GDC to open consultation on $204m Government cyclone recovery package

A Government support package for Cyclone Gabrielle recovery will soon go out for public consultation in Tairāwhiti as the region faces repair costs of more than $1 billion.

On August 24, Gisborne District Council was presented with a Government offer of $204 million to fund and cost-share recovery works.

The money was to be used for the purchase of properties deemed no longer safe to live at due to future risk, funding community works that reduce risk and improve resilience, and local transport network projects.

At an August meeting, the council endorsed the package — which is an all-or-nothing offer — subject to consultation with the community.

It includes $64 million for flood risk mitigation such as stopbanks, $125 million for local road and bridge repairs and $15 million towards purchasing houses which are no longer safe.

The package also includes a $30 million interest-free loan with a term of 10 years.

Consultation will begin on Monday October 2 and lasts for for 14 days, with two primary options: accept or reject the package.

Accepting the offer will impact rates by 1 percent in 2024/25 because the council will need to stump up $21 million of its own money towards total costs.

But rejecting the offer means the council would miss out on the funding entirely.

The consultation document makes for sobering reading, with the council making it clear the Government’s offer falls short of covering the full cost of the cyclone recovery bill.

“Whether we accept the Government offer or not, there’s likely to be an increase in rates to meet additional recovery costs,” it reads.

“The repair bill is unprecedented and will require a disciplined long-term financial strategy and trade-offs to be made on spending priorities well into the future.”

For roading alone, the council estimates it will need between $465  and $725 million.

In regard to the voluntary buy-out of properties, the Government is paying for half of the job, meaning the council must stump up for the rest.

The interest-free loan will be used to help fund those buy-outs, protect at-risk properties and make road and bridge repairs.

The council will run community meetings as part of the consultation process before making a final decision on November 1 on whether to accept the package or not.

Part of council’s recommendation adopted at Thursday’s meeting included agreeing that rates increases and debt thresholds would be outside of what was agreed in the 2021 - 2031 Long Term Plan and Financial Strategy.