Mother describes motel terror as Epsom homicide investigation continues, why the Mama Hooch rapists won’t likely be let out early and councillors react to Auckland’s $2-billion flood recovery package. Video / NZ Herald
Auckland’s deputy mayor has revealed a week ago there was “very little I could pretend to be positive” about the $2 billion flood damage buyout deal signed with the Government, but it was redeemed by tough negotiations on additional infrastructure funding.
On Thursday, Auckland councillors voted unanimously toendorse in principle a $2b cost-sharing buyout package for hundreds of uninhabitable properties and other storm-related costs with the Government.
But Auckland Deputy Mayor Desley Simpson said rigorous negotiations over the last two weeks by council staff convinced the Government to expand the flood buyout package to cover large chunks of an additional $390 million towards fixing roads and the $820m for the Making Space for Water initiative - all contained within the $2b total package.
“If you’d asked me what I thought of the agreement 10 days ago, my answer could have been very different,” Simpson said.
“Because 10 days ago, the in-principle agreement didn’t look like it does now. There was very little then I could even pretend to be positive about [with regard to] what the Government was offering.
“There’s a political working group, right? And we were very clear, we were very clear to our team: hold the line. Do not agree to that, you know, get a better [deal]… go back, go hard, and they did. And in all in all seriousness, one has to appreciate that what we’ve ended up is a is a higher level [of funding] from Government than we’re having to put in.”
It’s understood that during negotiations, the Government were adamant to keep the deal simply as a 50/50 funding split with the council over buying out approximately 700 Category 3 red-stickered homes made uninhabitable by the Auckland Anniversary weekend storms and Cyclone Gabrielle. The cost of this is estimated at $774m.
When Finance Minister Grant Robertson announced the planned buyout package on June 1, it was clear Auckland Council had not been extensively consulted about their role in funding the then-forecast $1b-plus funding package.
Simpson expressed her confusion at the time over how the council would pay for the buyout, considering Auckland Council was in the final stages of its proposal budget to help fill a $325m hole to be part-funded by the sale of Auckland Airport shares.
Auckland Mayor Wayne Brown at Auckland Emergency Management on January 28, with councillor Sharon Stewart and Deputy Mayor Desley Simpson.
“The bottom line is, we don’t know what that funding balance looks like,” the deputy mayor said in June.
“It makes our decision next week on our budget even harder. This could cost us a lot. We don’t know what the split is between the taxpayer, the ratepayer and the homeowner themselves. I welcome the announcement, I welcome the timeframe, but I’m holding my breath on what happens next.”
A few months on, Simpson says the final week of negotiations managed to obtain an additional almost $700m of funding from the Government - that made the deal more palatable - for road repair and storm prevention, on top of the $387m they were fronting to support Auckland Council purchasing Category 3 residential properties.
“That is significant,” Simpson said today, adding that if the Government hadn’t come to the table on additional infrastructure spending, she “was prepared to go out and be incredibly negative, to be honest”.
On Thursday, Robertson said $877m will come from the National Resilience Plan towards Auckland’s recovery from the summer storms.
He said the council had applied for a further $200m for road and other transport repairs, which is being reviewed by Waka Kotahi New Zealand Transport Agency, bringing the total Crown funding up to $1.1b.
“I am pleased we have reached this agreement so Auckland Council can provide certainty for the people whose properties, or those close to theirs, were severely damaged by landslides or flooding,” Robertson said.
“The Government will contribute up to $387m to support Auckland Council to purchase Category 3 residential properties. This equates to 50 per cent of the net cost, which is the same agreement for Gisborne District Council and Hawke’s Bay councils. The net cost is the agreed buyout value for each property, less any insurance payments the homeowner receives.”
Finance Minister Grant Robertson, pictured during a media stand-up after his presentation to the ANZ Annual Post-Budget briefing in Wellington in May. Photo / Mark Mitchell
The Government is also contributing $380m of the capital cost of the Making Space for Water initiative, which includes buying properties in flood-prone areas, taking out stormwater pipes and recreating the original streams, culvert and bridge upgrades and overland flow path management.
The largest cluster of affected homes are in the West Auckland suburbs of Rānui, Swanson and Henderson and the coastal communities of Piha, Karekare and Muriwai. Other clusters are in Milford and Māngere.
Category 3 homes on sites identified for “daylighting streams” will be bought as part of the buyout programme, but the bill for purchasing other properties will be met by the council.
Mayor Wayne Brown described the agreement was a major step forward.
“While the negotiation process took time, it has resulted in a much better deal for Auckland. This deal will enable us to move faster on our plans to make the region more resilient to future weather events, rolling out the Making Space for Water programme and reinstating a range of transport infrastructure to help our communities return to a sense of normal.”
