Communities across the country look back on the biggest storm to hit New Zealand this century.
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A controversial proposal to make some cyclone-hit homeowners pay tens of thousands of dollars to demolish their own homes has been axed by Hastings District Council.
Councillors were split on whether to back the plan when it was first tabled three weeks ago, and the decision was postponeduntil another meeting today.
They were again divided, with six in favour and six against.
That meant the deciding vote went to Mayor Sandra Hazlehurst, who voted to keep the status quo.
Plenty of people who attended the meeting burst into applause when she announced her position.
The proposal would have saved the council up to $2 million and would have cost about 80 or 90 Category 3 homeowners between $20,000 and $30,000 each, on average, to help cover the cost of demolishing their homes.
That money would have been taken off their buyout offer or relocation grant.
One homeowner labelled the proposal “flawed and unfair” after it was first floated.
The six councillors who supported the proposal cited the impact it would have on all ratepayers if the council, which is nearly $400m in debt, wore the full cost of demolition, estimated to be over $6m.
Hazlehurst said “this is a really big decision for us” and it was “absolutely appropriate” that the proposal had been brought before the council.
“There are views both for and against this amendment and they are very valid, and it is a very difficult decision for our councillors to make.”
She said she had recently written to Prime Minister Christopher Luxon, setting out the big recovery ahead and the need for further partnership.
Pakowhai, between Hastings and Napier, was one of the worst-hit residential areas during Cyclone Gabrielle. Photo / NZME
“My biggest concern is this: right from the beginning, from our negotiations with the Crown, [it] is a partnership.
“And a partnership means a partnership with the Crown.
“So I will vote not to include the amendment but to stay with the original policy that we signed off on.”
A written explanation was added to the council’s decision which noted that it would now “seek Crown assistance with the costs of demolition, in the interests of partnership”.
“While Government is providing 50 per cent of the funding for the buyouts, [Hastings and Napier] ratepayers are funding the remaining 50 per cent of the buyout cost, plus all of the costs of demolition,” Hazlehurst said.
Eskdale Holiday Park owner Dan Gale, whose home and business were severely damaged in the cyclone, said he was pleased the council had listened to affected homeowners and dropped the proposal.
“Rapt with the decision. It will be a weight off people’s shoulders and one less thing to worry about and a massive win for all of those that were affected.”
He said “20 grand is a massive deal” for a lot of people, including the likes of pensioners and those who had already lost so much in the cyclone.
He labelled the proposal “flawed and unfair” when it was floated.
Hastings District Council proposed the policy change to help cover the costs of demolition.
“Where property owners are fully insured, the insurance proceeds are likely to include an allowance for demolition,” council papers stated.
“The property owner retains that allowance, yet the cost for demolition falls on the council and ratepayers.”
Council papers also stated that some homeowners had received insurance payouts that were above the market value of their property, and a demolition contribution should be considered.
Napier City Council has yet to table a similar policy change. After Hastings’ decision, it is unclear what Napier’s plans might be.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
