17 July 2007The Nelson Mail
Tornadoes in Taranaki, severe flooding in the Far North, storm damage in Coromandel, Auckland and other districts and the southern whiteout have caused an estimated $32 million in damage this month, with the detailed assessments still to come. Nelson had provided a foretaste of what was to happen when a deluge at the end of May flooded parts of Stoke and was described as a once-in-50-years downpour. It is almost as if weather demons have been unleashed - except that there have been similarly catastrophic storms in many other years. Rather than leaping to the conclusion that climate change is responsible and that we are in for much more of this type of thing, the response should be to acknowledge that it has happened before and will happen again, and to prepare for it.
It is always illuminating to see the insurance industry's reaction when faced with large payouts like these. It wants the Government to pay more for mopping up natural disasters, arguing that this will help to keep premiums down but neglecting to add that it will also keep profits up. Even so, the damage done through natural causes this year reinforces the wisdom of taking out adequate insurance cover. The Government does have a duty to help the helpless and is best situated to intervene in times of crisis, but this does not absolve individuals of the responsibility to provide for themselves. The taxpayer should not be seen as the de facto insurer of people who are imprudent - and those who choose to live in disaster-prone areas ought to expect to pay higher insurance premiums.
