Response, other response and recovery claims following an emergency event

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Eligible costs

The Government, in accordance with Section 33 of the Guide to the National CDEM Plan will fund eligible response, other response and recovery-related costs incurred by a local authority:

• Eligible response (welfare) costs will be 100 per cent funded by the Government.
  E.g. caring for directly affected people (accommodating, transporting, feeding, and clothing people as a result of an emergency)
• Eligible other response costs will be 60 per cent funded by the Government (above the local authority’s threshold) and 40 per cent funded by the local authority.
  E.g. precautions or preventive actions to reduce immediate danger to human life, where those precautions or actions were begun during the response period or immediately before the emergency.
• Eligible recovery costs will be 60 per cent funded by the Government (above the local authority’s threshold) and 40 per cent funded by the local authority.
  E.g. Essential infrastructure recovery repairs.

Local Authority Threshold for Reimbursement

Section 33.4.2 the Guide to the National Civil Defence Emergency Management Plan 2015 states that:

Government policy is to reimburse 60 percent of other eligible response costs, combined with essential infrastructure recovery repair costs, above a threshold of:

• 0.0075 percent of the net capital value of the city council, district council or unitary authority involved.
• 0.002 percent of the net capital value of unitary authorities where the assets in question are of a type that ordinarily are managed by regional councils, or
• 0.002 percent of net capital value in the case of regional councils.

Capital value (CV) is also known as Government Valuation (GV) or Rating Valuation (RV).

Capital values are for rating purposes. A local authority’s net capital value for the purposes of calculating the threshold must relate to the capital value of all properties in the City, District or Regional Council at the time of the emergency. The reference to net capital value means the capital value exclusive of GST (if GST is applicable).

Claims process

The flowchart below sets out the claim review process, from when an initial claim is submitted by a local authority, through to the reimbursement of eligible costs.

The claims process ensures that the:

• internal and external processes are completed efficiently and effectively;
• processes can be tracked from initiation to completion and processes are clearly documented;
• timely reimbursement of eligible costs; and
• all local authority claims are considered consistently.