Official Information Request - 5 February 2019

Sent: Wednesday, 13 February 2019 4:40 p.m.

Subject: LGOIMA request - Museum damage and insurance

I refer to your LGOIMA request of 5 February 2019 regarding the Museum, and respond below as per your email:

1 On inspection, was any of the damage discovered to be a direct result of the Kaikoura earthquake? (Y /N) If so what?

GNS recorded a local seismic event possibly triggered by the Kaikoura event. Additional cracks were found by the staff with some existing cracks widening.

2 On inspection, was the damage deemed to be a result of inadequate or wrongly targeted maintenance or other lack of attention, hence no insurance payout?

The new cracking of parts of the building highlighted the seismic vulnerability of the 1906 building, not inadequate maintenance.

3 Council has now released information of timeframe and estimated cost of the repairs required, some of that cost having been sourced already yet no mention in the public domain of any insurance payout. Is there going to be? (Y / N)

If so, when will that be made public?

How much?

For what damage?

Council's insurance claims are still active and being finalised. Any final claims and payments will be publically communicated at the appropriate time.

It is important to note that any insurance payout would only cover the cost of reinstating damage and not additional work required to bring the building up to current building code.

4 The museum has now been closed for over 2 years, the limit for which business interruption insurance could be paid. Is any of the estimated annual $2.2 million loss of income to be covered by this insurance policy? (Y /N)

If so, when will that be made public?

How much?

Council estimates loss of income for the 2016/17 and 2017/18 years to be at least $2.2m per year, but we are still quantifying the cost of any qualifying repairs (as opposed to strengthening and new code requirements).

No formal claim has been lodged at this time as Council is still working towards quantifying its loss.

As per the Act, we are obliged to advise that you may contact the Ombudsman at the address below if you have any concerns with the response provided by Council, by writing to:

The Office of the Ombudsman

PO Box 10 152

WELLINGTON 6143

Alternatively, you may email info@ombudsman.parliament.nz or use the online complaints form available at www.ombudsman.parliament.nz/make-a-complaint.

Regards