A decision has been made on how some of the most urgent cyclone recovery costs for Hawke’s Bay will be shared between central and local government.

Hawke’s Bay’s five councils have confirmed the terms of an agreement worth up to $556 million, subject to consultation with communities in Hastings and Napier.

The cost-sharing agreement will have councils with Category 3 residential properties and central government adopting a 50/50 cost-sharing approach to the voluntary buyout of these residential properties, with the Government contributing up to an estimated $92.5m. Government and council contributions will be net of any insurance proceeds.

The $556m agreement also includes $203.5m to be put towards flood protection. Subject to design, interest in land and ability to build, the proposed flood protection works will benefit areas that are currently Category 2 from Wairoa to Pōrangahau.

These include key sites such as Pākōwhai, Ōmahu, Waiohiki and Havelock North. Funding will also enable upgrades to specific pump stations and telemetry across the network. Also included in this figure is $70m specifically earmarked as the estimated cost of a fully funded flood protection scheme for Wairoa.

The remaining $260m will go toward specific transport infrastructure projects and programmes, which would include fully funding the Redclyffe Bridge replacement, the Puketapu, Matapiro and Aropauanui Bridge works in Hastings, Te Reinga Bridge works in Wairoa and critical roading recovery projects in Central Hawke’s Bay.

Further funding provisions would include culvert replacements, as well as additional support for transport resilience and repair initiatives across the region.

Hawke’s Bay Regional Council chairwoman Hinewai Ormsby says there is a plan for some of the difficult decisions that will still need to be made.

 “While confirmation of an agreement with the Government is significant, there will be some hard mahi ahead for all five councils. As the only region-wide council, we have and will continue to work with the other four councils to help Hawke’s Bay get back on its feet stronger and more resilient against future events.

“What lies ahead may be challenging for all councils, including the need to fund each council’s share of costs. We will need to ensure there is a plan to address some of the funding challenges and shortfalls that will inevitably exist.

“I’m confident, just as we all pulled together in the wake of the cyclone and to get this settlement negotiated for all the people of Hawke’s Bay, that we can overcome those challenges and move Hawke’s Bay forward, together.”

Central Hawke’s Bay Mayor Alex Walker reiterates that recovery is a long journey, and this decision is just one of a series of jigsaw puzzle pieces that will need to be brought together.

“Right across Hawke’s Bay, the impacts of Cyclone Gabrielle are diverse, far-reaching and complex.

“Last week’s announcement and confirmation of the funding and policy support from the Government is a big step forward for those households most affected. A vital puzzle piece, but not one that fixes all our challenges. We will continue to look for opportunities to ensure Hawke’s Bay builds back stronger, more resilient and more sustainable than before.”