Cost sharing agreement for Category 3 payouts in Hawke’s Bay reached

Cost sharing agreement for Category 3 payouts in Hawke’s Bay reached | Insurance Business New Zealand

Catastrophe & Flood

Cost sharing agreement for Category 3 payouts in Hawke’s Bay reached

The priority for the package will be buyouts, flood protection, and urgent road and bridge repairs

Catastrophe & Flood

By
Kenneth Araullo

Cyclone recovery minister Grant Robertson said that as outlined previously, the priority for the package will be addressing the buyout of high-risk properties, as well as flood protection and urgent roads and bridge repairs.

“I am very pleased that we have reached this agreement with the region’s leaders that will give the people of Hawke’s Bay certainty,” Robertson said in a news release. “Councils will now be asked to ratify the package and consult their communities as appropriate.”

Part of the agreement is the government agreeing to contribute to flood protection projects to give some certainty for Category 2 property owners, as well as increase Hawke’s Bay’s resilience. Robertson added that the government is also making a further significant investment in the improvements of roads and transport infrastructure.

“Owners of Category 3 properties will be invited to take up a voluntary buyout allowing them to move on from their devastated residential land,” Robertson said. “Leaving a home and a community is not an easy decision – but for some people the opportunity to start afresh, without a fear of future flooding or landslide, is the right choice. Councils will work with individual property owners to determine the details of each offer. There are some complexities to be resolved, particularly where the property includes commercial and residential land uses.”

Robertson confirmed that negotiations with Auckland and Tairāwhiti on cost-sharing arrangements are also well underway; however, he did not elaborate on a date for an agreement to be reached.

“Alongside these negotiations the Crown is working through a process and support package for affected Māori land and communities in affected regions. Funding for this work sits outside of the cost sharing arrangements with councils. Communities can rest assured we are moving as quickly as we can, supporting councils [to] make progress with their locally led recovery,” he said.

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