The Ministerial Direction dated 9 August 2016, as published in the New Zealand Gazette, 1 September 2016, Issue No. 77, Notice No. 2016-go4912 applied from 4 September 2010 and expired on 30 June 2021.

This Direction comes into effect immediately upon signing and applies from 1 July 2021. This Direction replicates the terms of the Ministerial Direction dated 9 August 2016 (except that no expiry date is specified), and it is to apply in the same way as the expired Direction.

The Earthquake Commission (“Commission”) must perform the following additional function:

1. The Commission will (as part of its settlement of a residential building claim) pay the amount of the damage to, or replace or reinstate (at the Commission’s option), any storm water and sewerage services and structures appurtenant thereto (“services”) where:

1. the services have suffered natural disaster damage as the direct result of one or more of the 2010–2011 Canterbury earthquakes (each such damage-causing earthquake called a “relevant earthquake”); and
2. the conditions in paragraph 2 are met; and
3. the Commission considers that such payment, reinstatement or replacement is appropriate in all the circumstances; and
4. the limits in paragraph 3 are complied with.

2. The conditions referred to in paragraph 1(b) for a relevant earthquake are the following:

1. at the time of the relevant earthquake, the services:
1. met the requirements of paragraph (d)(i) of the definition of “residential building” in section 2(1) of the Act (“residential building definition”), as if that paragraph was amended to also include services serving a building or structure appurtenant described in paragraph (c) of the residential building definition (“appurtenant building or structure”); and
2. met the requirements of paragraph (d)(ii) of the residential building definition, as if that paragraph was amended to also include services serving and within 60 metres of the appurtenant building or structure; and
3. did not meet the requirements of paragraph (d)(iii) of the residential building definition; and
4. were not owned or operated by any territorial authority or regional council or council-controlled organisation; and
2. the building, part of a building or structure under paragraph (a), (b) or (c) of the residential building definition:
1. suffered natural disaster damage as the direct result of the relevant earthquake; and
2. was deemed to be insured under the Act against natural disaster damage at the time of the relevant earthquake; and
3. the insured person gave notice to the Commission, in accordance with clause 7(1) of Schedule 3 of the Act, of the occurrence of natural disaster damage to the residential building in respect of at least one of the relevant earthquakes.

3. Where the Commission decides under paragraph 1 to pay the amount of the damage to, or to reinstate or replace, the services, the Commission’s obligation to pay the amount of the damage, or to replace or reinstate, may not exceed the amount that would otherwise apply, if:

1. the services that met the conditions under paragraph 2 had been insured under the Act as part of the residential building concerned; and
2. the insured person had given notice to the Commission, in accordance with clause 7(1) of Schedule 3 of the Act, of the occurrence of natural disaster damage to the services.

4. For these purposes:

1. Act means the Earthquake Commission Act 1993;
2. dwelling, insured person, natural disaster damage and residential building have the meanings given those terms in the Act;
3. 2010–2011 Canterbury earthquakes means any earthquake in Canterbury that occurred on or after 4 September 2010 and before 1 January 2012, and includes any aftershock during that period; and
4. territorial authority, regional council and council-controlled organisation have the meanings given those terms in the Local Government Act 2002.

Dated this 1st day of December 2021.

Hon Dr DAVID CLARK, Minister Responsible for the Earthquake Commission.