Waikeria Prison riot costs blow out

The costs of damages from the six-day riot at Waikeria Prison continue to mount, while Corrections Minister Kelvin Davis remains missing in action, says Simeon Brown National Party Spokesperson for Corrections.

“The settlement value arising out of the insurance claim for the damage causes sits at nearly $24 million. This is an enormous amount of money being spent to pay for the damages caused by a riot that was allowed to last six days.

“The Department of Corrections insurance payout is at the policy limits – if another riot were to occur this year with another prison being burned down the taxpayers would have to fork out the cash to repair the damage.

“The Government has had to sign off a multimillion-dollar write-down of the jail, so the bill could balloon even more when everything is tallied up.

“To make matters worse, the Corrections is refusing to disclose what the total cost of writing off the assets is, as well it being revealed by Kelvin Davis that the insurance payout will not cover the cost of demolishing of the prison.

“The whole situation at Waikeria was a Kelvin Davis catastrophe from start to finish. Here we are now, months later, footing the bill for his incompetence. The Minister has proven time and again that he is capable only of opening the doors to let prisoners out.”

Reply 32165 (2021) has been answered

Portfolio: Corrections (Hon Kelvin Davis)
Question: In response to Reply 28780, what are the established insurance costs of the Waikeria Riot?
Reply: I am advised that, in submitting Corrections’ insurance claim, an estimation of costs to the extent of the claim limits under the material damage and business interruption policies was made. The Material Damage policy includes buildings scheduled per site and, in the case of the Top Jail, provided demolition cover of $4.5 million plus GST. In addition, Plant and Contents and Business Interruption policies provided cover for $12.5m and $10m respectively. I am further advised that Corrections received an insurance payout at these policy limits. This is also my response to WPQ 32166.

Reply 30612 (2021) has been answered

Portfolio: Corrections (Hon Kelvin Davis)
Question: How much money has Correction received to date in insurance payouts, if any, following the Waikeria Riot?
Reply: I am advised that the settlement value as a result of the insurance claim for the Waikeria riot is $23.2 million. This settlement value is after the related insurance policy excess’ have been deducted from the claim. The payment is full and final settlement in relation to claims for business interruption and the physical buildings, plant and contents. This is also my response to WPQ 30613.