Official documents have shone more of a light on the enormity of the financial costs of Cyclone Gabrielle – which tragically took 11 lives. Neil Reid reports on the damage done and the way forward

As the multibillion-dollar cost of Cyclone Gabrielle rises, the tourism industry has been singled out as one which could help get the hardest-hit region’s economy back on its feet.

Hawke’s Bay was the hardest hit region when the deadly cyclone cut a path of destruction through parts of the North Island in mid-February.

The majority of the 11 people who died in the natural disaster were from Hawke’s Bay.

Also, insurance claims relating to Cyclone Gabrielle’s damage to homes, businesses, cars and boats in the region amount to more than half those of the 13,221 claims lodged from across the North Island; a huge $481 million of the $889m sum.

As well as the damage caused to thousands of Hawke’s Bay homes, the cyclone also destroyed businesses and wiped out vast soon-to-be-picked crops of fruit and vegetables.

The shattering financial blow also includes damage to the agricultural and other industries.

Tens of millions of dollars have also been wiped off the Hawke’s Bay economy due to the cyclone-enforced cancellation of several events which are traditional financial booms for the area.

A briefing paper prepared by the Hawke’s Bay Civil Defence Emergency Management Group (HBCDEMG) - comprising mayors and other officials from councils across Hawke’s Bay – revealed that includes an estimated $25m due to the cancellation of Art Deco and Horse of the Year events.

The destruction caused by Cyclone Gabrielle is everywhere to be seen in Esk Valley. Photo / Neil Reid

The document said due to the financial impact, Hawke’s Bay had to do all it could to reboot its tourism industry as the region faced a long recovery.

“Getting tourists back to Hawke’s Bay will be key to the region’s recovery,” the report said.

“Once the roads are reopened and the bars, hotels and restaurants have opened their doors, the region is going to need tourists to come to the area and spend money.”

Due to the devastation created by Cyclone Gabrielle – and the need for naval ships to berth at Napier Port – cruise ships bypassed the city for several weeks; again, another financial blow for the region.

The HBCDEMG said quantifying the magnitude of the “flow-on” effect for the region would be a “significant challenge”.

Pumpkins are strewn across the side of a road in Pakowhai, between Napier and Hastings, which had been swept away from the paddock they were growing in. Photo / Neil Reid

“The economic impact will include the loss of productivity for the region and the country, the shops that aren’t open and can’t sell their product, those who were stuck at home and unable to get to work, unemployment following business closures,” the cross-council document stated.

“This will slow down GDP and output is expected to be severally impacted as a result”.

The damage to key crops would also lead to challenges for food production “for some time to come”.

The HBCDEMG said Cyclone Gabrielle – one of the worst storms to ever hit New Zealand – would have “inter-generational” impacts across society in Hawke’s Bay.

The mental scars suffered by many Hawke’s Bay residents were also a huge cause of concern for the multi-council agency.

Its paper said the cyclone “has had and will continue to have serious implications including to the region’s overall mental health and wellbeing, resulting in psychological problems including frustration, stress, exhaustion, and depression”.

“There is also likely to be negative impacts on child wellbeing and development as affected children experience isolation and disruption to their education.”

HBCDEMG also confirmed that across the region there had been “an increase in domestic violence, crime and anti-social behaviours”.

A vast paddock planted with corn was destroyed by the flood waters and walls of mud and silt created by Cyclone Gabrielle. Photo / Neil Reid

The report said the full environmental impact on Hawke’s Bay’s flora and fauna would not be known until further studies were carried out.

As well as the damage to horticultural and agricultural land, there were also concerns for the cyclone’s legacy on a range of rare and threatened species living in the region; including kaka, kiwi, kokako, long-tailed bat, tree weta and kaka beak.

The same went for inter-tidal zones, dune areas (particularly Ocean Beach which has nesting boxes for penguins) and offshore areas which are nurseries for fish, and also sub-tidal rock reefs which supported a diverse range of algae, shellfish, crayfish and fish species.

“All of these are expected to have been significantly impacted.”

The cultural loss would also be significant, the paper said.

That included the destruction of some marae and also burial grounds.

“Cyclone Gabrielle has been unforgiving to all, including to some of our most precious taonga across the region,” the report said.

The Esk Valley was one of the areas hardest hit by Cyclone Gabrielle. Photo / Neil Reid

“The socio-economic impacts in the region will be felt for many years to come, as communities deal with being displaced from whenua, the loss of marae, other places of safety and culture and the consequent stresses brought on by these events.”

At least 28,000 properties were identified as being impacted by the storm. As of March 6, of that number, 102 had been red stickered, with a further 1048 had been yellow stickered.

Red stickered means no one can enter a building due to the “high level” of risk. Entry to yellow stickered properties is restricted, meaning it cannot be used or entered except under supervision for a limited time or on essential business.

The HBCDEMG report described the region’s roading network as being “significantly hammered”.

Across Hawke’s Bay, more than 150 bridges had been damaged and more than 20 destroyed.

Due to the widespread roading outages, 31 communities across Hawke’s Bay were still isolated three weeks on from the deadly storm.

Another document prepared by the Hastings District Council (HDC), dated March 4, revealed the huge costs of repairing roads and bridges in its catchment.

“The council is currently spending around $600,000 per day on roading repairs and access restoration,” the report said.

Across a seven-day week that would amount to $4.2m.

The “extensive” damage created to roading infrastructure resulted in nine of its bridges being destroyed. A further seven were “badly damaged” and 19 had damage to the approaches to them.

As well as the bridge damage, washouts and slips on other roads lead to “isolation and lack of access to several communities”.

The widespread damage meant the HDC had to refocus resources from “business as usual” jobs, to response and recovery.

Further north, a report prepared for the Wairoa District Council’s (WDC) finance, assurance and risk committee estimated costs to repair council infrastructure to be a whopping $130 million.

That includes estimates of $50m for spillway resilience review and construction, and $25m for riverbank erosion protection.

The WDC is expected to have to contribute around $50m towards the extensive roading repairs in the district.

The roading network around Wairoa suffered extensive damage. That includes several bridges being washed away and SH2 south to Napier expected to be closed until at least the end of May.

Almost two months on from Cyclone Gabrielle’s path through Hawke’s Bay, roadside mounds of silt and the sight of residential properties and agricultural and horticultural covered in silt are a daily reminder of the destruction.

And what to do with it will be one of the big issues for councils throughout Hawke’s Bay. The WDC has been the only council that hasn’t left it up to homeowners to pay themselves, or via insurance, to clean silt up.

The HDC report said its council had to be “cautious” in how it considered the extent to which it became involved in “silt clearance and land ‘rehabilitation’.”

“While providing assistance to affected households for waste is a policy and service choice for public health and humanitarian justifications, involvement in large-scale silt clearance, particularly from commercial horticulture and farming operations, may be a different matter,” the report said.

“Council is likely to lack both the financial capability and the policy justification to play a significant role in silt clearance and other ‘rehabilitation’ of privately held land.”

The Hastings report also covered how the impacts of Cyclone Gabrielle would have a long impact on the local economy, as well as how the council itself operated in terms of budget priorities.

“While there are still strong and viable industries across Hawke’s Bay, the impact suffered will have flow-on effects to other industries/businesses and to the communities that derive incomes from affected businesses.”

In terms of council operations, the report said a “high priority” would be investment decisions that supported business confidence and flood protection.

Council would be “unlikely” to be able to undertake the significant recovery requirements as well as deliver on previous strategic priorities set out in a long-term plan well before Cyclone Gabrielle hit.

“As council gradually turns back toward its normal planning and business processes, consideration will need to be given how priorities need to change in light of the impacts from Gabrielle.”