New Zealand weather events prompt rethink of government housing protections

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FILE PHOTO: New Zealands Prime Minister Christopher Luxon attends a press conference with Australias Prime Minister Anthony Albanese(not pictured) at the Australian Parliament House in Canberra, Australia, August 16, 2024. REUTERS/Tracey Nearmy/File Photo

WELLINGTON - The New Zealand government is considering ending bailouts for homeowners affected by floods and landslides as it develops a framework for addressing the impact of climate change.

The government has often stepped in after natural disasters to buy properties, spending billions of dollars in recent years as climate change-driven severe weather events increase in intensity and frequency.

The government wont be able to keep bailing out people in this way, New Zealand Prime Minister Christopher Luxon told state-owned Radio New Zealand this week.

We need to find a way to manage these events going forward and who takes responsibility and is there a shared responsibility.

His comments come as parts of the South Island start cleaning up after floods this month, which affected roughly 800 homes, according to local authorities. The government on Wednesday announced NZ$600,000 ($356,700) in compensation for flood-affected farmers, growers and forestry owners.

By 2060 at least 14,500 homes worth approximately NZ$12.5 billion could suffer at least one damaging flood, around 300 to 400 homes annually, according to Climate Sigma research.

Climate Minister Simon Watts said in an email that the government has been working to get bipartisan support on a national adaptation framework to give New Zealand certainty.

This is a complex and challenging work, he said.