The Northern Rivers Reconstruction Corporation, the agency tasked with reviving the flood-ravaged communities in northern NSW, gave advice to the inquiry that the government faces a recovery bill of $3 billion, on top of what it has already spent.
In June, Minister for Emergency Services Steph Cooke said the NSW and federal governments had committed more than $3.5 billion for the clean-up and recovery effort.
The government is set to unveil its full response to the floods disaster – and the cost – while engaged in an ugly dispute over funding for sports stadiums with the NRL and its powerful chief Peter V’landys.
The $3 billion recovery cost in NSW will dwarf a Queensland scheme introduced after Grantham was hit with devastating flash flooding in 2011. The Grantham scheme was a joint approach by the federal and state governments and saw residents offered properties on a piece of high land in exchange for their low-lying, flood-ruined homes.
Mayors in flood-affected parts of northern NSW have been calling on the government to push ahead with voluntary land buybacks without waiting for the inquiry’s recommendations.
In response, Perrottet said in June that he would adopt recommendations from the independent inquiry, including any proposals relating to the possible relocation of homes in flood-prone areas.
“We absolutely have to,” Perrottet said at the time. “If we have another flood like that in two or three years, and we’ve just gone back and done the same thing again, I would feel personally responsible.”
Queensland announced a $350 million home buyback scheme in March, a month after floods hit the south-east part of the state. The scheme is expected to help 500 people sell back their houses to the government.
The report has also recommended that Resilience NSW boss Shane Fitzsimmons be dumped and the disaster agency dramatically scaled down after the agency was widely criticised during the floods.
It will also call for the agency to be cut to a small office and its responsibilities reallocated to other government departments.
Former premier Gladys Berejiklian created the disaster management agency in response to the Black Summer bushfires, installing Fitzsimmons as its boss.
It has since faced scrutiny over its role, budget and employee-related expenses amounting to $38.5 million for 245 staff.
Former Bega MP Andrew Constance, who almost lost his south coast home in the Black Summer bushfires, was critical of the treatment of Fitzsimmons, given his work during the fires.
“For goodness’ sake, this is a bloke who saved lives, who was there for my community and our state during Black Summer,” Constance said in a video posted to Instagram on Thursday night. “I think he deserves a bit better than this.”
The flood inquiry report is a 700-page document that includes three volumes that address the preparation, response and recovery from natural disasters.
It is still under review by the government and a response to recommendations is expected in the coming weeks.
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