Brownlee and Woods exchange words about the southern response

Jerry Brownlee defended National’s engagement with Southern Response after it was revealed that the state-owned insurer could cost taxpayers up to $ 675 million.

The National Deputy Leader and former earthquake recovery secretary was responding to comments from prominent labor lawmaker Megan Woods who said the disaster was caused by the National while she was in government. The state-owned National South Response set up after the earthquakes as a result of the failure of AMI insurance company.

Earlier this week, the appeals court largely dismissed an appeal from the insurance company over a previous ruling found guilty of misleading and deceptive behavior toward Karl and Alison Dodds who were awarded roughly $ 250,000.

This could set a legal precedent that could lead to the government setting aside $ 675 million for disaffected claimants.

Megan Woods, Minister for the Greater Christchurch Revival, blamed the previous national government. Brownlee described this criticism as “unreasonable”.

The Dodds attorney, Peter Woods, told The Star that the appeals court’s decision to dismiss the appeal set a legal precedent that could have a major impact in the future. There is currently a class action lawsuit with 3,000 lawsuits against the Southern Response in progress. Woods said the Dodds case sets a precedent, which could cost the government up to $ 675 million settling thousands of similar cases.

“It remains to be seen ultimately the size of that group and the number of people who fit into the court’s findings,” said Megan Woods.

“If this was where we ended up, that was a matter of concern of course, of course that was something we would much prefer the previous government to deal with properly at the time, rather than leave the issues and a very messy situation for us to clean up.

“The Southern Response Actions under Jerry’s leadership were also unacceptable to us [Labour]. When I learned of the use of special investigators in the Southern Response Division, I referred him directly to the Commissioner of State Services because it is an unacceptable way for a government to treat its people.

However, Brownlee said describing the failures of the southern response to him personally or the National Party would be “unreasonable”.

It was believed that criticism failed to acknowledge the situation the Cantabrian population was in when the organization was created in the wake of the 2011 earthquakes.

Brownlee said during his tenure as minister for earthquake recovery that he had asked Southern Response to act “in a fair and reasonable manner.”

“I met with the board of directors every three months, certainly a lot with the CEO and I was always interested in what progress he was making and what their operations were. There was definitely no point when we signed any misconduct.”

He hinted that decisions like those made about the Dodds were out of his hands.

“They are business decisions made by managers inside a company, the government is not sitting on top of that, and we have the Treasury Department there watching it, and it would be interesting to see what the treasury position was along the way.”

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