To enhance the natural hazard information offered in land information memoranda, the Local Government Official Information and Meetings Amendment Bill has been submitted in Parliament (LIMs).
According to the main Act, the Local Government Official Information and Meetings Act of 1987, LIMs are the primary source of real estate information for the general public and a crucial tool for informing buyers about natural hazards so they can make educated judgments.
To help property buyers comprehend natural hazard risks and make educated decisions regarding whether to acquire a property, greater natural hazard information, particularly information about the effects of climate change, must be provided in LIMs. The first National Adaptation Plan for New Zealand includes a core action of improving natural hazard information in LIMs.
However, there are issues with the way LIMs currently present information about natural hazards. Key natural hazard information may be missing from LIMs, they may not effectively communicate natural hazard information, and legal liability concerns may prevent local authorities from fully disclosing all relevant natural hazard information.
The Bill, which was introduced on November 22, 2022, modifies the main Act to introduce—
clearer guidelines for include information on natural hazards in a LIM (including the effects of climate change):
Regional councils have a legal obligation to assist territorial authorities with natural hazard information, including information on the effects of climate change:
a specific objective for delivering information on natural hazards:
provisions to create regulations for supplying information on natural hazards in LIMs:
limiting the legal liability of local officials who in good faith provide information about natural hazards.
These changes are intended to accomplish the main goals of—
ensuring that LIMs include natural hazard information to property buyers that is understandable, clear, concise, and presented consistently across the country:
lowering exposure to legal liability and giving local authorities assurance about sharing information about natural hazards in LIMs.
The Insurance Council of New Zealand (ICNZ) expressed its appreciation for the Bill's introduction in a statement, noting that it contains measures that would allow property owners and prospective buyers to get far better information on natural hazards like flood risk and coastal erosion. It's significant that the Bill expressly permits taking expected climate impacts into account.
According to Tim Grafton, chief executive of ICNZ, "We have a real and ongoing problem with building and maintaining assets in stupid places that stand to cost many property owners and ratepayers dear as the impacts and costs of climate change continue to worsen." The inclusion of information on natural hazards in land information memorandums (LIMs) should have clearer criteria for councils, and councils should be protected when giving that information.
"When considering committing to long-term financing, investment, and maintenance requirements, individuals, communities, councils, and lenders all need to know the long-term hazard outlook."
Where such information is available, this should span at least the next 50 years. When considering submitting an application for or writing a mortgage, in particular, borrowers and lenders should have access to and thoroughly review all relevant hazard information, according to Mr. Grafton.
Beyond the improved distribution of hazard information, authorities need to take more proactive measures to simply halt development in high-danger areas, particularly those located along our shore and in areas with a history of flooding.
