Government and Auckland Council agree cost sharing arrangements#
A cost-sharing agreement between the Government and Auckland Council will see the Crown contribute $877 million towards Auckland’s recovery following the Anniversary Day floods and Cyclone Gabrielle, earlier this year.
The Government will contribute up to $387 million to support Auckland Council to purchase Category 3 residential properties. This equates to 50 percent of the net cost, which is the same agreement for Gisborne District Council and Hawke’s Bay councils. The net cost is the agreed buyout value for each property, less any insurance payments the homeowner receives.
Central government will also contribute $380 million for investment in flood protection works to mitigate the flood risk to the Category 2 areas damaged in these events and $110 million for local transport networks affected by the weather events.
In addition to the $877 million which will come from the National Resilience Plan, Auckland Council has submitted an application for further recovery funding which is being reviewed by Waka Kotahi. Auckland Council estimates it will receive about $200 million from this process to help restore the transport network. This would bring the total Crown funding Auckland may receive to up to $1.1 billion.
Government and Tairāwhiti agree cost-sharing arrangements#
The Government and Gisborne District Council have agreed to a cost sharing package to further support the Tairāwhiti region’s recovery from Cyclone Gabrielle.
The agreement is subject to community consultation which the council will begin shortly.
Cyclone Gabrielle and ongoing heavy rain caused considerable damage across Tairāwhiti, including cutting roading links to the region. The package will support transport initiatives with $125 million to rebuild roads and increase regional resilience and includes $64 million for flood protection work to help protect category 2 properties.
Central government will also facilitate a zero interest, 10-year $30 million loan for the Gisborne District Council recognising the cashflow challenges the council faces as it remediates the worst of the flood damage. Central government is covering the interest costs of this facility is valued at about $17 million.
Government to remove “bright-line” test for Cyclone buyout properties#
Owners of flood and cyclone-damaged properties will be exempt from tax rules applying to profits on the sale of their land, the Government has announced.
The Minister of Revenue confirmed the “bright-line” test will not be triggered when local authorities buy-out damaged properties in Auckland, Hawke’s Bay, Tairawhiti, and other regions affected by severe weather events.
Government proposes inquiry into community-led retreat#
The Climate Change Minister has asked Parliament’s Environment Committee to conduct an inquiry into community-led retreat and adaptation funding.
In anticipation of an inquiry, the Ministry for the Environment has published a discussion paper, Community-led retreat and adaptation funding – issues and options. They have also published the Report of the Expert Working Group on Managed Retreat: A Proposed System for Planned Relocation.
The paper outlines the challenges in the current system and presents options for the future, exploring who could make adaptation decisions, how they could decide, how the community could be involved, and how the costs could be shared.
It also considers how a Te Tiriti-based system could work for iwi, hapū and Māori communities, especially for decisions affecting whenua and whānau.
Fund for commercial entities removing silt and debris closes soon#
Applications soon close for commercial entities to access Government funding to recover some of the costs of sediment and debris clean-up on their land following Cyclone Gabrielle.
Silt Recovery Taskforce Lead, Darren de Klerk, says applications for the Government funding of $62.6 million have been extended twice to help as many commercial entities as possible get the support they need.
“The funding is to help commercial businesses around Hawke’s Bay pay for the clean up after sediment and debris was dumped on their land by flooding from Cyclone Gabrielle,” says Mr de Klerk.
Applications close on 31 August.
Property categorisation explainer#
A helpful video on the property categorisation process in Auckland has been produced by the Council, outlining the risk assessment process as well as next steps for those impacted by the North Island severe weather events.
Hawke’s Bay cost-share agreement; Community views sought#
A new agreement on the terms of a cost-sharing arrangement between Councils and Government has been described as a significant step forward as the Hawke’s Bay region tackles the large task of recovery from Cyclone Gabrielle.
The Crown offer, worth up to $556 million, will help to address some of the most urgent, region-wide aspects of the recovery, says Regional Recovery Agency Board Chair, Blair O’Keeffe.
“The funding package is a vital first round of Government and Council investment in flood protection and road infrastructure that will, once completed, restore transport links across the region, reduce risks to life and property in a number of areas, and provide investment certainty, enabling economic activity across the region to recover. It is also a critical first step in the process of enabling those whose homes have been most affected to move forward with decision making.”
Napier and Hastings residents are being asked to have their say on the Crown’s conditional funding proposal.
Consultation closes on 5 September and Council will consider submissions at a meeting on 14 September.