Southern ratepayer help part of Kaikoura recovery

Southern ratepayers are helping Kaikoura recover from last year's massive earthquake.

The Kaikoura District Council yesterday confirmed it faced an estimated $30million repair bill for damage to its infrastructure, including water pipes, wastewater assets, a swimming pool and the town's port.

The council's bill was just one part of a much larger insurance bill.

Tens of thousands of private insurance claims have been lodged since November 14's magnitude 7.8 quake, it was reported yesterday.

Kaikoura council's claims would be covered by a mixture of insurance, government contributions and, potentially, increased debt and rates rises, staff confirmed yesterday.

But it would come in part from the Local Authority Protection Programme (LAPP), the collective infrastructure insurance fund administered by Civic Assurance.

Kaikoura's council was among 32 local authorities that paid for membership of the fund, to insure infrastructure assets that might otherwise not be covered.

In the South, the Waitaki and Gore district councils, Invercargill City Council and Environment Southland were also members, and their annual contributions - funded by ratepayers - went into the fund used to pay claims.

Waitaki Mayor Gary Kircher said he was happy to pay.

''That's what you pay insurance for. It spreads the risk ... because you just don't know when it might be your turn next,'' he said.

The fund offered councils one way to cover 40% of any damage bill, which they were required to meet before accessing Government support for the rest of any bill.

But Kaikoura's bill came as the LAPP fund continued to rebuild, having been depleted by Christchurch earthquake claims in 2011.

Despite that, LAPP chairman Langley Cavers said the fund remained in a ''sound financial position'', with more than $50million in reinsurance available to cover members' claims.

When central government's 60% contribution was included, up to $125million was available to assist members, he added.

Kaikoura council asset manager Gerry Essenberg said the council's estimated $30million bill could rise or fall by up to 50%, but it was hoped less than 30% of the final figure would have to be covered by the council and its ratepayers.

The rebuild would include ''significant'' projects, such as repairing damaged water and wastewater pipes and other infrastructure, including oxidation pond, a water reservoir and sewer and water mains.

The town's port facility - owned by the council - also required repairs, after the sea floor lifted during the earthquake.

Parts of the town's swimming pool, built in the 1970s, had also suffered significant damage, and the complex would need to be repaired or replaced, he said.

That could take time, as the public would need to be consulted about options, ranging from a repair to a rebuild on a new site, he said.

Kaikoura council finance manager Sheryl Poulsen said staff were still negotiating with LAPP's administrators on a final payout, the size of which was not yet known.

The council had received a $1million advance from the fund to ''alleviate any stress on our cashflows'', in addition to payouts from other sources.

It was not yet known what impact the bill would have on the Kaikoura council's rates or debt levels.

chris.morris@odt.co.nz

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