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Audio, Radio New Zealand

Topics - ready with the pumps at last this time, but thankfully not as much rain - so far - as feared for people in the low-lying Flockton Basin in Christchurch. Labour's proposing a special court be set up just to deal with earthquake insurance claims, as part of a policy around the Christchurch rebuild. The policy would see an Earthquake Court established to try to speed up the settling of 9,755 outstanding "over cap" insurance claims. John Banks will be gone by Friday from Parliament, at the behest of the ACT party with a gentle nudge from the Nats as well. The PM thinks it's a joke that the Civilian political party, run by Ben Uffindell and named after his satirical webite, will receive $33,000 of taxpayer funding for the coming election.

Research papers, University of Canterbury Library

The Canterbury earthquakes of 2010 and 2011 have shone the spotlight on a number of tax issues. These issues, and in particular lessons learned from them, will be relevant for revenue authorities, policymakers and taxpayers alike in the broader context of natural disasters. Issues considered by this paper include the tax treatment of insurance monies. For example, building owners will receive pay-outs for destroyed assets and buildings which have been depreciated. Where the insurance payment is more than the adjusted tax value, there will be a taxable "gain on sale" (or depreciation recovery income). If the building owner uses those insurance proceeds to purchase a replacement asset, legislative amendments specifically enacted following the earthquakes provide that rollover relief of the depreciation recovery income is available. The tax treatment of expenditure to seismically strengthen a building is another significant issue faced by building owners. Case law has determined that this expenditure will usually be capital expenditure. In the past such costs could be capitalised to the building and depreciated accordingly. However, since the 2011-2012 income year owners have been prohibited from claiming depreciation on buildings and therefore currently no deduction is available for such strengthening expenditure (whether immediate or deferred). This has significant potential implications for landlords throughout New Zealand facing significant seismic retrofit costs. Incentives, or some form of financial support, whether delivered through the tax system or some other mechanism may be required. International Financial Reporting Standards (IFRS) require insurance proceeds, including reimbursement for expenditure of a capital nature, be reported as income while expenditure itself is not recorded as a current period expense. This has the effect of overstating current income and creating a larger variation between reported income for accounting and taxation purposes. Businesses have obligations to maintain certain business records for tax purposes. Reconstructing records destroyed by a natural disaster depends on how the information was originally stored. The earthquakes have demonstrated the benefits of ‘off-site’ (outside Canterbury) storage, in particular electronic storage. This paper considers these issues and the Inland Revenue Department (Inland Revenue) Standard Practice Statement which deals with inter alia retention of business records in electronic format and offshore record storage. Employer provided accommodation is treated as income to the benefitting employee. A recent amendment to the Income Tax Act 2007 retrospectively provides that certain employer provided accommodation is exempt from tax. The time aspect of these rules is extended where the employee is involved in the Canterbury rebuild and comes from outside the region.

Research papers, University of Canterbury Library

The 2010 and 2011 earthquakes in the region of Canterbury, New Zealand caused widespread damage and the deaths of 185 people. Suburbs on the eastern side of Christchurch and in the satellite town of Kaiapoi, 20 kilometres north of Christchurch, were badly damaged by liquefaction. The Canterbury Earthquake Recovery Authority (CERA), a government organisation set up in the wake of the earthquakes, began to systematically zone all residential land in 2011. Based on the possibility for land remediation, 7860 houses in Christchurch and Kaiapoi were zoned red. Those who were in this zone were compensated and had to buy or build elsewhere. The other zone examined within this research – that of TC3 – lies within the green zone. Residents, in this zone, were able to stay in their houses but land was moderately damaged and required site-specific geotechnical investigations. This research sought to understand how residents’ senses of home were impacted by a disaster and the response efforts. Focusing on the TC3 and red zone of the eastern suburbs and the satellite town of Kaiapoi, this study interviewed 29 residents within these zones. The concept of home was explored with the respondents at three scales: home as a household; home as a community; and home as a city. There was a large amount of resistance to the zoning process and the handling of claims by insurance companies and the Earthquake Commission (EQC) after the earthquakes. Lack of transparency and communication, as well as extremely slow timelines were all documented as failings of these agencies. This research seeks to understand how participant’s sense of home changed on an individual level and how it was impacted by outside agencies. Homemaking techniques were also focused on showing that a changed sense of home will impact on how a person interacts with a space.