With New Zealand entering a future where natural disasters are more frequent, more destructive and more expensive, the country needs to build on existing momentum to materially reduce risks before disasters strike.
But according to a report by IAG New Zealand, titled ‘A long-term approach to natural hazard risk reduction’, there are concerning gaps in how the country plans, builds, invests and governs to reduce the impacts of its earthquakes, floods and cyclones.
“Our country needs councils, communities, businesses and homeowners to reduce the natural hazard risk they face,” said IAG New Zealand Chief Executive Phil Gibson.
“But New Zealand does not yet have a complete or coherent approach to enable this, and we want to help.”
The report provided a snapshot of New Zealand’s ability to reduce risk now and in the future. It found:
- Natural hazard risk is rising faster than New Zealand’s ability to manage it
- The current approach is complex, fragmented and poorly coordinated
- Councils are expected to carry the load, without the necessary tools, funding or guidance
- The true economic cost of disasters is not properly reflected in decisions
- Successive governments have increasingly focussed on improving New Zealand’s response to growing risk rather than managing the risk
- Without further reform, repeated disasters will undermine growth, confidence and public finances
“This problem is solvable, but there are pieces of the puzzle that must be added to our current approach if we are to do a better job of reducing risk,” said Mr Gibson.
“This report distils the insights of over fifty New Zealand experts and practitioners to put those pieces on the table.”
He also said, “Our aim is to ensure that growing natural hazard risk does not become a chronic problem for New Zealand. If risk is well managed, the cost and harm it can create will be kept in check, with flow-on benefits for the cost and availability of insurance.”
New Zealand is one of the most hazard exposed countries in the world. Over the last 15 years, disasters have cost at least NZ$4.2bn ($2.44bn) a year. Over that time, IAG New Zealand noted that nearly all the spending was put into response and recovery, rather than reducing the impact of hazards.
The gaps
The report identified 42 gaps in New Zealand’s approach to risk reduction, ranging from the need to complete and improve what has already been started, through to finding solutions to new problems faced in the future.
New Zealand currently lacks:
- A clear strategy to reduce risk that is backed by straightforward objectives, incentives and governance to properly target, prioritise and monitor risk reduction
- Consistent and effective rules, frameworks and incentives to improve decisions on where and what to build to ensure safety and resilience
- Clear expectations about who pays, for what and when, as well as the means to pay for new and bigger risk reducing solutions
- Reliable, accessible hazard and risk information to support decisions and the right level of skills and knowledge to make use of it
- Solutions to deal with existing buildings and infrastructure when they can no longer withstand the impacts of increasing natural hazards
As a result, the human and financial cost of disasters continues to grow with serious consequences for affected communities and New Zealand’s long-term economic resilience.
What next?
The report has called for the government to have a clear, long-term roadmap for improving how New Zealand reduces natural hazard risk and proposes one approach to this.
“We recognise the practical and financial constraints and remain focussed on enabling better decisions and more action to reduce avoidable costs and harm. The long-term benefit will be a more insurable, investable and economically stable New Zealand,” said Mr Gibson.
“New Zealand has choices in how we fill the gaps and needs identified in this report. But delay, half-measures and political caution will cost us in the long run.”
The report can be accessed here.