Up-front reimbursements for flood-affected councils

Tue 22 March 2011

Flood-affected councils across Victoria will be eligible to receive money for flood recovery works up-front under new arrangements announced by the Victorian Government today.

The Government has written to the mayors of Victoria’s severely flood-affected councils to notify them that, as a matter of urgency, up to 50 per cent of eligible National Disaster Relief Recovery Arrangements (NDRRA) claims would be paid to councils in advance.

This will be of great benefit, particularly to councils with relatively small populations but large road networks that were severely damaged by the flood events.

Until now councils have had to carry flood restoration costs until reimbursement of claims under the NDRRA, putting significant pressure on cash-flow, and many councils have had to draw on overdraft facilities to get by. These changes will eliminate the concerns held by councils and will give them the confidence to proactively carry out works needed to help communities recover.

NDRRA assistance is currently available to offset costs associated with emergency protection works and the restoration of essential municipal and other public assets.

Councils may claim any extraordinary salaries, wages or other expenditure incurred as a direct consequence of the emergency, including overtime and allowances of council staff, the backfilling of staff deployed to response operations, and the engagement of external contractors.

In addition to the up-front payments, more resources will be put in place to fast-track the processing and reimbursement of claims.

There is an enormous task ahead in repairing damage to roads and public infrastructure following the floods and the Government is taking practical steps to help Victorians recover from these disastrous events.