Law change on natural hazard info “a critical action” under National Adaptation Plan

Insurance Business breaks down proposed amendment welcomed by ICNZ

Law change on natural hazard info “a critical action” under National Adaptation Plan

Catastrophe & Flood

By Terry Gangcuangco

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has welcomed the proposed change that is aimed at empowering councils to share better natural hazard information, but what exactly does the Local Government Official Information and Meetings Amendment (LGOIMA) Bill entail? Insurance Business breaks it down here.

Introduced by Associate Minister of Local Government Kieran McAnulty, the LGOIMA Bill not only looks to improve natural hazard information provided in land information memoranda (LIMs) but is also designed to align the withholding and certification processes with the Official Information Act 1982 (OIA).

If passed, according to the legislation’s explanatory note, the bill will amend the Local Government Official Information and Meetings Act 1987 to introduce a number of things. These include clearer requirements to provide natural hazard information in a LIM, as well as limitation of legal liability for local authorities when disclosing natural hazard information in good faith.

The impacts of climate change form part of the natural hazard information.

McAnulty noted: “In Aotearoa New Zealand, all our communities are at risk of severe weather and natural hazards – be it flooding, earthquakes, or landslips. Severe weather events are becoming more severe and more frequent due to climate change, so it’s essential the public have the information they need to build resilience.

“There are serious issues with how LIM reports currently disclose natural hazard information. LIMs can often be 100s of pages long and refer to detailed technical reports, which the average person doesn’t have the time or expertise to read. Councils may also not include helpful summaries or clear explanations for fear of legal action.”

The associate minister said the above issues will be fixed by the LGOIMA Bill, the key objectives of which include ensuring that LIMs provide clear, concise, and easily understood natural hazard information for the benefit of property buyers.

As for the proposed limitation of liability, the goal is to incentivise greater sharing of natural hazard information, without removing the ability of affected parties to bring legal action against local authorities in cases where natural hazard information is not provided despite being known.

The bill is also introducing a statutory responsibility for regional councils to provide natural hazard information and support to territorial authorities, ensuring that regionally held natural hazard information is included in LIMs and formalising existing information-sharing between regional councils and territorial authorities.

Commenting on the crucial role of the proposed changes, McAnulty declared: “This amendment is a critical action under the National Adaptation Plan as it will empower the public to make informed choices on where they build their future.”

Essentially, to the extent that it is known, understandable information about each existing and potential hazard or impact should be included in LIMs.

McAnulty went on to point out: “The government is also using this opportunity to align the withholding and certification processes of the LGOIMA with the Official Information Act.

“Adding conclusive withholding grounds to LGOIMA will align the Act with the OIA and allow the intelligence agencies to share sensitive information with councils to help them manage security risks, including cyber threats and foreign interference.”

For ICNZ chief executive Tim Grafton, clearer requirements for the inclusion of natural hazard information on LIMs and protection for councils in providing the information are long overdue.

“It is also long past time that councils do more to simply stop development in high hazard zones, particularly those identified around our coast and in known flood zones,” asserted Grafton.

Open soon for public submissions, the LGOIMA Bill is slated to be passed next year.

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