” in the search box.
Questions
1. There are more questions than answers at this stage – for example, is this a fair offer from the government? Can you think of a better way to do it?
2. If people start to move out of a red zone, what will happen to the local school in the meantime?
3. Will home owners move to another town where house prices are cheaper?
4. How long will it take to build 5000 new homes? Where will people live in the meantime?
5. What about people in the orange zone? How much longer will they have to wait?
Can you think of other questions?