Rates caps could undermine effort to strengthen emergency management

Proposed rates capping could undermine efforts to strengthen emergency management, LGNZ has warned.

LGNZ President Rehette Stoltz said the recent landslides at Mount Maunganui and Pāpāmoa have been devastating.

“They’ve brought into sharp focus the tragic risks communities face during severe weather events.”

Recent data analysis commissioned by LGNZ also shows states of emergency are becoming more frequent.

LGNZ has published its submission on the Emergency Management Bill and welcomes reform to have clearer roles and address gaps in capability, coordination and consistency during emergencies.

However, it’s estimated the Bill will cost local authorities $82.8 million over the first four years to implement. This does not include costs of meeting higher standards the legislation could impose, which would particularly impact councils who already have funding challenges.

It comes alongside other reforms such as changes to the resource management system that will cost $870 million to establish and administer.

Stoltz said the Government’s proposed rates caps will leave councils without the means to meet any additional responsibilities under the Bill.

“We support a strong Emergency Management system but there is a risk the Bill's objectives will be undermined unless we have a clear conversation about how we pay for it as a country.

“Otherwise councils will also be forced to trade off proactive measures like flood defences and stormwater upgrades against other pressing responsibilities.”

Stoltz acknowledged the Government has included proposed variations to rates caps for unforeseen and urgent situations such as weather events.

“We welcome these variations; but, because they are proposed to be primarily available only after a significant event, they will limit councils’ ability to invest proactively in reducing risk.”

Every dollar spent on disaster preparedness saves at least $4 in response and recovery, she said.

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, Stoltz said.

“That’s why councils need access to more funding tools like a civil defence levy.

“Communities turn to their councils when disasters hit. A levy would help councils fund the emergency response effort required.”