• Government reaches Cyclone recovery funding agreement with Hawke's Bay councils

Government reaches Cyclone recovery funding agreement with Hawke's Bay councils

The Government is pleased that it has reached a Cyclone recovery funding agreement with the Hawke’s Bay councils, says Finance Minister Grant Robertson.

Robertson, who is also the Cyclone Recovery Minister said in a statement today that the Government is welcoming an agreement by Hawke’s Bay mayors and Regional Council chair to take to their councils a package including sharing the cost of buying out high-risk (Category 3) residential properties in the region.

A team representing the five local councils has for the past five weeks been locked in negotiations with the Government over Cyclone funding. The government announced a buy-out scheme for properties in category three – the worst level earlier this year and indicated that costs would be split between the Crown and the councils. The negotiations focused on who would pay what for this and other costs as well.

The councils – Hawke’s Bay Regional Council, Hastings District Council, Napier City Council, Wairoa District Council and Central Hawke’s Bay District Council - appointed a former National Party Treaty Minister, Chris Finlayson, as their lead negotiator with Hastings District Council CEO To'osavili Nigel Bickle and Napier City Council CEO Louise Miller also part of the team.

Bickle told Hawke’s Bay App on Friday that negotiations are a “long way down the track”.

“We are at a point now, where councils will basically consider what we've negotiated with government. We're obviously still in negotiations, but we have reached a understanding, but a number of areas with government that now need to be considered, and decided by the councils.”

He said the conversations have been robust with multiple meetings over the last five weeks.

In the statement today Robertson said the priority areas of the overall package will be addressing Category 3 property buyouts, flood protection and urgent roading 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. Councils will now be asked to ratify the package and consult their communities as appropriate,” Robertson said.

“As part of the package the Government has agreed to a contribution to flood protection projects to give some certainty for owners of properties assessed as Category 2, and to enhance the resilience of the Hawke’s Bay region.”

“Alongside that agreement the Government is making further significant investment in roading improvements and the building of new 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.”

“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.”

Robertson said councils will work with individual property owners to determine the details of each offer. He says there are some complexities to be resolved, particularly where the property includes commercial and residential land uses.

“Negotiations with Auckland and Tairāwhiti on cost sharing arrangements are progressing well, and we are hopeful to have an agreement for those regions shortly.

“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.”

“Communites can rest assured we are moving as quickly as we can, supporting councils make progress with their locally-led recovery,” Robertson said.

In response today, the five Councils said in a statement that negotiations between central and local Government to confirm a cost-sharing approach for some of the region’s most urgent cyclone recovery costs are complete.

The Councils have today confirmed that an offer from the Crown has been made, with the funding package covering three of the region’s highest priority areas – the voluntary buyout of residential Category 3 properties, flood protection, and transport infrastructure, including urgent roading and bridge repairs.

Each of the region’s five Councils will now need to consider the Crown’s offer in advance of a series of extraordinary Council meetings which are scheduled to take place later this week. As the offer from the Crown would provide funding support to all five Councils, the region will need to unanimously agree for the deal to be finalised.

“Together, Hawke’s Bay’s Councils remain committed to ensuring decisions that impact a community are made with that community’s involvement and input. Even with the support of Government funding, some Councils will need to engage with their communities on the package, including where they need to consider the voluntary buyout of Category 3 residential properties,” the statement said.

“If the Crown’s offer is accepted, the priority for the region will be on establishing a team to work directly with those impacted property owners who wish to take up the voluntary buyout offer. This would be a significant focus for those Councils with Category 3 properties over the coming weeks, with this work progressed with urgency in order to deliver clarity and certainty to those hardest-hit residents across Hawke’s Bay. "