ECONOMIC IMPACTS

Disruption from Cyclone Gabrielle poses a challenge for several regional North Island economies over an extended period, says New Zealand economic consultancy Infometrics.

“Looking ahead, we expect that the floods in Auckland and the massive disruption from Cyclone Gabrielle will dampen economic activity at the start of 2023, before providing an artificial boost to growth as the recovery swings into action,” says Infometrics Chief Executive and Principal Economist Brad Olsen.

Where to from here?

When the repair and rebuilding work ramps up— possibly in the next two to three months—more hands will be needed by plumbing companies, who are already struggling to find skilled workers for their business-as-usual. With every road except one out of Hawke’s Bay involving a long drive through major ranges, getting supplies and equipment in and out is a mission in itself.

By mid-March, just one lane of the main Napier/Taupō road was open, and this was only to convoys of essential freight and services—with geotech engineers front and back of the line checking for safety. “It could take years before the roads are fully opened up,” says Grayson.

“The New Zealand conversation has been one of coastal erosion and managed retreat,” he adds. “After this event, dealing with flooding and extreme weather events must also be built into the long-term plan.”

In the immediate term, there are a lot of people who will need to be housed in the most affected regions—both those displaced, and those coming into the region to help with recovery efforts.

“Resourcing the recovery from Cyclone Gabrielle will be difficult given the constraints already clear across the economy,” says Olsen. “Workers and materials will need to be diverted from other areas and other tasks to enable the recovery. There will need to significant capital investment to rebuild transport networks and re-establish primary sector operations.”

Government cyclone recovery funding is available to eligible businesses. Apply at business.govt.nz

“Someone told me long ago there’s a calm before the storm. I know it’s been comin’ for some time.”

So sang Creedence Clearwater Revival.

Turns out their 1971 release could have been a warning.

Or maybe that warning was from the myriad climate scientists and weather forecasters who have been yelling from the rooftops for years that the weather is changing, that we can expect more extremes—and no, little old New Zealand is not immune from what we are seeing overseas.

My business is water, more particularly how to ensure water is where it should be. I head the Master Plumbers organisation. It represents our plumbers, drainlayers and gasfitters—those good people who are doing their utmost in this latest catastrophe to fix the pipes.

Here are some things that I know. New Zealanders have a right to expect that our critical assets—airports, hospitals, roads, municipal buildings and other key infrastructure—are built and maintained to a level that protects against natural disasters like the ones that have wreaked such devastation in the upper North Island and other parts of New Zealand.

Reliable stormwater and wastewater infrastructure planning and management is essential for handling extreme weather of this kind— and the fact is, we simply have not planned and invested to the level New Zealanders should expect. There is no excuse for this. None.

Anyone who has travelled to Asian capitals like Singapore or Kuala Lumpur will know their infrastructure has been constructed to withstand monsoon conditions very similar to the extreme rainfall just experienced. Singapore’s rail network is its public transport backbone, given priority before any residential development begins.

In New Zealand, we see the opposite strategy. One building goes up and before you blink, 1,000 more appear in a new subdivision without proper analysis of the infrastructure needed to support it (let alone the building of that infrastructure).

In Auckland, rainwater retention tanks are being used in residential developments to ease the load on the stormwater infrastructure. That is like applying a band-aid to a gaping wound. It’s no way to future-proof our cities.

And when the infrastructure fails, another problem arises. With an estimated shortfall of 3,500 plumbers and drainlayers, New Zealand simply does not have the workforce capacity to keep up with the normal workload, let alone the extensive repair work resulting from natural disasters.

At Master Plumbers, we are acutely aware that plumbing, drainlaying and gasfitting businesses are stretched to the limit by the combination of staff shortages and an all-time high in building consents.

During the height of the Auckland floods in January, Auckland Council cancelled normal building inspections for two days to prioritise urgent or essential works on thousands of affected properties. Whilst understandable, this highlights a massive issue for the plumbing industry—long delays in getting work inspected and consented.

We’re having to send inspectors from around the country to help with assessments of damaged properties in the upper North Island. Yet, all the while, New Zealand remains painfully slow in adopting modern technologies to speed up the consenting process.

Please read these two factors again—labour shortages and consenting delays—and know that it means huge waits in building and construction. We have been saying both these things to Government for years, in the knowledge that we must