CDEM Resilience Fund on the way

Director John Hamilton has recently written to all local authorities outlining plans for a contestable fund. The contents of the letter are...

"I am writing to you to advise of the establishment of the Civil Defence Emergency Management (CDEM) Resilience Fund that will support the development of civil defence emergency management capability in local government. The Minister of Civil Defence has approved an arrangement that will replace the previous reimbursement by the central government of a proportion of local authority civil defence emergency management expenditure. The funds allocated will now be directed towards local authority led projects that demonstrate a contribution towards resilience and address identified sector priorities. The goal is to ensure the allocation provides maximum value towards enhancing resilience, achieves a more strategic focus, and encourages collaboration across the CDEM Groups and local authorities.

Since 1966 the government has provided to local authorities a subsidy to support the development of civil defence capability. Recently, the Ministry of Civil Defence & Emergency Management has overseen the distribution of these funds to local authorities on a pro rata basis: all local authorities were refunded a percentage of their total civil defence emergency management expenditure. A review of the allocation of the subsidy determined that this approach was delivering poor value for money. On that basis, the Minister of Civil Defence agreed that the subsidy should be replaced with a contestable fund process that the allocation of funds would be linked to demonstrated improvements in civil defence emergency management and community resilience.

The process for the CDEM Resilience Fund

The Ministry has therefore developed a process for the management of the CDEM Resilience Fund that is outlined in the attached document. The allocation of the fund to projects will be guided by the priorities identified by the sector, identified gaps in the sector, the value to the wider CDEM sector, ability to deliver, and the value for money of the proposed deliverables. The Ministry will monitor the delivery of the projects and support collaboration across local authorities and CDEM Groups in undertaking projects.

To determine the priorities for the allocation of the CDEM Resilience Fund, we will establish a forum of the 16 Chairs of the Coordinating Executive Groups. I wish to hold this forum in October to enable the chairs to discuss possible priorities and areas for collaboration for the 2011/12 financial year onwards. It will provide the opportunity to discuss the strategic challenges facing CDEM across the nation and provide the opportunity for the CDEM Groups to discuss areas of possible cooperation. I will be contacting each of the 16 Chairs directly to discuss their attendance at this forum.

Once the forum of CEG Chairs has determined the priorities for the forthcoming round of the fund, they will be communicated to all local authorities and the CDEM Group offices to enable the early development of proposals. An independent evaluation committee will review the proposals against the criteria established by the CEG Chair Forum. It will also investigate the possible mergers of proposals to enhance collaboration and maximise the benefit gained. The evaluation committee will consist of members of CDEM partner agencies.

Transitional arrangements for 2010/11

The full CDEM Resilience Fund process will operate for the allocation in the 2011/12 financial year. The extended timeframe for the process of selection cannot be implemented for this financial year and a transitional arrangement will be required for 2010/11.

Local authorities are therefore requested to apply for funding for projects in the CDEM area by 10 October. No strategic priorities will be set for this financial year to rank the applications. The evaluation committee will also not seek to merge or link similar projects in this round. Proposals can be supported by a multiple of local authorities or CDEM Group(s). However, that will be based on the initiative of local authorities involved. As long as the proposals are compatible with the principles and criteria for eligibility outlined in the guideline for the CDEM Resilience Fund (attached) and are within the proposed allocation for that local authority, the Ministry will approve the allocation.

To simplify the process for the transitional period, a proposed funding amount for local authorities is proposed. This is to provide a guide for the consideration of proposals and simplify the process for deciding on funding allocation. Proposals may exceed that amount, but then approval will be dependent on the availability of funding.

The proposed funding amount for local authorities is $9,000 per authority with the exception of the new amalgamated Auckland Council allocated up to $72,000, and each of the other unitary authorities (Marlborough, Nelson-Tasman, Gisborne, and Chatham Islands) being proposed $30,000. Authorities can make joint applications through which they can combine their proposed funding amount.

The way ahead

The CDEM Resilience Fund provides a mechanism for the local government CDEM sector to collaboratively identify priorities and establish joint projects to maximise the benefits gained from the subsidy provided by the government. I appreciate that this approach will also place an administrative burden on those involved and inevitably there will be teething problems with the new system. However, I believe that this approach will pay increasing dividends as the process becomes embedded and areas of collaboration are identified.

Yours sincerely,

John Hamilton

Director"