NSW establishes flood rebuilding body to lead recovery

A newly established Northern Rivers Reconstruction Corporation (NRRC) will lead the long-term rebuilding of NSW areas affected by recent flooding, while liaising with sectors including insurance, the State Government said today.

“As we transition from recovery and clean-up the focus will shift to how we can make the infrastructure and homes of the region more resilient in the event of future natural disasters,” Deputy Premier Paul Toole said.

The new body will have broad and extensive powers to consult with the community and assist in improving the resilience of towns such as Lismore.

The NRRC will be able to work with councils to identify rejuvenation projects, with an emphasis on housing and social infrastructure. The body will also have the power to compulsorily acquire or subdivide land, speed up and fast-track the building of new premises and accelerate planning proposals through the relevant department.

The insurance, construction and infrastructure sectors will be important contributors, alongside local government, industry, businesses and residents, the Government says.

The Insurance Council of Australia (ICA) says it has been among peak bodies promoting the need for an overarching plan for the rebuild process, and the establishment of a high-level cross-sector leadership group.

ICA CEO Andrew Hall says successful bodies have previously been established after disasters including the 2011 Brisbane floods and the Christchurch earthquake.

“Beyond the immediate clean-up and community recovery, it is clear there are complex issues to work through if we are to ensure the Lismore community is made more resilient to future flood events,” he said.

Issues include the construction of infrastructure such as levees, the future insurability and lendability of homes and businesses, land use planning, land use decisions by major commercial residents, and building codes and standards.

More short-term issues include the availability and cost of construction labour and materials, the availability of replacement vehicles and temporary accommodation, the availability of data, the impact of cash settlements, and the appropriateness of insurers providing “like for like”.

“We stand ready to work with this new body on all these important issues,” Mr Hall says.

ICA says it understands community concerns that the cost of flood cover can lead to those at high risk to opt out. Data from the southeast Queensland and northern NSW catastrophe shows that in local government areas with a higher risk, the percentage of policyholders who made a claim and who have flood cover is lower than in areas with lower risk.

In Lismore, for example, 31% of policyholders who made a claim related to the March event have flood cover, whereas in Ipswich the figure is 69%.

The Government says Resilience NSW will continue to be responsible for providing immediate relief, resupplying communities, restoring essential services, cleaning up properties and providing temporary accommodation. The NRRC’s work will extend to a three-to-five-year remit.

“We are working through recovery and we have an independent inquiry underway that will hear from all of those impacted, from experts and the scientific community,” Premier Dominic Perrottet said.

“The NRRC will be able to draw on the recommendations from the inquiry and lead the long-term reconstruction work to build certainty for future generations.”

The Government has appointed David Witherdin as CEO of the NRRC, which will sit within the Department of Regional NSW and report to Mr Toole.