Civil defence pursues $10m disaster buffer

Money talks - even in times of a disaster.

Auckland's civil defence group wants a $10 million overdraft for emergency funding of its disaster response and recovery activities.

"If something happens we want money to spend immediately," said Emergency Management Group chairman Neil Morrison.

He said after a volcanic eruption or tsunami flood the group would have to take immediate action to hire contractors with machinery and equipment.

Under civil defence financing arrangements, it could not just tell contractors to send the bill to the Government.

Although spending by the group would be partly offset by a government subsidy, the rest would have to be met by Auckland's seven local councils and the regional council.

Councils can claim a subsidy for spending on their local responses and recovery.

Response is defined as actions taken immediately before, during or directly after an emergency to save lives and properties. Recovery is the activities after the initial impact has been stabilised.

Mr Morrison said it was essential that and adequate agreement and arrangements were put in place in advance of any emergency.

"Otherwise it would be difficult to get people employed and we would have to go to the councils and wait for them to decide on whether they would grant the funds."

The group proposed a $10 million sum to cover its first actions - based on the experience of the Manawatu-Wanganui civil defence during last year's floods.

Mr Morrison said Auckland's councils were being asked to back the overdraft idea this month and he was confident they would agree.

A formula for sharing regional costs among the councils was worked out last year by the Civil Defence Ministry.

Under this arrangement, the Auckland Regional Council pays 35 per cent of any spending and local councils pay the rest according to population.

Overdraft fees would be about $6000 a year.

"I guess that's the price you have to pay for being ready."

Mr Morrison said at one time councils had 500 people and machinery available at a phone call from the mayor. But councils had moved away from works departments to contracting out work.

"So we make arrangements beforehand with the Contractors Federation as to how much we will pay them.

"We don't want to wait until an emergency and find ourselves in no position to bargain."

Contractors Federation Auckland branch chairman Byron Banks said it would be against its code of ethics to take advantage of an emergency by putting up rates.