
As The Sea Level Rises, Who Will Pay? Councils Seek Answers
Local Government New Zealand (LGNZ) has warned a lack of clarity over who pays for measures to protect communities from sea level rise, flooding and weather events could leave ratepayers with a hefty bill.
The concern follows the release of a report from the Ministry for the Environment's Independent Reference Group on Climate Adaptation, which raises the question of who should pay.
Waimakariri District Council chief executive Jeff Millward said his council is beginning work on a climate adaptation strategy as it looks to prepare for the threat of sea level rise and the growing number of severe weather events.
For earthquakes and flooding events, the council has insurance through the local authority protection plan, which covers 40 percent and the balance coming from Government or loan funding.
But preparing for sea level rise and flood mitigation measures costs money, Mr Millward said.
As the risks become more severe, there may be changes to what insurance is available, or even ''no insurance at all''.
''Does it fall back on the ratepayer or the taxpayer? It is a bit more complicated and a lot more discussion has to happen.''
Councils already have clauses in District Plans identifying natural hazards and impose regulations such as minimum distances from the waterline and raising floor levels to 1.5 metres off the ground.
''People like living near the beaches or rivers, but it puts those properties at risk, so there is going to be a lot of modelling work done to identify the risks and develop and array of tools,'' Millward said.
Kaikōura District Council chief executive Will Doughty said the region's councils are working on adaptation plans, following the launch of the Canterbury Climate Partnership Plan by the Canterbury Mayoral Forum in December.
''One thing is for sure - there is going to be a bill. I think we do need clarity and it is a conversation we need to have.
''I think the steps Canterbury has taken as a region to put that action plan in place has put us in a good position.
''It's a much bigger issue than any one particular district and the more joint action we can be doing the better.''
The recent report warned it may not be sustainable for government buy-outs to continue for properties in at risk areas, with weather events such as those facing the Nelson region expected to become yearly events in some areas.
It recommends phasing out those buy-outs over a 20 year period. Adaptation measures, such as flood schemes, sea walls and infrastructure, should be funded by those who benefit, the report advised.
On Monday, Prime Minister Christopher Luxon told RNZ the government will not be able to keep bailing out homeowners after major floods.
The Hurunui District Council has completed climate adaptation plans in partnership with its beach communities.
It has led to the council buying a $3.8m block of land south of Amberley to prepare for future events.
Residents from at-risk communities will be able to secure sections by paying a targeted rate over the next 30 years.
The plot of land would be attached to their existing property, so the two properties cannot be sold separately.
When the time comes, residents could transport their house to the new section, or build onsite.
Council chief executive Hamish Dobbie the issue is complex and councils need some guidance from government.
''Some guidance suggests we should be involved at all. We should only be involved in roads and pipes.
''There needs to be a good sensible conversation about this.''
LGNZ vice president Campbell Barry said the ministry's report has failed to address some concerns previously raised by local government.
''It's good to see the report's sense of urgency. Our submission on climate adaptation in June last year stressed that action is needed now.
''We need to have better policies and frameworks in place to cater for increasingly severe and frequent weather events.
''Local government can't afford to have another Cyclone Gabrielle. The aftermath of a significant weather event like that comes with massive financial, infrastructure and human costs for communities.''
Barry said the lack of clarity meant the burden of paying for adaptation was likely to fall on ratepayers.
Luxon said Climate Change Minister Simon Watts had been working to get a bipartisan view on how to deal long term with major weather events.
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