Families lose fight for termite compensation

By CATHY ARONSON

Families fighting for help after their homes were blighted by termites learned yesterday that they will not receive Government compensation.

Seven out of 28 properties in south Otorohanga, in an area labelled Termite Hill, have suffered thousands of dollars of damage since infested Australian wooden power poles were put in their street in the 1950s.

After the residents' two-year battle for compensation, the local government and environment committee of Parliament recommended that the Government make an ex gratia payment.

But Associate Biosecurity Minister Marian Hobbs yesterday rejected the recommendation. She said the Biosecurity Act did not require the Government to pay compensation, similar requests had been declined and it would set a dangerous precedent.

The announcement has angered residents, who say they cannot sell their homes.

The committee recognised that the residents were told the termites had been eradicated in 1990 and made investment decisions based on that. But the termites were found again between 1994 and 1999.

Christine and Manga Roach said they spent $35,000 renovating their three-bedroom bungalow before starting a family in the early 1990s after they were told the termites were gone.

Mrs Roach said they now had four children and needed a bigger house but were unable to sell.

The termites had attacked their bedroom, bathroom, laundry and decking. Her kitchen floor was unstable and had a foot-sized hole.

Termites had not been found for nearly two years and the stigma was decreasing, but her home was permanently damaged.

"We gave up on compensation for all the hassle we have been through, we just wanted them to fix their mess," she said. "We're back to the beginning now and I don't know what to do."

Ms Hobbs said the Biosecurity Act allowed compensation only for damage caused by eradication, not damage caused by organisms.

"It is important we do not set a precedent or raise expectations that could apply to any losses caused by organisms in New Zealand," she said.

The Government would continue to fund the Ministry of Agriculture and Forestry's eradication programme.

MAF national pest adviser Mark Ross said the termites had not been found since last year, when the ministry increased its monitoring and bait stations.

It would continue to monitor the properties until 2006 to ensure the termites were gone.

Otorohanga District Council general manager David Hall said the local body would consider creating a mayoral fund, but made no promises.

"Those poor people have had their houses eaten away from under them," he said.

"Perhaps as a community we can help them out."

The council is due to meet on December 14 to discuss its options.