So John Key isn't keen on an earthquake levy. Why am I not surprised? The problem is that his preferred solution - increased EQC premiums - doesn't actually help the government cope with the cleanup.
There are two parts to the financial problem. Firstly, the government needs to rebuild EQC's reserves to ensure it can cope with future disasters. Secondly, it needs to pay the enormous cost of rebuilding Christchurch's quake-damaged infrastructure: its roads, sewage systems, schools, hospitals, and other government building. Increased EQC levies only solves the first problem, leaving the government to either cut or borrow for the rest. A disaster levy solves both, as the government can contribute to EQC's coffers.
The problem for Key is that a disaster levy would temporarily reverse some of his upper-bracket tax cuts - something he is clearly loath to do. Faced with the worst natural disaster in recent New Zealand history, he is putting the interests of his rich mates - and himself - ahead of those of the people of Christchurch.
