Flood-hit town's residents face huge rates hike

Matata was devastated by the May flood. Picture / Rotorua Daily Post

A $2000-plus annual rates hike for 57 home and land owners has the potential to signal the demise of flood-ravaged Matata in the Bay of Plenty.

Last night residents who once lived, or were planning to live, in the Awatarariki catchment of the coastal town partially destroyed by flooding in May were asked to decide whether they could shoulder the rates burden.

The other side of the coin offered a potential loss of hundreds of thousands of dollars for some.

Whakatane Mayor Colin Holmes chaired what the community hoped was the final meeting between councillors and residents before a definitive decision could be presented to government.

After six months of indecision, emotions peaked at the meeting with the owners of what were once million-dollar homes believing there was no choice to be made.

Resident Rob Pearce said, after listening to the council, there could be only one solution.

"We have to build the debris dam, even if it does cost us an extra $2000 a year in rates, otherwise we walk away from our livelihoods," Mr Pearce said.

Residents had initially understood that if they could not return to their homes or land, they would be paid full market value.

This was to be made up by a third from the Earthquake Commission, a third from insurance companies and a third from local and central government.

The second option, to retreat from the disaster, could result in some owners being out of pocket by up to a third of their properties' worth.

This is because the Commission has said it will not pay land value for sections deemed flooded, as opposed to damaged by landslides.

Mr Holmes said if residents decided on the retreat option, council's legal obligation in monetary terms was nil, but their moral obligation had yet to be determined.

"The one thing we cannot debate is the level of mitigation, there is absolutely no room for compromise on the level of mitigation as we are talking about people's lives," Mr Holmes said.

"Some people have said they are happy to live with the risk, but we know the May 18 disaster will happen again."

One man asked why councillors did not listen to the kaumatua of Matata 20 years beforehand when they were told not to build near the streams or on an area considered an urupa.

Another asked if the council was prepared for "massive civil lawsuits" that could follow a decision.

Several people said they had already been paid by their insurance companies and had spent the past few months making their homes liveable.

Mr Holmes talked of the possibility of Matata ratepayers taking on the operational costs, with other costs being spread through district ratepayers.

The majority of the Awatarariki residents - about a third of the town's population - agreed Matata could not survive if they could not remain.

- DAILY POST (ROTORUA)