Local governments have criticised insurers for failing to share flood information and expecting communities to pick up the tab for data collection.

Councils have also told the Productivity Commission’s inquiry into disaster funding that their efforts to mitigate risk are hampered by red tape.

They say they have to spend money unnecessarily to meet the requirements of the Natural Disaster Relief and Recovery Arrangements, and they would like to upgrade damaged infrastructure – known as betterment restoration – but the funding is hard to obtain and they are often discouraged from applying.

The Australian Local Government Association says all levels of government accept they must work together on risk assessment and management.

Many councils make flood mapping publicly available, but others do not have data or fear incurring legal liability.

Some believe insurers should contribute to mapping costs “rather than expect the public to fund this work in its entirety”.

The association’s submission also says insurers do not take account of mitigation measures.

The City of Charles Sturt in SA says insurers appear to rely on their own floodplain mapping, which they refuse to share with state or local governments.

The Far North Queensland Regional Organisation of Councils says high premiums are based on postcode rather than risk, and “risk mitigation works at this point of time will not [have an] impact on insurance premiums”.

Councils cannot afford to upgrade infrastructure to disaster-resilient standards and say residents expect them to restore damaged roads quickly, rather than taking the time to design and fund betterment.

Victoria’s Mitchell Shire Council says a levee bank for the Goulburn River would save more than $21 million of recovery costs and lead to lower premiums, showing there is a strong case for funding mitigation.

Blue Mountains City Council says the NSW Government’s controls on rate rises prevents it from covering the cost of bushfire prevention and maintaining firefighting assets.

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