Emergency system reforms will place new costs on councils - LGNZ

Local Government New Zealand (LGNZ) says the Government has signalled emergency system reforms will place new costs on councils – which will lead to higher rates bills.

A Cabinet Paper released today estimates the reforms would initially cost councils $82.8 over their first four years. This would cover implementing new requirements, updating civil defence emergency management (CDEM) plans and better engaging with communities and iwi Māori.

Councils will receive no additional funding to meet these new compliance requirements. LGNZ Chief Executive Susan Freeman-Greene says these new costs will leave councils with no option other than increasing rates.

“What local government needs is more financial backing from central government to respond to emergency weather events. Councils don’t need more costs and compliance measures pushed onto them, that can only be funded from rates,” says Susan Freeman-Greene.

“Communities turn to their councils when disaster hits and the Government expects councils to be responsive to their community’s needs. Locally led planning and response is critical, as councils lead their regions and communities through all phases of an emergency.

“As weather events become more frequent and extreme in New Zealand, councils are also increasingly bearing the brunt of emergency events. Currently councils fund civil defence activities through rates, receiving some central government support to respond to and recover from civil defence events.

“The actual bill for councils and their ratepayers could be much higher that the Cabinet paper implies, because it doesn’t account for the ongoing resourcing implications of minimum service levels.

“Like the Government, councils want to keep rates down. But rates are the only way they can cover these kinds of costs imposed by central government.”

Susan Freeman-Greene believes that a better solution is for the Government to empower councils through a separate funding source for emergency management.

“Last year LGNZ released a set of 25 funding and finance tools that could help councils better resource the infrastructure and services their communities need.

"One of these tools was a civil defence levy to help councils fund emergency response efforts and alleviate some of the significant costs they face when responding to extreme weather events and natural disasters.

“This levy, modelled on natural hazards cover, could be included with insurance premiums to support emergency preparedness and response.”