Cyclone recovery cash deal signed, buyouts begin in Hawke's Bay

Todd Smith cleaning up his flood-damaged home in Whirinaki on February 20. Photo / Warren Buckland

By Lauren Crimp of RNZ

The Government and five Hawke’s Bay councils have signed the $556 million cost-sharing agreement to buy out flood-wrecked homes, pay for flood protection and fix roads and bridges following Cyclone Gabrielle.

The councils had already accepted it subject to community consultation, which was completed last month and found most people supported taking the deal.

But some were unimpressed that the ‘all or nothing’ nature of the offer meant the councils effectively had no choice and felt the Government’s share was not enough.

The package includes $92.5m towards the Government’s 50 per cent share of home buyouts - and that process was in full swing.

Hastings District Council said 24 owners of Category three properties across Hastings and Napier had so far set up meetings with the newly established buyout office to discuss their eligibility and go through a valuation and offer process before the buyout was completed.

In total, 287 properties were in the unliveable Category three and eligible for a buyout - but that was voluntary, and not everyone wanted to take the money.

Meanwhile, owners of more than 1000 Category two homes were still waiting to find out whether flood protection could save their properties.

The $203.5m in the agreement allocated to flood protection would focus on solutions for Category two properties, Hawke’s Bay Regional Council asset group manager Chris Dolley said.

But it could be a long wait.

“Although the co-sharing agreement is signed, we still need to develop delivery plans to be approved by the Government to access the funds, and the process and timing for this is to be determined,” he said.

“The funding will be primarily directed to flood mitigation solutions in Category two locations, upgrades to repaired stopbanks and replacement of three pump stations.”

Roads and bridges battered by the cyclone will be repaired with the Government’s $260m allocated to transport projects.

Specific works earmarked in the agreement include replacing Redclyffe Bridge, the Puketapu, Matapiro and Aropaoanui bridge works in Hastings, critical roading projects for Central Hawke’s Bay and Te Reinga bridge works in Wairoa.

Hastings District Council will bear the brunt of that work and said it had already started on the bridges and other higher-user rural roads - but there was seven years of work ahead.

“Repairs or re-builds are prioritised in relation to the number of people that need them for access, their business, schools,” it said in a statement.

“The preliminary programme of works is being refined.

“It is anticipated that the recovery programme will run over seven years, with the Crown-funded projects to be implemented during the first two to three years.”

The Government’s cyclone recovery unit said it was putting processes in place now to pay for the roading and flood protection works, which would come out of the $6 billion National Resilience Plan.