Means of paying for flood damage still to be decided

Richard Saunders
Richard Saunders
Questions remain over how local councils will pay for damage caused in Dunedin by last month's flooding.

As of this week, the Dunedin City Council (DCC) had spent about $1 million repairing damage to the city's roading network, but the figure was expected to climb several million dollars higher.

The Otago Regional Council (ORC) said yesterday it had spent about $250,000, but this figure also would climb.

City council group manager transport Richard Saunders said it was too early to answer some questions about how the cost of flood repairs would be funded and whether it would delay other projects.

''We should have a better idea by the end of the month and will then have a discussion with the New Zealand Transport Agency (NZTA).

''At this stage, all other projects are proceeding as planned. However, when we know the extent of the flood recovery costs, we will review this,'' he said.

Acting chief financial officer Gavin Logie said the council did not budget for ''emergency work of this nature'' and there was no identified damage from the rain event it could claim insurance on.

''Once we have a clear idea of total costs, we will have a discussion with the NZTA about its role in funding a portion of these costs.''

ORC chief executive Peter Bodeker said the cost of its flood response across the Otago region totalled $250,000, and there would be costs for which it had not yet been invoiced.

''Further costs are likely once we have completed the assessment of our flood and drainage infrastructure and know the nature and scale of any remedial work.

''We have not yet decided how these costs will be paid for.''

That would largely be determined by the level of infrastructural work identified by the ORC's assessments.

vaughan.elder@odt.co.nz


 

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