12 September 2000. Joint Media Statement

Government announces Clutha decision

The Government announced today a package totalling $21.58 million (including GST) to protect the town of Alexandra from future flooding by the Clutha River.

Contact and the Government are putting in equal amounts of $6.8 million (plus GST as appropriate) towards building the floodwall to protect against future risks of flooding.

In addition, the Government is covering contingency risks and some other costs of over $2.5 million plus GST.

In addition the Government will contribute $4 million including GST as a general contribution towards amenity enhancement, landscaping, roading, and restoration of facilities such as the swimming pool owned by the Central Otago District Council.

The package in total is worth more than $21 million (with GST included)

The package was announced today by Deputy Prime Minister Jim Anderton, Civil Defence Minister George Hawkins and Energy Minister Pete Hodgson.

"This Alexandra compensation package decision ends 10 years of prevarication and indecisiveness by previous National-led government," the Ministers said.

The Labour-Alliance Coalition Government approved the Alexandra compensation package after examining the report by Clutha Solutions Co-ordinator, Alex Adams. The Government commissioned the Alex Adams report earlier this year.

The report determined that the cause of flooding in Alexandra was directly attributable to silting in the river caused by the construction of the Roxburgh dam by the New Zealand Electricity Department in the 1950s.

The report found the extent of the flooding in Alexandra is directly attributable to the raised bed of the Clutha River as a result of silt trapped by the construction of the Roxburgh Dam by the New Zealand Electricity Department.

"The purpose of this compensation package is to ensure the protection of the community of Alexandra. This compensation package is a substantial commitment made by this Government to protect the people of Alexandra from future flood risk," the Ministers said.

"The Government is confident that the package will offer real protection to Alexandra from the risk of future flooding."

Physical Works:
The physical works include a number of components, such as:
 Building new stop-banks that will be one metre higher (143.3 metres above sea level) than flood levels that deluged Alexandra in November last year. This will provide 100 – 150 year flood protection
 Infrastructural alterations to water, waste and storm water, roading, telecommunications and power systems arising from the stop-bank's construction
 Property issues including the purchase of property that will be needed for constructing the new stop bank.

In association with the purchase of these properties, outstanding claims where damage was not covered by insurance are to be resolved as far as possible.

Community Amenity Issues:
In recognition of the past disruption to the community, the Government has provided $3.556 million plus GST for enhancements to Alexandra ranging from landscaping, alterations to footpaths and roads, and upgrading of the local swimming pool.

"The Government's commitment to provide community amenities displays determination to provide the very best result for people who lives have been disrupted through no fault of their own," the Ministers said.

"This Alexandra compensation package provides the means for those whose lives were devastated by Alexandra floods to now plan for their future."

ENDS

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