Australia's Truly Voluntary Buyback Scheme Based on Market Value- A Global Norm

Benjeroop, a small farming community in Victoria, Australia was inundated with floodwater in early 2011. The Victorian state government decided to make a voluntary buyback offer to the worst affected property owners.

"Under the lower Loddon irrigators recovery package, farmers can receive compensation for switching to dry land farming, get bought out at pre-flood market value or receive assistance to build levies to protect their homes." Reports ABC News.

Note the buyback price is pre-flood market value, compared to Canterbury's red zone offer ratings valuation offer, which is lower than pre-quake market price in most cases.

The Benjeroop buyback offer was made to properties that were worst hit by flooding. There were no insurance prerequisites for the offer.

The Victorian Minister for Water, Peter Walsh, said "There is an offer for anyone who is staying in their area with their home for a $30,000 grant to actually put an individual flood levee around their house and their immediate shed"

Compare this to CERA's implicit threats that people who wish to stay in the 'red zone' will be cut off from their water, power and other utility services.

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