Upper Hunter Shire Council is calling on the NSW Government to urgently review disaster recovery funding rules, following significant damage to local water infrastructure caused by a storm event on 3 August which was subsequently declared a natural disaster.
The storm left Council with close to $500,000 in costs to repair essential water infrastructure. Despite the scale of the impact, water and sewer assets are currently ineligible for cost recovery under natural disaster declarations, due to their classification as “commercial activities.”
Mayor, Maurice Collison said the situation highlights an “inequitable and short-sighted” approach that unfairly burdens small rural councils and communities.
“Labelling water infrastructure as a commercial enterprise ignores reality. These are vital public assets, every bit as essential as roads, bridges, or community facilities – assets which do qualify for recovery funding,” Mayor Collison said.
“Excluding water and sewer services from disaster recovery frameworks places an unreasonable strain on rural councils. Not only is it cost-shifting from state to local government, it is targeted cost shifting where the regional councils are affected but not the metro councils, and it leaves communities like ours to carry the financial burden for damage caused by events beyond our control.
“We are urging the NSW Government to reconsider its position and revise the criteria to ensure water and sewer assets are included in disaster recovery funding. Our communities cannot, and should not, be expected to shoulder these costs alone,” he said.
