Victorian Auditor-General Urges Faster Flood Recovery Claims

The Victorian Auditor-General has called on state government agencies to expedite flood-related claims to avoid losing out on Commonwealth funding. This recommendation is part of a 40-page report assessing the Victorian government's response to the October 2022 floods.

The report raises concerns about the speed of relief and recovery efforts in areas such as Rochester, Shepparton, Echuca, and Maribyrnong. Tracie Kyne, a member of the Rochester Flood Mitigation Group, highlighted the urgency of the situation, stating, "It took so long for funding to come through to those who needed it most and were desperate for assistance. The red tape was just beyond ridiculous."

The Auditor-General's Office found that former Treasurer Tim Pallas approved $981.2 million in recovery funding within two weeks of the floods. However, it took up to six weeks for essential services like food relief and waste disposal to be made available to affected residents. By June 2023, the Victorian government had spent $1.66 billion on flood recovery, but many requests for Commonwealth funding lacked the necessary documentation and justification.

Due to these shortcomings, the Victorian government risks missing out on funding through the Disaster Recovery Funding Arrangements. In February, a letter from federal Minister for Emergency Services, Senator Jenny McAllister, indicated that the Victorian government did not apply for a co-funding arrangement with the Commonwealth for a housing scheme aimed at rebuilding better.

Kyne and fellow group member Leigh Wilson have advocated for the government to enhance flood resilience in vulnerable towns by constructing homes at higher elevations and improving water management systems. A parliamentary inquiry into the 2022 floods made 73 recommendations, of which the government accepted 16 in full earlier this year.

The report also revealed that assessors from the Department of Transport and Planning delayed funding releases by requesting additional information from local governments in 65 percent of cases. Although regional councils generally met submission deadlines, the timing of these requests created a backlog, leading to an average assessment time of 214 days. Wendy Lovell, a Liberal Party MP, criticized the delays, stating, "That's over seven months, so we're now three years out from the floods, and we've still got projects that haven't been progressed. This just shows how slow the flood recovery has been."

Bradley Thomas, secretary of Rural Councils Victoria, noted that the report presents an opportunity to reevaluate the claims process for repairing public assets. He described the current process as "burdensome" and "very bureaucratic," emphasizing the need for simplification.

The Auditor-General's Office acknowledged that the Department of Transport and Planning has not met its target of assessing claims within four weeks. While assessment times have improved from a peak of 429 days in May 2023, the report recommends that the department double its number of assessors and streamline the process for low-value claims.

Despite all claims made by local councils in the 2022-23 financial year meeting Commonwealth funding requirements, $15.6 million, or 5.8 percent, of claims from Victorian government departments were deemed ineligible due to insufficient evidence. This has placed additional pressure on the Department of Transport and Planning and Emergency Recovery Victoria. The report indicates that regional councils are still waiting for the restoration of public assets, nearly three years after the floods. The Victorian government has been approached for comment on the findings.