Editor: I. Mallikarjuna Sharma Volume 11: 15-31 March 2015 No. 5-6

F-184 Quake Outcasts v. Minister for Canterbury Earthquake Recovery [NZ-SC: Eliyas CJ] (2015) 1 LAW
for reconsideration by the chief executive, as
indeed the Court of Appeal ordered. 229 No appeal
against those orders is brought by the Crown
parties.
[219] Instead, Quake Outcasts and Fowler
Developments appeal against the basis of the
reconsideration ordered by the Court of Appeal
and against its rejection of their contention that
the establishment of the red zone was unlawful.
[220] As to reconsideration of the offer, the
appellants contend that the Court of Appeal was
wrong to hold that the chief executive could
lawfully distinguish between property insured for
land damage and property not so insured when
setting the terms of the offers to purchase. They
seek orders that would compel the Crown to offer
to purchase their land and improvements at 100
per cent of the 2007 rating valuation.
[221] As to the lawfulness of the red zone, the
appellants say that the establishment of the red zone by
ministers acting under Cabinet authority was unlawful
because it was not taken under the Act and in
accordance with its scheme, which required prior
adoption of a Recovery Strategy or Recovery
Plan after opportunity for public input. They say
the red zone has “effectively eliminated any
market for the properties” within it and is
preventing their recovery from the effects of the
earthquakes, contrary to the purpose of the
legislation. In the High Court they sought
declarations that the red zone establishment was
unlawful and that those property owners who do not
wish to sell to the Crown are “entitled to remain on
their properties, supported by essential facilities, as
permitted by law”.
The scheme of the legislation
[222] The Canterbury Earthquake Recovery Act
2011 came into effect on 19 April 2011. The Act
set up a framework under which the huge effort
required to respond to the damage caused by the
earthquakes could be coordinated. The responses
229 The Minister for Canterbury Earthquake Recovery v
Fowler Developments Limited [2013] NZCA 588,
[2014] 2 NZLR 587 (O’Regan P, Ellen France and
Stevens JJ) at [148] and [166]-[168].
necessary were principally for the Minister for
Canterbury Earthquake Recovery and the chief
executive of the Canterbury Earthquake Recovery
Authority. In addition, important roles were
recognised under the legislation for local
government. The Minister was required to set up
a community forum under s 6 of the Act to
provide the Minister and the chief executive with
information or advice in relation to the operation of
the Act, to which they were obliged to have regard.
A separate Parliamentary forum, comprising
members of Parliament living in greater
Christchurch or representing constituencies in
greater Christchurch was to be established under
s 7, also to provide the Minister with information
or advice in relation to the operation of the Act.
[223] The purposes of the Act are contained in s 3:
“3 Purposes
The purposes of this Act are –
(a) to provide appropriate measures to ensure
that greater Christchurch and the councils
and their communities respond to, and
recover from, the impacts of the
Canterbury earthquakes:
(b) to enable community participation in the
planning of the recovery of affected
communities without impeding a focused,
timely, and expedited recovery:
(c) to provide for the Minister and CERA to
ensure that recovery:
(d) to enable a focused, timely, and expedited
recovery:
(e) to enable information to be gathered about
any land, structure, or infrastructure
affected by the Canterbury earthquakes:
(f) to facilitate, co-ordinate, and direct the
planning, rebuilding, and recovery of
affected communities, including the repair
and rebuilding of land, infrastructure, and
other property:
(g) to restore the social, economic, cultural,
and environmental well-being of greater
Christchurch communities:
(h) to provide adequate statutory power for
the purposes stated in paragraphs (a) to
(g):
… … … … …”
Law Animated World, 15-31 March 2015 126