Masterson District Council opts into voluntary buy-out program
Masterson District Council opts into voluntary buy-out program | Insurance Business New Zealand
Catastrophe & Flood
Masterson District Council opts into voluntary buy-out program
Expenditure capped at £2.5 million
Catastrophe & Flood
By
Kenneth Araullo
The Masterton District Council has agreed to participate in the government’s Future of Severely Affected Land (FOSAL) program, a response to the severe weather events that struck the North Island earlier this year. This decision involves a voluntary buy-out scheme for properties heavily affected by these incidents.
The FOSAL initiative is a joint funding effort, with both the government and the council contributing equally to the buy-out costs. These costs are calculated after deducting any insurance, Earthquake Commission (EQC), and other relevant payments.
Masterton Mayor Gary Caffell noted the complexity of the council’s decision, acknowledging the vigorous and thoughtful debate among the members.
“I can understand the concerns raised by some members of the community in our consultation on the issue, particularly around the idea of setting a moral precedent, but I am confident that this will not be the case,” Caffell said. “The government created a program that councils were invited to participate in, and this is possibly the only time government will make this type of financial response available to impacted communities.”
Caffell highlighted the council’s commitment to aiding the community’s recovery and facilitating access to government funding. He acknowledged the significant impact of the council’s decision on both the council and the wider community, emphasising the ongoing efforts of affected families to rebuild their lives.
The decision has financial implications for the council, with the estimated maximum expenditure capped at £2.5 million. This budget covers the costs of purchasing land and/or dwellings, as well as any necessary demolition or removal operations.
As for the financial impact on the community, the council’s participation in the FOSAL program is expected to result in a rating increase of 0.75% for the 2024/25 year. This translates to an additional £26 per year for a median-value urban residential property.
The Wairarapa Recovery Office will work alongside the council to establish policies for handling individual properties. This collaboration will also involve ongoing discussions with affected property owners to confirm provisional categorisations and outline the next steps in the voluntary buyout process.
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