The Government will splash close to a billion dollars to help cyclone and flooding-hit communities in the North Island recover and futureproof themselves against new disasters.
The $941m pre-Budget announcement in Cyclone Gabrielle-slammed Hawke’s Bay on Sunday includes $475m to rebuild road and rail links that will take funding pressure off local councils.
Roughly $100m has been set aside to raise stopbanks and shore up lifelines that failed during record rainfalls.
There’s also a Government commitment to rebuild or repair every damaged school - the worst-hit of whom have been told it will be up to three years before they can return.
Prime Minister Chris Hipkins said the package was about repairing and rebuilding what has been damaged and “making smart investments” to ensure future events don’t cause the same devastation.
“This recovery package will get roads, rail and schools back to where they were before the extreme weather hit this year so communities can get back to normal as soon as possible.
“Cyclone Recovery is a core focus of this year’s Budget, and today’s package adds to the $890 million already provided in a rolling maul of repair works and business support.
“The Government promised to stand beside these communities as they recover and rebuild from New Zealand’s second most costly natural disaster. Today’s package affirms our ongoing commitment.”
Treasury has estimated the damage from Cyclone Gabrielle and the Auckland Floods could range from $9 billion to $14.5 billion.
That would put it second behind only the Canterbury earthquakes in terms of damage from natural disasters New Zealand has faced.
Of this, $5 to $7.5 billion of damage is expected to relate to infrastructure owned by central and local governments.
Finance and cyclone recovery minister Grant Robertson said Cyclone Gabrielle hit the country when the Budget 2023 process was relatively advanced.
“As a result we made the call that the response would be prioritised over other initiatives which were in the draft Budget package at the time.
“This package is significant but is not the end of our support to weather affected regions as we continue to work alongside them on their road to recovery.”
Road and rail given $475m
Transport Minister Michael Wood said damage to the North Island transport network by Cyclone Gabrielle and the January floods was putting financial pressure on councils.
“With cost of living pressures affecting many families across the country we are acutely aware that the significant cost to rebuild local roads could lead to unmanageable rates increases.
“So we’re stepping in to cover more of the costs of clearance and rebuild so Councils can get on with the work without having to rely on increasing rates.
The funding includes $275 million earmarked for Waka Kotahi NZTA and local councils to repair affected roads. This is on top of $250 million the Government announced immediately after Cyclone Gabrielle.
“Through this funding Waka Kotahi will be able to consider requests from affected regions for higher levels of direct financial support to rebuild local roads,” Wood said.
“We’re also investing to repair the North Island rail to restore this crucial transport connection for people and freight, with a $200 million funding injection.
“This will get our rail network back in action by investing to repair the rail tracks, sleepers, bridges, and other structures that were damaged, and to clear debris from the tracks caused by slips and washouts.”
Repair work will be focussed on the North Auckland Line and the Palmerston North to Gisborne Line, as well as the Auckland metropolitan network, the North Island Main Trunk and the East Coast Main Trunk.
$100m for flood protection
Regions affected by the recent North Island extreme weather events will be able to apply for funding from an initial $100 million in Budget 2023 for local solutions to keep them safe from future floods.
“Flooding and debris has destroyed homes and businesses, cut off communities and caused widespread damage, particularly to industries like horticulture,” Hawke’s Bay recovery lead minister Kieran McAnulty said.
“We’ve also seen floodbanks protect communities from devastation. For example the Taradale stopbank, which was strengthened ahead of Gabrielle through the Government’s infrastructure programme, held during the cyclone.
“The $100 million protection fund announced today will go towards practical flood protection infrastructure like stopbanks as well as other local measures that can protect communities from flooding.”
$35m to support rural communities
McAnulty said Government would investing $35.4 million to support the safety and wellbeing of farmers and growers, and stock in cyclone-damaged areas by scaling up on-farm technical, scientific and financial advice.
This funding will support:
· access to expert advice where it is needed to inform and address urgent health and safety, animal welfare needs, and to ensure the safety of ongoing operations;
· urgent maintenance where this is critical to the health and safety of stock and staff; and
· critical transport of essential supplies, people, and stock related to animal health and welfare needs and health and safety.
Of this, $5.4 million will be targeted to help operate rural community hubs, and ensure ongoing access to reliable telecommunications including satellite connectivity.
$6m to foodbanks, focus on training
Businesses and workers in affected regions will receive a boost to employment and social support to help them through the recovery.
“The labour markets in Hawkes Bay and on the East Coast have changed. They usually have a regular and predictable seasonal jobs market, but the weather events have affected this and we are seeing the number of people on jobseeker begin to slowly rise,” Minister for Social Development Carmel Sepuloni said.
“The package we are announcing today will help people retrain and prepare for the jobs that will be required during the recovery and rebuild.
“As well as retraining, we will also focus on ‘retaining’.
“To achieve this we’re increasing investment in successful schemes to keep people in the workforce including the Transition to Work grant, the $5K to Work scheme, Mana in Mahi, and industry partnerships.
“There will be an additional $6 million for the Food Secure Communities programme to support community food providers, such as food banks and food rescue organisations, to meet the increased demand on their services,” Sepuloni said.
The recovery package also includes $5 million for Extending Community Support Funds, establishes a new Jobs and Skills Hub in Gisborne, and provides a further $1 million towards Enhanced Taskforce Green, who are still supporting councils with clean-up work.
$116m for Govt to repair or rebuild all weather-hit schools
Education minister Jan Tinetti said the Government was committing to return all schools impacted by the Auckland flooding and Cyclone Gabrielle to their pre-weather event state.
Funding will be provided for immediate repairs to over 500 damaged schools, with additional funding available for possible redevelopment or relocation of schools.
Tinetti said schools were often a hub for local communities and the effects of the damage were felt widely.
A further $700,000 would be invested over two years for Special Reasons Staffing funding, with $315,000 of that available immediately.
“This funding can be used to employ relief staff, provide teaching/principal release time, support students with engagement and wellbeing, or employ additional teachers for those schools that have experienced increased enrolment due to enrolling students from weather-affected areas,” Tinetti said.
“For some of the schools affected by the weather events this is going to be a longer-term recovery, and the Government will be with them on that journey.”
$10m to community-led mental health support
Health Minister Ayesha Verrall said the Government was investing in mental health and wellbeing support, including extending the successful Mana Ake programme developed following the Christchurch quakes into every school in the Hawke’s Bay and Tairāwhiti.
“We know from other disasters in New Zealand and globally that mental health impacts emerge over time. The demand for various services will change over the next 6 to 12 months, and our response will evolve to ensure we’re responding.”
“It’s not just the immediate response that’s important, there are longer-term impacts on mental health, which is why we’re allocating a total of $10 million to provide additional support for community-led mental wellbeing initiatives.”
The Government would roll out the successful Mana Ake programme to all Hawke’s Bay and Tairāwhiti primary and intermediate schools to support children impacted by the cyclone.
The package also covers $8.9 million in funding for front-line health providers supporting isolated communities in Northland, Tairāwhiti and Hawke’s Bay, and $6.1 million to cover community, primary and residential care.
An additional $1.7 million in funding will go toward leasing suitable vehicles to provide access to services, and diesel generators for the operation of health services while repairs are undertaken, and $8.3 million for the Hauora Māori disaster response. This is for urgent services that support whānau wellbeing and the community to recover from the impacts of North Island Weather Events.
Act Party leader David Seymour said the Government’s announcement was “astonishingly late” and cited complaints from people in cyclone-affected areas like Hawke’s Bay were still waiting for answers.
“It’s taken them three months to announce a lot of obvious things like they’ll have to fix roads,” he said.
“People I visited in Hawke’s Bay as recently as three weeks ago were still waiting for even basic decisions around flood protection.”
Robertson has remained steadfast that decisions about whether severely damaged areas could still be liveable would only occur after those communities had been consulted with.
While the Government has detailed the categories it intends to use to group areas based on the scale of damage, the timeline concerning consultation has been delayed several times.
Those in category one - the least affected - would be communicated with from May 31, while others in category two and three would be waiting longer into June.
Seymour said a central question the Government hadn’t yet answered was whether it was committed to rebuilding core infrastructure in impacted areas, which would then inform people’s dealings with their bank and insurance provider.
The aspiring new owners say they have 30 years' experience in hospitality.