MidCoast Council “about $7million” out of pocket on major flood repairs

MidCoast Council is still owed millions of dollars by the state government as it waits to be reimbursed for repairs made in the aftermath of the major flooding event that hit the region in May.

Previously: After May’s damaging floods, both the state and federal governments provided local councils with a grace period of 90-days for reconstruction and emergency works. During that timeframe the cost for those works would be reimbursed.

• With the tight deadline looming, MidCoast Council was facing restoration works that overlapped four separate natural disasters that had occurred in the LGA earlier this year.

• These 2025 disasters included:

  • Severe weather and storms from January 15

  • Tropical Cyclone Alfred severe weather from March 3

  • Severe storms from March 28

  • East coast severe weather from May 18

In July, MidCoast Council was granted an extension, taking the deadline to complete repairs from three months to six months.

• This meant the council could continue government-funded works to be completed by the end of December.

What’s happened now: Looking at the quarterly budget review statement during the November 19 council meeting, Councillor Digby Wilson pointed out that it included expenditure to repair damage caused by the floods in May. The council has been reimbursed for some claims but not others.

• “We’ve spent about $28 million, we’ve claimed $13 million, we’ve got $6 million back,” Wilson said during the meeting.

• “So it’s important that we keep an eye on that, because that’ll play silly buggers with the budget.”

Councillor Jeremy Miller noted that while some money had come through, the council remains out of pocket about $7 million.

• “Some claims have started to be paid, but some of the claims lodged as far back in June…have still not been fully paid,” Miller said.

Progress report: General Manager Adrian Panuccio provided an update on money received and claims yet to be reimbursed. He said the council had received $3 million for waste removal.

🗣️ “There's still probably about $3 million that we ought to still claim outside of waste, and we're working through that,” Panuccio said.

Council had received $3 million for transport infrastructure costs.

The General Manager said the council had put in a further claim of “nine-odd million dollars” that hasn't been processed yet. 

What next: Council is having ongoing discussions with Reconstruction Authority (RA) on the best process for larger claims.

• “At the moment, it's been all the emergency work, interim work that we've been seeking payment for,” Panuccio said.

• “When we get to the essential public infrastructure claims or the larger claims for bigger assets, there will be progress payments arrangements in place. So once those are approved, I am told we will get 20 percent up front, and there'll be gateway payments along the way to solve our cash flow problem. They’re the conversations we’ve been having.”

Thumbnail: May flooding in Wingham. Supplied MidCoast Council.