$200 million settlement

A $200 million insurance settlement for earthquake damage to 214 Canterbury schools is an important confidence boost to the education sector in the region says Canterbury Earthquake Recovery Minister Gerry Brownlee, Education Minister Hekia Parata and Associate Education Minister Nikki Kaye.

Mr Brownlee says the settlement between the Ministry of Education and Vero Insurance is one of the largest insurance pay outs in New Zealand’s history. “The National-led Government has big plans for investing in greater Christchurch’s education infrastructure, so this is a timely and welcome boost to the rebuild,” Mr Brownlee says.

Ms Parata says the settlement is great news for Canterbury schools, the community and the Government. “With a $1.1 billion investment in education renewal in greater Christchurch over the next decade already underway, this settlement gives impetus to the largest ever investment in a region’s educational facilities,” Ms Parata says. “This year alone, 15 schools will enter the capital works programme. The new Pegasus School is scheduled to open in term 2 and the rebuild of Halswell School is due to open in term 4. Approximately $30 million is being spent in the Greater Christchurch Renewal Programme over the 2013-14 financial year, and approximately $100 million will be spent in 2014-15.”

Ms Kaye says the Ministry of Education’s insurance claim was one of the most complex arising from the Canterbury earthquakes. “More than 1000 buildings at over 200 schools were involved. The wide-ranging building types and damage, the spread of school sites across Canterbury, and ensuring schools remained open and functional were all part of the challenge,” Ms Kaye says.

Mr Brownlee says the settlement represents the result of several major programmes and complex negotiations with insurers over three years. “Immediately after the earthquakes, emergency and temporary works were undertaken across affected schools and extensive building and land damage assessments were carried out. “Staff, students and parents have shown great resilience over that time, and we know they’re excited about this process of renewal.”

Ms Parata says the remediation of 91 schools in the outer Canterbury area was completed in late 2012. “However, more complex remediation of many buildings has been on hold while the Ministry of Education and Vero assessed damage and negotiated the claim,” Ms Parata says. “Now with the claim settled and cash in hand, we can get on with repairing or demolishing damaged buildings without the constraint of the insurance claim process.
“Our Government wants to thank all school communities for their patience.”