Earthquake Act of 1931 set for chop

Treasury has identified the Hawke's Bay Earthquake Act as a piece of legislation that should be repealed because it doesn't serve a purpose.

A key piece of legislation behind Hawke's Bay's post-earthquake rebuild in the 1930s is being consigned to the rubble of history as the government moves to tidy up outdated laws.

The Hawke's Bay Earthquake Act was passed into law on April 28, 1931, less than three months after the devastating 7.8 magnitude quake that hit the province, claiming 256 lives and causing widespread destruction.

The Act provided statutory assistance for the Hawke's Bay rebuild by allowing the State Advances Superintendent to lend money to local authorities to repair damage caused by the February 3, 1931 quake.

The loans were vital because few insurance policies at the time covered earthquakes and many insurers refused to pay for fire damage resulting from the quake.

More than eight decades on, and as part of a review of old statutes, Treasury has identified the Hawke's Bay Earthquake Act as a piece of legislation that should be repealed because it no longer serves any purpose.

That position was adopted by councillors at a meeting of Napier City Council's city services committee last week.

George Forbes was Prime Minister when the act was passed and his government initially considered a property tax to repay the funds that would be advanced under the rebuild legislation.

But the government later decided against the tax because it was likely to be politically unpopular.

Money for the rebuild came from a national reserve, raised through general taxation and invested by Joseph Ward's Government.

Historian Michael Fowler said the Act established the the Hawke's Bay Adjustment Court which allowed for settlement of liabilities, along with the Hawke's Bay Rehabilitation Committee which oversaw the government loans to rebuild buildings.

"The Act as written is irrelevant today, and it's surprising it hasn't been revoked earlier," he said.