The New Zealand Government has announced an agreement with local councils of the cyclone-affected region of Hawke’s Bay to help share the costs of buying out nearby properties that face unmitigable future risks. 

The Government says agreements with the five regional councils could see up to $NZ556 million ($515.76 million) in support of purchasing residential properties placed in category 3. Category 3 designation relates to properties located in areas where mitigation would not work to prevent future damage from extreme weather.   

Finance and Cyclone Recovery Minister Grant Robertson says the Government will contribute half the net cost of homes – based upon agreed values between the Government and councils – for the voluntary buyback program.  

“The sharing of these costs reflects our approach to the recovery being led by local councils, supported by central government,” Mr Robertson said.  

“Alongside that agreement the Government is making further significant investment in roading improvements and the building of new transport infrastructure.”  

Mr Robertson says the Government will also provide a $NZ203.5 million ($188.77 million) investment in mitigation work for category 2 properties, which require further protections to reduce risk from future disaster events, as well as a $NZ260 million ($241.18 million) support package for transportation projects across the region.   

“All through this process the Government has been supporting a locally led solution as this is what local government wanted,” Mr Robertson said. “I am pleased we have reached agreement today on this important next step.”  

The Hawke’s Bay region was one of several regions devastated by Cyclone Gabrielle and North Island floods earlier this year, with the Insurance Council of New Zealand reporting more than 107,000 claims at an estimated value of $NZ3.18 billion ($2.9 billion) across the country.