National says the Government doesn't understand the implications of paying out Christchurch's remaining "quake outcasts".
The Government has announced a $12m payout to the former owners of uninsured properties in the Christchurch red zones. The decision follows payments to 16 who took a class action last year.
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National's EQC spokesman Stuart Smith says it sends a concerning signal to people who have insurance now - that insurance isn't necessary.
"I realise that of course these people have had to go some years without any money, but they elected not to pay any insurance premiums. They took the risk," he says.
But Labour disagrees, arguing its decision is the "right one". Minister for Greater Christchurch Regeneration Megan Woods says: "The plight of people who were uninsured at the time of the quakes has been one of the difficult legacies of the earthquakes.
"The previous Government's offer of nothing for uninsured homes left many people significantly out of pocket."
Ms Woods said the Government had carefully considered the Court of Appeal's 2017 judgment in the Quake Outcasts litigation in making its decision.
"It took some time to make this decision because we wanted to make sure it was the right one. We had to consider fairness and consistency, the precedent this decision may set, and the need to be fiscally responsible," Ms Woods said.
The Minister said the Crown is willing to purchase red zone properties for any owners who are interested in selling, regardless of insurance status, at 100 percent of the 2007/08 rateable value.
However Mr Smith says combined with the quake Tribunal, it's a concerning message to the market.
"It's not so much the insurance companies here in New Zealand, it's the re-insurance industry overseas," he says.
"Now people might not like insurance companies or re-insurance industry but the reality is they don't need New Zealand as a market. They could depart it anytime."
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