Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

59

Other gaps in funding

5.57 The Committee also heard evidence from stakeholders about other gaps in DRFA

funding related to volunteers and staffing costs.

5.58 Some stakeholders said that DRFA should cover costs associated with managing

and coordinating spontaneous volunteers.

385 The Committee heard there is no

consistent framework or funding mechanism to support this coordination,

despite the vital role volunteers play is supporting affected communities during

recovery as discussed in Chapter Three.

386

5.59 Port Macquarie Hastings Council noted that it incurs on-cost expenses and

employee related costs that are higher than the 33 per cent allowed under DRFA

reimbursement. These costs must be absorbed into the Council's budget.387

5.60 LGNSW said that it advocates for the expansion of DRFA, so that funds can be

used on a broader range of assets and cover the true costs of disaster recovery

for councils.

388 These include:

- open spaces, sporting fields and community infrastructure389

- cleanup of damaged buildings and hazardous materials, such as

asbestos

390

- landslips and erosion, and navigational dredging.391

5.61 The Committee is concerned about the impact that ongoing natural disasters will

have on the financial health of councils and recognises that councils need funding

relief for repairing essential public infrastructure. It also believes the application

and assessment process should be made simpler, and that funding ought to be

granted so that councils can 'build back better'.

5.62 The Committee recommends that the NSW Government continue to advocate to

the Australian Government for reforms of DRFA to expand eligibility criteria to

include critical water and sewer infrastructure. It should also advocate to

streamline the application and assessment process, and ensure that funding

incorporates betterment of infrastructure.

Retrospective reimbursement forces councils to carry financial risk and delays recovery

efforts

Finding 14

Financial pressures under the current Disaster Recovery Funding Arrangements

are further compounded by the cumulative impact of successive natural

385 Submission 45, p 3; Submission 33, p 16; Submission 19, p 4.

386 Submission 19, p 4.

387 Submission 26, p 4.

388 Submission 35, pp 7, 20.

389 Submission 35, p 7.

390 Submission 35, p 21.

391 Submission 35, p 21.