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NZ Auditor-General criticises EQC

New Zealand’s Auditor-General has raised a number of concerns in a review of the Earthquake Commission’s (EQC) home repair program.

The commission is responsible for about 160,000 claims for less than $100,000 following the Canterbury earthquakes. Half will be settled through cash payments, while the EQC manages repairs to the remainder.

Auditor-General Lyn Provost says the commission has come under “intense public scrutiny” and there are “many stories highlighting examples of poor public service”.

She says she cannot comment on individual disputes, but her report finds the repair program has failed to deliver in some areas.

Homeowners experienced “inconsistency in information and processes” and often heard nothing for long periods, while repair slots should have been allocated to vulnerable people more quickly.

About 20% were unhappy with the quality of repairs or the time taken to complete them, and quality controls were not put in place soon enough.

Ms Provost also highlights some positive areas, including that 80% of homeowners were very satisfied with their repairs and there was a focus on safe work practices.

Overall, she describes the EQC’s performance as “mixed”.

“It has performed well in managing repair costs and setting the home repair program up quickly, but has not performed as well in dealing with homeowners.

“Although efficiency is clearly important, this report is a timely reminder for the EQC and others that being in the public service means serving the needs of people.”

Repair costs have been reasonable but could rise if the EQC fails to hit its program completion deadline of December next year.

Ms Provost recommends priority for actions that give homeowners certainty, and continued monitoring of quality assurance data. The commission’s performance will be reviewed again at the end of next year.

She acknowledges the “complex situation” that left the EQC with “no comparable situations to draw direct experience and lessons from”.

CEO Ian Simpson says the EQC will need time to consider the report’s findings and respond in detail.

“However, overall, I welcome the findings and its recommendations, which reinforce actions we are already taking.”

Mr Simpson has also responded to the exclusion of 31,000 people from a customer satisfaction survey, which cast doubt over the 80% figure cited by the Auditor-General.

Many of those “unintentionally” excluded had made complaints against the commission. Mr Simpson says the survey will be adjusted to take these into account and the alert system that led to the error will be reviewed.