How fair is coastal compo?

In popular apocalyptic shows such as The Dome and The Walking Dead, humanity faces existential threats. These threats are false constructs – a large dome placed over an American town by an alien culture and the crushing of civilisation under the relentless shuffle of the living dead – that allow the study of humans and humanity placed under intense pressure and fighting for limited resources.

Climate change is of course very real, but the further we get into it, the clearer it becomes that just as big as the challenge of global warming itself will be how humanity deals with the inequities of its impacts and the rationing of depleted resources.

That pressure is likely to be felt most keenly along this country’s long coastline, parts of which may disappear under predicted sea-level rise over the next century. Experts believe some communities may have to be abandoned.

In areas such South Dunedin, Petone, Napier and Auckland, local authorities are considering their options, as are insurance companies.

Homeowners face the prospect of being pushed out of their houses by rising water, rates and insurance premiums. Some areas may be deemed uninsurable.

That could create a rapidly receding tide in property values, and the Government is concerned that the economy could also be undermined by that devastating ebb.

It is, apparently, considering compensation for the many homeowners facing the terrifying prospect of what to do with homes deemed near-worthless.

During the global financial crisis, banks and other key economic institutions were deemed too big to fail. We banded together, many quite reluctantly, for a bailout worth hundreds of billions of dollars.

Our Government appears to believe that the money tied up in our beachfront properties is equally significant.

But like the bailout of a decade ago, the people who stand to benefit here are among the wealthiest in the country. Aside from isolated spots in our poorer regions, much beachfront property is now out of the reach of most.

We may understand the Government’s argument about risk to the economy, but will we be comfortable compensating the wealthy owners of multimilliondollar properties?

They are already best-placed to handle the predicted surge in rates, insurance, fuel taxes and other compliance costs; burdens that will likely swamp those with fewer resources. Now we are considering many billions of dollars for lives and locations many of us can only dream about. Some of whom will know now that their recent purchase comes with great risk.

If the Government does proceed, it will need to establish a strong case for why such assistance is necessary and how the greater number benefit by helping the richer few. It will need to ensure that it is not establishing its own defacto insurance regime for the ignorant and those willing to chance their arm with the state’s backing.

Whatever the Government decides will undoubtedly test our beliefs in fairness, altruism and our largely egalitarian culture.

It will place many of our strongest and tightly held values under a dome and the greatest pressure.

It will be a test as great as climate change itself.