A NSW Parliamentary inquiry into the flooding catastrophe has recommended the state government consider investing in relocation and land swaps for people who wish to move from hard-hit areas and that it should increase mitigation spending.

The report says the state should assist local councils, which need increased ongoing, long-term funding and access to technical guidance to implement flood mitigation measures, and it should ensure that land-use planning and development takes a risk-based approach.

“A failure to consider floods and fires before building new homes has the potential to perpetuate the losses experienced in the past five years and exacerbate the problems in future,” the Upper House committee report says.

“Therefore, the committee believes that the NSW Government should work with local government, industry and sustainable planning experts, including the Government Architect, on policy initiatives in the NSW planning system that will help deliver more resilient and sustainable homes, buildings and places.”

Separately, the State Government earlier this year commissioned an independent inquiry into the floods, with Mary O’Kane and Michael Fuller engaged to lead the inquiry.

The Upper House committee says it understands the Northern Rivers Reconstruction Corporation is waiting for the outcome of that inquiry before determining options for long-term housing such as buybacks, land swaps and house raising.

The committee also recommends that NSW advocate through the National Cabinet to widen eligibility under the Disaster Funding Recovery Arrangements to allow local councils to build back better, rather than having like-for-like repairs.

The parliamentary inquiry found NSW government agencies and the Bureau of Meteorology were not prepared for, “nor did they comprehend” the scale of the February-March floods, and some agencies were criticised for treating it as a nine to five business operation.

The report particularly focused on the performance of the NSW State Emergency Service (SES) and Resilience NSW as the leading agency in recovery.

“Ultimately, the committee found that these two organisations failed to provide leadership and effective coordination in the community’s greatest time of need,” Committee Chairman Walt Secord says.

“Demarcation disputes and a lack of integration slowed the roll-out of support and assistance to flood-affected communities.”

The report suggests the government consider abolishing Resilience NSW if it’s unable to ensure certain reforms.

The inquiry received input on insurance affordability, and says many stakeholders advocated for insurance reform. Suggestions included that flood cover should be made mandatory and the insurance subsidised, while some participants suggested a state or federal scheme.

In total, the report makes 21 findings and 37 recommendations. The committee received almost 90 submissions and almost 120 responses to its online questionnaire and held public hearings and forums.