The Alexander family home was destroyed by flooding after Cyclone Gabrielle.
Almost $9 million of the Government’s financial support for businesses affected by Cyclone Gabrielle in Hawke’s Bay, one of the hardest-hit regions, hasn’t been spent and could be returned to the Government.
The latest update from the Ministry of Business, Innovation and Employment (MBIE) shows $21.5m of the $30.4m provided to the Hawke’s Bay Chamber of Commerce for distribution has been given to businesses, leaving about $8.8m.
While all other regions had spent almost their entire allocation, the remainder in Hawke’s Bay meant about 86 per cent of the roughly $74m contributed by the Government to support businesses affected by the cyclone and the Auckland floods had been distributed, almost four months after the severe weather events.
The information from MBIE was attached to a disclaimer that said the “figures had not been finalised, with some outstanding grants to be fully processed”.
Cyclone Recovery Minister Grant Robertson was largely happy with how quickly the money to support cyclone-hit businesses had been distributed. Photo / Mark Mitchell
However, it also said the scheme was now closed and “any funding that has not been paid out in grants will be returned”.
Cyclone Recovery Minister Grant Robertson told the Herald yesterday he was largely comfortable with the speed of distribution but appeared to be misinformed when he claimed “about 95 per cent of the money has gone out as intended”.
National Party cyclone recovery spokesman Chris Penk said it was “outrageous” that millions of dollars might be returned to the Government when the need was so great in Hawke’s Bay and other regions.
“It’s outrageous that, with so many affected households and businesses crying out for support, that rug is going to be pulled out from under their feet.
“It’s a clear failure of communication that the local need has not been understood by Wellington.”
In conversations with cyclone-affected business owners, particularly in Hawke’s Bay, the Herald has been told the grants – capped at $40,000 – have provided welcome relief but have only scratched the surface for some who experienced an extensive reduction in revenue as a result of the cyclone.
Hawke’s Bay Chamber of Commerce, in charge of distributing the money, has been approached for comment.
Of the 1766 applications for a grant in Hawke’s Bay, 1491 were approved.
Penk said any leftover money should be distributed.
“If the declined applications were justifiable then that situation should remain as it is, but if the declines were on the basis that [the chamber] had to be careful not to overspend, then the declines should be revisited.”
National Party cyclone recovery spokesman Chris Penk is outraged so much money has gone unspent in Hawke's Bay. Photo / RNZ
Another approach could be to top-up people who were approved on a proportional basis calculated from what they were initially given, he said.
Penk supported the money being returned if it went towards cyclone-related matters such as mental health support in Hawke’s Bay, but was completely opposed to it going into “the general coffers of Wellington”.
Kieran McAnulty, the ministerial lead for the cyclone recovery in Hawke’s Bay and the Taraua district, recently told the Herald there was still a “disconnect” between those who needed assistance and those in charge of providing it.
He suspected factors ranging from internet connectivity to people’s emotional capacity amid cyclone-influenced trauma could be limiting their ability to access support.
Penk was sceptical of McAnulty’s assessment, saying the disconnect indicated the “general sloppiness” with which the funding has been rolled out.
Robertson said yesterday that the Government had decided the money should be distributed by local delivery partners, which all had different processes.
“We can always look back and say, ‘Could this have happened quicker in different places in different ways’, but it did the job it needed to do.”
Grant Robertson has a tour of Taylor Corp Orchard and Packhouse in Waiohiki, Taradale. Photo / Mark Mitchell
A joint statement on behalf of all Hawke’s Bay councils, including Hawke’s Bay Regional Council, Napier City Council, Hastings District Council, Central Hawke’s Bay District Council and Wairoa District Council, said they hoped lesser-affected property owners would be contacted from tomorrow about what rebuilding they might have to complete.
The severe weather risk assessment process, done in collaboration with the Government’s Cyclone Recovery Taskforce, involved looking at data from a range of sources, including the regional council, the Ministry for the Environment and claims data from insurance companies.
“Once completed, local councils will be able to communicate directly with impacted property owners to let them know the outcome of this risk assessment process and what that means for recovery for the area their property is in,” the councils said.
“For those with properties in Category 2 or 3 areas [areas that were more damaged by the cyclone], these initial assessments will only be the start of the decision-making process, with an engagement process with impacted communities expected to commence by mid-June.”
Consultation with property owners had been repeatedly delayed. It was initially supposed to begin last month.
In areas like Esk Valley, where homes and orchards were ravaged by cyclone-driven flooding, residents and growers would be anxiously waiting for the Government to announce where it was unlikely flood-prone areas would be insured given the risk posed by future severe weather.
Robertson confirmed that the Cabinet was “on track” to “make the decisions we need to make”, but gave no further details.
